Management Theory Full 1st Term-acm

1.MANAGEMENTTHEORY,PRINCIPLES & PRACTICES Reference Books Management - A Global Perspective,11th edition by Koontz.H Principles of Mgt by Koontz.H&Weihrich Essential of Mgt- An international Perspective by Koontz.H&Weihrich. Mgt Theory & Practice by Moshal.B.S

DEFINITIONS Theory: A set of ideas on which an activity is based. Principle: A fundamental truth serving as the foundation for belief. Practice: the actual application of Theory & Principles. MANAGEMENT:Management isPlanning,Organizing,,Directing and Controlling of 6 Ms (Men,Material,Machinery,Money, Minutes and Marketing) DEFINITIONS Management is Conceptualization, Prioritization, and Actualization Of Enterprise‘s – Vision, Mission, Values Through Planning, Organizing, Directing And controlling of Prime Resources such as People, Material, Finance, Machinery, Time & Marketing. DEFINITIONS Concept – an intellectual mental frame work for understanding an aspect. Enterprise is a challenging Project undertaken for construction to produce Goods & Services that yield profits for all stake holders – Investors, Employees, Customers, Govt & Public in general. DEFINITIONS Mission: WHY WE DO? It identifies the PURPOSE of what we do. Vision: WHAT WE DO? It identifies what we want to achieve in FUTURE.. Values: HOW WE DO? It identifies how we CONDUCT our activities to achieve what we want in future.

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POPULAR GLOBAL COMPANIES VISION - MISSION – VALUES VISION 

Ford – To democratize the automobile.



Sony - To wipe of world wide poor quality image.

Boeing -To become the dominant player in commercial aircraft and bring the into the jet age.

world

POPULAR GLOBAL COMPANIES VISION - MISSION – VALUES MISS ION 3m

To solve unsolved problems innovatively.

Sony To experience the joy of technology for the benefit of the public.like To experience the emotion crushing competitors.

advancing and applying of competition winning and

Walt Disney To make people happy. POPULAR GLOBAL COMPANIES VISION - MISSION – VALUES

Men

Material

Machinery

Function

Money

Minutes (Time)

Marketing

Process

Planning

Thinking & Selecting objectives and the actions to achieve them with perfection in implementation.

Organising

Establishing a structure of business, authority, rules for people to fulfill their objectives.

Directing

Instructing an individual/ group to reach a destination.

Controlling

Measuring and correcting individual performance to ensure that events confirm to plans.

VALUES

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Sony Elevation of the Japanese culture and national status, encouraging individual ability and creativity being the pioneer and doing the impossibleWalt DisneyCreativity, dreams, imagination & Disney Magic Preservation.

DEFINITIONS Planning :- Thinking & Selecting objectives and the actions to achieve them with perfection in implementation. Organizing: - Establishing a structure of business, authority, rules for people to fulfill their objectives. Directing:- Instructing an individual to reach a destination. Controlling: Measuring and correcting individual performance to ensure that events confirm to plans. Management as a matrix of functions and processes as shown below: DEFINITIONS Productivity = Outputs/Inputs (Maintaining Quality & time schedule.) Effectiveness is a capacity for achieving of objectives Efficiency is an achievement of objectives with the least amount of resources. After World War II, USA was the world leader in Productivity. Now often one looks to Japan to find answers to our Productivity problems Kaizen: A Japanese term which points at the importance of continuous improvement. The idea is that continuously taking small steps in improvements will be the key to long term success. Quality Circles : a participative management technique, used extensively by the Japanese, in which small groups of employees meet for an hour or two each week to discuss specific problems or suggestions for work improvement. Just - in – time ; A supplier‘s delivery of components and parts to the production line ― just in time‖ to be assembled. Other name for this or similar methods are ― Zero inventory ― and Stockless ―production‖ Management Management - Art or Science The Mgt as practice is an Art. Art: The expression or application of creative skills concerned with human social life. The Mgt knowledge underlying the practice may be referred as Science. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 3

Science: A systematic organized body of knowledge on any subject. Engineering: The branch of science concerned with design, structure, building and use of any materials, engines and machines. Technology: The branch of knowledge concerned with productivity through applied sciences for development of any equipment or process for gainful application. Evolution of Mgt thought The concept of Mgt is as old as Human Civilization. One of the most important human activities is managing. Ever since people began forming groups to accomplish aims what they could not achieve as individuals, managing has become essential to ensure coordination of individual efforts. The Profession of Mgt has been built upon the concepts, theory and knowledge mostly drawn from Sociology, Psychology , economics ,Politics, Law and Industrial Engineering. Sociology- the study of the development of structure and functioning of human society. Psychology; the scientific study of human mind and its functions relating to mental characteristics and attitude of a person. Economics: the branch of knowledge concerned with production, distribution and transfer of wealth among the nations and people concerned Politics: the activities associated with governing people of an area/country with gaining and using authority Law: a system of rules recognized by a state/country as governing the actions of its members Industrial engineering: Culture: A particular system of society at a particular time and place- a set of shared attitudes, values goals and practices that characterized as an institution, organization. Civilization: A society in advanced state of social development reinforced by quality of excellence in thoughts, manners and taste . An organized culture encompassing many communities often on a scale of nation or a large group of people. Administration is implementation of activities through controlling of arrangements and operations by rules & regulations within the legal frame work of a particular procedure. Discipline is the practice of training people to obey code of behavior to eliminate friction and to ensure smooth function of human actions. Strategy describes how an organization intends to create more sustainable values for its stakeholders than its competitors. Policy is a course of action proposed and adopted by an organization to conduct a particular activity in a particular way taking into consideration - the situation, time and place to ensure smooth function Management Work was considered for profits only, labour was a commodity to be treated at par with machines. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 4

With the coming of political democracy, many public men got involved in policy-making forums which gave birth to social reform movements.

SCIENTIFIC MANAGEMENT had worked for many 1911 - Frederick Taylor who is generally regarded as the father of scientific management was an engineer himself who years on the shop floor. Taylor propounded that 1.There was no inherent conflict between employees and employers. 2. Employee wanted more income, employers wanted more profits and the consumer wanted a better price. All of them could be benefited only if the plant itself produced more. Therefore, it was in the interest of everyone to produce more and thereby take more. 3. Taylor felt that the real problem was in determining a fair day's pay for a fair day's work. For this, if a quantitative method could be evolved wherein a worker could know the basis of his wages, and in which his income moved up along with the increase of efforts put in, then he would be more rational and more production oriented. Taylor said that the onus to devise such methods rested on employers. 4. It is for employers to establish a scientific approach to management which he said was based on 9 basic rules: job (systematic employment, recruitment, selection policies ) 1.Replacing thumb rule with organized knowledge. 2. Obtaining harmony in group action . 3.Achieving co-operation of all. 4.Working for maximum output rather than restricted output.

6.Time and Motion Studies. 7.Clear procedures of work (Authority, Instructions, Training, Manuals of Operations) 8.A rational Wage structure (making wage system reflect individual merit, moving up income with increased inputs, incentive systems, pay scales etc.)

5.Developing of workers' ability to their fullest extent possible for their own and 9.Right person for the right their company's prosperity. In due course of time his views were codified and came to be known as Taylorism.

Taylor's concepts and perceptions of management have undergone changes over the years but his basic edicts are still valid the world over in one form or the other.

MODERN MANAGEMENT S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 5

1916 - Henri Fayol the French industrialist was considered as the Father of Modern Mgt. He said that all Activities of an Enterprise could be divided into 6 groups viz.  Technical - production  Commercial - buying, selling and exchange  Financial - creating resources and making optimal use of capital  Security - protection of property, persons and health  Accounting - book keeping, statistics and feed back, and  Managerial - planning, organization, direction, coordination and control Fayol pointed out that the first 5 activities are well-known and they existed in businesses of any kind and size. Therefore Fayol devoted his attention to the analysis of the 6th i.e. Managerial. Fayol said that persons responsible for Mgt must have the following managerial qualities.  Physical - good health and vigour  Mental - ability to understand, learn, judge, adopt and predict.  Moral - energy, firmness, willingness to accept responsibility, initiative, loyalty, tact, dignity.  Educational - expert knowledge of one's own field and ability to work with the techniques of other disciplines. Technical - expertise in one's own profession Experience - performance in the past which a person is able to analyze, codify and use for work in future. Thereafter, Fayol went on to identify and establish the following fourteen general principles of management:

 Stability of tenure i.e. Offering a career

Division of work

 Team spirit

 Authority and responsibility  Discipline  Unity of command  Unity of direction  Subordination of self-interest to the corporate interest  Human relations  Centralization  Chain of authority  Orderliness i.e. Place for everything and everything in place  Quality

 Initiative Management By Objectives: Peter Drucker, A Comprehensive understanding of the inter-relationship among Man, Work and Society.The development and presentation of the concept of M B O. A mutual goal settling processing in which Managers and their people establish individual goals, review their progress regularly and then mutually evaluate achievement and reset the goals.  Objectives – prioritization  Realistic schedule – preparation

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 Weekly targets – actualization

 Short falls – concentration

 Fortnightly achievements – evaluation

 Make up – by follow up action.

Motivation Theory Abraham Maslow

 Belongingness

 Physiological

 Self-esteem((Confidence in ones own worth or abilities. Respect or admiration. Derived from Latin word-ESTIMARE-To estimate)

 Security

 Self-actualization

The development of an idea that man‟s motivation operates according to a hierarchy of his five important needs

2.PLANNING  Planning is the first step in the Management Process.  Planning is the projected course of action  Planning always deals with future and it always precedes action.  Planning is the process of determining objectives, setting time frame, creating options and choosing the most efficient one.  A project plan will spell out the details in which the activities will be carried out.  Planning also enables everyone in the organization to know what is expected of each person. The Planning Process  Setting objectives.  Premising – making assumptions  Creating options  Selecting right option  Estimating resources requirement and their allocation  Establishing strategies and Policies.  Formulating Derivative Plans to Support the Basic Plan Levels of Planning  Corporate Planning:CP refers to the process of planning for the entire enterprise as a whole

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 Project planning:PP refers to the series of activities that may under taken to complete the project with in the Time , cost & Quality  Site Planning:SP refers to the day to day activities, its priorities and individual responsibilities at Site. Japanese Management

U.S. Management

Chinese Management

1. Long-term orientation

1. Primary short-term

1. Long-term and short-term

orientation

orientation (5-year plan and annual plan )

2. Collective decision making

2. Individual decision making

with consensus

2. Decision making by committees; at the top, often individual

3. Involvement of many people

3. Involvement of a few people

in preparing and making the

in making the decision and “

decision

selling” it to persons with

3. Top-down; participation at lower levels

divergent values

4. Flow of critical decisions from top to bottom and back to top;

4. Decisions initiated at the top,

4. Top-down-initiated at the top

flowing down

flow of non-critical decisions often from bottom to top ( In either case, emphasis is on consensus.)

5. Slow decision making; fast implementation of the decision

5. Fast decision making; slow

5. Slow decision making; slow

implementation requiring

implementation (But now

compromise, often resulting

charges are taking place.)

in suboptimal decisions

Types of Planning  Strategic Planning  Tactical Planning  Rolling Planning  Contingency planning Strategic Planning This refers to Long Term Planning  All Corporate Plans are Strategic Planning

 India‘s 5 years Plan is Strategic Planning Tactical Planning  This refers to Short Term planning  This offers scope for Maneuverability,Flexibility, Correlation, Reallocation of Resources etc,  An enterprise may resort to Tactical planning, off and on, in

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response to the new demands, posed by supply position of 4 M s & govt policy changes.

external that fit sequentially in the long term planning. Contingency Planning

Rolling Planning

 This refers to Emergency or Stand – by Planning.

 This type of planning is a link between Strategic Planning & Tactical Planning.

 It is a course of action that will be resorted to if the plan under implementation fails or meets with mishaps etc.

 This refers to Short Time intervals in progress due to uncertainties of various factors both internal &

3.Organizing •

Organizing is the second Management Process, next to Planning

•

It refers to the Structure of Authority & Relations of people &their Functions.

•

It is bring together the Basic Resources of an Enterprise in an orderly manner.

•

It is the process that enable the People to work together effectively in an enterprise.

Organizing Process

•

Creates a Structure based on Tasks Performance

Relations among People & their Positions.

•

Methods & Procedures of handling works

•

1.Individual Proprietary Concern

•

2.Parternership concern

•

3.Private Limited Company

•

4.Public limited Company

Ensures that the Structure so created remains relevant to goal achievement. •

Authority

•

Leadership

•

Delegation

Organization Structure •

The organization Structure has a rationale and logic behind it.

•

It emphasizes efficiency in all activities

•

Documentation of Procedure, Orders, behavior of people, no of people, chain of command, and channel of communication.

•

Organization Chart -in note book

Creation of Structure •

Division of work into Section/Departments

•

Positioning People for various Functions

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•

Structuring of an Organization starts with the drawing of an OC An OC is the pictorial presentation of

•

Strengths & Weaknesses

•

Locate the areas where the changes are needed

•

To understand Org Culture

Flat Structure Japanese Management

U.S. Management

Chinese Management

1. Collective responsibility and

1. Individual responsibility and

1. Collective and individual

accountability 2. Ambiguous decision

accounting 2. Clear and specific decision

responsibility 3. Informal organisational

responsibility 2. Attempts to introduce the “factory responsibility system”

responsibilities 3. Formal, bureaucratic

structure

3. Formal, bureaucratic

Organizational structure

4. Well-known common

Organizational structure

4. Lack of common organisation

4. Identification with the

organisation culture and

cultute; identification with

company but no competitive

philosophy; competitive spirit

profession rather than with

spirit

toward other enterprises

company

Structure of the organization

•

Extensive Delegation or Decentralization of Authority.

•

Organizational Hierarchy

•

Reporting Relationships

•

Improved Vertical Communication

•

No of Depts./Sections

•

•

Rapid Decision making at the point of action

Status of Employees

•

Better development of Subordinates

•

Greater feeling of Team Sprit due to reduction distance High speed reporting system.

Study of Organization Chart •

How rapid changes are occurring

•

Which are the key positions

•

•

Are changes in technology implemented

Task Performance

•

•

Determining the duties

Any deviations/variations

•

•

Grouping duties

Whether there is dual reporting

•

Assigning Authority

•

Span of Control

Organization Analysis

Section/Dept/Division

•

•

By simple number

•

By time

OA is the technique used very often by the management Consultants to identify its

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•

By functions

•

By territory

•

By products

General Definition •

Organization - A systematic arrangement of 4 Ms

•

Structure – Orderly positioning of various elements and relations between the parts of complex nature.

•

Policy – It is a statement which guides the decision and provides consistency inaction

•

Strategy – It is a course of action decided to achieve the goal.

It gives unified directions to all Managers in charge of various functions in the organization. It also gives direction for deployment and use of all resources •

Objective or Goal – The desired end result toward which the activities are aimed.

Each O/G may be divided into serious Targets of Short Term duration. Target is a Short Term Task Objective is a Long Term Task •

Power – The ability of an individuals or group to induce or influence the beliefs or actions of other persons or group

4.L E A D E R S H I P  Several studies have been made and books written on leadership, outlining its relevance and importance in modem management practice.  Leadership has often been defined as the process of influencing the activities of an individual or a team towards goal achievement in a given situation.  Leadership is the lifting of people's vision to higher sights.  Respecting individuals and their contributions to the organizations.  The raising of people's performance to a higher standard.  Building of a people's personality beyond its normal limitations. Leader is the central figure in the economic and social life of the organization.  There are some basic reasons why leaders are necessary:  As human beings, psychologically we all need anchors in our lives — a guiding purpose and inspiration. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 11



Leaders, as central figures, fulfill that need.

 In fact, we need leaders in all walks of life, including the family, if individual activities are to be directed in the required manner for positive progress.  The success or failure of teams or organizations, whether it be a football team, a construction company or a banking enterprise, depends largely on the quality of leadership at the top.  It is the effective leaders who can keep the institution moving on its chosen values. 

Under inspired leadership, people tend to hold a shared vision of the future.

 In the early part of the century, leadership practices were based on certain assumption that the average man was quite gullible, he lacked ambition and preferred to be led.  However, the shortage of labour created by the Second World War resulted in a change in management practices and perceptions.

STYLE OF LEADERSHIP There are different styles of leadership as described by management experts, and the success of a leader depends on his ability to develop a style that is relevant and situationspecific in a given context.  The Bureaucratic Leader leans heavily on rules and regulations with little scope for initiative.  The Autocratic Leader asserts himself and thrives on the authority of his position. 

The Free-rein Leader focuses on the individual and each is treated as a distinct

 individual with due encouragement.  The Democratic Leader generates a feeling of belonging among the employees by delegating responsibilities, providing opportunities for participation and engendering a strong team spirit.

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High 1 1.9 Country Club Management

2

9,9 Team Management

3 4 5,5 Middle of the Road Management

5 6 7

9,1 Authority Obedience

1,1 Impoverished Management

8

Management

9 Low

1

2

3

4

5

6

7

8

9 High

 To sustain the manpower on the one hand and attract more people to it as well, the human relations aspect of management/leadership was given more emphasis. Managerial Grid Grid – A net work of lines that cross each other. How to make a MG ? Through a graphic representation.  Concern for production on X axis.  Concern for people on Y axis.  Make 9 point scale on each axis The Managerial Grid model  The Managerial Grid model is developed by Robert Blake and Jane Mouton. 

It identifies five various Leadership Styles that represent different combinations of concern for people and concern for production.

 Managers who scored high on both these dimensions simultaneously performed best, and it is labeled as Team Management. The five Leadership Styles of the Managerial Grid include S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 13

 Impoverished Mgt.  Country Club Mgt.  Authority obedience Mgt.  Middle-of-the Road Mgt.  Team Mgt. The Impoverished Style  The Impoverished Style is located at the lower left-hand corner of the grid, point (1, 1).  It is characterized by low concern for both people and production.  The primary objective of the impoverished style is for managers to stay out of trouble. The Country Club Style  The Country Club Style is located at the upper left-hand corner of the grid, point (1, 9).  A high concern for people and a low concern for production.  The primary objective of the country club style is to create a secure and comfortable atmosphere and trust that subordinates will respond positively. The Authority obedience Style  The Authority obedience Style (The Produce or Perish Style )is located at the lower right-hand corner of the grid, point (9,1).  A high concern for production and a low concern.  The primary objective of the produce or perish style is to achieve the organization's goals.  To accomplish the organization's goals, it is not necessary to consider employees' needs as relevant. The Middle-of-the-Road Style  The Middle-of-the-Road Style is located at the middle of the grid, point (5, 5).  A balance between workers' needs and the organization's productivity goals.  The primary objective of the middle-of-the-road style is to maintain employee morale at a level sufficient to get the organization's work done. The Team Style  The Team Style is located at the upper right-hand of the grid, point (9, 9).  It is characterized by a high concern for people and production.  The primary objective of the team style is to establish cohesion and foster a feeling of commitment among workers. Rensis Likert The description of Four Basic Approaches to Leadership S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 14

1. Exploitative - where is the leader tells and if necessary threatens 2. Benevolent-where is the leader tells and explains utilizing positive reinforcement if the behavior is forth-coming. 3. Consultative 4. Participative Douglas Mc Gregor  Any Managers style of operating with his people is based upon his set of beliefs about man‘s basic nature.  The notions that these sets of beliefs can be thought of as falling into one of two categories.  Theory-x conceives of man as inherently lazy and desiring to avoid responsibility and needs strong external control.  Theory-y conceives of man as desiring to work and use his skills to make decisions himself and operating heavily on internal controls. The sine qua non of Successful Leadership  However, being a leader in the corporate arena certain basic attributes must possess and without which none of the other popular techniques will work. They are the sine qua non of successful leadership.  moral integrity  truthfulness  straightforwardness in speech and conduct  initiative,  courage,  self-confidence  decisive-ness  originality  resourcefulness and coordinating ability  Curiosity and Observation

 determination and practice.  ability to negotiate  adopt to change and use experience for better results.  adapt to new subordinates and new situations.  No wonder it is said that heading an organization is something like facing the chill on a mountain top. It is extremely cold, the winds blow strongly and there are few people to share the view.  "Leadership is dynamic in nature, just as with art, you reinvent the wheel every single time you apply the principle.  For it is effective leadership that makes a company competitive, a department efficient and an organization successful .  There are certain techniques, ways and means by which the leader can practise the above qualities

 ability to enthuse, inspire and accomplish.

 adhering to policy guidelines,

 endear our minds and win our hearts by standing up today to the principles.

 the right attitude towards the

 work performance,  organization and job,

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 sound physical and mental health,  the ability to relax  ability to delegate,  personal attire and appearance,  inter-personal communication, etc.  tolerance and large-heartedness  overcoming the desire to take credit for everything and be willing to let subordinates share the limelight . o Development of Leaders At All Levels

 Field Marshal, Viscount Slim puts it beautifully : "An army in which the only leaders are the generals will win no victories.  There must be leaders at every level, from the commander-in-chief, the chairman, the managing director, right down to the lance corporal with his section, the foreman with his gang.  All these subordinate leaders must be supported.

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Japanese Management

U.S. Management

Chinese Management

1. Leading acting as a social

1. Leading acting as the

1. Leader acting as the head of

facilitator and group member

decision maker and head of

the group (committee)

the group

2. Paternalistic style

2. Directive style (strong, firm, determined )

2. Directive style (Parent-child relations, in transactional analysis terms)

3. Common values facilitating co-operation

3. After divergent values; individualism sometimes

3. Common values, emphasis on harmony

hindering co-operation

4. Avoidance of confrontation, sometimes leading to

4. Face-to-face confrontation

4. Avoidance of confrontation

common; emphasis on clarity

ambiguities; emphasis on harmony

5.Critical communication topdown and bottom-up;

5. Communication primarily top-

5. Communication top-down

down

noncritical communication often bottom-up ------------------------------------------------

They must be made to feel that they are a part of management."  Today, there is more than an opportunity for leadership;  there is a dire necessity for it.  the kind of leadership that puts life and meaning into management.  In his well known book. On Becoming a Leader, Warren Bennis sets out the "enormous and crucial" differences between leaders and managers (the differences between "those who master the context and those who surrender to it"):  The manager administers; the leader innovates. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 17



The manager is a copy; the leader is original.

 The manager maintains; the leader develops.  The manager focuses on systems and structure; the leader focuses on people. 

The manager relies on control; the leader inspires trust.



The manager has a short-range view; the leader has a long-range perspective.

 The manager asks how and when; the leader asks what and why.  The manager has his eye always on the bottom line; the leader has his eye on the

Japanese Management

U.S. Management

Chinese Management

1. Control by peers

1. Control by superior

1. Control by group leader (superior)

2. Control focus on group performance

2. Control focus on Individual performance

2. Primary control focus on groups-but also focus on individuals

3. Saving face

3. Fixing blame

3. Trying to save face

4. Extensive use of quality

4. Limited use of quality control

4. Limited use of quality control

control circles

circles

circles

horizon.  The manager imitates; the leader originates.  The manager accepts the status quo; the leader challenges it.  The manager is the classic good soldier; the leader is his own person.  The manager does things right; the leader does the right thing. 5.LEADING

5.Controlling Controlling is the measurement and correction of the performance of activities Controlling may be preventive or remedial in nature. Preventive Control seeks to avert or minimize deviations between actual and desired results. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 18

Remedial Control is that which takes place after the incident. Prerequisites for Control  Objectives and targets which are quantifiable and verifiable.  Plans and programs with milestones identified.  Cost and time frame for activities to be undertaken.  The organization Structure with fixed persons, duties & responsibilities in the hierarchy. The Control Process •

Establishing standards

•

Measuring actual performance

•

Taking corrective actions  Financial Control

Types of Controls  Production & Operations control

 Manpower Control

 Inventory Control

 Time Control

 Quality Control

 Marketing Control

6.MOTIVATION DEFINITION is what makes people to do things. What makes people to put real effort into what they do? Getting people to do willingly and well, those things which have to be done. THE IMPORTANCE OF MOTIVATION Motivation is vital in any job if people are to give their best to it. Good performance, , effectiveness depends on motivation. Whatever be the degree of sophistication in technology, we still depend on the human motivation for perfection in performance. WHO IS RESPONSIBLE FOR MOTIVATION It is the job of a team leader to motivate their team members. The team leader has to create the correct environment to the people to do their best. SIGNS OF MOTIVATION Positive motivation occurs “When people give a request”  High performance and results being consistently achieved.  The energy, enthusiasm and determination to succeed. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 19

 The willingness of individuals to accept the responsibility. INDICATIONS OF LACK OF MOTIVATION Motivation ceases when people are “compelled” to surrender to a demand. A poor record of time keeping and high absenteeism. Lack of cooperation dealing with problems /difficulties. Unjustified resistance to change. Exaggeration of difficulties encountered in problems, disputes and grievances. Motivation is the will to act. Motivation is stimulating interest for an activity with perfection in performance. Whenever a person enters an organization he can think of two levels of performance. Level One: the minimum the person can get away with. Level Two: the maximum the person is capable of. The difference between the two is the motivation. Motivation :It was once assumed that motivation had to be injected from outside, but it is now understood that everyone is motivated by several differing forces. To release the full potential of employees, organizations are rapidly moving away from ―command and control‖ and towards ― advise and consent‖ as ways of motivating. This change of attitude began when employers recognized that rewarding good work is more effective that threatening punitive measures for bad work. Motivational Factors In order to achieve the optimum conditions for motivating employees to perform at their highest level, there needs to be .. NICMAR Sense of identity Sense of importance Sense of development

Maslow’s Hierarchy of Needs

Motivation

Organizational Examples

General Examples

Achievement

Abraham Maslow

Status Friendship Stability Sustenance

Self Actualization Needs

Challenging Job

Esteem Needs Belongingness Needs Security Needs Physiological Needs

Job Title Office Friends

PF, Gratuity 1

Salary

The development of an idea that man‘s motivation operates according to a hierarchy of his five important needs Physiological, Security, Belongingness, Self – esteem, Self-actualization S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 20

Self-esteem (Confidence in ones own worth or abilities. Respect or admiration. Derived from Latin word-ESTIMARE-To estimate) Self-actualization The concept of growth is the motivation in Man. What Makes a Motivating Job?  Doing different things; using different skills, abilities and talents.  Doing a job from beginning to end; the whole job rather than bits and pieces.  The degree of meaningful impact the job has; the importance of the job.  Freedom to do the work; discretion in scheduling, decision-making and means for accomplishing a job.  Clear and direct information about job outcomes. Motivation Worksheet  Consult employees in advance about contemplated changes to get their solutions and get them more involved.  Enlarge and diversity jobs, where practiceable, to make them more challenging and interesting.  Keep employees better informed about what is going on in the organisation.  Do more and better coaching and counseling of employees and show greater interest in their development  Take time to explain why a job or procedure is necessary to gain greater understanding and acceptance of directions given.  Give credit promptly and sincerely for a job well done.  Criticize only privately and only job performance rather than the personal qualities of the employees.  Invite suggestions for improvement from employees.  Make greater effort to get more than superficially acquainted with employees, thereby giving them more recognition. Prescription for Self Motivation Each morning say to yourself: ―I am in-charge of my life my boss is my work‖ ―I am completely responsible for my performance‖ ―I will not blame others for my mistake‖ The search for self-motivation begins by seeking greater self-knowledge, understanding of your own needs and desires, the expectation and belief that will help you to turn those desired into creative, constructive action to achieve your goals. Motivation involves both logic and emotion, they must work together. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 21

Avoid becoming a thinker only or dreamer only, maintain a balance between logical powers and emotional powers for successful living. De-motivators – Fear, Doubt & Worry Suggestions Ensure staff know both their role and its importance. Give staff chances to use and increase their expertise. Make use of the positive elements of each person. Give staff every opportunity to use newly acquired skills once training has finished. Change your own working methods if it will improve staff motivation. Suggestions Allow people to talk about what demotivates them . Assess the reasons for demotivation. Treat departures and absenteeism as warning signs of demotivation. Learn to see the difference between work problems and personal ones. Always start appraisals by discussing the progress made and success achieved. Make sure that the rewards you give are the icing – not the cake. More thoughts in motivation With which of the following do you agree (A) or disagree (D) Satisfaction and motivation are frequently confused. Performance more often leads to satisfaction than satisfaction leads to performance. The same rewards are equally meaningful to all. A satisfied employee can be much unmotivated. More thoughts in motivation The only way to get a person to do something is to make the person want to do it; motivation must come from within. Sharing in goal setting, participation in decisions, open communications are required for commitment. No organization can depend solely on intrinsic motivation, i.e., work that is challenging, responsible and growthful, unless it is completely populated by people who value intrinsic rewards. Only individuals have motivation, not groups or organizations. To be motivated, workers must feel that their pay is fair both in itself and relative to the pay of others. All in all, motivation is complex and depends on the characteristics if (a) the person; (b) the job; (c) the environment.

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 22

7.QUALITY It is interesting to understanding that the need for Quality was first recognized after the Humankind‟s initial efforts to produce a duplicate of an object.  These initial efforts at object duplication resulted in rather crude copies that were in all probability functional.  But rather fail with regard to dimensional stability applicability of use.  Quality control resulted in reproductions to minimize variations when compared with the original object.  The purpose of gaining control over the quality of reproduction gave impetus to the rise of Craftsmen. 

It was Eli Whiteny who conceived the idea of Interchangeable Parts .



His idea was to have each worker make one specific part or perform a limited number of operations on a given part to exact specifications so that all of the individual parts would be identical and could be assembled into the product.



Although the idea was good there were some practical limited variations and the recognition of this fact led to the Development of Tolerances.

\ SIX SIGMA Historical overview 

Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects,based on the work of pioneers such as Shewhart, Deming, Juran, Ishikawa, Taguchi and others.



Six Sigma is a business management strategy.



The particulars of the methodology were first formulated by Bill Smith at Motorola in 1986.



Six Sigma is a registered service mark and trademark of Motorola.



Six Sigma" is derived from a field of statistics known as process capability studies.



Sigma is a Greek letter indicated by the symbol ‗ð‘.



In statistical parlance, Sigma is a measure of variations.



Statisticians have classified variation into two categories.

1 Chance or Common Cause Variation.  These variations are minute and many and are individually not measurable. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 23

 When a process is affected only by chance causes, we call the process is in ―State of Statistical control‖ or sometimes, just ― in control ― It is called statistical because statistical laws can describe the variation. 

When a process is under the influence of chance cause, only then, we will be able to predict the process pattern.

2. Special or Assignable Cause Variation.  In a process, variation level may change due to the influence of special or assignable causes.  They are all due to some abnormality, which has come into, in one or many of the inputs going into the process.  In Process Control adequate measures have to be taken to ensure such abnormality does not occur in a process and the process is within chance cause level only.  SIX SIGMA PHILOSOPHY  In Six Sigma, a defect is defined as anything that could lead to customer dissatisfaction. The philosophy behind Six Sigma is that ,if you measure how many defects are in a process, you can figure out how systematically eliminate them, and get, as close to perfection as possible.

THE ESSENCE OF SIX SIGMA Produce higher quality products at lower costs with greater responsiveness. 

Dr.Mikel. J Harry, President and Chief Executive officer of the Six Sigma Academy, Inc. Aimed at the creation of world-class levels of improvement in Product quality, Performance, Cycle time, and cost.



Methods



Six Sigma projects follow two project methodologies inspired by Deming's Plan-DoCheck-Act Cycle.



These methodologies comprise five phases each and are known by the acronyms DMAIC and DMADV. DMAIC is used for projects aimed at improving an existing business process. MADV is used for projects aimed at creating new product or process designs.

DMAIC 

The five phases in the DMAIC project methodology are:



Define high-level project goals and the current process.



Measure key aspects of the current process and collect relevant data.



Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered.

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Improve or optimize the process based upon data analysis using like Design of experiments.

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 24



Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process.



DMADV

The five phases in the DMADV project methodology are: 

Define design goals that are consistent with customer demands and the enterprise strategy.



Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.



Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.

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Design details, optimize the design, and plan for design verification. This phase may require simulations.



Verify the design, set up pilot runs, implement the production process and hand it over to the process owners.



DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma".

Implementation roles Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management. One of the key innovations of Six Sigma is the professionalizing of quality management functions.  Prior to Six Sigma, quality management in practice was largely relegated to the production floor and to statisticians in a separate quality department.  Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions and a promotion path straight into the executive suite. Key roles for successful

implementation

 Executive Leadership includes the CEO and other members of top management.  They are responsible for setting up a vision for Six Sigma implementation.  They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.  Champions are responsible for Six Sigma implementation across the organization in an integrated manner.  The Executive Leadership draws them from upper management.  Champions also act as mentors to Black Belts.  Master Black Belts, identified by champions, act as in-house coaches on Six Sigma.

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 25

 They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts.  Apart from statistical tasks, their time is spent on ensuring consistent application of Six Sigma across various functions and departments.  Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects.  They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.  Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. SIX SIGMA BENFITS  Six Sigma claims that its benefits include up to 50% process cost reduction,  cycle-time improvement,  less waste of materials,  a better understanding of customer requirements,  increased customer satisfaction,  and more reliable products and services.  Motorola has reported over US$17 billion in savings from Six Sigma as of 2006.  By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs and improving quality.  Reception  Six Sigma has made a huge impact on industry and is widely employed as a business strategy for achieving and sustaining operational and service excellence.

Benchmarking  Benchmarking is a continuous process whereby an enterprise measures and compares all its functions, systems and practices against strong competitors, identifying quality gaps in the organization, and striving to achieve competitive advantage locally and globally  The process of setting ―benchmarks,‖ means identifying accurate historical data against with a data set can be compared now and in the future.  This is one of the foundations of both total quality management and continuous quality improvement. Internal benchmarking occurs when similar processes within the same organization are compared. With other departments/section/branches  Benchmarking is an improvement tool whereby a company measures its performance or process against other companies' best practices, determines how those companies S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 26

achieved their performance levels, and uses the information to improve its own performance.  Benchmarking, originally invented as a formal process by Rank Xerox, is usually carried out by individual companies.  Advantages of Benchmarking  Benchmarking is a powerful management tool because it overcomes "paradigm blindness." Paradigm Blindness can be summed up as the mode of thinking, "The way we do it is the best because this is the way we've always done it."  Benchmarking opens organizations to new methods, ideas and tools to improve their effectiveness. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed, and demonstrating that they work, because they are being used by others. Procedure  Identification of problem areas.  Identify other industries that have similar processes  Identify organizations that are leaders in these areas .  Survey companies for measures and practices  Visit the "best practice" companies to identify leading edge practices.  Implement new and improved business practices

Business Process Re-engineering  BPR in the words of its Originators Hammer & Champy ― is an envisioned exercise in continuous Strategic Alignment focused on CUSTOMER.  BPR apart from reduction of cost, waste and cycle time, it focuses on the following  BPR aims at Radical Improvements, not at Marginal Improvements.  BPR is done through Adhoc Cross Functional teams.  BPR places emphasis on Multi Skills of Employees.  BPR implies breaking through Functional Barriers and Empowering Employees.  The main proponents of re-engineering were Michael Hammer and James A. Champy. In a series of books including Reengineering the Corporation, Reengineering Management, and The Agenda, they argue that far too much time is wasted passingon tasks from one department to another.  They claim that it is far more efficient to appoint a team who are responsible for all the tasks in the process. In The Agenda they extend the argument to include suppliers, distributors, and other business partners.  Reengineering is the radical redesign of an organization's processes, especially its business processes. Rather than organizing a firm into functional specialties (like S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 27

production, accounting, marketing, etc.) and looking at the tasks that each function performs.  we should, according to the reengineering theory, be looking at complete processes from materials acquisition, to production, to marketing and distribution. The firm should be re-engineered into a series of processes.  Re-engineering is the basis for many recent developments in management. crossfunctional team, management information systems . Enterprise resource planning, supply chain management, knowledge management system collaborative systems, Human Resource Management Systems and customer relationship management . Criticisms of Rengineering  It has earned a bad reputation because such projects have often resulted in massive layoffs. Companies have often downsized under the banner of reengineering. Further, reengineering has not always lived up to its expectations.  reengineering assumes that the factor that limits organization's performance is the ineffectiveness of its processes (which may or may not be true) and offers no means of validating that assumption.  reengineering assumes the need to start the process of performance improvement with a "clean slate", i.e. totally disregard the status quo.  according to Eliyahu M. Goldratt (and his Theory of Constraints) reengineering does not provide an effective way to focus improvement efforts on the organization's constraint.  While arguing that Reengineering was in fact nothing new (as e.g. when Henry Ford implemented the assembly line in 1908, he was in fact reengineering, radically changing the way of thinking in an organization)

8.LISTENING 1. WHAT IS LISTENING:  Taking in information from others or ourselves within reflectively.  Remaining non – judgmental, open mind  Remaining attentive – eyes and ears open, mind responding  Attitudinal encouragement for speaker to continue  Providing facilitating inputs for the speaker to put forward his ideas. 2. LEVELS OF LISTENING (Three to one – passive – pseudo – Empathetic) 1…. Tuning in and Tuning out – listening inconsistently in spurts – Half Listening. 2…. Passivity. 3….. Hearing the vocal sounds, (external and the speakers) the mind on its travel – non supportive – casual and unsympathetic – devoid of feelings – pseudo-listening speaker led to misconceived response and security. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 28

4…… Acknowledging – receiving-absorbing – Responding actively – Attentive to ideas, thoughts, feelings, expressions verbal and nonverbal, nonjudgmental, empathetic. Listening -I •

A responsive frame of mind to the message is conducive to personal and organisational goals.

•

Concentrate on the meaning of message

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Your plan to implement and accomplish

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Be emotionally literate

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Seek clarifications where clarity is required.

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Be alert to communicate and not to connect with your internal experiences – it will position itself.

Listening –II Perceptions and emotions •

The listening process is affected by

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Personal attributes

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Perceptions about the speaker (Prejudice)

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Perception about the value of the topic

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self esteem and levels of official status – Low credibility.

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Left over guilt feeling interrupting

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Blocks to listening

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Lack of stimuli.

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The captive of the school of life (taught, shown, felt, repeat feelings etc.)

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Extent of constructive openness.

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Environment (Psycho – social)

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Empathy

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Evaluating menace (not to encourage)

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Critically analysing.

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Lost in jumble of recalled experiences

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Blocked out adult (decommissioned) And

Where you have little to contribute “Accept”

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Environmental disturbances catharic

Strong perceptive schooling. III

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Guilt provoking – recall.

•

Monologues

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Distractions

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 29

•

Accent

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The influenced or the swayed

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Stress & anxiety

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The carriers (Propagators)

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Fatigue (Mental or Physical)

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The detractors

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Conflicting frames of mind – Distrust

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The ambivalent

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(Management & unions)

Listening Activated

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Semantics.

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Topic overload.

Listening is encourage or increases when

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Fear.

The types of Listeners in the audience are

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The person seeks responses

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Listener Prompted

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Topic is need based

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Casuals

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The speaker‘s intentions are helpful.

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The uncommitted

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Well timed

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The opinion forming

•

•

The opinion framing (interpreters)

Contents are of personal benefit / interest.

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The opinion builders – the convinced

3. Effective Listening: Increases cooperation through understanding Encourages honest feed back – facilitates speakers honesty and Induces speaker‘s confidence and trust Facilitates thoughts to open, gives need for feed- back, opens up emotional feeling. Develop interpersonal confidence and relationship. Eases Tension – stress and discomfort. TEN GUIDES FOR EFFECTIVES LISTENING 1)

Stop Talking with people around, you cannot listen if you are talking.

2)

Put the speaker at Ease – Permissive environment. Help a person feel free to talk.

3)

Exhibit your interest to listen to look interested.

4)

Do not read your mail or talk on mobile phone while someone talks.

5)

Listen to understand rather than to oppose.

6)

Remove distractions don‟t doodle, tap, or shuffle papers. Shut the room door and not your ears.

7)

Empathize with talkers understand the speaker‟s point of view.

8)

Be patient allow plenty of time. Do not interrupt a talker.

9)

Recapitulate before you question

10) Hold your temper. Do not misinterpret and get impatient. 11) Go easy on criticism speaker may turn defensive, and may close down. 12) Do not argue as speech goes on even if you win, you lose. 13) Ask questions after the speaker ends speech. This encourages a talker . 14) Show that you are listening. Develops synergy.

THE VOCAL QUALITIES EXHIBITED IN COMMUNICATIONS S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 30

1. Resonance

Vibratory intensification of tone

2. Rythym

Pleasant modal variations

3. Speed

The flow by its moderated swiftness.

4. Pitch variations & inflection

The compressing and rarifying release of sound.

5. Volume

The degree of bass. Loudness

7. Clarity

The aspect of using right vocabulary

8. Modulation / Moderation

Controlling own voice to represent intentions and focus on objectives.

9. Environs

The Physically conditioned tools & instruments.

Temperamental Blocks to Listening Blocks / Barriers to listening: •

Speaker‘ style (of delivery & authoritative expressions

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Stereo typing

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Filtered listening

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Physical & Phychological

•

•

Environmental

Selective listening (Derailed)

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They are related to personal

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Incompatible

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Role centered concepts

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Defence arousing (in disagreement – offensive)

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Being Defensive to critical observations.

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Personal. Perceptual Block

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Response

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Condition

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Defense arousing

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Allergy to ambiguity

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Perceptual Block

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Fear of social disapproval to seek clarification.

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Filtered response

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Un diversified exposure and controlled experience

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Receptivity variances

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Communicatory experiences conditioned

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Rejection

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In compatibility paralysed empathy Role centered

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Selective listening

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Fatigue Topic relevance Topic load.

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 31

•

Lingua franca (and dialect) •

Strong Perceptive Schooling.

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Distractions

Environmental disturbances •

Catharic

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Fatigue (Mental or Physical)

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Guilt Provoking – recall.

•

•

Monologues

Conflicting frames of mind – Distrust (Management & unions)

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Accent and impatience of speaker.

•

Semantics

•

Topic overload

• Stress & anxiety Superior initiated.

Employees usually hesitate to be open to the Management. They seek processes of collectivism to evoke positive smooth sailing climate they should emulate some of those suggested areas in superior initiated styles, to be effective in good climate creation and listening. •

Never enter conversation in angry mood.

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Keep always papers required

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Get aware of the tasks – be responsible

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Listen patiently – keep notes.

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Understand the importance, urgency etc of tasks

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Get prepared for dominance

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Be expressive, clear, and open.

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Get prepared for instructions.

•

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Have readiness to accept realities

Keep organisational interest above the self (sublimate)

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Realise that managers many times show ego

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Show your confidence, and altitude. •

Counseling

Listening to subordinate initiated communication Managers empathetic, responsive and clarification (rationale) make employees motivated to share and contribute to organizations.

Barriers to listening. They are related to personal. Defense arousing •

Speaker

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Inviting

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Physical & psychological

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Listening with patience – allow time.

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Environmental

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Understand

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(in disagreement – offensive)

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Calling others connected to contribute

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Perceptual Block

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Stereo typing

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Participate

•

Filtered listening

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Openness

•

Selective listening (derailed)

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 32

• In compatible . Role centered concepts Listening & Responding Building your strong Adult Learn to 1. a) Recognise the child in you, the fears, and how you express yourselves such fears and feeling to others. b) Recognise also your parent in you, its strengths, threats, orders, injunctions stern power, and the way you express. 2. Learn to be expressive, sensitive to the child © in others, talk to and stroke their child, understand their basic disposition (of not ok) Right information to the right needs (A) 3. Take some time (10-15 seconds) to respond and to whom to respond in others ego. 4. It however you cannot sort out, leave it alone for it is not worth while getting attacks for what you did or would like to do for the other 5. Work out a system of values, on the way you should respond. Learn to be emotionally Literate. Problem Solving –Listening in group Group require contributory efforts of members. (1) Passively accepting instructions or (2) inactively Listening to them with no views to subscribe and (3) following another silently, do not lead to growth. In the learning of management styles. •

1,1 neutrality. Passivity even having diff views

•

9,1 listening to dominant instructions. With compromise much might be said on other side‖

Listening Feedback through listening sometimes turns negative when the message. •

Looses focus – relevance

•

Aggressive

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Uncared to the voice of listeners

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Goes in sprinkle without continuity.

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Is snobbish – Ego centric

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Not compatible with the levels of listeners

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Absence of receptivity to feedback.

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Causes ambiguity.

Listening – Interpretation of conflict •

Where conflicting views are expressed the listener should interpret as an

•

Opportunity to solve the problem

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An approach to rationalise

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An attempt to a win-win game

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A trade of and allow the concept of sharing.

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 33

Guides for Listening – Receiving meaningful messages a) No defense to oppose – creating adverse feelings

Listening styles Defensive styles •

Judgmental

•

Evaluative

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Contradicting

c) Be prepared to understand

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Argumentative

d) Share feelings with responses

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Interruptive

e) Consider important points in inputs.

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Negative gesturing

f) Be sensitive to the non-herbals

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Emotionality

b) Seek clarifying example if necessary

g) Make attempts to correlate with objectives

Active Styles •

Eyes and ears open

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Attentive

•

Encouraging nonverbal cues

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Summarising

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Well formulated questions on genuine doubts

•

No rebuttals and no interpersonal problems emerging.

KEY TO IMPROVING ABILITY AS A COMMUNICATION IN WRITING 1. Communication

9. Check points:

2. Writing to communicate

9.1 Word length

2.1 Writing is natural

9.2 Presentation

2.2 Writing is an act of communication

9.3 Interest

2.3 Writing should be readable

9.4 Introduction

2.4 Reader‘s time is precious

9.5 Paragraphing

2.5 Where the fluency breaks, communication breaks

9.6 Sequencing Ideas

3. Gleaning information needed

9.8 Difficult words

4. Classification of the information

9.9 Punctuation

5. Writing does not come readymade

9.10 Critical points

6. The two stages of writing process

10. Rating Sheet

7. Developing a draft

11. Do;s and Don‘t‘s

8. Getting the matter ready for the reader

12. Conclusion

9.7 Conclusion

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 34

9.COMMUNICATION  THE WORD COMMUNCIATON IS DERIVED FROM THE LATIN WORD ―COMMUNIS‖ WHICH MEANS ―COMMON‖.  We spend most of our life communicating.  People spend more than 70% of their Daily Life in communication in one form or the other & in one context or the other.  Therefore it needs proper understanding and application for sophistication of our activities. COMMUNICATION DEFINITION Communication has been defined as a meeting of minds, for transfer of ideas. it is a process of putting minds into contact with one another, so as to obtain understanding, clarity and exchange of information. When we effect a communication we establish a common meeting ground for understanding. when we understand each other, we integrate our effort towards a common cause. when we make a common cause, we develop a ‗we‘ feeling. it is in this ‗we feeling‘ that we find the success of our concerted efforts in achieving our common objectives . Communication is the process of exchanging information through a common system of symbols, signs and behavior.The synonyms for communication are feelings, speaking, corresponding, writing, listening, exchanging etc. Types of Communication There are two types of Communication

-Posture

1.Verbal Communication

-Gesture

2 Non-verbal Communication

-Picture

Verbal Communication

-Mixture

There are two types of Verbal Communication

Trifurcation of Communication Impact.

a) Oral communication

38% Voice Tonality – impact on subconscious mind

b) Written Communication Non-verbal communication Body Language

07% words – impact on conscious mind.

55%Body Language– impact on sub conscious mind

S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 35

COMMUNICATE WITH MEASURE:In order to Communicate with Pleasure -your communication should generate interest, enthusiasium & encouragement. - Use Positive Language for Corrective Measures, Improvement and change Management. - Drive your point carefully & tactfully with out hurting the feelings of the others. In order to communicate with Measure - Make your message simple & effective. Use the appropriate few words to make it effective. Do not repeat the words except grammar. Do not use too many adjectives. Effective communication  Decide what your message is meant to achieve  Formulate the message with the listener in view  Always use simple business language.  Do not use harsh words & sarcastic language.  Business language used should be to express and not to impress with you vocabulary.  Do not use non popular parlance words - they may lead to missing the message.  An effective communicator anticipates the unlimited ways a message can be misunderstood.  The present day complex world brings us into constant contact with different sets of people in different situations.  As a result, we are bound to create an influence or be influenced by those with whom we frequently interact.  Thus, effective communication, both ways, can be a powerful tool in management.  Traditionally, organizational communication has always been one-sided.  Superiors have always expected subordinates to listen and do as they are told.  However, effective communication envisages both speaking and listening as equally important tools—an "open dialogue" instead of a monologue. Position Influence on Communication Factors like age, sex, political and religious affiliations, intelligence level, socio-economic status and placement levels in office affect receptivity to communication contacts. Body Language Influence on communication Secondly, each one of us has a "self-image" in terms of appearance (body build, skin colour, etc.), personal hygiene and smartness, which can create a powerful impact on listeners. When we speak, even the eyes and facial expressions, body movements, attire and gait, can have a profound influence. The pitch, the rhythm and pace of the words can convey more than the words themselves. Content Influence on Communication S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 36

As far as the content is concerned, it is Accuracy, Brevity and Clarity which form the ABC of an effective message. How one opens and closes a topic and how quickly one is able to put across ideas, testify to the effectiveness of the speaker and the receptivity of the listener. At higher levels, leaders must have the ability to convince people down the line and get things done. It is better to avoid dictatorial styles of communication (threatening language or raised voices), gestures and mannerisms which may create a negative response. On the contrary, it may be worthwhile to use one's power of empathy and appeal positively to the emotions and will-power of those whom one leads. Listening plays an equally important role in effective communication  In fact, in many organizations, the top management may be committed to more open communication but may fail to convey this to middle management and supervisory personnel.  Listening, in fact, involves more than hearing.  Listening is the process by which the spoken language is given meaning in the mind.  Active listening requires much concentration. In this context, the higher functionaries must overcome their role egos and encourage subordinates to speak out.  In fact, one effective way of appreciating others is not by the usual way of speaking out, but by sympathy; by feeling rather than understanding.  Especially at meetings, most speakers are more concerned about the effectiveness of their speeches and the persuasiveness of their presentation.  They fail to recognize listening as a leadership tool and as the best way to assess the opinions and ideas of others.  However, even non-verbal cues like eye contact, facial expressions and gestures can signal important information to a listener.  As Mike Nichols put it. It may interest the reader to know that according to one historical version, Hiroshima and Nagasaki were destroyed chiefly because of a communication gap.

THE SEVEN “C”s OF ORGANIZATONAL COMMUNICATION Completeness (includes all five Ws: what, when, who, where and why of any message.) Conciseness (no repetition, only relevant information's). Consideration (Focus on positivity i.e. what can be done and on personal honor, truthfulness and sincerity). Concreteness (use of specific facts and figures and avoiding uncertainty). Clarity (it requires short, familiar conversational words, use of examples and illustrations). Courtesy (thoughtfulness immediate reply etc). S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 37

Correctness (informal language, non discriminatory words) Do not forget to remember THE MOST POWERFUL COMMUNICATION IS NOT WHAT YOU SAY OR WHAT YOU WRITE BUT WHAT OTHERS PERCEIVE OF IT AND BELIEVE.  Tender Stage Communications  Tender finalization stage communication.  Communication with Clients & Consultants  Communication with Contractors, & Sub – Contractors  Communication of Damages, Claims, Modifications, Alterations, Deviations.  Communication with venders Contents of Tender Notice Details about the Client Details of the work to be executed Details of the tender Tenders eligibility Documents to be enclosed Pre tender meeting The objective of holding the meeting is 1. to ensure that the same image of the object as perceived by the client is conveyed by the tender documents to the tenderers. 2. There is no element of uncertainty or vagueness or impossibility left about the object to be constructed. 3.all the tenders have common understanding about the proposed object 4.the feedback from the tenders can be obtained to improve the practicability of design and method of proposed construction.

10.TIME MANAGEMENT Mr. Charles Schwab, an American millionaire paid a consultant $25,000 in 1936 to advise him how to best use the time – the precious & irretrievable resource. Consultant advice ―start your day with a ―to do list‖ and prioritize the vital few after picking them from the many. Our entire daily works can be classified into 2 categories - urgent and important. We have to decide our works in the following four quadrants and our focus should be quadrant two and we have to try our best to make the other 3 quadrants are zero. TIME MATRIX In any walk of life and in any function the success depends on prioritization of activities. Take a piece of paper and draw a big square, divide the square into 4 quarters and list out them as follows. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 38

URGENT &

NOT URGENT & IMPORTANT

IMPORTANT

( II )

(I)

NOT URGENT &

URGENT &

NOT IMPORTANT

NOT IMPORTANT

( IV )

( III )

Important works are related to our Mission, Vision, Values both Personal and Official Quadrant I :

Acts on you (Cure Approach)

Quadrant II : Must be acted upon by you ( Preventive approach) If you neglect / postpone important works they become Urgent and create Emergency Time Management Is Doing Things More Effectively, Not Just More Quickly.  Set aside time each day to review and prioritize demands on your time.  Estimate how long a task will take you, and see how accurate you were.  Allocate a specific amount of time to each subject on an agenda.  Classify all work engagements in your diary according to their importance / urgent.  Ensure that you have some quiet time every day. Time Management Is Doing Things More Effectively, Not Just More Quickly. Schedule regular time off to pursue your hobbies and leisure interests. Keep meetings short by listening rather than talking. If you find you are spending time on tasks that could easily be done by Junior, delegate them.

FROM

TO

I don‘t have time to delegate

I have to make time – it will be good investment in the long run

I can do the job better than anyone else

My job should not involve doing all the work myself - I have a responsibility to develop the people in my area

If I delegate too much, I will be doing myself out

I am already too busy to find time to attend to the important things

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Use planning and delegation to minimize time wasting at every level.

of a job

Remember That Time Is Perfectly Democratic. Nobody Has More Or Less Of It Than You. A manager‟s job should be concerned with planning the future rather than organizing the present. If you are not thinking ahead, you will spend your time for fire-fighting rather than planning how to stay ahead of the competition. People in your team will develop new skills and become more committed to achieving objectives and targets. Delegation does much for people‘s morale and job satisfaction Good delegates experience less absenteeism and more willingness to work confidently & competently. If you don‘t delegate, you may remain on the same old treadmill forever. It is an important part of your role to develop the skills of the people in your team. People will perform tasks better and quicker with guidance and practice Your skills could be better employed elsewhere. THE ART OF DELEGATION  DELEGATE TO SHARE  DELEGATE TO TRAIN  DELEGATE TO BUILD CONFIDENCE  DELEGATE TO INCREASE EFFICIENCY  DELEGATE TO RAPPORT & IMPROVE COMMUNICATION

PARADIGM SHIFT Non-management of Time Leads to Crisis Management Crisis Management is stressful for every one involved, it leads to mistakes and poor performance and it damages the image of the company in the eyes of its customers and workforce. Keys to Managing Time 1. Time Analysis A daily log of activities for at least one week, is essential as a basis for effective time analysis. It should be continued to avoid reverting to poor time management practices.

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2. Anticipation:Anticipatory action is generally more effective than remedial action. "A stitch in time saves nine," so expect the unexpected and plan for it. Assume if anything can go wrong, it will. 3. Planning Every hour spent in effective planning saves three to four in execution and get better results. Both long-range and daily planning, formulated , in harmony with short-term objectives and events, are essential to effective utilization of personal time. 4. Flexibility Flexibility in degree of scheduling personal time may be necessary to accommodate forces beyond one's control. Time should not be over- or under scheduled. 5. Objectives and Priorities More effective results are generally achieved through purposeful pursuit of planned objectives than by chance. Time available should be allocated to tasks in ordered sequence of priority. Set priorities and stick to them. 6. Deadlines Imposing deadlines and exercising self-discipline in adhering to them aid managers in overcoming indecision, vacillation and procrastination. 7. Alternatives In any given situation, failure to generate alternative solutions limits the likelihood of selecting the most effective course of action. 8. Consolidation Similar tasks should be grouped within divisions of the work day to minimize interruptions to economize in the utilization of resources and in personal expenditure of effort. 9. Delegation Authority for decision-making should be delegated to the lowest level possible, consistent with good judgment and available facts. 10. Minimizing Routine and Avoiding Detail Routine tasks of low value to overall objectives should be minimized, consolidated, delegated or eliminated to the extent possible. Managers should divorce themselves from unnecessary detail and selectively neglect all but essential information. This has been termed "the need not to know." PERFORMANCE PERFECTION – ACTION PLAN  Objectives – prioritization  Realistic schedule – preparation  Weekly targets – actualization  Fortnightly achievements – evaluation  Short falls – concentration  Make up – by follow up action.

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11.INDIAN MANAGEMENT Indian Mgt Principal concept of Principles On ―DHARMA & KARMA‖ Philosophy And Panchatantra How to be successful in life. Pancha means five, Tantra means doctrines of conduct or modes of action, namely, confidence , firmness of mind, creation of prosperity, earnest endeavor, friendship, knowledge, skill and attitude. Panchatrantra depicts Nitishastra (wise conduct) , 

EICCHA SHAKTHI, KRIYA SHAKTHI, GYANA SHAKTHI.



Worshipping Nature.



Service to Humanity is Service to Divinity.



Planning & Organizing through Imagination & creative Sand models.

 Feed back for personal perfection.  Controls through Trust, & Faith.  Sentiments & Emotional Relationship.  Cottage Industry Mgt with family members.  Caste based Professional works/jobs.  Training & Development Through Observation & On the Job Exposure  (All construction Skill jobs even today are being learnt Through Observation & on the Job Exposure.)  Payment in Kind – Barter System  Strong belief that leaders were Born.  Importance to Traditional Practices, Customs. The Principles of “Theory „i‟ Management”  Most Indians value bonds emotions and long-term relationships.  Most Indians value growth opportunities and commitment.  Our cultural roots (of tolerance etc.) often make us complacent.  our cultural values and a lot of similarities can be drawn with the Japanese value systems.  Looking at the Japanese companies one finds concepts of lifetime employment working wonders out there.  A Japanese finds a bonded culture in his organisation, unlike the American contract culture.  If we look into the Japanese life style and culture we would find the importance of bonds being very high. The Japanese have strong family ties and a strong sense of community.  From such an upbringing, they feel at home when they see a bonded style of management on the job.  The typical Japanese would say, ―I am a Honda man (and not that I work for Honda)‖ displaying the bond that he shares with his company. The point that gets highlighted again is that a management style, which flows out of your own culture and roots would S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 42

any day, motivates your people much more than one, which is adopted from somewhere else.  An Indian grows up in a system, where family ties and a sense of belongingness get an absolute top priority.  the human touch in managing them.  They should be made to feel that the company cares for them through regular training programmes, family welfare schemes etc.  They should be made to feel that they matter in the organization through programmes, which involve them directly or indirectly into various decision-making processes. Impact of British Rule 

Communication Systems.



Transportation Systems.



Mechanization of Manufacturing Systems



Formalization of Procurement Systems of 4 Ms

12.CHARACTERISTICS OF CONSTRUCTION INDUSTRY Construction is very large industry of small firms. Construction industry is 20% organized and 80% unorganized. Highest per capita in come of individual and both state/central government is being invested. Employees are 20% literate and 80% illiterate. Construction should be RFT and permanent asset with longevity Construction industry is client oriented instead of production oriented. Construction industry is primarily contracting. All relationships are contractual and exist during project life only. Entry into construction industry is easy due to lack of registration/licensing and low initial capital requirement. Construction industry has inter-dependence between many heterogeneous disciplines and professions. Construction is labor intensive industry . In construction industry product is first sold and then made. In construction industry each product made is unique. In construction industry plant and machinery are not fixed. They move from site to site. In construction industry work is seasonal, Labor is casual and temporary, sub-contracting is common. In construction industry production is done at sites under natural/hazardous conditions.

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In construction industry employment relations are contractual and of short duration and hiring is project based. In construction industry unionization is difficult, unions are unstable.

Construction Industry  Construction is as old as mankind. Many thousands of years ago, Man fist discovered the cave which could be used as a dwelling.  The caveman did construction as he made the cave suitable to his needs for a shelter. Caves gave way to communes.  As the man discovered the need for privacy, in addition to shelter, communes began to be replaced by individual housing.  As the needs grew, the man found ways and means to modify his environment to keep in pace with the growth of civilization.  Technology and construction Methodology are also changing.  They became more and more sophisticated.  Thus construction is not merely buildings and erection.  Construction is a method of modifying nature to suit the needs of populace in keeping with the development of civilization.  Construction is essentially a developmental activity.  India has rich heritage of construction. Our temples and Tajmahal testify to the sophistication achieved in construction methods. 

Archaeological findings bear enough testimony to the Indian's capabilities in town planning, water works, transportation, communications etc.

 With the decline of Indian economy and coming of the British, our construction also declined.  Barring exceptions, construction is P.W.D. oriented and it remained as such for a long time, till the country achieved Independence.  Post-Independent India embarked upon mammoth construction works.  Planned economic development was adopted as a means to improve the quality of life and standard of living of our people.  Development "meant building infrastructure, which, in turn meant construction.  Approximately 43 to 52 percent of the Plans outlay during the last 30 years constituted construction component.  Thus, construction is a vanguard activity. 

Most developmental and infrastructure projects start with civil works.

 Any time or cost over-runs in construction increase the total cost of the projects. Even marginal productivity increase in construction has multiplier effect in increasing the productivity and efficiency of the economy. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 44

 Despite the critical role that construction plays in national development, it has not received proper attention of all concerned. Construction methods range from almost primitive techniques to the most sophisticated; from totally unskilled manual operations to almost automated and equipment intensive; from large corporations to one man operation.  Labor employed in construction is casual, project based and lacks commitment to work.  Managerial capabilities and professionalization of functions are missing, by and large. It is only recently that the Government and the Construction 13

13. I S O -9000 What is ISO The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies from more than 140 countries, one from each country. ISO‘s work results in international agreements which are published as International Standards. ISO is a non-governmental organization established in 1947. 1. The mission of ISO is to promote the development of standardization and related activities in the world with a view to facilitating the international exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific, technological and economic activity. ISO‟s Name Many people will have noticed a seeming lack of correspondence between the official title when used in full, International Organization for Standardization, and the short form, ISO. Shouldn‘t the acronym be ISO‘? Yes, if it were an acronym – which is not. In fact, ‗ISO‘ is a word, derived from the Greek isos, meaning ‗equal‘ , which is the Root of the prefix ‗iso-‘ that occurs in a host of terms, such as isometric‘ (equality of laws, or of people before the law). From ‗equal‘ to ‗standard‘, the line of thinking that led to the choice of ‗ISO‘ as the name of the organization is easy to follow. In addition, the name ISO is used around the world to denote the organization, thus avoiding the plethora of acronyms resulting from the translation of ‗International Organization for Stadardization‘ into the different national languages of members, e.g. IOS in English, OIN in French (Organization Internationable normalization). Whatever the country, the short form of Organization‘s name is always ISO

14.Skills of Managers Conceptual: To recognize significant elements in a situation and to understand the relationship among the elements. Technical: Proficiency in specialized activities involving methods & processes. Design: Working out a practical solution to a problem. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 45

Human: Ability to work along with people, Cooperative effort & Creation of an environment for people safety & Security. Administration is applications & operations of Management functions ,activities by methods, rules & regulations within the legal frame work of a particular procedure. Discipline is the practice of training people to obey code of behavior to eliminate friction and to ensure smooth function of human interactions. Strategy describes how an organization intends to create more sustainable values for its stakeholders when compared with its competitors.

BUSINESS ETIQUETTE

ETHICS

Rules of Manners

Moral Philosophy

Rules of Social Behaviour

Moral values

Professional Conduct

Moral system

Related to Activity

Procedure of Justice Set of Principles Related to culture & Heritage

15.CORPORATE GOVERNANCE Corporate 1. Shared by whole group, not just by a single individual 2. A large company or group of companies that is controlled together as a single organization. 3. An artificial person or legal entity created by or under the authority of the law of the state. Being the mere creation of the law, it possesses only those properties for which it is created. Governance Conducting affairs of people by constituting and administering rules, standards and principles. -

The conduct of Business with a view to enhance shareholders gain.

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-

Taking into account the ethical considerations that are reasonable & regarded as appropriate to conduct the business.

-

Devote a reasonable amount of resources to the public welfare.

Three levels of CG Responsibilities 1. Responsibility to meet its material obligations to their stakeholders to pay its taxes and to meet its statutory duties. 2. Responsibility is concerned with avoiding damage to the people & environment. 3. Responsibility for interaction between Business and Society in a wider sense ( business should reflect society‘s priorities rather than its own commercial ones)

15 . Team Building for Learning Organizations Teambuilding is characterized by mutual trust and openness, where problems and risks are shared and resolved collectively by the project team. It is a pragmatic way of working together to find ways of delivering the project to the required quality within budget and within the agreed timeframe. It should promote greater openness and encourage each team member. It involves all parties in the team exploring their collective strengths and weaknesses and specific areas of responsibility; agreeing how they will work together in practice; identifying how progress and issues will be reported and resolved and so on. Bruce Tuckman (1965) proposed the 5-stage model .  Forming  Storming  Norming  Performing  Reforming  Forming

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In the first stages of team building, the forming of the team takes place.  The forming stage of any team is important because in this stage the members of the team get to know one another and make new friends.  The team meets and learns about the opportunity,challenges, and goals and begin to think how to tackle the tasks.  Team members tend to behave quite independently.  They may be motivated but are usually relatively uninformed of the issues and objectives of the team.  Team members are usually on their best behavior but very focused on themselves.  Mature team members begin to model appropriate behavior even at this early phase.

Storming  Every group will then enter the storming stage in which different ideas compete for consideration.  The team addresses issues such as what problems they are really supposed to solve, how they will function independently and together and what leadership model they will accept.  Team members open up to each other and confront each other's ideas and perspectives.  In some cases storming can be resolved quickly. In others, the team never leaves this stage.  The maturity of some team members usually determines whether the team will ever move out of this stage.  Immature team members will begin acting out to demonstrate how much they know and convince others that their ideas are correct.  Some team members will focus on minutiae to evade real issues.  The storming stage is necessary to the growth of the team.  It can be contentious, unpleasant and even painful to members of the team who are averse to conflict.  Tolerance of each team member and their differences needs to be emphasized.  Without tolerance and patience the team will fail.  This phase can become destructive to the team and will lower motivation if allowed to get out of control.  Supervisors of the team during this phase may be more accessible but tend to still need to be directive in their guidance of decision-making and professional behavior.  This is also a good opportunity to see how each member of the team works as an individual and how they respond to pressure. Norming  Team members adjust their behavior to each other as they develop work habits that make teamwork seem more natural and fluid. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 48

 Team members often work through this stage by agreeing on rules, values, professional behavior, shared methods, working tools .  During this phase, team members begin to trust each other. Motivation increases as the team gets more acquainted with the project.  Teams in this phase may lose their creativity if the norming behaviors become too strong and begin to stifle healthy dissent and the team begins to exhibit groupthink.  Supervisors of the team during this phase tend to be participative more than in the earlier stages.  The team members can be expected to take more responsibility for making decisions and for their professional behavior.

Performing  Performing teams are able to function as a unit as they find ways to get the job done smoothly and effectively without inappropriate conflict or the need for external supervision.  Team members have become interdependent.  By this time they are motivated and knowledgeable.  The team members are now competent, autonomous and able to handle the decisionmaking process without supervision.  Dissent is expected and allowed as long as it is channelled through means acceptable to the team.  Supervisors of the team during this phase are almost always participative.  The team will make most of the necessary decisions.  Even the most high-performing teams will revert to earlier stages in certain circumstances.  For example, a change in leadership may cause the team to revert to storming as the new people challenge the existing norms and dynamics of the team. Reforming  A team that lasts may transcend to a transforming phase of achievement.  Transformational management can produce major changes in performance through synergy and is considered to be more far reaching than transactional management. Why Be Part Of A Team?  You‘ve been asked to participate on a team to accomplish some task. Immediately your decision-making process begins.  What is the purpose of the team?  Is it a task that interests me?  Who will be on the team with me?  What kind of authority will we have?  Is it important to management? S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 49

 What is the reward for participating?  What is the risk (perceived as punishment) for not participating?  How long will it run?  Will I be better off as a result of my participation? Factors That Influence Team Motivation I. Purpose II. Challenge . III. Camaraderie ( Trust & friendship among people) V. Responsibility . V. Growth . VI. Leadership . Role Clarity: Ascertain your Role Understand what others are expecting from your performance Be loyal to the purpose of your existence in the organization Understand your capability. Understand your capability. Work Culture Whatever be the role Discharge your duties With Discipline Determination And Dedication. If you apply

16. PARTNERING PARTNERING 

The concept of partnering as a management process emerged in the late nineties.



Partnering starts from the concern that the traditional adversial relationship between owners and contractors is ineffective and self-defeating as it degenerates into a costly lose / lose situation for all parties.



Partnering assumes that the parties share sufficient common goals to warrant a more collaborative relationship, i.e. both the contractors and the owners would want projects completed safely and on time.



Neither party wants rework and would prefer to avoid costly litigation



Each party would like to reduce costs while at the same time improve quality.



"Partnering is a process of transforming contractual arrangements into a cohesive and collaborative approach to issues and problems encountered in implementing a project or completing a contract.



" The US Army Corps of Engineers defines Partnering as project specific, interorganizational, dispute avoidance process.

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

it is not a contractual relationship. Also, it does not create any legally enforceable rights or duties.



Rather, partnering seeks to create a new co-operative attitude in completing major projects.



It refers to a collaborative close-working relationship between parties to a contract.



Partnering means an opportunity to embrace 'team working' and 'joint problem solving', instead of an adversial approach to claims and acdisputes.



Other more integrated levels of partnering include joint risk and reward sharing mechanisms, shared resources and open-book accounting.



The focus is always meeting on the client's procurement objectives.



The procurement theme continues through quality, cost effectiveness, speed and other largely project related issues.

Conditions of Success:

Partnering can be adopted in situations where the following ten basic requirements are satisfied.

1.There must be an acceptance by the partners that it is worth making the investment in building a partnering arrangement. This requires commitment from the top management and the delegation of appropriate authority throughout the whole organization. 2. There must be potential for improvement in the product or service that is the subject of partnering arrangement. 1. Moreover the companies involved must have the potential to improve their performance. 2. It must be recognized that for the full benefits of partnering to be achieved, it has to be a medium to long-term strategy because it takes time for the benefits to emerge. However major projects that take years to complete can use project partnering to achieve significant benefits. 3. Long term commitment to strategic partnering arrangements by senior management is an essential pre requisite. This is especially needed when problems arise. Essentially senior management set the style and culture of partnering by the example of their behavior in problem situations. They need to see themselves as the champions of partnering. 4. The partnering organizations should have the similar work culture, compatibility, cooperative manner, and be financially stable. They should have good quality management and potential for undertaking research, development and innovation. There need to be flexible attitudes in managers and the work force. 5. The partnering arrangement should be based on equality rather than being a one sided paternalistic relationship. There needs to be a basis for agreeing to prices and conditions, of contract that are fair to both parties. S.R.R PUBLICATIONS- MANAGEMENT THEORY Page 51

It is important to develop mutual objectives for the partnering arrangement that encourages team-building and co-operative attitudes, such as zero defects within two years, a thirty percent reduction in costs over the next three years, etc. The targets Should recognize that the performance will not change overnight and so they should provide a series of measured steps. It is equally important to establish clear measures of the partnering organization's performance in achieving its objectives. 6. The partners should have an interest in each other's profitability and seek to take an equal share of risks. They need to understand each other's problems, concerns and weaknesses and be prepared to discuss these without fear that their openness will be used against them. They need to understand each other's methods of working, for example, who is responsible for which decisions. There must be an agreed procedure for resolving issues that arise between the partners. . 7. The free and open exchange of Information is an important characteristic of good partnering. Careful consideration needs To be given at each management level to the kinds of information that should be made available to whom. A closely related feature of good practice is to work on the basis of open -book costing. The essential principle is not to keep secrets from each other about the subject of partnering arrangements. At the same time, it is important to respect the status of confidential information. 8. There should be an annual review of performance, taking into account the level of cooperation, motivation, quality, improvement in value, cost reduction, speed of delivery and innovation. There should be joint training and joint workshops to discuss problems and improvements. Partnering provides a good basis for value engineering work simplification procedures and contracts and specifications. This potential should' be used to build continuous improvement into the heart of the partnering arrangement. Continuous improvement is the only reliable basis for developing world-class efficiency and so is an essential feature of partnering. 

Finally, it needs to be recognized that real efficiency requires the whole team to work reliably and efficiently.

NOTE; All the above notes are given by : Prof B.G.Verma ,Nicmar,Hyderabad campus. All copyright are reserved@. Join our groups @ http://www.orkut.co.in/Main#Community?cmm=92696277 &

[email protected]

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NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH CENTRE. 23rd A.C.M , HYDERABAD CAMPUS.

LECTURES NOTES ON MANAGEMENT THEORY ACCOUNTS CONSTRUCTION TECHNOLOGY A.C.M – 1st TERM

BY: NAME: _____________________ ROLL NO:___________________ CELL NO:____________________

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