Management

Management Management is a process of designing & maintaining environment in which individuals, working together in groups, efficiently accomplish selected aims

Management Process of working with & through others to achieve organizational objectives in a changing environment. Central to this process is the effective & efficient use of limited resources.

Management It is the process of planning, organizing, leading and controlling, individual and resources to achieve organizational objectives

Organization A consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals

Components of Organization  People  Goals or Purpose  Structure  Technology

Characteristics of Today’s Organization Change Bigness

Govt. Interference Competition

Organization

Information

Diversification

Globalization Science & Tech

Management Process PHYSICAL RESOURC ES

Planning

zi n

g

ORGANIZATIONAL GOALS Or g

an i

Co

nt

ro

lli n

g

HUMAN RESOURCES

INFORMATION RESOURCES

Leading

FINANCIA L RESOURC ES

Management Functions

Planning

Organizing

Management Functions Controlling

Leading

Management Functions ‘ Planning

Organizing

Management Functions Controlling

Leading

Management Functions: Planning, Organizing, leading & controlling Planning Setting performance Objectives & deciding How to achieve them

Controlling Measuring performance & taking action to Ensure desired results

The Management Process

Leading Inspiring people to Work hard to achieve High performance

Organizing Arranging tasks, people, & other resources To accomplish the work

Interactive Nature of Management Process . CONTROLLING Managers make sure org is moving towards org objectives

PLANNING Managers use logic & methods to think through goals & actions ORGANIZING Managers arranged & allocate work authority & resources to achieve organization goals LEADING Managers direct, Influence, & Motivation employees to perform essential tasks

Managerial Functions

Leading Planning Organization Controlling Defining Goals, Determining What Directing & Monitoring activities Establishing strategy,Needs to be done, Motivating all To ensure that they are & developing How it will be done, Involved parties Accomplished as & resolving conflicts Sub-plans to & who is to do it Planned Coordinate activities

Lead to

Achieving the Org Stated purpose

Manager “The individuals who are responsible for completing the tasks that requires supervision of other members or organization or organizational resources.” “Individual in an organization who direct the activities of others to achieve the organizational objectives.” (Robbins)

Manager “People responsible for designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” (Koontz)

Levels of Managers

Top Managers Middle Managers First-line Managers Operatives

Top Level Managers The individuals responsible for determining the goals, objectives and plans that chart the organization’s long-range course. The most important task of Top-level management is strategic planning. Examples of Top Level Mangers are Managing Directors, Directors etc.

Middle Level Managers All levels of mangers between the Top level mangers and First Line Mangers are called Middle Level Managers. They involve in tactical planning and control. Examples of Middle Level Mangers are General Managers, Deputy General Managers and Managers etc.

First Line Managers They are directly responsible for planning and controlling the activities of workers so that higher-level targets are met; this is the lowest level of management in the organizational hierarchy. Examples of First Line Mangers are Assistant Managers, Supervisors, and Foremen etc.

Types of Managers  Line Managers  Staff Managers

Line Managers The term line refers to a position and describes managers whose organizational function contributes directly to the achievement of organizational objectives. Managers of Production, Quality and design functions are called line managers and their authority is called line authority.

Staff Managers The term staff refers to a position and describes managers who offer advice or assist line managers to perform their functions. They are not directly involved in production activities. Managers of Human Resource, Finance, Auditing and Security functions are called Staff Managers and their authority is called Staff Authority.

Management Skills  Technical Skills  Human Skills  Conceptual Skills

Technical Skill It is knowledge of and proficiency in activities involving methods, processes and procedures. It involves working with tools and specific techniques

Human Skill It is the ability to work with people; it is cooperative effort; it is teamwork and creation of an environment in which people feel secure and free to express their opinions

Conceptual Skill It is the ability to see the big picture, to recognize significant elements in a situation, to understand the relationships among the elements and the ability to solve problems in ways that will benefit the enterprise

Managers and Skills First-Line

Technical Skills

Human Skills

Conceptual Skills

Middle Level

Top Level

Manager Roles  Interpersonal Roles  Informational Roles  Decisional Roles

Interpersonal Roles All managers are required to perform duties that are ceremonial and symbolic in natureInterpersonal Roles. These are Figurehead Leader Liaison

Informational Roles Informational Roles-receiving and collecting information from organizations and institutions their own. These roles are Monitor Disseminator Spokesperson

Decisional Roles These roles are the major part of manager’s responsibilities. They include Entrepreneur Disturbance Handler Resource Allocation Role Negotiator

Management Seeks Efficiency & Effectiveness Ends: Effectiveness

Means: Efficiency

Low Waste

Goals

High attainment

Planning Planning is the process of establishing goals and a suitable course of action to achieve these goals. It requires decision making, that is, choosing future courses of action from alternatives

Ty pes o f Pla ns  Single Use Plans  Programs  Projects  Policies  Procedures  Budget Plans  Contingency Plans

Mangers and Planning  Strategic Planning  Tactical Planning  Operational Planning

Mangers and Planning Top Level Managers

Strategic Planning

Middle Level Managers

Tactical Planning

First Line Managers

Operational Planning

Strategic Planning Planning that apply to the entire organization, establishes the organization’s overall objectives and seek to positions an organization in terms of its environment is called strategic planning. It takes place at the highest level of the organization.

Tactical Planning It is the technique of determining how strategic objectives will be accomplished. It is usually the job of Middle level Managers.

Operational Planning It specifies the detail how overall objectives are to be achieved. It is typically the job of First Line Managers.

Planning-Timeframe  Long-Range Planning  Intermediate Planning  Short-Range Planning

Plannin g Process Mission | V

Objectives | V

Situation Analysis | V

Strategy Formulation | V

Implementation | V

Control

Organizational Mission Concern for survival: What is the organization’s commitment to economic objectives? Customers: Who customers?

are

the

organization’s

Products/Services: What are the organization’s major products or services? Location: compete?

Where

does

the

organization

Organizational Mission Technology: What is the firm’s basic technology? Philosophy: What are the values, aspirations and priorities of the organization?

basic beliefs, philosophical

Self-concept: What are the organization’s major strengths and competitive advantages?

Organizational Mission Concern for public image: What are the organization’s public responsibilities, and what image is desired? Concern for employees: What is the organization’s attitude toward its employees?

Tools for Planning  Brain Storming  Forecasting  Breakeven Analysis  Gantt Chart  Program Evaluation and Review Technique (PERT)  Critical Path Method (CPM)  Delphi Technique

Barriers to Planning  Inappropriate Goals  Improper Reward System  Complex Environment  Resistance to Change  Constraints  Information Deficiency

Benefits of Goals  Increase Performance  Clarify Expectations  Facilitate the Controlling Function  Increase Motivation

Levels of Goals Top Management

Strategic Goals----Strategic Plans

Middle Management

Tactical Goals------Tactical Plans

First Level Management

Operational Goals ---------Operational Plans

Levels of Goals  Strategic Goals: Broadly defined targets or

future end results set by top management

 Tactical goals: Targets or future end results

usually set by middle management for specific departments or units

 Operational goals: Targets or future end

results set by lower management that address specific measurable outcomes required from the lower levels

How Goals Facilitate Performance Job Knowledge and Ability

Goal Content: •Challenging •Attainable •Specific and Measurable •Time Limited •Relevant

Task Complexity

Work Behavior: •Direction •Effort •Persistence •Planning

PERFROMANCE

Goal Commitment:

•Supervisory Authority •Peer & group Pressure •Public Display •Expectations of Success •Incentives & Rewards •Participation

Knowledge of results (or feedback)

Situational Constraints (tools, materials and Equipment

Characteristics of Goals SMARTER  Specific  Measurable  Acceptable/Attainable  Realistic/Relevant  Timeframe  Extending  Rewarding

Strategy The broad program for defining and achieving an organization’s objectives. It can be  Corporate Level Strategy  Business Unit Strategy  Functional Level Strategy

Types of Strategies  Corporate Level Strategy Strategy formulated by top management to oversee the interests and operations multiline corporations

 Business Unit Strategy Strategy formulated to meet the goals of a particular business

 Functional Level Strategy Strategy formulated for a specific functional area to meet business unit objectives

Decision Making The process of selecting a course of action or alternative among different alternatives

Types of Decisions  Programmed decisions  Nonprogrammed decisions

Types of Decisions Programmed Decisions

Nonprogrammed Decisions

 Type of problem

 Type of problem

Frequent, repetitive, routine, much certainty regarding cause and effect relationship.  Procedure Dependence on policies, rules, and definite procedures.  Examples Business, University, Healthcare.

Novel, unstructured, much uncertainty regarding cause and effect relationship.  Procedures Necessity for creativity, intuition, tolerance for ambiguity, creative problem solving.  Examples Business, University, Healthcare.

Conditions of Decision-making  Certainty  Risk  Uncertainty

Barriers to Effective Decision Making  Psychological biases – Illusion of control – Farming effect – Discount the future  Time pressures – Real time information – Involve people more effectively and efficiently  Social realities

Decision-making Process        

Problem Identification Identification of Decision Criteria Allocating Weights to Criteria Generating Alternative Solutions Evaluating Alternatives Making the Choice Implementation of Decision Evaluating the Decision

Decision Making Process Problem Identification “New Supplier is required”

Analysis of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn

Identification of Decision Criteria Price Quality Mode of payment Credibility Location

Selection of an Alternative Anex Haji & sons Linkers Hassan Bro. Globe Inn

Allocation of Weights to Criteria Quality 10 Price 8 Mode of Pay 5 Location 4 Credibility 3

Development of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn

Implementation of an Alternative

Hassan Bro.

Evaluation of Decision Effectiveness

Organizing It is the process of arranging & allocating work authority & resources to achieve organization goals. It involves  Identifying tasks to be performed  Allocating the tasks among members  Integrating efforts to achieve its objectives

Key Concepts  Span of Management Control The number of subordinates reporting directly to a given manger

 Chain of Command The plan that specifies who reports to whom in an organization, such reporting lines are prominent features of organization chart

Key Concepts  Coordination The integration of the activities of the separates parts of an organization to accomplish organizational goals

 Downsizing A version of organizational restructuring which results in decreasing the size of the organization and often results in a flatter organizational structure

Types of Organizational Structures Product Functional

Customer

Options for Departmentalization Matrix Geography

MarketChannel

Functional Organization

President

Marketing Mgr

Production Mgr.

Finance Mgr

HRM Mgr

Geographical Organization

President

VP South Asia

VP East Asia.

VP Australia

VP North America

Product Organization

President

VP Tea Line

VP Oil Line.

VP Soap Line

VP W/Powder Line

Customer Organization President North America

Metals and Chemicals Group

Packing Systems Group

Material Science Group

International Group

Aerospace & Industrial Products

Matrix Organization Chief Executive

Production

Finance

Project A Manager

Production Grp

Finance Grp

Project B Manager

Production Grp

Finance Grp

Marketing

Marketing Grp

Marketing Grp

Material & Procurement

Human Resource

Materials Grp

HR Grp

Materials Grp

Line operation– Work performance Support assistance from functional departments

HR Grp

Power The ability to exert influence or force in an attempt to change attitude or behavior of individuals or groups.

Sources of Power  Reward Power  Coercive Power  Legitimate Power  Expert Power  Referent Power

Sources of Power  Reward Power It is the ability to reward another person for carrying out orders which may be expressed or implied

 Coercive Power The negative side of reward power, it is the ability to punish another person

 Legitimate Power It is the lawfully entitled ability to exert influence or force on other. It is also called formal authority

Sources of Power  Expert Power It is based on the belief or understanding that the influencer has specific knowledge or relevant expertise that the influencee does not

 Referent Power It is the desire of the influencee to be like or identity with the influencer

Authority It is the right to exert influence or force on other due someone’s position, knowledge or status. It is lawfully entitled power.

Types of Authority  Line Authority  Staff Authority  Functional Authority

Line Authority The authority of those mangers directly responsible, throughout the organization’s chain of command, for achieving organizational objectives

Staff Authority The authority of those groups of individuals who provide line managers with advice, support and services

Functional Authority The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities

Delegation The act of assigning formal authority and responsibility for completion of specific activities to a subordinate

Advantages of Delegation  It provides opportunities to seek and accept increased responsibilities from higher level managers  It causes employees to accept accountability and exercise judgment  It not only train employees but also improves their self confidence and willing to take initiative

Advantages of Delegation  It leads to better decisions  It speeds up decision making process

Centralization In centralized organization considerable authority, responsibility and accountability remain at the top of the hierarchy

Decentralization In decentralized organization considerable authority, responsibility and accountability are passed down the organizational hierarchy

Job Design The division of an organization’s wok among its employees

Job Redesign  Job Enlargement  Job Enrichment  Job Rotation

Controlling It is the process of monitoring organizational activities to ensure that they are being accomplished as they planned and taking corrective actions if there are significant deviations

Control Process

No Establish Standards

Measure Performance

Does it match standards Yes Do Nothing

Take Corrective Action

Why Control Needed  To create better quality  To cope with change  To create faster cycles  To facilitate teamwork

delegation

and

Types of Controls  Financial Controls  Budgetary Controls  Administrative Controls  Internal Control  Auditing

Levels of Controls  Strategic Control  Tactical Control  Operational Control

Stages of Controls  Preliminary or Feed forward Control  Screening or Concurrent Control  Post Action or Feedback Control

Barriers to Control  System Barriers  Behavioral Barriers  Political Barriers

Leadership Leadership empowers, motivates & organizes people to achieve common objective guidance.

and

provides

moral

Leadership It is the art or process of influencing people so that they will strive willingly and

enthusiastically

towards

achievement of group goals

the

Leadership It is the process of motivating and directing subordinates, selecting the most

effective

communication

channels and resolving conflicts

Leadership It is the lifting of man’s vision to higher sights, the praising of man’s performance to higher standard, the building of man’s personality beyond its normal limitations

Leader Versus Manager Leader

Manager

Innovator Originator Develops Inspire Trust Focus on People Challenge status co Owns the people Does the right thing

Administrator Copier Maintain Control Focus on System Maintain status co Classic good soldier Does thing right

Characteristics of Leader  Vision  Communication  Motivation  Integrity  Patience  Influence  Decisive Persistent

Motivation It is an energetic force within and outside human by which results lead into a behaviour. It is an attempt to satisfy need. The factors that cause, channel and sustain an individual’s behaviour.

Theories of Motivation  Need Theory Maslow’s Hierarchy of Needs ERG Theory Two Factor Theory Equity Theory

 Expectancy Theory  Reinforcement Theory  Goal Setting Theory

Maslow’s Hierarchy of Needs

Self-Actualization Needs

Self-Esteem Needs Social Needs Security/Safety Needs Physiological Needs

ERG Theory The theory of motivation that says people strive to meet a hierarchy of existence, relatedness and growth needs, if efforts to reach one level of needs are frustrated individuals will regress to a lower level.

Two Factor Theory Herzberg’s theory that work dissatisfaction and satisfaction arise from two different sets of factors. Dissatisfiers which he called hygiene factors included salary, working conditions, and company policy. Satisfiers or motivating factors include achievement, recognition, responsibility and advancement

Equity Theory According to equity theory, individuals are motivated when they experience satisfaction with what they receive from an effort in proportion to the effort they apply. A’s input = B’s Input A’s output = B’s output

Expectance Theory A theory of motivation that says that people choose how to behave from among alternative courses of behaviour based on their expectations of what there is to gain from each behaviour.  Expectancy  Instrumentalities  Valence

Reinforcement Theory A theory of motivation based on law of effect- the behaviour with positive consequences tends to be repeated while behaviour with negative consequences tends not to be repeated.

Goal-Setting Theory A theory of motivation that says that individuals are motivated when they behave in ways that move them to certain clear goals that they accept and can reasonably expect to attain.

Techniques of Leadership  Time Management or Budgeting of Time  Putting First Things First - Pick the future as against the past - Focus on opportunities rather on problems - Choose own decisions rather than climb on - Aim on something which will make difference

 Maintenance of options  Ability of making quick decisions  Mobilizing Resource

bandwagon

Techniques of Leadership  Create Friendship and avoid Enemies  Do not Open so many Fronts  Be Magnanimous (Ignore) instead of Vindictim (Revenge)

Theories or Approaches of Leadership

Trait Behavioral

Contingency Integrative

Trait Approach to Leadership It attempts to explain distinctive characteristics accounting for leadership effectiveness to identify a set of traits that all successful leaders possess. This approach assumed that leaders share certain inborn personality traits.

Trait Approach to Leadership Specific traits related leadership ability:  Physical traits (energy, appearance, height)  Intelligence & ability traits  Personality traits (adaptability, aggressiveness, enthusiasm, self-confidence)  Task-related characteristics (achievement, drive, persistence, tenacity)  Social characteristics (cooperativeness, interpersonal skills, administrative ability).

Behavioural Approach to Leadership It attempts to explain distinctive styles used by effective leaders or the nature of their work. It determines the types of leadership behaviors that lead to successful task performance and employee satisfaction. Researchers at Ohio state and University of Michigan performed the most extensive series of leadership studies in developing this theory.

Leadership Styles

(High)

Consideration

Low Structure High Structure and and High Consideration High Consideration

Low Structure High Structure and And Low Consideration Low Consideration (Low)

(High)

(Low) Initiating Structure

The Managerial Grid It is a network of management styles developed by Blake and Mouton which explains these styles by using two variables concerned for people and concerned for productivity.

MANAGERIAL GRID

8

(9,9) Team Management

6

7

(1,9) Country Club Management

4

5

(5,5) Middle of the Road Management

2

Impoverished Management

1

3

Concern for people

9

HIGH

(1,1)

LOW

1

LOW

AuthorityCompliance Management (9,1)

2

3 4 5 6 7 8 Concern for production

9

HIGH

Impoverish Managers (1,1)  They do not have the initiative to resolve the conflict between the organizational objectives and employees objectives  They neither identify with the people nor with the organization  They avoid personal improvements  They pass on the bug to others and do not make decisions  Neither they conduct evaluation and nor have effective communication skill

Task Managers (9,1)  They show little concern for the development and morale of subordinates  They tightly plan their goals  They focus to avoid mistakes  Their communication is restricted and downward

Country Club Managers (1,9)  They focus on being supportive and considerate of subordinates to the exclusion of concern for task efficiency  They are overly concerned with morale and personal objectives of employees  Their communication style is upward

Middle of the Road Managers (5,5)  They maintain adequate task efficiency and satisfactory morale  They do give specific instructions but also allow freedom  They evaluate success and failure quite objectively  Their style of communication is generally two way

Team Managers (9,9)  They facilitate task efficiency and high morale by coordinating and integrating work related activities  They inspire people, motivate them and support them to the last  Their evaluation is an ongoing process with objective to improve teamwork and enhance productivity  Their communication style is completely open, multidirectional and highly supported

Continuum of Leadership Behavior Subordinat e-centered Leadership

Boss-centered Leadership Use of authority by the manager

Manager Manager Manager makes “sells” presents ideas decision and decision and invites announces it questions

Area of freedom for subordinates

Manager presents tentative decision subject to change

Manager presents problem, gets suggestions, makes decision

Manager Manager permits defines limits; asks subordinates to function group to within limits make defined by decision supervisor

Leader Behavior Characteristics of subordinates

Functions

Leader

Motivated

Effective

of leader

behavior

subordinates

organization

Work Environment 4-44

Contingency or Situational Leadership Theory It attempts to explain the appropriate leadership style based on the leader, followers, and situation. It holds that there is no universal approach to leadership; rather, effective leadership behavior depends on situational factors that may change over time. Current leadership depends on three variables: the leader, the led, and the situation

Situational Leadership Model This approach to leadership by Hersey and Blanchard -describes “how

leaders

should

adjust

their

leadership style in response to their subordinates

evolving

achievement,

experience,

desire ability

willingness to accept responsibility”.

for &

Situational Model of Leadership (High) Relationship Behaviour (Low)

High Relationship and Low Task

High Task and High Relationship

Low Relationship and Low Task

High Task and Low Relationship

(Low)

Task Behaviour

(High)

Fiedler’s Contingency Model of Leadership Style Of leadership Taskdirected

-

Human Relations Very un favorable

unfavorable

I

favorable

+

Very favorable

Favorableness of the situation 4-65

Fiedler’s Contingency Model of Leadership Leader-member relations

Task structure

Position power

3 Variables of Situational Favorableness.

The Future of Leadership Theory  Transactional Leaders  Transformational Leaders  Charismatic Leader

Transactional Leader Leaders who determine what subordinates need to do to achieve objectives, classify those requirements and help subordinates become confident they can reach their objectives

Transformational Leader Leaders who, through their personal vision and energy, inspire followers and have a major impact on their organizations also called charismatic leaders.

Phases of Transformation Process 1. Recognizing need for change. 2. Create a new vision. 3. Manage Transition 4. Institutionalize the change.

Weber’s Charismatic Leadership Influence based on follower perceptions that the leader is endowed with the gift of divine inspiration or supernatural qualities

Charisma and Leadership It is the capacity to be heroic and colourful. It steers the emotions of people and capture their heart and minds. Charismatic leadership can be disadvantageous and dangerous because people abdicate responsibility and put on their leader to take care of every problem.

Common Characteristics  Self-confidence  Vision  Ability to articulate  Strong convictions  Out of the ordinary behavior  Perceived as change agents  Environmentally sensitive

Visionary

Self Promoting

Verbal Skills

Self Confidence Moral Conviction

Charismatic Leader Characteristics

Empowers Others Minimum Internal Conflict

Relational Power Base

Inspires Trust

High Risk Orientation

High Energy Action Orientation

Strategies to Develop Charismatic Qualities Develop visionary skills Practice being candid Develop warm, positive, humanistic attitude. Develop an enthusiastic, optimistic, energetic personality.

Ethical Charismatic Leader

Unethical . Charismatic Leader

 Uses power to serve others  Aligns vision with followers needs and aspirations  Considers and learns from criticism  Stimulates followers to think independently & to question the leaders view  Open, two way communication

 Uses power only for personal gain or impact  Promotes own personal vision  Censures critical or opposing views  Demands own decision be accepted without question  One way communication

Ethical Charismatic Leader

Unethical . Charismatic Leader

 Coaches, develops,  to and supports Insensitive followers; shares followers needs recognition with others  Relies on convenient,  Relies on internal external moral moral standards to satisfy org & societal standards to satisfy interests self-interests

Team Two or more people who interact with and influence each other toward a common purpose. Each member of the team has a shared responsibility for getting the job done.

Types of Teams  Formal and Informal Teams  Command Team  Committee  Task Force or Project Team  Self-Managed Teams

Group & Team Comparison Work Group Share Information Neutral

Work Team Goal

Collective Performance

Synergy

Positive

(Sometimes Negative)

Individual

Accountability

Random and Varied

Skills

Individual & mutual Complementary

Characteristics of Teams  Leadership Roles  Team Norms  Team Cohesiveness

Leadership Roles  Enhanced Performance  Increased Awareness and Choice  More Focus and Integration  Rationale Taking

Innovation

and

 Conducive Team Atmosphere

Risk

Team Norms These are assumptions and expectations about how members of a group will behave. Norms can be carried over from society or it can be particular to a group or team.

Team Cohesiveness It is the degree of solidarity and positive feelings held by individuals toward their group or team. Ways to Improve cohesiveness:  Introduce Competition  Increase Interpersonal Attraction  Increase Interaction Create Common Goals and Fates

Stages of Team Development  Forming  Storming  Norming  Performing  Adjourning

Team Roles  Driver (Develops ideas, directs & Innovates)  Planner (Estimates needs, plans strategies & Schedules)

 Enabler (The fixer – manages resources, promotes ideas & negotiates)

 Executor (The producer, co-ordinates & maintains the team)

 Controller (Records, audits & evaluates progress)

Driver’s Characteristics Driver

Developer

Director

Innovator

Planner’s Characteristics Planner

Strategist

Estimator

Scheduler

Enabler’s Characteristics

Enabler Resource Manager

Promoter

Negotiator

Executor’s Characteristics Exec

Producer

Coordinator

Maintainer

Controller’s Characteristics Controller

Auditor

Monitor

Evaluator

Human Resource Management It can be defined as the effective selection and utilization of employees to best achieve the goals and strategies of the organization, as well as the goals and needs of employees.

Challenges to HRM Technology Change Govt. Interference

Diversification

HRM

Globalization

Competition Workforce Diversity

Organization Chart of HRM Function Vice President HRM

Director HR Research & Planning

Director Staffing

Director Employee Relations

Director HRD

Director Compensation & Benefits

A Human Resource Management Department Vice President of Personnel/Human Resource Management Employment Division

Wage & Salary Division

Labor Relations Division

Job Analysis Human resource planning Recruitment Interviewing Testing Placement Resignations Terminations Records

Job Analysis Job Evaluation Wage/salary surveys

Collective bargaining Legal grievances Suggestion plans Contracts

Training & Development Division

Employee Benefits & Services Division

Organizational need analysis Career planning Development & training Appraisal

Health services Insurance Safety Recreation facilities Pensions

Primary HRM Functions  Human Resource Planning  Equal Employment Opportunity  Staffing (Recruitment and Selection)  Compensation and Benefits  Employee Relations  Health, Safety and Security  Human Resource Development

Secondary HRM Functions  Organization/Job Redesign  Performance Management  Performance Appraisal  Research and Information Systems

Human Resource Planning The processes of planning, developing, implementing, administering and performing ongoing evaluation of recruiting, hiring, orientation and organizational exit, to ensure that the workforce will meet the organization's goals and objectives

Equal Employment Opportunity These activities are intended to satisfy both the legal and moral responsibilities of the organization through the prevention of discriminatory policies, procedures, and practices.

Human Resource Development It can be defined as a set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands.

Compensation and Benefits The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of a total compensation and benefits system for all employee groups consistent with human resource management goals

Health, Safety and Security The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of programs, practices and services to promote the physical and mental wellbeing of individuals in the workplace and to protect individuals and the workplace from unsafe acts, unsafe working conditions and violence

Employee Relations The process of analyzing, developing, implementing, administering and performing ongoing evaluation of the workplace relationship between employer and employee (including the collective bargaining process and union relations), in order to maintain effective relationships and working conditions that balance the employer's needs with the employees' rights in support of the organization's strategic objectives

Recruitment It is the process of finding and attracting capable applicants for employment

Recruitment: Challenges and Constraints        

Strategic and Human Resource Plans EEO Legislation Recruiter Habits Environmental Conditions Job Requirements Costs Incentives Organizational Policies

Recruitment Channels  Internal Recruitment Channels  External Recruitment Channels

Internal Recruitment Channels  Job-Posting Programs  Departing Employees

External Recruitment Channels       

Walk-ins and Write-ins Employee Referrals Advertising Sate employment Agencies Private Placement Agencies Professional Search Firms Educational Institutions

External Recruitment Channels Professional Associations Labour Organizations Military Operations Govt Funded and Community Training Programs  Temporary Help Agencies  Leased Employees  International Recruiting Agencies    

Selection The selection process is a series of specific steps used to decide which recruits should be hired. The process begins when recruits apply for employment and ends with the hiring decision

Steps in Selection Process        

Receipt of Applications Employment Tests Selection Interview Reference and Background Checks Medical Evaluation Supervisory Interview Realistic Job Previews Hiring Decision

Types of Interviews     

Unstructured Interviews Structured Interviews Mixed Interviews Behavioral Interviews Stress Interviews

Orientation or Socialization A program designed to help employees fit smoothly into an organization, also called socialization.

HRD Functions  Training and Development  Organization Development  Career Development

HRD Process    

Need Assessment Design Phase Implementation Evaluation

T & D Approaches  On the Job Training  Off-the Job Training

On-the Job Training    

Job Instruction Training Job Rotation Apprenticeships Coaching

Off-the Job Training       

Lecture Video Presentation Role Playing Case Study Simulation Laboratory Training Programmed Learning

Performance Appraisal It is the process by which organizations evaluate individual job performance. It can be  Informal Appraisal  Formal Appraisal

Advantages of Performance Appraisal         

Personal Improvement Compensation Adjustments Placement Decisions Training and Development Needs Career Planning and Development Staffing Process Deficiencies Job Redesign Equal Employment Opportunities Feedback to Human Resource

Outcomes of Performance Appraisal    

Promotions Transfers Demotions Separations

Planned Change The systematic attempt to redesign an organization in a way that will help it adapt to changes in the external environment or to achieve new goals.

Velocity of Change “While change and uncertainty have always been a part of life, what has been shocking over the last years has been both the quantum and suddenness of change”

Model for an Organization’s Environment Macro or Far Environment

Technological Factors

Near or Operating Environment Partners

Customers

Clients

Economic Factors

ORGANIZATION Suppliers

Social Factors

Competitors

Political Factors

Brain Teaser “It is not the strongest of the species that survives, nor the most intelligent, but rather the one most responsive to change” Charles Darwin

Forces for Change  New Technology  Workforce  Competition  Economic Shocks  Social Trends  World Politics

Sources of Resistance  Organizational Culture  Self Interests  Force of Habit  Fear of Unknown  Economic Threats  Resource Allocation

Lewin’s Process of Change  Unfreezing  Changing  Refreezing

Types of Planned Change  Structural Change  Technological Change  Human Change  Combined Change

Approaches to Planned Change

Change Agent

Change in Structure

Organization Redesign Decentralization, Modification of Work Flow

TechnoStructural Change

Redesign of Structure and Work Operations

Change in Technology

Redesign of Work Operations

Change in People

Changes in Skills, Attitudes, Expectations, Perceptions

Improved Organizational

Performance

Techniques or Methods of Organizational Change  Mergers and Acquisitions  Re-organization  Restructuring  Right-Sizing

The Creative Process  Generation of Ideas  Problem Solving or Idea Development  Implementation

Prescriptions for Fostering Organizational Creativity Develop an Acceptance of Change Encourage New Ideas Permit more Interaction Tolerate Failure Provide Clear Objectives and the Freedom to achieve them  Offer Recognition     

Overcoming Resistance to Change      

Education and Communication Participation Negotiation Facilitation and Support Manipulation and Co-operation Coercion

Operations Management The management activity that includes planning, production, organizing resources, directing operations and personnel and monitoring system performance.

Operations Management System Feedback

Inputs Raw materials, human resources, capital (land, buildings, equipment), technology information.

Outputs Product/ Service Design & Facilities

Transformation Process

Control Processes

Products, services, & other (pollution)

Types of Operation Function  Manufacturing Operations  Non-manufacturing Operations

or

Service

Types of Manufacturing Operations  Make to Stock Producers  Make to Order Producers  Assemble to Order Producers

Production Management Methods  Job Shops  Repetitive or Process Manufacturing  Batch Manufacturing

Productivity It is the measure of how well an operations system functions and indicator of the efficiency and competitiveness of a single firm or department.

Customer’s Competitive Priorities  Pricing  Quality Level  Reliability  Flexibility

Designing Operations Systems  What to Produce  How much to Produce  How to Produce  Whom to Produce  Who and What will Produce

Inventory Management The process of maintaining and controlling supply of raw materials, work in process and finished goods in an organization to meet its operational need efficiently and effectively

Inventory Management Techniques  ABC Inventory System  Economic Order Quantity  Just in Time Inventory System

Just in Time Inventory System The system in which production quantities are ideally equal to delivery quantities, with material purchased and finished delivered just in time to be used also known as Kanban.

Important Elements of JIT  A set Uniform Production Rate  A Pull Method of Coordinating Work Centers  Purchasing and Producing in small lots  Quick, inexpensive setups  Multi-skilled facilities

workers

and

flexible

Important Elements of JIT  High Quality Levels  Effective Preventive Maintenance  Continual Work Improvement

Economic Order Quantity The ordering quantity at which Ordering Cost is equal to Carrying Cost and total cost is minimum

Total Quality Management It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continuous improvement

Key Issues in TQM  The Cost of Quality  A Cultural Change  Mechanism of Change  Implementation  Management Behavior

Benefits of TQM  Greater Customer Loyalty  Market Share Improvements  Higher Stock Prices  Reduced Service Cost  Greater Productivity  Higher Prices

Benchmarking It is the continuous process of comparing a company’s strategy, products and processes with those of world leaders and best-in-class organizations in order to learn how they achieved excellence and then setting out to match and even surpass it.