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Definition of Management
Management : On expanding : Manage men tactfully Manage Men technology Manage men as team Manage competencies Manage objectives (MBO) Manage men and things (resources physical, inanimate) MANAGE f ( RISKS, REWARDS) Competencies = f (SKATE) (Men/Women- no discrimination) Norway will have by 2007, 40% women in all fields, in govt orgs, in corporates and also in NGOs. This is now made as a law.
When it comes to manage people, it is said that people are enigmatic. Thus, Management is enigmatic. Harold Koontz described the present state of management theory as a jungle. There can be lots of ambiguity and there will be no recipe book
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MANAGEMENT IS A FUNCTION OF : M = f(RESULTS, FEEDBACK, RESULTS) MANAGING THE INTERNAL AND EXTERNAL ENVIRONS IN THE BIO-ECOSYSTEMS, THROUGH VARIOUS EFFECTIVE AND EFFICIENT PROCESSES, WITH THE OBJECTIVE OF ACHIEVING LAID DOWN EXPECTED RESULTS.
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Definition of Management
By Griffin: A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.
Definition.contd.
By Koontz and Weihrich: Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.
The difference between Management Principles and Management Functions: What should I do (principles) to ensure that I do my job (functions) with effectiveness and efficiency. Principles are strategies / processes which enable the individual to do their functions better to achieve laid down goals and objectives GOALS qualitative achievements Objectives could have a mix of quantitative and qualitative
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CONCEPTUAL SKILLS
Top level
Middle level
N S K
ILL S
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Henry Mintzberg
He has categorized these roles into three groups interpersonal roles Informational roles Decisional roles Description of each of the roles
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Interpersonal Roles
A manager serves as a figurehead a symbol; as a leader, ie., hires, trains, encourages, fires, remunerates, judges; and as a liaison between outside contacts and the organizational)
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Informational roles
A manager serves as a monitor by gathering information; As a disseminator of information As a spokesperson of the organization
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Decisional Roles
A manager serves as an entrepreneur by being: An initiator Innovator Problem discoverer Designer of improvement projects As a disturbance handler of unexpected situations As a resource allocator and As a negotiator
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ALL THE THREE ROLES PUT TOGETHER IS CALLED AS: THE MANAGERIAL WORK ACTIVITY APPROACH
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The whole management process is actually an integration of the work activity (Mintzberg) and the management functions MANAGEMENT FUNCTIONS : Planning, Organization, Co-ordination, motivation, and control are Universal. These functions are performed in all organizations SMEs, Large, not-for-profit organizations, etc.
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Definitions
Planning : Management functions that involves the process of defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities Organizing: management function that involves the process of determining what tasks are to be done, who is to do them, how the tasks have to be grouped, who reports to whom, and where decisions are to be made
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Leading : management functions that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communicating channels or dealing with any with employee behavior issues Controlling : Management functions that involving monitoring actual performance, compiling actual to standard, and taking action if necessary Management process : The set of ongoing decisions and work activities in which managers engage as they plan, organize, lead and control.
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Leadership
Blake and Mouton: R1 ---- R2 ------ R3 R1 = RESOURCES R2 = RELATIONSHIPS R3= RESULTS
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What is leadership?
A sound way of exercising leadership is through the use of what are called as three Rs Resources, relationships and results. How a person operates in this context can make a difference between organization success and failure
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THE ;LEADERSHIP GRID : Source: Scientific Methods Inc. X & Y axis on a scale of 1 9 C O N C E R N F O R P E O P L E High 1,9 Country Club Mgmt Team Mgmt 9,9
low
High
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9+9 : Paternalistic management : Reward and approval are granted to people in return for loyalty and obedience; failure to comply leads to punishment OPPORTUNISTIC MANAGEMENT : In this style, organization performance occurs according to a system of exchanges, whereby effort is given only for an equivalent measure of the same. People adapt to the situation to gain maximum advantage from it. (all leadership points ie. 1,1; 1,9;, etc., converge at a new point OPM)
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THE MOTIVATIONAL DIMENSIONS FOR EACH STYLE PLEASE REFER TO LEADERSHIP GRID OF BLAKE AND MOUTON.
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Management..
Is based on a systematic body of knowledgelaws, principles and concepts And this knowledge is universal If a manager has this fundamental knowledge And knows how to apply it to a given situation He should be able to perform the managerial functions efficiently and effectively
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Management
Management Practice is regarded as an art But, organized knowledge about management is a science THUS MANAGEMENT IS BOTH AN ART AND A SCIENCE
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Management ..
Is also a profession Separation of ownership from control The rules and regulations framed by the govt to protect citizens from exploitation The growth of trade union movement The desired of business leaders for social status And the Impetus of the scientific management philosophy which stresses the need for technically trained professional managers contributed to the PROFESSIONALIZATION OF MANAGEMENT.
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This should have enabled you to understand what management is at a fundamental level of definition and understanding.. Any questions
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Hutchisons classifications
Classical management theory Human behavior theories Social and political systems approaches Ecological systems approach and Rational decision making concepts
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Henry R. Towne
Main contribution is : That he set the climate and atmosphere for the later application of scientific methods. Of lesser importance was his plan of gainsharing as a system of wage payment.
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Gantts Thoughts.
Task and Bonus Plan Daily Balance Chart (Gantt Chart) Humanizing Science of Management Important of Leadership Training of Workers Social Responsibility of Business (Also called as : Forerunner of modern industrial democracy; also called as apostle of industrial peace)
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According to Ernest Dale, Emerson really advocated the elimination of waste: a. Setting definite logical goals for all company operations and making managers down the line understand them so that they would not be seeking private goals of their own b. Production planning and scheduling and the use of written standard practices c. Better utilization of machine and man
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d. Cost Accounting e. Standards and specifications for materials f. Standardization of parts and products as far as possible g. A rational approach to capital expenditures h. Better selection, placement, and fair treatment of employees and a system of financial incentives as equitable as possible
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Lillian Moller Gilbreth:Professor of Management at Purdue University. Her famous works: The Psychology of Management (1914) and Quest for the Best Way (1924)
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Fredrick Taylor
The credit of systematic study and practice of management goes to FWT, very well known as FATHER OF SCIENTIFIC MANAGEMENT Experiments of Taylor
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Midvale experience
At Midvale Steel Company, he found that individual workers had their own notions about work and different workers performed the same task in different ways He realized that greater output was possible on the part of the workers but most of them were engaged in what he called systematic soldiering. The solution: the first task of management was to know what constituted a proper days work He conducted time studies at Midvale Steel Company which proved of immense use to him
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Remuneration of Personnel (Pay by Results; motivational ESOPS, etc) Centralization (optimization between centralization and decentralization; as the human body brain is the centralized organ) Scalar Chain This is the chain of superiors ranging from the ultimate authority to the lowest ranks. THE ORGANOGRAM Order: Right man in the right place; competency specific; man should fit the job and not the other way round; or else this will be like A SQUARE PEG IN A ROUND HOLE.
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Stability of tenure of personnel retention of talent; attrition; turnover of people Initiative encourage initiative among subordinates Esprit-de-Corps : UNION IS STRENGTH; team work; cohesiveness among the members
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Planning
Planning : most important and difficult managerial function. Planning meant looking ahead and to foresee both to assess the future and make provision for it He considered unity, continuity, flexibility and provision as the broad features of a good plan of action A GOOD PLAN IS A PRECIOUS MANAGERIAL INSTRUMENT A GOOL PLAN ALSO HAS TO BE IMPLEMENTABLE
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ORGANIZING
Means : to organize a business is to provide it with everything useful to its functioning, raw materials, tools, capital, personnel. Fayol concerned himself both with structure and process, listing 16 managerial duties and emphasizing the necessity for clear objectives, authority, decisions and task
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COMMAND/DIRECTION
After the organization is formed, it is the mission of command to set it going. For every manager, the object of command is to get the optimum return from all employees of his unit in the interest of the whole concern The art of command, according to Fayol, rests on certain personal qualities and knowledge of general principles of management
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COORDINATION
1. 2. To coordinate is to harmonize all the activities of a concern so as to facilitate its working and its success According to him, in a well coordinated enterprise the following facts are to be observed; Every dept works in harmony with the rest Divisions or sub-divisions in each dept are precisely informed as to the share they must take in the commercial task and the reciprocal aid they are to afford one another The working schedule of the various departments and sub-divisions thereof is constantly attuned to circumstances
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3.
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TRADITIONAL AUTHORITY
In this type of authority system the leader has authority by virtue of his status that he has inherited The extent of his authority is fixed by custom The officials who carry out the orders are like household staff of the master
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Principle of Objective (purpose/mission/objectives and vision) Principle of Specialization : the activities of every member of any organized group should be confined, as far as possible, to the performance of a single function Principle of coordination: The purpose of organizing per se, as distinguished from the purpose of the undertaking, is to facilitate coordination and unity of effort.
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Principle of Authority: In every organization group, the supreme authority must rest somewhere. There should be a clear line of authority from the supreme authority to every individual in the group Principle of Responsibility : The responsibility of the superior for the acts of his subordinate is absolute Principle of Definition: The content of each position, the duties involved, the authority and responsibility contemplated and the relationships with other positions, should be clearly defined in writing, and published to all concerned
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Principle of Correspondence: in every position, the responsibility and the authority should correspond Principle of Span of Control: No person should supervise more than five, or at the most six direct subordinates (reportees) whose work interlocks Principle of Balance: The various units of an organization should be kept in balance Principle of continuity : Reorganization is a continuous process, in every undertaking specific provision should be made for it.
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Interviewing studies: An interview program of thousands of workers was conducted with the object of finding out the attitude of the employees towards their job, working conditions and supervision The interviewing program revealed the following points: a. Merely giving a person an opportunity to talk and air his grievance has a beneficial effect on his morale b. Complaints are not necessarily objective statements of facts. They are often symptoms of more deep-seated disturbances c. Workers are influenced in their demands by experience both inside and outside the factory d. Worker is satisfied or dissatisfied not in terms of any objective frame of reference but rather in terms of how he regards his social status in the firm and what he feels he is entitled to in the way of rewards
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Observational studies
The Bank Wiring Observation Group Study constituted the last phase of Hawthorne studies It was conducted to investigate the social pattern of a group of fourteen workers and their associated supervisors The main point of difference between this study and the earlier test room studies was that no experimental changes were planned but efforts were directed to study the group in its customary functioning This study revealed that there existed a GROUP NORM in terms of which the behavior of different individuals was in some sense being regulated
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This group was restricting the output on account of various forms of social pressures The group had for itself a standard of a days work which was not imposed upon them, but had apparently been evolved by workmen themselves The group had various social pressures to see that the workers did not exceed the group output norm, and nobody attempted to attain official production targets Those who attempted to exceed became targets of social disapproval, verbally or physically This study showed the importance of informal, social group in business organization A member of such a group cared more for the opinion of the group rather than for financial incentives of the management IT WAS THE GROUP THAT DECIDED HIS ATTITUDE TO WORK, MANAGEMENT AND LEVEL OF PRODUCTION THESE STUDIES FURTHER REAFFIRMED THE IMPORTANCE OF INFORMAL GROUP IN THE MOTIVATION OF WORKERS.
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Conflicts
Follett said that conflicts have a constructive role to play in an organization. Conflicts are not warfares but the appearance of difference, difference of opinion, of interests. Conflicts are neither good or bad; if used constructively their results are god and if used destructively their results are bad She suggested that conflicts can be harnessed to the service of the group much as an engineer uses friction
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4 principles of coordination
Coordination by direct contact of the responsible people concerned. Ideas, ideals, goals and purposes can be easily stated and understood through direct personal contact and communication Coordination should be achieved in early stages of planning and policy-making. It would be easier to secure the willing enthusiastic adherence of all concerned to any new principles and policy if they have participated from the beginning. For this principle Follett had suggested cross relations between heads of departments instead of up and down the line through the chief executive
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In coordination all factors in a situation are reciprocally related Coordination is a continuous process. It means that coordination should be left to chance and it is the duty of the coordinator to strive for it constantly so that the efforts of the group are directed towards achieving the common goals
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Elements of Organization
Willingness to cooperate Common purpose and Communication Are the elements of an organization
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1. 2. 3. 4.
A PERSON CAN AND WILL ACCEPT A COMMUNICATION AS AUTHORITATIVE ONNLY WHEN FOUR CONDITIONS ARE SIMULTANEOUSLY FULFILLED: S/HE can and does understand communication At the time of his/her decision, he believes that it is not inconsistent with the purpose of the organization At the time of his/her decision, s/he believes it to be compatible with his / her personal interest as a whole , and s/he is able, mentally and physically, to comply with it.
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Zone of Indifference
Barnard developed the concept of zone of indifference. He believed that the form and nature of the acceptance of the communication differ and it depends upon the zone of indifference Certain orders are acceptable, certain barely acceptable, and certain orders are unquestionable Those orders which are unquestionably acceptable lie within the zone of indifference, ie. They lie within the range that in a general way was anticipated at the time of undertaking the connection with their organization
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c.
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Barnard on Communication
1. 2. 3. 4. 5. 6. 7. Principles of Communication: Channels of communication must be definitely known by all These channels must be formally laid down Each channel should be as short as possible Generally communication should go through all stages in the channel People acting as communication centers (managers) should be adequate to their tasks Channels of communications should not be interrupted while the organization is functioning Communications (orders) must come from points where the necessary authority is known to exist
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Barnard on Leadership
The real test of the executive or manager is leadership Leaders should recognize that low morality will not sustain leadership long
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2. 3.
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Self actualization
Self-esteem Love, Affection & Social Safety & Security Stimulation Physiological
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Frederick I. Herzberg a noted behaviorist of USA (1923 His greatest contributions to management thought : his Two-Factor Theory, Two-Human Needs Theory, KITA concept, and illuminating ideas about job loading (vertical and horizontal) ie is job enrichment He assumes that the individual is the center of the workmanagerial situation He said that if anything meaningful was to be found about motivation, the question of factors-attitudes-effects must be studied as a whole and not as an isolated item He believed management is monolithic (huge, massive, single stone like)
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David C. McClelland
Best known for his achievement motivation, his research ranges from personality to consciousness. Along with John. W. Atkinson, he developed the scoring system for the THEMATIC APPERCEPTION TEST (TAT) which was used in achievement motivation research
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Henry Mintzberg (1939 Well known luminary in the field of management Dubbed as ICONOCLAST as he rejected several accepted management practices He is against the B-schools in USA their curriculum, case study methods, etc.
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Interpersonal roles
While performing interpersonal roles, mangers work as: 1. Figureheads performing number of routine duties of legal or social nature; these duties include handling ceremonies, signing documents required by law, and officially receiving visitors.
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Leaders As leaders, the mangers perform all managerial activities involving subordinates including hiring, training and firing. As leaders they are responsible for motivation and direction of subordinates
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Liaison persons Serving as liaison between outside contacts (community, suppliers,, etc) and the organization
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Informational roles
Mintzberg pointed out that managers function as nerve centers in which they obtain information about the environment and their own organization by monitoring them. The three informational roles are: Monitor Disseminator spokesperson
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Montiors : As monitors, managers seek and are presented with information about the operations for which they are responsible and bout the environment Disseminators: they are disseminators of information flowing from both external and internal sources; Managers pass information from outside their units to inside and also from one subordinate to another Spokesperson: mangers speak on behalf of their units to outsiders. They transmit information to outsiders on organizations plans, policies, actions and results and serve as experts on organization's industry THESE INFORMATIONAL ROLES PROVIDE A COMMUNICATIONS NETWORK FOR THE ORGANIZATION.
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Decisional roles
Four of them as per Mintzberg: Entrepreneur Disturbance handler Resource allocator negotiator
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As ENTREPRENUEURS : managers are initiators, innovators, problemdiscoverers and designers of improvement projects that direct and control change in the organization. Thus, entrepreneurial work refers to mangers efforts to improve the functioning and accomplishments of their organizations
As disturbance handler: managers take corrective action in response to unforeseen problems such as resignation of subordinates, breakdown of productive equipment, etc. It is worthwhile to mention that while entrepreneurs, managers voluntarily take initiative to improve performance, as disturbance handler As resource allocator: they are responsible for allocating human, physical, and monetary resources. MAKING DECISIONS ABOUT HOW LIMITED TIME, MONEY, MATERISALS, LABOR HOURS AND OTHER RESOURCES WILL BE APPLIED TO MULTIPLE AND COPETING CLAIMS UPON THEM IN THE WORK OF RESOUCRCE ALLOCATION ROLE Mangers as Negotiators: they discuss issues and bargain with other units to gain advantages for their own units. Mintzberg opines : that negotiation is resource trading in real-time.
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INTERPERSONAL
CONTROLLING
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Jobs of Management
According to Peter Drucker, management has the following three tasks: ECONOMIC PERFORMANCE PRODUCTIVE WORK AND WORKER ACHIEVEMENT SOCIAL IMPACT AND SOCIAL RESPONSIBILITIES
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On Profit.Drucker
The profit motive and profit maximization are, in his opinion, irrelevant in managing a business. However, profits are necessary on account of risk in business Profit is the test of performance; it is premium for the risk of uncertainty; profit alone can supply capital for tomorrows jobs, profit pays for the economic satisfaction and services of a society
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As the purpose of business is to create a customer, the business enterprise has two functions as under : 1. Marketing 2. Innovation Rest is cost.
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Drucker on Objectives
Objectives are not fate; they are direction They are not commands; they are commitments They do not determine the future; they are means to mobilize the resources and energies of the business for the making of the future
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The following areas where objectives are to be set: Marketing; Innovation; Human organization; Financial resources Physical resources; Productivity; Social responsibility Profit requirements OBJECTIVES IN THESE AREAS ENABLE MANGERS TO : A. ORGANIZE AND EXPLAIN THE WHOLE RANGE OF BUSINESS PHENOMENA IN A SMALL NUMBER OF GENERAL STATEMENTS B. TEST THESE STATEMENTS IN ACUTAL EXPERIENCE C. PREDICT BEHAVIOR D. APPRAISE THE SOUNDNESS OF DECISIONS WHILE THEY RE STILL BEING MADE AND E. ANALYZE THEIR EXPERIENCES AND THUS IMPROVE PERFORMANCE
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MBO is a managerial philosophy and technique that attempts to draw on peoples needs for achievement, competence and anatomy by allowing them to set their objectives, goals, and performance criteria This concept applies to employees at any position
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Why MBO?
The specialized work of the manager The hierarchy in organizations The existence of difference in vision in businesses Such factors cause conflict and breakdown in the organization and MBO overcomes these deficiencies by relating the task for each manager to the overall goals for he company.
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WORK OF MANAGER
To set objectives To organize ie. To analyze the activities, decisions, and relations needed To motivate and communicate To analyze, appraise and measure performance and To develop people, including himself
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Warren G. Bennis
Manager Characteristics Administers Focuses on systems and structure Leader Characteristics Innovates Focuses on people
Relies on control Short range view Asks how and when Eye on the bottom line
Imitates Accepts status quo Classic good soldier Does things right
Inspires trust Long range perspective Asks what and why Eye on the horizon
Originates Challenges the status quo Own person Dr.R. Krishna - Management Does the right thing Principles 138
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T- Groups
Also known as sensitivity training and laboratory training. T-Group technique had its genesis in the late 1940s, largely as a result of work done by Kurt Lewin and Ronald Lippitt. Argyris contributed to this concept by making several clarifications about it.
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Definition T-Group
T-Group is .a group experience designed to provide maximum possible opportunity to the individuals to expose their behavior, give and receive feedback, experiment with new behavior and develop an everlasting awareness and acceptance of self and others.
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Inability to influence core activities whether they are Ability to influence core activities whether they are internally or externally oriented internally or externally oriented Core activities only influenced by immediate present Core activities influenced by past, present and future
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Process consultingcontd
The process consultant examines the processes at work among group members by using devices such as questionnaires, role playing session, coaching and counseling methods, etc.
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William G. Ouchi
Ouchis main contribution to management thought relates to Theory Z. Contrast between Japanese and American corporations leads to identification of the Z theory
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Z theory
Japanese Corporation
Lifetime employment Slow evaluation and promotion Non-specialized career points Implicit control techniques Collective responsibility
American Corporation
Short-term employment Rapid evaluation and promotion Specialized career points Explicit control techniques
Participative Management
Ouchi emphasized participative management and consensus decision-making, if Theory Z is to work. Social scientists have described this as a democratic process in which may people are drawn into shaping of important decisions The participative process is one of the mechanisms that provides for the broad dissemination of information and values within the org, and it also serves the symbolic role of signaling in a unmistakable way the cooperative intent of the firm Typically, Theory Z orgs devote a great deal of energy to developing the interpersonal skills necessary to effective group decision making In theory Z companies the decision making may be collective, but the ultimate responsibility for decisions still resides in one individual
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Systems
Skills
Staff
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Style
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THANK YOU
CHEERS.
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