Lectures In Mpp

Acharya Institute of Management & Sciences

EMPOWERING MINDS

Department of Management Studies (MBA)  An Introduction to  Management Principles & Practices By Indranil Mutsuddi

What is Management..

What is Management..

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

An Ice Breaker…

Management as a Process….

INPUTS (the 6 Ms)

• • • • • •

Management Functions

OBJECTIVES

PLANNING DIRECTING Manpower • Goods & Service Materials desired by Machines customers Methods Money CONTROLLING STAFFING MarketsORGANISING

Nature of Management…          

Utilization of Resources optimally & Economically Goal Oriented Distinct process Integrative Force Intangible force Multidisciplinary Result attained through others Universally applicable A System of Authority A Science or Art?

Management as a Science…



Management can be treated as a “Behavioral Science”- the principles and theories of which are “Situation bound/oriented” as their applicability does not necessarily lead to the same results every time.

Management as an Art….





Can be considered as one of the most “Creative Arts” as it requires a vast knowledge, along with innovation, initiatives, implementing & integrating skills in relation to goals, resources and results. As an Art, management calls for a corpus of abilities, skills & judgment and a continuous practice of management concepts & principles.

Challenges of Management….

  

To achieve specific purpose & mission To make tasks more productive & worker achieving. To manage social impacts & social responsibilities.

Reconciling the competing Interests of Management…. Organization: • Customer needs • Orgn Needs • Orgn Constraints Individuals: Groups: • Aspirations• Aspirations • Abilities • Abilities • Potential • Potential

Who are Managers.. A manager is an employee who forms part of a management team and is accountable for exercising delegated authority over human and financial resources so as to accomplish the objectives of the organization.

Management Functions: Importance of Goal Setting

Vision

 Set direction

Leadership

Goals Strategies Actions

Management

What Managers Do

 Need to have good interpersonal skill  OB focuses on the personto-person aspects of work

Managerial Functions  Planning  Organizing  Leading  Controlling

H. Fayol

Big Hairy Audacious Goals

1990 $25.8 billion net sales

 Quantitative or Qualitative Approach  Become a $125 billion company by the year 2000 2000 net sales $156 billions 2005 net sales $312 billions

 Become the company most known for changing the worldwide poor-quality image of Japanese products

1950

Big Hairy Audacious Goals  By 2010, we will be the best teaching hospital in the world, coupling unparalleled clinical expertise with a new standard in healthcare for compassion and service  Nurses at The Johns Hopkins Hospital will be recognized as international leaders in the conduct and use of research and outcomes measurement to advance the practice of nursing

Big Hairy Audacious Goals  Role-model

Approach

 Become the Harvard of the West

1940s  Become the Nike of the cycling industry

(Giro Sport Design, 1986)

Big Hairy Audacious Goals  Transform this company from a defense contractor into the best diversified hightechnology company in the world  Internal-transformation

1995

Approach

 Sold its aerospace and defense division to Boeing and later become

Effective & Ineffective Visions  Effective – – – – – –

Vision

Imaginable Desirable Feasible Focused/clear Flexible Communicable

Your team visions?

 Problem – – –

signs

We finish the ”vision thing” and move on to other projects Never been brought up in strategy or planning sessions Any employees who’ve been with the company for 30 days or more can’t tell what the vision means to them

Evaluation of Managerial Effectiveness  Output quality  consistency/reliability  meet stakeholders’ expectation

 Efficiency of resources utilization  labor, capital, time  knowledge/expertise  Adaptability over time  responsiveness  innovative & change over time  Ability to hold people accountable  ideas and innovation  overall performance

Can I be called a manager….

Conventional Managerial Functions..

onceptual & DecisionMaking Skills Human Skills Technical Skills

Managerial Functions Top Level Mgrs Middle Level Mgrs

First level Managers

• Planning • • • •

Organizing Staffing Leading Controlling & Coordinating

Management Skills

Eleven Qualities of a successful manager…

. Command of basic facts Basic Knowledge & . Relevant Professional Understanding Information

ivity to events tical, Problem solving & Decision Making skills Skills & Skills & Abilities attributes onal Resilience tive Behavior 1. Creativity 2. Mental Agility 3. Balanced Learning Habits & Skills 4. Self-Knowledge

Meta Qualities

The SuccessFul

Manager

Basic Managerial Roles & their Relationship with the Organizational Resources………… Controlling

Leading

Organizing

Planning

Management of… Human Resources Financial Resources Physical Resources

Information Resources

ffective & Efficient attainment of Organizational Goals

Effective Versus Successful Managerial Activities (Luthans) 1. Traditional management • Decision making, planning, and controlling

2. Communications • Exchanging routine information and processing paperwork

3. Human resource management • Motivating, disciplining, managing conflict, staffing, and training

4. Networking • Socializing, politicking, and interacting with others

Effective Versus Successful Managers

 Successful managers defined as those who were promoted the fastest

 Effective managers defined as quality and quantity of performance, as well as, commitment to employees:

Henri Fayol & Management Functions Plan

Lead

Organize 90%

84 70

Importance 0%

Control

65

61

54 45

5050

33

Top managers

25

Middle managers

31

38

Low level managers

Allocation of Activities by Time

Managerial Work at Different Levels Instructing subordinates Managing individual perf. Managing group perf.

70%

Resource allocation Monitor environment Representing people

(All levels)

Importance 0%

Executives An eye on The outside

Middle managers Linking groups

First-line Supervisors Supervising individuals

What Do Managers Really Do?

Figurehead Performing ceremonial duties

Take initiatives Entrepreneur Bring about change

Motivating and directing Leader subordinates

Handling disturbance Disturbance handler Damage control

Spend time networking Liaison with outside contacts

Delegation, authorization Resource allocator Resource allocation

Gathering information through Monitor face to face communication

Argue with others Negotiator to get a better deal

Pass on information to Disseminator subordinates Explain things to people Spokesperson outside the unit

Interpersonal Roles Informational Roles Decisional Roles

Typical Managerial Work Managers’ effectiveness is significantly influenced by their insight into their own work  Constant pressure  Overburdened with obligations not easily delegate, thus overworked  Constant interruption  Respond quickly  Seek the tangible  Prefer oral communication  Make decision in small increments  Do everything abruptly

Behaving like a Manager..

A manager is the one who manages: but what is he who mismanages ????

Can I be called a manager….

?

Wanna b a manager? Get inspired..

Hey you…Wanna be a manager…   

    

Establish ur Identity in ur organization Exercise ur authority Don’t become a PO-PO..(Don’t count on competence to be the sole criterion for success) Train & update urself on a regular basis. Use technology Depend on ur own soft skills Be generous with small mistakes Praise others & give their due credits where they deserve..

Wanna be a manager…       

Be a Role Model…create examples thru ur own performance & contribution Control & care for ur employees & subordinates.. Inculcate empathy for people & show ur willingness & concern Know ur job well Be able & competent..show leadership qualities Follow deadlines, time & resource constraints Respect personal confidentiality of ur peers & subordinates

I am a manager..yet I have no time..

Wanna be a manager…    



Create a workplace free from biasness, prejudice & internal politics. Show willingness to try out employee ideas innovations Set firm rules & enforce them without exception & biasness. Handle projects with work-teams, establish time & quality goals, give authority & autonomy to others based on their competencies. Set goals review them from time to time

Hey what about me???

Wanna be a manager…       

Give ur peers & subordinates reasons to both like & trust u… Dare to dream big…but don’t daydream Have vision & share the same with others. Never abuse ur own power or position..be ethical Listen to others… Treat ur employees as “Internal Customers” Measure & track ur key strategies & tactics on a regular basis...

Managerial Roles… Mintzberg’s Managerial Roles

Interpersonal Roles Informational Roles Decision Roles Entrepreneurial Figurehead Role

Recipient Role

Leader Role

Disseminator Role

Liaison Role

Spokesperson Role

Disturbance handler Resource Allocator Negotiator

Mintzberg’s Managerial Roles

EXHIBIT

1-1a

Mintzberg’s Managerial Roles (cont’d)

EXHIBIT

1-1b

Mintzberg’s Managerial Roles (cont’d)

EXHIBIT

1-1c

Know ur Management Gurus…

Henry Mintzberg

Once upon a manager…

A Manager’s Mental Blocks…       

Results are proportional to efforts Quantity of work is more important than quality We need longer working hours No breaks please !!!! No one else can do it right This problem is urgent… I am all in all…

Never b the manager where….

Pose urself a few questions as a manager….  





What is the vision & mission of my organization? How objective am I in my approach to decision making, work & handling my subordinates? Am I sufficiently well informed to pass judgments on people & proposals? How do my subordinates react to my management style?

Mission Impossible???

Pose urself a few questions as a manager….      

Is there any system to any time scheduling or am I just reacting to the pressure of the moment? Do I spend too much time on current disposal? Do I recognize & follow the ethical standards in the organization? Am I always objective, rational in my judgments? Do I always have a “parent ego” & do things for others? Do I allow & appreciate other’s views & creative ideas?

Behaving like a Manager….Some Fundas

 Rule  Rule

1: “The Boss is always RIGHT”

2: “If the Boss is not RIGHT, see & believe in Rule 1”

Yessssssss Bosssssssss…

Behaving like a Manager….Some Fundas  Understand

the Pyramid of Efficiency, Productivity, Effectiveness & Success….. Success Effectiveness Productivity

Efficiency

• Efficiency: It is the achievement of the ends with the least amount of resources. • Productivity: It is the outputinput ratio within a time period with due consideration for quality • Effectiveness: It is the extent to which the aimed objectives are achieved most economically & profitably. • Success: It is the achievement of aimed objectives.

Behaving like a Manager….Some Fundas Efficiency

Effectiveness

Do things right

Do right things

Solve Problems

Produce creative alternatives Optimize Resource Utilization Obtain Results

Safeguard Resources Discharge duties

Wanna Be a Manager…. “B+ve” Look carefully & say what it is…

“The Glass is half ______”

Wanna Be a Manager…. “B+ve” Aint it looks different in terms of attitude??? Thinking it all –ve

Thinking it all +ve

“The Glass is half EMPTY”

“The Glass is half FULL”

Accentuate Positive Attitude

7 Principles of being a “+ve” Manager  Be

effective, yet be different  Have a vision & ensure constructiveness  Inculcate the aura of respect & teamwork in ur organization.  Ensure self-improvement on a regular basis  Contribute regularly (involvement)  Count on time/deadlines & care for ethics  Get inspired & inspire others

What ur employees expect from u…

Manage ur people: The Win Win Mantra

The New People Management Mantra “Coalescing Corporate needs with the individuals is crucial”

Manage ur people: The Win Win Mantra

“Global competitiveness can be achieved through the best technologies and plants, but by effectively motivating your employees to perform at global standards. A new approach to managing people becomes absolutely critical here..” Sanjiv Goenka, Vice Chairman,RPG Enterprises

Wanna b a good Manager? Believe in ur Organization’s Talents

Talent Pool with potential to attain full growth / perfection

Grow ur Organization’s Talents Potential Capacity Competency

Capacity = Demonstrated competencies + Unrealized potential

The four fundamental capacities are learning, thinking, relating and acting

Understanding ur Organization’s Talents

AQ: Action Quotient CQ: Conceptual Quotient RQ: Relationship Quotient LQ: Learning Quotient

Talent Quotient (AQ+CQ+RQ+LQ) x Values ________________________ Talent Max

Capacities are the DNA of any

D Point of Departure

N Navigation

A Point of Arrival

 

Translating organizational vision into goals and mapping the required level of capacities and competencies required to achieve goals

Aligning individual values and vision with organizational values and vision

Assessment of talent to profile the level of capacities and set of competencies possessed within the organization

Enhancing capacities to learn, think, relate and act through development initiatives

Gap analysis and identification of development path

Helping individuals realize their full potential through learning and development

Clear understanding of the varied roles within the organization and appreciation of the value-addition from self and others leading to building a culture of trust, sharing and team orientation Individual growth to meet & accept varied, incremental and transformational roles in an overall scenario of acknowledged need for change Developed individuals enabling breakthrough performance

Are top managers clueless?  CEO

Jeff Skilling thought Enron was “in excellent shape” when he quit a few months before it collapsed

Are top managers clueless? 

Joseph Berardino, CEO of Enron’s auditor, Andersen Worldwide, said no one told him some of his partners thought the firm was at risk in approving Enron’s aggressive accounting practices.

Are top manager clueless? Roger Smith said it was a “mystery” why General Motors lost market share throughout his tenure as CEO

Virtues and drawbacks of organization  Prevalence

of large, complex organizations is historically recent  Much of society’s important work is done in or by organizations, but…  They often produce poor service, defective or dangerous products and…  Too often they exploit people and communities, and damage the environment

Signs of Cluelessness

 Management

errors produces 100s of bankruptcies of public companies every year  Most mergers fail, but companies keep on merging  One study estimates 50 to 75% of American managers are incompetent  Most change initiatives produce little change; some makes things worse

Strategies to improve organizations Better

management Consultants Government policy and regulation

Approaches To Management Empirical / Case Approach  Interpersonal behavior Approach  Group Behavior Approach  Cooperative Social Systems Approach  Socio-technical Systems Approach  Decision Theory Approach  Systems Approach  Mgt Science Approach  Contingency Approach  Managerial Roles Approach  McKinsey’s 7-S Framework  Operational Approach 

Empirical or Case Approach Case Situation Failures

Success Why?

Features:

• To study experience through cases • To identify successes & failures

Limitations:

• Situations are all different • Limited value for development of Management Theory

Interpersonal Behavior Approach

Focus Of Study Features:

• Focus on interpersonal behavior, human relations • Based on individual psychology,.

Limitations:

• Ignores planning, organizing & controlling. • Psychological training is not enough to become an effective manager

Group Behavior Approach

Study of a Group

Study of Groups interacting with each other

Features:

• Emphasis on behavior of people in groups • Based on sociology & social psychology,.

Limitations:

• Often not integrated with management concepts, principles. • Need for closer integration with organization structure, design etc.

Common Goal

Or

ga n

iz at

io

n

St

ru ct ur

e

Cooperative Social Systems Approach

Features:

• Concerned with both interpersonal & group behavioral aspects leading to a system of cooperation.

Limitations:

• Too broad a field for the study of management. • Overlooks many managerial concepts, principles & techniques.

Socio-technical Systems Approach Technical System

Machines

Operations

Social System

Personal Attitudes

Group Behavior

Features:

•Technical system has great effect on the social system (personal attitudes, group behavior).

Limitations:

• Emphasis only on blue-collar & lower level office works. • Ignores much of other managerial knowledge.

Decision Theory Approach Process of Decision making Decision Entire Area Theory

Of Business Activity

Individual Decision making Values of Decision Makers

Nature of Information Group OrganizationFor Decisions Decision Structure making

Features:

• Focus on the making of decisions, persons or groups making decisions, & the decision making process.

Limitations:

• There is more to managing than making decisions. • The focus is at the same time too narrow & too wide.

Systems Approach Re-engineering the System

Inputs

Transformation Outputs Process External Environment

Features:

• Systems have boundaries, but they also interact with the external environment ie. Organizations are considered as “Open Systems”

Limitations:

• Analyzes of the inter-relatedness of systems & subsystems as well as the interactions of organizations with their external environment.

Management Science Approach E = F ( Xi, Yi )

YES NO

Features:

• Managing is seen as mathematical processes, concepts, symbols & models. • Looks at management as purely logical process, expressed in mathematical symbols & relationships.

Limitations:

• Pre-occupation with mathematical models. • Many aspects in managing cannot be modeled. • Mathematics is an useful tool, but hardly a school or an approach to management.

Contingency or Situational Approach Cause

Effect Depends On

Contingency Features:

• Managerial practice depends upon circumstances (ie a contingency or a situation. • This theory recognizes the influence of given solutions on the organizational behavioral patterns.

Limitations:

• Managers have long realized that there is no one best way to do things • Difficulty in determining all relevant contingency factors & showing their relationships can be very complex.

Managerial Roles Approach Interpersonal Roles

Decision Roles

Informational Roles

Features:

• Interpersonal Roles: Figurehead, Leader, Liaison Roles • Informational Roles: Recipient, Disseminator, Spokesperson Roles • Decision Roles: Entrepreneurial, Disturbance-Handler, ResourceAllocator & Negotiator Roles.

Limitations:

• Many important managerial activities & roles like appraising others were left out.

McKinsey’s 7-S Framework Systems Structure

Strategy Skills

Style

Staff Shared Values

Features: • The Seven S’s are: Strategy, Structure, Systems, Style, Staff, Shared Values & Skills

Operational Approach Draws knowledge from approaches above Operational Approach

Features:

Integrates the approaches With science & theory That is practical

• Draws together concepts, principles, techniques & knowledge from other fields & managerial approaches • The attempt is to develop science & theory with practical application • Distinguishes between managerial & non-managerial knowledge. • Develops classification system built around the managerial functions of planning, organizing, staffing, leading controlling.

Limitations:

• Does not identify “representing” or “coordination” as a separate function.