smaran's management


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smaran's management

  1. 1. Management Management is a process of designing & maintaining environment in which individuals, working together in groups, efficiently accomplish selected aims
  2. 2. Management <ul><li>Process of working with & through others to achieve organizational objectives in a changing environment. Central to this process is the effective & efficient use of limited resources. </li></ul>
  3. 3. Management It is the process of planning, organizing, leading and controlling, individual and resources to achieve organizational objectives
  4. 4. Organization <ul><li>A consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals </li></ul>
  5. 5. Components of Organization <ul><li>People </li></ul><ul><li>Goals or Purpose </li></ul><ul><li>Structure </li></ul><ul><li>Technology </li></ul>
  6. 6. Characteristics of Today’s Organization Organization Bigness Diversification Globalization Govt. Interference Competition Information Change Science & Tech
  8. 8. Management Functions Management Functions Planning Organizing Leading Controlling
  9. 9. Management Functions ‘ Planning Organizing Leading Controlling Management Functions
  10. 10. Management Functions: Planning, Organizing, leading & controlling Planning Setting performance Objectives & deciding How to achieve them Organizing Arranging tasks, people, & other resources To accomplish the work Controlling Measuring performance & taking action to Ensure desired results Leading Inspiring people to Work hard to achieve High performance The Management Process
  11. 11. Interactive Nature of Management Process <ul><li>. </li></ul>LEADING Managers direct, Influence, & Motivation employees to perform essential tasks PLANNING Managers use logic & methods to think through goals & actions ORGANIZING Managers arranged & allocate work authority & resources to achieve organization goals CONTROLLING Managers make sure org is moving towards org objectives
  12. 12. Managerial Functions Achieving the Org Stated purpose Planning Defining Goals, Establishing strategy, & developing Sub-plans to Coordinate activities Organization Determining What Needs to be done, How it will be done, & who is to do it Leading Directing & Motivating all Involved parties & resolving conflicts Controlling Monitoring activities To ensure that they are Accomplished as Planned Lead to
  13. 13. Manager <ul><li>“ The individuals who are responsible for completing the tasks that requires supervision of other members or organization or organizational resources.” </li></ul><ul><li>“ Individual in an organization who direct the activities of others to achieve the organizational objectives.” </li></ul><ul><li>(Robbins) </li></ul>
  14. 14. Manager <ul><li>“ People responsible for designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” </li></ul><ul><li>(Koontz) </li></ul>
  15. 15. Levels of Managers Top Managers Middle Managers First-line Managers Operatives
  16. 16. Top Level Managers <ul><li>The individuals responsible for determining the goals, objectives and plans that chart the organization’s long-range course. The most important task of Top-level management is strategic planning. Examples of Top Level Mangers are Managing Directors, Directors etc . </li></ul>
  17. 17. Middle Level Managers <ul><li>All levels of mangers between the Top level mangers and First Line Mangers are called Middle Level Managers. They involve in tactical planning and control. Examples of Middle Level Mangers are General Managers, Deputy General Managers and Managers etc. </li></ul>
  18. 18. First Line Managers <ul><li>They are directly responsible for planning and controlling the activities of workers so that higher-level targets are met; this is the lowest level of management in the organizational hierarchy. Examples of First Line Mangers are Assistant Managers, Supervisors, and Foremen etc. </li></ul>
  19. 19. Types of Managers <ul><li>Line Managers </li></ul><ul><li>Staff Managers </li></ul>
  20. 20. Line Managers <ul><li>The term line refers to a position and describes managers whose organizational function contributes directly to the achievement of organizational objectives. Managers of Production, Quality and design functions are called line managers and their authority is called line authority. </li></ul>
  21. 21. Staff Managers <ul><li>The term staff refers to a position and describes managers who offer advice or assist line managers to perform their functions. They are not directly involved in production activities. Managers of Human Resource, Finance, Auditing and Security functions are called Staff Managers and their authority is called Staff Authority. </li></ul>
  22. 22. Management Skills <ul><li>Technical Skills </li></ul><ul><li>Human Skills </li></ul><ul><li>Conceptual Skills </li></ul>
  23. 23. Technical Skill <ul><li>It is knowledge of and proficiency in activities involving methods, processes and procedures. It involves working with tools and specific techniques </li></ul>
  24. 24. Human Skill <ul><li>It is the ability to work with people; it is cooperative effort; it is teamwork and creation of an environment in which people feel secure and free to express their opinions </li></ul>
  25. 25. Conceptual Skill <ul><li>It is the ability to see the big picture, to recognize significant elements in a situation, to understand the relationships among the elements and the ability to solve problems in ways that will benefit the enterprise </li></ul>
  26. 26. Managers and Skills First-Line Middle Level Top Level Technical Skills Human Skills Conceptual Skills
  27. 27. Manager Roles <ul><li>Interpersonal Roles </li></ul><ul><li>Informational Roles </li></ul><ul><li>Decisional Roles </li></ul>
  28. 28. Interpersonal Roles <ul><li>All managers are required to perform duties that are ceremonial and symbolic in nature-Interpersonal Roles. These are </li></ul><ul><li>Figurehead </li></ul><ul><li>Leader </li></ul><ul><li>Liaison </li></ul>
  29. 29. Informational Roles <ul><li>Informational Roles-receiving and collecting information from organizations and institutions their own. These roles are </li></ul><ul><li>Monitor </li></ul><ul><li>Disseminator </li></ul><ul><li>Spokesperson </li></ul>
  30. 30. Decisional Roles <ul><li>These roles are the major part of manager’s responsibilities. They include </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Disturbance Handler </li></ul><ul><li>Resource Allocation Role </li></ul><ul><li>Negotiator </li></ul>
  31. 31. Management Seeks Efficiency & Effectiveness G O A L A T T A I N M E N T Ends: Effectiveness R E S O U R C E U S A G E Means: Efficiency Goals High attainment Low Waste
  32. 32. Planning <ul><li>Planning is the process of establishing goals and a suitable course of action to achieve these goals. It requires decision making, that is, choosing future courses of action from alternatives </li></ul>
  33. 33. Types of Plans <ul><li>Single Use Plans </li></ul><ul><li>Programs </li></ul><ul><li>Projects </li></ul><ul><li>Policies </li></ul><ul><li>Procedures </li></ul><ul><li>Budget Plans </li></ul><ul><li>Contingency Plans </li></ul>
  34. 34. Mangers and Planning <ul><li>Strategic Planning </li></ul><ul><li>Tactical Planning </li></ul><ul><li>Operational Planning </li></ul>
  35. 35. Mangers and Planning Top Level Managers Middle Level Managers First Line Managers Strategic Planning Tactical Planning Operational Planning
  36. 36. Strategic Planning <ul><li>Planning that apply to the entire organization, establishes the organization’s overall objectives and seek to positions an organization in terms of its environment is called strategic planning. It takes place at the highest level of the organization. </li></ul>
  37. 37. Tactical Planning <ul><li>It is the technique of determining how strategic objectives will be accomplished. It is usually the job of Middle level Managers. </li></ul>
  38. 38. Operational Planning <ul><li>It specifies the detail how overall objectives are to be achieved. It is typically the job of First Line Managers. </li></ul>
  39. 39. Planning-Timeframe <ul><li>Long-Range Planning </li></ul><ul><li>Intermediate Planning </li></ul><ul><li>Short-Range Planning </li></ul>
  40. 40. Planning Process Control | V Implementation | V Strategy Formulation | V Situation Analysis | V Objectives | V Mission
  41. 41. Organizational Mission <ul><li>Concern for survival: What is the organization’s commitment to economic objectives? </li></ul><ul><li>Customers: Who are the organization’s customers? </li></ul><ul><li>Products/Services: What are the organization’s major products or services? </li></ul><ul><li>Location: Where does the organization compete? </li></ul>
  42. 42. Organizational Mission <ul><li>Technology: What is the firm’s basic technology? </li></ul><ul><li>Philosophy: What are the basic beliefs, values, aspirations and philosophical priorities of the organization? </li></ul><ul><li>Self-concept: What are the organization’s major strengths and competitive advantages? </li></ul>
  43. 43. Organizational Mission <ul><li>Concern for public image: What are the organization’s public responsibilities, and what image is desired? </li></ul><ul><li>Concern for employees: What is the organization’s attitude toward its employees? </li></ul>
  44. 44. Tools for Planning <ul><li>Brain Storming </li></ul><ul><li>Forecasting </li></ul><ul><li>Breakeven Analysis </li></ul><ul><li>Gantt Chart </li></ul><ul><li>Program Evaluation and Review Technique (PERT) </li></ul><ul><li>Critical Path Method (CPM) </li></ul><ul><li>Delphi Technique </li></ul>
  45. 45. Barriers to Planning <ul><li>Inappropriate Goals </li></ul><ul><li>Improper Reward System </li></ul><ul><li>Complex Environment </li></ul><ul><li>Resistance to Change </li></ul><ul><li>Constraints </li></ul><ul><li>Information Deficiency </li></ul>
  46. 46. Benefits of Goals <ul><li>Increase Performance </li></ul><ul><li>Clarify Expectations </li></ul><ul><li>Facilitate the Controlling Function </li></ul><ul><li>Increase Motivation </li></ul>
  47. 47. Levels of Goals Operational Goals ---------Operational Plans Tactical Goals------Tactical Plans Strategic Goals----Strategic Plans Top Management Middle Management First Level Management
  48. 48. Levels of Goals <ul><li>Strategic Goals: Broadly defined targets or future end results set by top management </li></ul><ul><li>Tactical goals: Targets or future end results usually set by middle management for specific departments or units </li></ul><ul><li>Operational goals: Targets or future end results set by lower management that address specific measurable outcomes required from the lower levels </li></ul>
  49. 49. How Goals Facilitate Performance <ul><li>Goal Content: </li></ul><ul><li>Challenging </li></ul><ul><li>Attainable </li></ul><ul><li>Specific and </li></ul><ul><li>Measurable </li></ul><ul><li>Time Limited </li></ul><ul><li>Relevant </li></ul><ul><li>Work Behavior: </li></ul><ul><li>Direction </li></ul><ul><li>Effort </li></ul><ul><li>Persistence </li></ul><ul><li>Planning </li></ul><ul><li>Goal Commitment: </li></ul><ul><li>Supervisory Authority </li></ul><ul><li>Peer & group Pressure </li></ul><ul><li>Public Display </li></ul><ul><li>Expectations of Success </li></ul><ul><li>Incentives & Rewards </li></ul><ul><li>Participation </li></ul>Knowledge of results (or feedback) Situational Constraints (tools, materials and Equipment PERFROMANCE Job Knowledge and Ability Task Complexity
  50. 50. Characteristics of Goals <ul><li>SMARTER </li></ul><ul><li>Specific </li></ul><ul><li>Measurable </li></ul><ul><li>Acceptable/Attainable </li></ul><ul><li>Realistic/Relevant </li></ul><ul><li>Timeframe </li></ul><ul><li>Extending </li></ul><ul><li>Rewarding </li></ul>
  51. 51. Strategy <ul><li>The broad program for defining and achieving an organization’s objectives. It can be </li></ul><ul><li>Corporate Level Strategy </li></ul><ul><li>Business Unit Strategy </li></ul><ul><li>Functional Level Strategy </li></ul>
  52. 52. Types of Strategies <ul><li>Corporate Level Strategy </li></ul><ul><li>Strategy formulated by top management to oversee the interests and operations multiline corporations </li></ul><ul><li>Business Unit Strategy </li></ul><ul><li>Strategy formulated to meet the goals of a particular business </li></ul><ul><li>Functional Level Strategy </li></ul><ul><li>Strategy formulated for a specific functional area to meet business unit objectives </li></ul>
  53. 54. Decision Making <ul><li>The process of selecting a course of action or alternative among different alternatives </li></ul>
  54. 55. Types of Decisions <ul><li>Programmed decisions </li></ul><ul><li>Nonprogrammed decisions </li></ul>
  55. 56. <ul><li>Programmed Decisions </li></ul><ul><li>Type of problem </li></ul><ul><li>Frequent, repetitive, routine, much certainty regarding cause and effect relationship. </li></ul><ul><li>Procedure </li></ul><ul><li>Dependence on policies, rules, and definite procedures. </li></ul><ul><li>Examples </li></ul><ul><li>Business, University, Healthcare. </li></ul><ul><li>Nonprogrammed Decisions </li></ul><ul><li>Type of problem </li></ul><ul><li>Novel, unstructured, much uncertainty regarding cause and effect relationship. </li></ul><ul><li>Procedures </li></ul><ul><li>Necessity for creativity, intuition, tolerance for ambiguity, creative problem solving. </li></ul><ul><li>Examples </li></ul><ul><li>Business, University, Healthcare. </li></ul>Types of Decisions
  56. 57. Conditions of Decision-making <ul><li>Certainty </li></ul><ul><li>Risk </li></ul><ul><li>Uncertainty </li></ul>
  57. 58. Barriers to Effective Decision Making <ul><li>Psychological biases </li></ul><ul><ul><li>Illusion of control </li></ul></ul><ul><ul><li>Farming effect </li></ul></ul><ul><ul><li>Discount the future </li></ul></ul><ul><li>Time pressures </li></ul><ul><ul><li>Real time information </li></ul></ul><ul><ul><li>Involve people more effectively and efficiently </li></ul></ul><ul><li>Social realities </li></ul>
  58. 59. Decision-making Process <ul><li>Problem Identification </li></ul><ul><li>Identification of Decision Criteria </li></ul><ul><li>Allocating Weights to Criteria </li></ul><ul><li>Generating Alternative Solutions </li></ul><ul><li>Evaluating Alternatives </li></ul><ul><li>Making the Choice </li></ul><ul><li>Implementation of Decision </li></ul><ul><li>Evaluating the Decision </li></ul>
  59. 60. Decision Making Process Problem Identification “ New Supplier is required ” Identification of Decision Criteria Price Quality Mode of payment Credibility Location Allocation of Weights to Criteria Quality 10 Price 8 Mode of Pay 5 Location 4 Credibility 3 Development of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn Implementation of an Alternative Hassan Bro . Evaluation of Decision Effectiveness Analysis of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn Selection of an Alternative Anex Haji & sons Linkers Hassan Bro. Globe Inn
  60. 61. Organizing <ul><li>It is the process of arranging & allocating work authority & resources to achieve organization goals. It involves </li></ul><ul><li>Identifying tasks to be performed </li></ul><ul><li>Allocating the tasks among members </li></ul><ul><li>Integrating efforts to achieve its objectives </li></ul>
  61. 62. Key Concepts <ul><li>Span of Management Control </li></ul><ul><li>The number of subordinates reporting directly to a given manger </li></ul><ul><li>Chain of Command </li></ul><ul><li>The plan that specifies who reports to whom in an organization, such reporting lines are prominent features of organization chart </li></ul>
  62. 63. Key Concepts <ul><li>Coordination </li></ul><ul><li>The integration of the activities of the separates parts of an organization to accomplish organizational goals </li></ul><ul><li>Downsizing </li></ul><ul><li>A version of organizational restructuring which results in decreasing the size of the organization and often results in a flatter organizational structure </li></ul>
  63. 64. Types of Organizational Structures Options for Departmentalization Market- Channel Functional Matrix Customer Product Geography
  64. 65. Functional Organization President Marketing Mgr Production Mgr. Finance Mgr HRM Mgr
  65. 66. Geographical Organization President VP South Asia VP East Asia. VP Australia VP North America
  66. 67. Product Organization President VP Tea Line VP Oil Line. VP Soap Line VP W/Powder Line
  67. 68. Customer Organization President North America Metals and Chemicals Group Material Science Group Aerospace & Industrial Products International Group Packing Systems Group
  68. 69. Matrix Organization Finance Grp Marketing Grp Materials Grp HR Grp HR Grp Production Grp Finance Grp Materials Grp Production Grp Marketing Grp Project A Manager Project B Manager Production Finance Marketing Material & Procurement Human Resource Chief Executive Line operation– Work performance Support assistance from functional departments
  69. 70. Power <ul><li>The ability to exert influence or force in an attempt to change attitude or behavior of individuals or groups. </li></ul>
  70. 71. Sources of Power <ul><li>Reward Power </li></ul><ul><li>Coercive Power </li></ul><ul><li>Legitimate Power </li></ul><ul><li>Expert Power </li></ul><ul><li>Referent Power </li></ul>
  71. 72. Sources of Power <ul><li>Reward Power </li></ul><ul><li>It is the ability to reward another person for carrying out orders which may be expressed or implied </li></ul><ul><li>Coercive Power </li></ul><ul><li>The negative side of reward power, it is the ability to punish another person </li></ul><ul><li>Legitimate Power </li></ul><ul><li>It is the lawfully entitled ability to exert influence or force on other. It is also called formal authority </li></ul>
  72. 73. Sources of Power <ul><li>Expert Power </li></ul><ul><li>It is based on the belief or understanding that the influencer has specific knowledge or relevant expertise that the influencee does not </li></ul><ul><li>Referent Power </li></ul><ul><li>It is the desire of the influencee to be like or identity with the influencer </li></ul>
  73. 74. Authority <ul><li>It is the right to exert influence or force on other due someone’s position, knowledge or status. It is lawfully entitled power. </li></ul>
  74. 75. Types of Authority <ul><li>Line Authority </li></ul><ul><li>Staff Authority </li></ul><ul><li>Functional Authority </li></ul>
  75. 76. Line Authority <ul><li>The authority of those mangers directly responsible, throughout the organization’s chain of command, for achieving organizational objectives </li></ul>
  76. 77. Staff Authority <ul><li>The authority of those groups of individuals who provide line managers with advice, support and services </li></ul>
  77. 78. Functional Authority <ul><li>The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities </li></ul>
  78. 79. Delegation <ul><li>The act of assigning formal authority and responsibility for completion of specific activities to a subordinate </li></ul>
  79. 80. Advantages of Delegation <ul><li>It provides opportunities to seek and accept increased responsibilities from higher level managers </li></ul><ul><li>It causes employees to accept accountability and exercise judgment </li></ul><ul><li>It not only train employees but also improves their self confidence and willing to take initiative </li></ul>
  80. 81. Advantages of Delegation <ul><li>It leads to better decisions </li></ul><ul><li>It speeds up decision making process </li></ul>
  81. 82. Centralization <ul><li>In centralized organization considerable authority, responsibility and accountability remain at the top of the hierarchy </li></ul>
  82. 83. Decentralization <ul><li>In decentralized organization considerable authority, responsibility and accountability are passed down the organizational hierarchy </li></ul>
  83. 84. Job Design <ul><li>The division of an organization’s wok among its employees </li></ul>
  84. 85. Job Redesign <ul><li>Job Enlargement </li></ul><ul><li>Job Enrichment </li></ul><ul><li>Job Rotation </li></ul>
  85. 86. Controlling <ul><li>It is the process of monitoring organizational activities to ensure that they are being accomplished as they planned and taking corrective actions if there are significant deviations </li></ul>
  86. 87. Control Process Measure Performance Does it match standards Establish Standards Do Nothing Take Corrective Action No Yes
  87. 88. Why Control Needed <ul><li>To create better quality </li></ul><ul><li>To cope with change </li></ul><ul><li>To create faster cycles </li></ul><ul><li>To facilitate delegation and teamwork </li></ul>
  88. 89. Types of Controls <ul><li>Financial Controls </li></ul><ul><li>Budgetary Controls </li></ul><ul><li>Administrative Controls </li></ul><ul><li>Internal Control </li></ul><ul><li>Auditing </li></ul>
  89. 90. Levels of Controls <ul><li>Strategic Control </li></ul><ul><li>Tactical Control </li></ul><ul><li>Operational Control </li></ul>
  90. 91. Stages of Controls <ul><li>Preliminary or Feed forward Control </li></ul><ul><li>Screening or Concurrent Control </li></ul><ul><li>Post Action or Feedback Control </li></ul>
  91. 92. Barriers to Control <ul><li>System Barriers </li></ul><ul><li>Behavioral Barriers </li></ul><ul><li>Political Barriers </li></ul>
  92. 93. Leadership <ul><li>Leadership empowers, motivates & organizes people to achieve common objective and provides moral guidance. </li></ul>
  93. 94. Leadership <ul><li>It is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals </li></ul>
  94. 95. Leadership <ul><li>It is the process of motivating and directing subordinates, selecting the most effective communication channels and resolving conflicts </li></ul>
  95. 96. Leadership <ul><li>It is the lifting of man’s vision to higher sights, the praising of man’s performance to higher standard, the building of man’s personality beyond its normal limitations </li></ul>
  96. 97. Leader Versus Manager <ul><li>Leader Manager </li></ul><ul><li>Innovator Administrator </li></ul><ul><li>Originator Copier </li></ul><ul><li>Develops Maintain </li></ul><ul><li>Inspire Trust Control </li></ul><ul><li>Focus on People Focus on System </li></ul><ul><li>Challenge status co Maintain status co </li></ul><ul><li>Owns the people Classic good soldier </li></ul><ul><li>Does the right thing Does thing right </li></ul>
  97. 98. Characteristics of Leader <ul><li>Vision </li></ul><ul><li>Communication </li></ul><ul><li>Motivation </li></ul><ul><li>Integrity </li></ul><ul><li>Patience </li></ul><ul><li>Influence </li></ul><ul><li>Decisive Persistent </li></ul>
  98. 99. Motivation <ul><li>It is an energetic force within and outside human by which results lead into a behaviour. It is an attempt to satisfy need. The factors that cause, channel and sustain an individual’s behaviour. </li></ul>
  99. 100. Theories of Motivation <ul><li>Need Theory </li></ul><ul><li>Maslow’s Hierarchy of Needs </li></ul><ul><li>ERG Theory </li></ul><ul><li>Two Factor Theory </li></ul><ul><li>Equity Theory </li></ul><ul><li>Expectancy Theory </li></ul><ul><li>Reinforcement Theory </li></ul><ul><li>Goal Setting Theory </li></ul>
  100. 101. Maslow’s Hierarchy of Needs Self-Actualization Needs Self-Esteem Needs Social Needs Security/Safety Needs Physiological Needs
  101. 102. ERG Theory <ul><li>The theory of motivation that says people strive to meet a hierarchy of existence, relatedness and growth needs, if efforts to reach one level of needs are frustrated individuals will regress to a lower level. </li></ul>
  102. 103. Two Factor Theory <ul><li>Herzberg’s theory that work dissatisfaction and satisfaction arise from two different sets of factors. Dissatisfiers which he called hygiene factors included salary, working conditions, and company policy. Satisfiers or motivating factors include achievement, recognition, responsibility and advancement </li></ul>
  103. 104. Equity Theory <ul><li>According to equity theory, individuals are motivated when they experience satisfaction with what they receive from an effort in proportion to the effort they apply. </li></ul><ul><li>A’s input = B’s Input </li></ul><ul><li>A’s output = B’s output </li></ul>
  104. 105. Expectance Theory <ul><li>A theory of motivation that says that people choose how to behave from among alternative courses of behaviour based on their expectations of what there is to gain from each behaviour. </li></ul><ul><li>Expectancy </li></ul><ul><li>Instrumentalities </li></ul><ul><li>Valence </li></ul>
  105. 106. Reinforcement Theory <ul><li>A theory of motivation based on law of effect- the behaviour with positive consequences tends to be repeated while behaviour with negative consequences tends not to be repeated. </li></ul>
  106. 107. Goal-Setting Theory <ul><li>A theory of motivation that says that individuals are motivated when they behave in ways that move them to certain clear goals that they accept and can reasonably expect to attain. </li></ul>
  107. 108. Techniques of Leadership <ul><li>Time Management or Budgeting of Time </li></ul><ul><li>Putting First Things First </li></ul><ul><li>- Pick the future as against the past </li></ul><ul><li>- Focus on opportunities rather on problems </li></ul><ul><li>- Choose own decisions rather than climb on bandwagon </li></ul><ul><li>- Aim on something which will make difference </li></ul><ul><li>Maintenance of options </li></ul><ul><li>Ability of making quick decisions </li></ul><ul><li>Mobilizing Resource </li></ul>
  108. 109. Techniques of Leadership <ul><li>Create Friendship and avoid Enemies </li></ul><ul><li>Do not Open so many Fronts </li></ul><ul><li>Be Magnanimous (Ignore) instead of Vindictim (Revenge) </li></ul>
  109. 110. Theories or Approaches of Leadership Integrative Behavioral Trait Contingency
  110. 111. Trait Approach to Leadership <ul><li>It attempts to explain distinctive characteristics accounting for leadership effectiveness to identify a set of traits that all successful leaders possess. This approach assumed that leaders share certain inborn personality traits. </li></ul>
  111. 112. Trait Approach to Leadership <ul><li>Specific traits related leadership ability: </li></ul><ul><li>Physical traits (energy, appearance, height) </li></ul><ul><li>Intelligence & ability traits </li></ul><ul><li>Personality traits (adaptability, aggressiveness, enthusiasm, self-confidence) </li></ul><ul><li>Task-related characteristics (achievement, drive, persistence, tenacity) </li></ul><ul><li>Social characteristics (cooperativeness, interpersonal skills, administrative ability). </li></ul>
  112. 113. Behavioural Approach to Leadership <ul><li>It attempts to explain distinctive styles used by effective leaders or the nature of their work. It determines the types of leadership behaviors that lead to successful task performance and employee satisfaction. Researchers at Ohio state and University of Michigan performed the most extensive series of leadership studies in developing this theory. </li></ul>
  113. 114. Leadership Styles Low Structure and High Consideration High Structure and High Consideration Low Structure and Low Consideration High Structure And Low Consideration (High) (Low) Consideration (Low) (High) Initiating Structure
  114. 115. The Managerial Grid <ul><li>It is a network of management styles developed by Blake and Mouton which explains these styles by using two variables concerned for people and concerned for productivity. </li></ul>
  115. 116. LOW HIGH
  116. 117. Impoverish Managers (1,1) <ul><li>They do not have the initiative to resolve the conflict between the organizational objectives and employees objectives </li></ul><ul><li>They neither identify with the people nor with the organization </li></ul><ul><li>They avoid personal improvements </li></ul><ul><li>They pass on the bug to others and do not make decisions </li></ul><ul><li>Neither they conduct evaluation and nor have effective communication skill </li></ul>
  117. 118. Task Managers (9,1) <ul><li>They show little concern for the development and morale of subordinates </li></ul><ul><li>They tightly plan their goals </li></ul><ul><li>They focus to avoid mistakes </li></ul><ul><li>Their communication is restricted and downward </li></ul>
  118. 119. Country Club Managers (1,9) <ul><li>They focus on being supportive and considerate of subordinates to the exclusion of concern for task efficiency </li></ul><ul><li>They are overly concerned with morale and personal objectives of employees </li></ul><ul><li>Their communication style is upward </li></ul>
  119. 120. Middle of the Road Managers (5,5) <ul><li>They maintain adequate task efficiency and satisfactory morale </li></ul><ul><li>They do give specific instructions but also allow freedom </li></ul><ul><li>They evaluate success and failure quite objectively </li></ul><ul><li>Their style of communication is generally two way </li></ul>
  120. 121. Team Managers (9,9) <ul><li>They facilitate task efficiency and high morale by coordinating and integrating work related activities </li></ul><ul><li>They inspire people, motivate them and support them to the last </li></ul><ul><li>Their evaluation is an ongoing process with objective to improve teamwork and enhance productivity </li></ul><ul><li>Their communication style is completely open, multidirectional and highly supported </li></ul>
  121. 122. Continuum of Leadership Behavior Use of authority by the manager Area of freedom for subordinates Boss-centered Leadership Subordinate-centered Leadership Manager makes decision and announces it Manager “sells” decision Manager presents ideas and invites questions Manager presents tentative decision subject to change Manager presents problem, gets suggestions, makes decision Manager defines limits; asks group to make decision Manager permits subordinates to function within limits defined by supervisor
  122. 123. Leader Behavior 4-44 Characteristics of subordinates Functions of leader Effective organization Work Environment Motivated subordinates Leader behavior
  123. 124. Contingency or Situational Leadership Theory <ul><li>It attempts to explain the appropriate leadership style based on the leader, followers, and situation. It holds that there is no universal approach to leadership; rather, effective leadership behavior depends on situational factors that may change over time. Current leadership depends on three variables: the leader, the led, and the situation </li></ul>
  124. 125. Situational Leadership Model <ul><li>This approach to leadership by Hersey and Blanchard -describes </li></ul><ul><li>“ how leaders should adjust their leadership style in response to their subordinates evolving desire for achievement, experience, ability & willingness to accept responsibility”. </li></ul>
  125. 126. Situational Model of Leadership High Relationship and Low Task High Task and High Relationship Low Relationship and Low Task High Task and Low Relationship (High) (Low) Relationship Behaviour (Low) (High) Task Behaviour
  126. 127. Fiedler’s Contingency Model of Leadership 4-65 Very favorable favorable unfavorable Very un favorable Style Of leadership Task- directed Human Relations - - + I Favorableness of the situation
  127. 128. Fiedler’s Contingency Model of Leadership Leader-member relations Task structure Position power 3 Variables of Situational Favorableness.
  128. 129. The Future of Leadership Theory <ul><li>Transactional Leaders </li></ul><ul><li>Transformational Leaders </li></ul><ul><li>Charismatic Leader </li></ul>
  129. 130. Transactional Leader <ul><li>Leaders who determine what subordinates need to do to achieve objectives, classify those requirements and help subordinates become confident they can reach their objectives </li></ul>
  130. 131. Transformational Leader <ul><li>Leaders who, through their personal vision and energy, inspire followers and have a major impact on their organizations also called charismatic leaders. </li></ul>
  131. 132. Phases of Transformation Process 1. Recognizing need for change. 2. Create a new vision. 3. Manage Transition 4. Institutionalize the change.
  132. 133. Weber’s Charismatic Leadership <ul><li>Influence based on follower perceptions that the leader is endowed with the gift of divine inspiration or supernatural qualities </li></ul>
  133. 134. Charisma and Leadership <ul><li>It is the capacity to be heroic and colourful. It steers the emotions of people and capture their heart and minds. Charismatic leadership can be disadvantageous and dangerous because people abdicate responsibility and put on their leader to take care of every problem. </li></ul>
  134. 135. Common Characteristics <ul><li>Self-confidence </li></ul><ul><li>Vision </li></ul><ul><li>Ability to articulate </li></ul><ul><li>Strong convictions </li></ul><ul><li>Out of the ordinary behavior </li></ul><ul><li>Perceived as change agents </li></ul><ul><li>Environmentally sensitive </li></ul>
  135. 136. Empowers Others Visionary Self Promoting Verbal Skills Minimum Internal Conflict High Energy Action Orientation Inspires Trust High Risk Orientation Self Confidence Moral Conviction Relational Power Base Charismatic Leader Characteristics
  136. 137. Strategies to Develop Charismatic Qualities Develop visionary skills Practice being candid Develop warm, positive, humanistic attitude. Develop an enthusiastic, optimistic, energetic personality.
  137. 138. . <ul><li>Ethical Charismatic Leader </li></ul><ul><li>Uses power to serve others </li></ul><ul><li>Aligns vision with followers needs and aspirations </li></ul><ul><li>Considers and learns from criticism </li></ul><ul><li>Stimulates followers to think independently & to question the leaders view </li></ul><ul><li>Open, two way communication </li></ul><ul><li>Unethical Charismatic Leader </li></ul><ul><li>Uses power only for personal gain or impact </li></ul><ul><li>Promotes own personal vision </li></ul><ul><li>Censures critical or opposing views </li></ul><ul><li>Demands own decision be accepted without question </li></ul><ul><li>One way communication </li></ul>
  138. 139. . <ul><li>Ethical Charismatic Leader </li></ul><ul><li>Coaches, develops, and supports followers; shares recognition with others </li></ul><ul><li>Relies on internal moral standards to satisfy org & societal interests </li></ul><ul><li>Unethical Charismatic Leader </li></ul><ul><li>Insensitive to followers needs </li></ul><ul><li>Relies on convenient, external moral standards to satisfy self-interests </li></ul>
  139. 140. Team <ul><li>Two or more people who interact with and influence each other toward a common purpose. Each member of the team has a shared responsibility for getting the job done. </li></ul>
  140. 141. Types of Teams <ul><li>Formal and Informal Teams </li></ul><ul><li>Command Team </li></ul><ul><li>Committee </li></ul><ul><li>Task Force or Project Team </li></ul><ul><li>Self-Managed Teams </li></ul>
  141. 142. Group & Team Individual & mutual Accountability Individual Complementary Skills Random and Varied Positive Synergy Neutral (Sometimes Negative) Collective Performance Goal Share Information Work Team Work Group Comparison
  142. 143. Characteristics of Teams <ul><li>Leadership Roles </li></ul><ul><li>Team Norms </li></ul><ul><li>Team Cohesiveness </li></ul>
  143. 144. Leadership Roles <ul><li>Enhanced Performance </li></ul><ul><li>Increased Awareness and Choice </li></ul><ul><li>More Focus and Integration </li></ul><ul><li>Rationale Innovation and Risk Taking </li></ul><ul><li>Conducive Team Atmosphere </li></ul>
  144. 145. Team Norms <ul><li>These are assumptions and expectations about how members of a group will behave. Norms can be carried over from society or it can be particular to a group or team. </li></ul>
  145. 146. Team Cohesiveness <ul><li>It is the degree of solidarity and positive feelings held by individuals toward their group or team. Ways to Improve cohesiveness: </li></ul><ul><li>Introduce Competition </li></ul><ul><li>Increase Interpersonal Attraction </li></ul><ul><li>Increase Interaction </li></ul><ul><li>Create Common Goals and Fates </li></ul>
  146. 147. Stages of Team Development <ul><li>Forming </li></ul><ul><li>Storming </li></ul><ul><li>Norming </li></ul><ul><li>Performing </li></ul><ul><li>Adjourning </li></ul>
  147. 148. Team Roles <ul><li>Driver (Develops ideas, directs & Innovates) </li></ul><ul><li>Planner (Estimates needs, plans strategies & Schedules) </li></ul><ul><li>Enabler (The fixer – manages resources, promotes ideas & negotiates) </li></ul><ul><li>Executor (The producer, co-ordinates & maintains the team) </li></ul><ul><li>Controller (Records, audits & evaluates progress) </li></ul>
  148. 149. Driver’s Characteristics Driver Innovator Developer Director
  149. 150. Planner’s Characteristics Planner Strategist Estimator Scheduler
  150. 151. Enabler’s Characteristics Resource Manager Enabler Promoter Negotiator
  151. 152. Executor’s Characteristics Producer Exec Coordinator Maintainer
  152. 153. Controller’s Characteristics Auditor Monitor Evaluator Controller
  153. 154. Human Resource Management <ul><li>It can be defined as the effective selection and utilization of employees to best achieve the goals and strategies of the organization, as well as the goals and needs of employees. </li></ul>
  154. 155. Challenges to HRM HRM Diversification Globalization Govt. Interference Competition Technology Change Workforce Diversity
  155. 156. Organization Chart of HRM Function Vice President HRM Director HR Research & Planning Director Employee Relations Director Compensation & Benefits Director HRD Director Staffing
  156. 157. A Human Resource Management Department Vice President of Personnel/Human Resource Management Employment Division Job Analysis Human resource planning Recruitment Interviewing Testing Placement Resignations Terminations Records Training & Development Division Organizational need analysis Career planning Development & training Appraisal Wage & Salary Division Job Analysis Job Evaluation Wage/salary surveys Employee Benefits & Services Division Health services Insurance Safety Recreation facilities Pensions Labor Relations Division Collective bargaining Legal grievances Suggestion plans Contracts
  157. 158. Primary HRM Functions <ul><li>Human Resource Planning </li></ul><ul><li>Equal Employment Opportunity </li></ul><ul><li>Staffing (Recruitment and Selection) </li></ul><ul><li>Compensation and Benefits </li></ul><ul><li>Employee Relations </li></ul><ul><li>Health, Safety and Security </li></ul><ul><li>Human Resource Development </li></ul>
  158. 159. Secondary HRM Functions <ul><li>Organization/Job Redesign </li></ul><ul><li>Performance Management </li></ul><ul><li>Performance Appraisal </li></ul><ul><li>Research and Information Systems </li></ul>
  159. 160. Human Resource Planning <ul><li>The processes of planning, developing, implementing, administering and performing ongoing evaluation of recruiting, hiring, orientation and organizational exit, to ensure that the workforce will meet the organization's goals and objectives </li></ul>
  160. 161. Equal Employment Opportunity <ul><li>These activities are intended to satisfy both the legal and moral responsibilities of the organization through the prevention of discriminatory policies, procedures, and practices. </li></ul>
  161. 162. Human Resource Development <ul><li>It can be defined as a set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands. </li></ul>
  162. 163. Compensation and Benefits <ul><li>The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of a total compensation and benefits system for all employee groups consistent with human resource management goals </li></ul>
  163. 164. Health, Safety and Security <ul><li>The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of programs, practices and services to promote the physical and mental well-being of individuals in the workplace and to protect individuals and the workplace from unsafe acts, unsafe working conditions and violence </li></ul>
  164. 165. Employee Relations <ul><li>The process of analyzing, developing, implementing, administering and performing ongoing evaluation of the workplace relationship between employer and employee (including the collective bargaining process and union relations), in order to maintain effective relationships and working conditions that balance the employer's needs with the employees' rights in support of the organization's strategic objectives </li></ul>
  165. 166. Recruitment <ul><li>It is the process of finding and attracting capable applicants for employment </li></ul>
  166. 167. Recruitment: Challenges and Constraints <ul><li>Strategic and Human Resource Plans </li></ul><ul><li>EEO Legislation </li></ul><ul><li>Recruiter Habits </li></ul><ul><li>Environmental Conditions </li></ul><ul><li>Job Requirements </li></ul><ul><li>Costs </li></ul><ul><li>Incentives </li></ul><ul><li>Organizational Policies </li></ul>
  167. 168. Recruitment Channels <ul><li>Internal Recruitment Channels </li></ul><ul><li>External Recruitment Channels </li></ul>
  168. 169. Internal Recruitment Channels <ul><li>Job-Posting Programs </li></ul><ul><li>Departing Employees </li></ul>
  169. 170. External Recruitment Channels <ul><li>Walk-ins and Write-ins </li></ul><ul><li>Employee Referrals </li></ul><ul><li>Advertising </li></ul><ul><li>Sate employment Agencies </li></ul><ul><li>Private Placement Agencies </li></ul><ul><li>Professional Search Firms </li></ul><ul><li>Educational Institutions </li></ul>
  170. 171. External Recruitment Channels <ul><li>Professional Associations </li></ul><ul><li>Labour Organizations </li></ul><ul><li>Military Operations </li></ul><ul><li>Govt Funded and Community Training Programs </li></ul><ul><li>Temporary Help Agencies </li></ul><ul><li>Leased Employees </li></ul><ul><li>International Recruiting Agencies </li></ul>
  171. 172. Selection <ul><li>The selection process is a series of specific steps used to decide which recruits should be hired. The process begins when recruits apply for employment and ends with the hiring decision </li></ul>
  172. 173. Steps in Selection Process <ul><li>Receipt of Applications </li></ul><ul><li>Employment Tests </li></ul><ul><li>Selection Interview </li></ul><ul><li>Reference and Background Checks </li></ul><ul><li>Medical Evaluation </li></ul><ul><li>Supervisory Interview </li></ul><ul><li>Realistic Job Previews </li></ul><ul><li>Hiring Decision </li></ul>
  173. 174. Types of Interviews <ul><li>Unstructured Interviews </li></ul><ul><li>Structured Interviews </li></ul><ul><li>Mixed Interviews </li></ul><ul><li>Behavioral Interviews </li></ul><ul><li>Stress Interviews </li></ul>
  174. 175. Orientation or Socialization <ul><li>A program designed to help employees fit smoothly into an organization, also called socialization. </li></ul>
  175. 176. HRD Functions <ul><li>Training and Development </li></ul><ul><li>Organization Development </li></ul><ul><li>Career Development </li></ul>
  176. 177. HRD Process <ul><li>Need Assessment </li></ul><ul><li>Design Phase </li></ul><ul><li>Implementation </li></ul><ul><li>Evaluation </li></ul>
  177. 178. T & D Approaches <ul><li>On the Job Training </li></ul><ul><li>Off-the Job Training </li></ul>
  178. 179. On-the Job Training <ul><li>Job Instruction Training </li></ul><ul><li>Job Rotation </li></ul><ul><li>Apprenticeships </li></ul><ul><li>Coaching </li></ul>
  179. 180. Off-the Job Training <ul><li>Lecture </li></ul><ul><li>Video Presentation </li></ul><ul><li>Role Playing </li></ul><ul><li>Case Study </li></ul><ul><li>Simulation </li></ul><ul><li>Laboratory Training </li></ul><ul><li>Programmed Learning </li></ul>
  180. 181. Performance Appraisal <ul><li>It is the process by which organizations evaluate individual job performance. It can be </li></ul><ul><li>Informal Appraisal </li></ul><ul><li>Formal Appraisal </li></ul>
  181. 182. Advantages of Performance Appraisal <ul><li>Personal Improvement </li></ul><ul><li>Compensation Adjustments </li></ul><ul><li>Placement Decisions </li></ul><ul><li>Training and Development Needs </li></ul><ul><li>Career Planning and Development </li></ul><ul><li>Staffing Process Deficiencies </li></ul><ul><li>Job Redesign </li></ul><ul><li>Equal Employment Opportunities </li></ul><ul><li>Feedback to Human Resource </li></ul>
  182. 183. Outcomes of Performance Appraisal <ul><li>Promotions </li></ul><ul><li>Transfers </li></ul><ul><li>Demotions </li></ul><ul><li>Separations </li></ul>
  183. 184. Planned Change <ul><li>The systematic attempt to redesign an organization in a way that will help it adapt to changes in the external environment or to achieve new goals. </li></ul>
  184. 185. Velocity of Change <ul><li>“ While change and uncertainty have always been a part of life, what has been shocking over the last years has been both the quantum and suddenness of change” </li></ul>
  185. 186. Model for an Organization’s Environment Macro or Far Environment T echnological Factors S ocial Factors P olitical Factors E conomic Factors Near or Operating Environment Customers Clients Competitors Partners Suppliers ORGANIZATION
  186. 187. Brain Teaser <ul><li>“ It is not the strongest of the species that survives, nor the most intelligent, but rather the one most responsive to change” </li></ul><ul><li>Charles Darwin </li></ul>
  187. 188. Forces for Change <ul><li>New Technology </li></ul><ul><li>Workforce </li></ul><ul><li>Competition </li></ul><ul><li>Economic Shocks </li></ul><ul><li>Social Trends </li></ul><ul><li>World Politics </li></ul>
  188. 189. Sources of Resistance <ul><li>Organizational Culture </li></ul><ul><li>Self Interests </li></ul><ul><li>Force of Habit </li></ul><ul><li>Fear of Unknown </li></ul><ul><li>Economic Threats </li></ul><ul><li>Resource Allocation </li></ul>
  189. 190. Lewin’s Process of Change <ul><li>Unfreezing </li></ul><ul><li>Changing </li></ul><ul><li>Refreezing </li></ul>
  190. 191. Types of Planned Change <ul><li>Structural Change </li></ul><ul><li>Technological Change </li></ul><ul><li>Human Change </li></ul><ul><li>Combined Change </li></ul>
  191. 192. Approaches to Planned Change Change in Structure Techno-Structural Change Change in Technology Change in People Change Agent Organization Redesign Decentralization, Modification of Work Flow Redesign of Structure and Work Operations Redesign of Work Operations Changes in Skills, Attitudes, Expectations, Perceptions Improved Organizational Performance
  192. 193. Techniques or Methods of Organizational Change <ul><li>Mergers and Acquisitions </li></ul><ul><li>Re-organization </li></ul><ul><li>Restructuring </li></ul><ul><li>Right-Sizing </li></ul>
  193. 194. The Creative Process <ul><li>Generation of Ideas </li></ul><ul><li>Problem Solving or Idea Development </li></ul><ul><li>Implementation </li></ul>
  194. 195. Prescriptions for Fostering Organizational Creativity <ul><li>Develop an Acceptance of Change </li></ul><ul><li>Encourage New Ideas </li></ul><ul><li>Permit more Interaction </li></ul><ul><li>Tolerate Failure </li></ul><ul><li>Provide Clear Objectives and the Freedom to achieve them </li></ul><ul><li>Offer Recognition </li></ul>
  195. 196. Overcoming Resistance to Change <ul><li>Education and Communication </li></ul><ul><li>Participation </li></ul><ul><li>Negotiation </li></ul><ul><li>Facilitation and Support </li></ul><ul><li>Manipulation and Co-operation </li></ul><ul><li>Coercion </li></ul>
  196. 197. Operations Management <ul><li>The management activity that includes planning, production, organizing resources, directing operations and personnel and monitoring system performance. </li></ul>
  197. 198. Operations Management System Outputs Products, services, & other (pollution) Inputs Raw materials, human resources, capital (land, buildings, equipment), technology information. Feedback Product/ Service Design & Facilities Transformation Process Control Processes
  198. 199. Types of Operation Function <ul><li>Manufacturing Operations </li></ul><ul><li>Non-manufacturing or Service Operations </li></ul>
  199. 200. Types of Manufacturing Operations <ul><li>Make to Stock Producers </li></ul><ul><li>Make to Order Producers </li></ul><ul><li>Assemble to Order Producers </li></ul>
  200. 201. Production Management Methods <ul><li>Job Shops </li></ul><ul><li>Repetitive or Process Manufacturing </li></ul><ul><li>Batch Manufacturing </li></ul>
  201. 202. Productivity <ul><li>It is the measure of how well an operations system functions and indicator of the efficiency and competitiveness of a single firm or department. </li></ul>
  202. 203. Customer’s Competitive Priorities <ul><li>Pricing </li></ul><ul><li>Quality Level </li></ul><ul><li>Reliability </li></ul><ul><li>Flexibility </li></ul>
  203. 204. Designing Operations Systems <ul><li>What to Produce </li></ul><ul><li>How much to Produce </li></ul><ul><li>How to Produce </li></ul><ul><li>Whom to Produce </li></ul><ul><li>Who and What will Produce </li></ul>
  204. 205. Inventory Management <ul><li>The process of maintaining and controlling supply of raw materials, work in process and finished goods in an organization to meet its operational need efficiently and effectively </li></ul>
  205. 206. Inventory Management Techniques <ul><li>ABC Inventory System </li></ul><ul><li>Economic Order Quantity </li></ul><ul><li>Just in Time Inventory System </li></ul>
  206. 207. Just in Time Inventory System <ul><li>The system in which production quantities are ideally equal to delivery quantities, with material purchased and finished delivered just in time to be used also known as Kanban. </li></ul>
  207. 208. Important Elements of JIT <ul><li>A set Uniform Production Rate </li></ul><ul><li>A Pull Method of Coordinating Work Centers </li></ul><ul><li>Purchasing and Producing in small lots </li></ul><ul><li>Quick, inexpensive setups </li></ul><ul><li>Multi-skilled workers and flexible facilities </li></ul>
  208. 209. Important Elements of JIT <ul><li>High Quality Levels </li></ul><ul><li>Effective Preventive Maintenance </li></ul><ul><li>Continual Work Improvement </li></ul>
  209. 210. Economic Order Quantity <ul><li>The ordering quantity at which Ordering Cost is equal to Carrying Cost and total cost is minimum </li></ul>
  210. 211. Total Quality Management <ul><li>It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continuous improvement </li></ul>
  211. 212. Key Issues in TQM <ul><li>The Cost of Quality </li></ul><ul><li>A Cultural Change </li></ul><ul><li>Mechanism of Change </li></ul><ul><li>Implementation </li></ul><ul><li>Management Behavior </li></ul>
  212. 213. Benefits of TQM <ul><li>Greater Customer Loyalty </li></ul><ul><li>Market Share Improvements </li></ul><ul><li>Higher Stock Prices </li></ul><ul><li>Reduced Service Cost </li></ul><ul><li>Greater Productivity </li></ul><ul><li>Higher Prices </li></ul>
  213. 214. Benchmarking <ul><li>It is the continuous process of comparing a company’s strategy, products and processes with those of world leaders and best-in-class organizations in order to learn how they achieved excellence and then setting out to match and even surpass it. </li></ul>