1. PRINCIPLES OF MANAGEMENT
About TOM PETERS
Education & Career
Tom peter was born in Baltimore, Maryland (USA)
in 1942
He is civil engineering graduate and Did MBA and
PhD from Stanford Business School.
Worked in :-
US Navy
Pentagon & White House (Bureaucratic Job)
7Yrs worked as management consultant at
Mckinsey.
Major Contribution To The Management Theory :
4. ROSABETH MOSS KANTER’S
Born On March 15, 1943 Cleveland, Ohio, United States
She studied sociology and English literature, MA in sociology
PhD from the University of Michigan
Professor of business at Harvard Business School, management consultant, author
She said company approached innovation by two way
i. Integrative approach :- she describes firms that dealt holistically with problems, were willing to try out new ideas,
prepared to push the organization to its limits, and generally saw change as an opportunity rather than a threat.
ii. Segment list approach :- compartmentalized its problem-solving, saw the organization as a collection of
segments rather than as organic whole, dealt with change within segments/compartments and was unwilling to
alter the balance of the overall structure
5. For Companies To Become Integrative
They Need To Develop Three New Sets Of Skills:
skills in persuading others to invest time and resources
in new and risky in (new and risky) initiatives
An understanding of how change is designed
and constructed in an organization.
6. HOW OVERCOME THE ‘ROADBLOCKS TO INNOVATION’
•AS A PRE-REQUISITE TO CHANGE, TOP MANAGEMENT MUST BE PERSONALLY COMMITTED TO
SUPPORTING INNOVATION AND MUST LEARN TO
THINK INTERACTIVELY.
•A ‘CULTURE OF PRIDE’ SHOULD BE ENCOURAGED WITHIN THE ORGANIZATION, IN WHICH
ACHIEVEMENTS ARE HIGHLIGHTED AND WHERE EXPERIENCED INNOVATORS SERVE AS CONSULTANTS
TO OTHER PARTS OF THE ORGANIZATION
•ACCESS TO POWER SOURCES (MANAGEMENT COMMITTEES ETC.) SHOULD BE ENLARGED TO IMPROVE
SUP-PORT FOR INNOVATORY EXPERIMENTAL PROPOSALS
•LATERAL COMMUNICATION SHOULD BE IMPROVED. CROSS-FUNCTIONAL LINKS SHOULD BE
DEVELOPED, AND STAFF MOBILITY SHOULD BE ENCOURAGED
•UNNECESSARY LAYERS OF HIERARCHY SHOULD BE REDUCED (I.E. A FLATTER STRUCTURE SHOULD BE
AIMED FOR) AND AUTHORITY SHOULD BE PUSHED DOWNWARDS (‘EMPOWERMENT’ OF STAFF)
•INFORMATION ABOUT COMPANY PLANS SHOULD BE MORE WIDESPREAD AND GIVEN AS EARLY AS
POSSIBLE TO ENABLE PEOPLE TO CONTRIBUTE TO CHANGE BEFORE DECISIONS ARE MADE (E.G. BY
MEANS OF TASK-FORCES, PROBLEM-SOLVING GROUPS ETC.).
7. Organizations exploit their core competence to outperform competitors and excel in their performance. Business
firms must concentrate in areas of core competence and outsource other areas to outside agencies.
It helps concentrate on matters of strategic importance like statistical quality control, total quality management,
production planning and control etc
It does not relate to a particular product or business unit. It spreads to the complete product line and varieties in
each product. i.e., Proctor & Gamble has a wide product line of food items, pharmaceuticals, cosmetics etc.
Firms take maximum advantage of their core competence as it is their distinctive competence which cannot be
copied easily by others
C.K. PRAHLAD
Coimbatore Krishnarao Prahalad
Born On 8 August 1941 In Tamil Nadu India
He Studied BSc Degree In Physics From Loyola College, Chennai
postgraduate work in management at the IIM Ahmedabad
PhD from Harvard Business School
Professor at IIM, University of Michigan
Author, Management Guru
His ideas are reproduced below:
8. CORE COMPETENCE HELPS TO ACHIEVE THE
FOLLOWING:
• Industry leaders and entrepreneurs need to focus on the strengths of people and
processes to capitalize them in the global marketplace
• A firm can leverage its competence, visualize emerging strategic options and create
new businesses
• The current business scenario is dynamic, integrative and competence driven.
Companies are facing and responding to uncertainty and changing customer
preferences
• Managers, like consumers, are a heterogeneous lot. They differ in how they access
information, how they develop insights and how they build consensus for action.
• Where the future is. Opportunities are everywhere: “don’t look at the poor and say
there is no hope. Selling to the poor may be more profitable than selling to you and
me.
• It is not about lack of opportunity; it is about lack of imagination
9. SUMANTRA GHOSHAL
Born On 26 September 1948 Kolkata, India
Graduated From Delhi University With Physics
Master from Indian Institute of Social Welfare and Business Management
PhD from the MIT Sloan School of Management & D.B.A. degree from
Harvard Business School
Founding Dean of ISB, Hyderabad
He worked for Indian Oil Corporation
Professor, Author, Management Thinker
Changing the role of top management
Global Matrix Structure
1.Top Management has three core responsibilities.
To be the company’s chief strategist.
Structural Architect.
Developer and Manager of its information and control system.
Beyond Structure to Processes
The Elusive Structural Solution Based on the classic doctrine.
10. 2. FROM TOP THE HIERARCHY LEADER LOOKS DOWN ON
ORDER.
SYMMETRY.
UNIFORMITY.
3. FROM THE BOTTOM EMPLOYEES LOOKS UP.
PHALANX OF CONTROLLER.
WHOSE DEMAND SOAK UP MOST OF THEIR AND ENERGY
AND
TIME.
D. POSTWAR ERA: TRADITIONAL DIVISIONAL STRUCTURE
COMPRISED OF STRATEGIC BUSINESS UNITS, GROUPS,
SECTORS.
DESIGNED TO MAKE METICULOUS, CALCULATED DECISIONS
AND MOVE THEM SMOOTHLY FORWARD AND UPWARD.
IDEAL FOR REFINING THE MANAGEMENT OF ONGOING
OPERATIONS.
MAKES ORGANIZATION INCREASINGLY INFLEXIBLE.
SLOW TO INNOVATE.
RESISTANT TO CHANGE
11. THE ORGANIZATION AS A PORTFOLIO OF PROCESS
Classic hierarchical structure.
Information and capital requests were pulled to the top of the organization.
Corporate executives to make decisions drove resource, responsibilities and control down to the
frontline units.
Authority-based processes dominated the operation Horizontal Process.
Cut across organizational boundaries separating organizational units.
Not a top down process.
Horizontal Organizational Processes
The Entrepreneurial Process
The Competence building process
The Renewal process
12. THE COMPETENCE-BUILDING PROCESS
Top management must
Create sense of community
Enable cross-unit collaboration
Fairness in organizational practices
Create mutual dependence and reciprocity in the organizational environments.
As an agent of disturbance.
Intervene directly to shake up operating units that have grown comfortable.
Resolve the healthy conflicts and challenges that are cultivated
The Renewal Process
Managing continuous performance improvement within units.
Managing the tension between the short-term performance and the long-term ambition.
Creating an overarching corporate purpose and ambition while challenging embedded
assumptions.
Allowed organizations to develop highly efficient operations that support the expressed
strategy.
Contains no mean for challenging that strategy