Managing People Ppt
-
Upload
patelsachin93 -
Category
Documents
-
view
38 -
download
0
Transcript of Managing People Ppt
MANAGEMENT
MANAGEMENT
SCOPE OF MANAGEMENT
SCOPE OF MANAGEMENT
CHARACTERISTICS of MANAGEMENT
IMPORTANCE of MANAGEMENT
IMPORTANCE of MANAGEMENT
MANAGERIAL ROLES
EVOLUTION OF MANAGEMENT THOUGHT
CLASSICAL PERSPECTIVE:– BUREAUCRATIC ORGANISATIONS ( Max Weber):• HIERARCHY• DIVISION OF WORK; specialised jobs• RULES & PROCEDURE• RECORDS• IMPERSONAL RELATIONSHIPS• ADMINISTRATIVE CLASS; beaurocrats
EVOLUTION OF MANAGEMENT THOUGHT
– SCIENTIFIC MANAGEMENT (Taylor):
• Scientific task planning• Time & motion studies• Standardisation• Differential Piece rate• Functional Foremanship
EVOLUTION OF MANAGEMENT THOUGHT • ADMINISTRATIVE THEORY (HENRY FAYOL):
– Division of Work; Specialisation of labour & productivity
– Authority; must accompany responsibility– Discipline; systemmatic functioning– Unity of Command; each subordinate having one
Boss– Unity of Direction; all efforts focussed to Orgn’s
Goal– Subordination of individual interests to
organisation’s interest– Remuneration; fair
EVOLUTION OF MANAGEMENT THOUGHT
• ADMINISTRATIVE THEORY (HENRY FAYOL):– Balance between centralisation & decentralisation
concentration vs. distribution of power– Scalar chain; observe Formal chain of Command,
Top to Bottom– Order; orderly arrangement of men & material– Equity; fair treatment – Initiative; opportunity to initiate & implement
Plans– Stability & tenure of Personnel– Esprit de Corps; Strength in Unity
EVOLUTION OF MANAGEMENT THOUGHT
• NEO-CLASSICAL / HUMAN RELATIONS PERSPECTIVE:– Hawthorne experiments• Illumination Experiments• Financial Incentives Experiments
Conclusion:• Special Attention, feeling of Belongingness &
sympathetic Supervision are the motivating factors rather than physical working conditions / financial incentives
HUMAN RELATIONS AS A REFINEMENT
CLASSICAL THEORY• IMPERSONAL ORGNS• O.B. PRODUCT OF RULES• FOCUS IS ECO NEEDS OF
WORKERS• AUTHORITARIAN PRACTICES• RESULT: WORK ALIENATION
DISSATISFACTION
NEO – CLASSICAL THEORY• ORGNS A SOCIAL SYSTEM• O.B. PRODUCT OF FEELINGS• FOCUS IS EMOTIONS
• DEMOCRATIC PRACTICES• RESULT: HAPPY EMPLOYEES
&HIGHER PRODUCTIVITY
EVOLUTION OF MANAGEMENT THOUGHT
• BEHAVIOURAL SCIENCES THEORY:
– Elton Mayo, Abraham Maslow, Douglas Mcgregor– People inherently love work– People are more self-driven & creative than
opportunities given– Create Positive Work Environment• Clearly defined Goals• Incentives designed to Improve Performance• Participative decisions• Conflicts confronted openly
BEHAVIOURAL SCIENCES; A REFINEMENT
HUMAN RELATIONS• People want to Belong
• Seek participation on Routine matters
• Subordinate’s involvement will increase belongingness
BEHAVIOURAL SCIENCES• People want to Belong &
Contribute• Participation in Routine plus
Important Matters• Subordinate’s involvement
will increase productivity, quality of decision making, self-direction & motivation
EVOLUTION OF MANAGEMENT THOUGHT
• QUANTITATIVE APPROACH:– Use of maths & stats for managerial decision
making– Criteria such as costs, revenues,return on
investment etc determine decision making– Focus: Computer based MIS
EVOLUTION OF MANAGEMENT THOUGHT
• MODERN MANAGEMENT THOUGHT:– Mary Parker Follet• Constructive Conflict• Law of the Situation; Market conditions• Group Ethics over Individualism• Authority & Responsibilty
EVOLUTION OF MANAGEMENT THOUGHT
• Peter Drucker:– MBO; Joint Goal Setting– Decentralisation; criticised functional
specialisations & favoured self contained independent Product divisions
– Structure; reduction of Layers– Executive Development
MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)
OLD WORK PLACE• RESOURCES:PHYSICAL
ASSETS• WORK: STRUCTURED• WORKERS: LOYAL
EMPLOYEES
NEW WORK PLACE• BITS; INFO, IDEAS
• FLEXIBLE, VIRTUAL• EMPOWERED EMPLOYEES,
FREE AGENTS, RESPOD TO CHANGING MARKETS,COMPETITION, SEIZE OPPORTUNITIES & SOLVE RECURRING PROBLEMS
MANAGEMENT IN THE NEW WORKPLACE(CHARACTERISTICS)
OLD WORK PLACE• STRUCTURE: TALL
HIERARCHY• DECISION MAKING:
CENTRALISED• WORK: REAL
NEW WORK PLACE• FLAT
• DECENTRALISED
• VIRTUAL TEAMS,FLEXI TIME
EX: IBM needs to staff a Project; Team raised consisting of suppliers, customers, interim Managers (skill; risk takers, quick learners, live with ambiguity & change, share knowledge
MANAGEMENT IN THE NEW WORKPLACE(FORCES)
Old Work Place• TECHNOLOGY:
MECHANICAL• WORKFORCE:
HOMOGENEOUS• VALUES: STABILITY,
EFFICIENCY• EVENTS; CALM,
PREDICTABLE
New Work Place• DIGITAL, E-BUSINESS• DIVERSE(GLOBALISATION)
• CHANGE, SPEED
• TURBULENT, UNPREDICTABLE
MANAGEMENT IN THE NEW WORKPLACE(MANAGEMENT COMPETENCIES)
OLD WORK PLACE• Leadership : autocratic• Focus: profits
• Doing work: individuals• Relationships: conflicts• Design: efficiency in
performance
NEW WORK PLACE• EMPOWERING• CONNECT WITH CUSTOMERS,
EMPLOYEES• TEAMS• COLLABORATION• BUILD LEARNING
ORGANISATION; VALUES EXPERIMENTATION, RISK TAKING, TECHNOLOGY & KNOWLEDGE SHARING
• Ex:WIPRO;writes software, performs consulting work,integrates back-office solutions,gives techn support
PLANNING & GOAL SETTING
• GOAL- DEFINES PURPOSE OF EXISTENCE OF THE ORGANISATION
• PLAN- BLUEPRINT FOR SPECIFYING RESOURCE ALLOCATIONS,SCHEDULES, & TASKS
PURPOSE OF GOALS & PLANS• LEGITIMACY: PURPOSE OF EXISTENCE• SOURCE OF MOTIVATION &
COMMITMENT:identification with Co, reduces uncertainty & clarifies goals for accomplishment
• RESOURCE ALLOCATION:employees, equipment, Capital
• GUIDE TO ACTION:sense of direction• RATIONALE FOR DECISIONS:on roles,
performances, structure, products,expenses
PURPOSE OF GOALS & PLANS
• STANDARDS FOR PERFORMANCE:specifies desired outcomes & performance criteria
SINGLE USE & STANDING PLANSSINGLE USE• PROGRAMS: PLANS TO ACHIEVE ONE-TIME
GOALS LARGE IN SCOPE EX:BLDNG NEW HQ,
CONVERTING ALL PAPER FILES INTO DIGITAL
• PROJECT: PLANS TO ACHIEVE ONE-TIME
GOALS SMALLER IN SCOPE EX:RENOVATING OFFICE,
SETTING UP INTRANET
STANDING PLANS
• POLICY: BROAD RULES, GENERAL
GUIDES TO ACTION EX: SEXUAL HARRASSMENT
POLICY, EMAIL USAGE POLICY
• PROCEDURE: PRECISE STEPS TO ATTAIN
GOALS EX:EMPLOYEE GRIEVANCES,
HANDLING REFUNDS
STRATEGIC MANAGEMENT
• SET OF DECISIONS USED TO FORMULATE STRATEGIES TO PROVIDE A FIT BETWEEN ORGANISATION & ITS ENVIROMENT TO ACHIEVE ORGANISATIONAL GOALS
GRAND STRATEGY
• GROWTH:– INTERNALLY: BY EXPANSION;NEW PRODUCTS,
NEW MARKETS– EXTERNALLY:ACQUISITIONS RELATED TO CURENT
BUSINESSES– EX: CITIBANK & TRAVELERS MERGE TO FORM
CITICORP
GRAND STRATEGY
• STABILITY:– AFTER RAPID GROWTH INTEGRATE BUSINESSES
• RETRENCHMENT:– DECLINE IN DEMAND leads to FORCED
LIQUIDATION OF BUSINESSES
SM PROCESS• EVALUATE EXISTING MISSION, GOALS &PLANS
(SITUATIONAL ANALYSIS) SWOT:– INTERNAL STRENGTHS & WEAKNESSES:• P&L STATEMENTS, BUDGETS, • EMPLOYEE MORALE SURVEYS• MARKET SHARE• CUSTOMER SATISFACTION• DISTRIBUTION CHANNELS• PROFIT-MARGINS• RETURN ON INVESTMENT• QUALITY CONTROL SYSTEM• STATE OF TECHNOLOGY• SALES FORCE TURNOVER
SM PROCESS
• EXTERNAL OPPORTUNITIES & THREATS:– COMPETITORS– CUSTOMERS– SUPPLIERS– LABOUR SUPPLY– TECHNOLOGICAL DEVELOPMENTS– POTICAL & INTERNATIONAL EVENTS– SOCIO CULTURAL CHANGES
SM PROCESS
• FORMULATE STRATEGY:– CORPORATE STRATEGY:BOSTON CONSULTING
GROUP (BCG) MATRIX• STAR; HIGH MKT SHARE, HIGH BUSN GROWTH RATE• CASH COWS; HIGH MKT SHARE, LOW BUSN GROWTH
RATE• Q MARKS; LOW MKT SHARE, HIGH BUSN GROWTH
RATE• DOGS; LOW MKT SHARE, LOW BUSN GROWTH RATE
SM PROCESS
• MICHAEL PORTER’S BUSINESS STRATEGY:– DIFFERENTIATION• CREATIVE FLAIR• STRONG MARKETING CAPABILITIES• REWARDS EMPLOYEE INNOVATION• CORPORATE REPUTATION FOR QUALITY• FLEXIBILTY IN OPERATIONS• STRONG CUSTOMER LOYALTY• EX: REEBOK, NIKE
SM PROCESS
• COST LEADERSHIP:– STRONG CENTRAL AUTHORITY– TIGHT COST CONTROLS– SOPS FOLLOWED– EFFICIENT PROCURING & DISTRIBUTION
SYSTEMS– CLOSE SUPERVISION– EX:BIG BAZAAR RETAIL, LOE COST DELL
COMPUTERS
SM PROCESS
• FOCUS:– CONCENTRATES ON A NARROW TARGET MARKET– EX: LOW-COST AIRLINES JET LITE PLYING LIMITED
ROUTES & STILL MAKING PROFITS
SM PROCESS
• STRATEGY IMPLEMENTATION:THROUGH– CHANGES IN LEADERSHIP
• PERSUASION, MOTIVATION
– ORGANISATION STRUCTURE• ORGN CHARTS,DECENTRALISATION
– INFO & CONTROL SYSTEMS• REVISE REWARDS, BUDGET ALLOCATIONS
– HR• RECRUITMENT, LAYOFFS, TRANSFERS
ORGANISING
• ORGANISING: DEPLOYMENT OF ORGANISATIONAL
RESOURCES TO ACHIEVE STRATEGIC GOALS
• ORGANISATION STRUCTURE: FRAMEWORK DEFINING HOW TASKS ARE
DIVIDED, HOW RESOURCES ARE DEPLOYED & DEPARTMENTS COORDINATED
ORGANISING
• WORK SPECIALISATION: The degree to which organisational Tasks are
subdivided into individual jobs; also called division of labour.
• CHAIN OF COMMAND: Unbroken line of authority which links all
individuals in the orgn. & specifies who reports to whom.
ORGANISING
• AUTHORITY: Formal & legitimate Right of a Manager to
make decisions, issue orders & allocate resources.
• RESPONSIBILITY: Duty to perform the Task
ORGANISING
• ACCOUNTABILITY: Mechanism which makes people with
Authority & Responsibility answerable to people in their Chain of Command
• Delegation: Process used to transfer Authority &
Responsibilty to subordinates
ORGANISING
• Line Dept: which performs tasks related to the Primary Goal of the orgn. Ex;Production, Sales, Accounts
• Staff Dept: which provides Advisory services• Centralisation: location of decision making
near top organisational levels• Decentralisation: location of decision making
near lower organisational levels
Functional Structure
Divisional Structure
MATRIX STRUCTURE
• Combines both Functional & Structural features:– Functional hierarchy runs Vertically (provides
traditional control within depts)– Divisional reporting exists Horizontally (Provides
coordination across depts)
MATRIX STRUCTURE
LEADING FOR HIGH PERFORMANCE
• LEADERSHIP: the ability to influence people towards the attainment of organisational goals
• LEADERSHIP VS. MANAGEMENT:– MANAGEMENT: promotes stability, order,
problem solving, within the organisational structure & systems
– LEADERSHIP: promotes vision, creativity & change
LEADERSHIP VS. MANAGEMENT:LEADERSHIP• Visionary • Passionate• Creative• Flexible• Inspiring• Innovative• Courageous• Imaginative• Initiates change
MANAGEMENT• Rational• Consulting• Persistent• Problem solving• Tough-minded• Analytical• Structured• Deliberated• stabilizing
TRANSACTIONAL vs.TRANSFORMATIONAL LEADERSHIP
TRANSACTIONAL• Clarifies role & tasks of
subordinates• Provides rewards• Tolerant & fair• Pride in smooth functioning
of organisation• Concern;impersonal aspects
like plans, budgets
TRANSFORMATIONAL• Ability to inspire & motivate
people to perform more than their capabilities through personal sacrifice
• Obsessed by visionary ideas to drive people
• Lofty visions, communicate to followers & win trust
• Ability to make the vision feel real, personal & meaningful to followers
Example of Transformational Leaders:– Richard Kovacevich of WELLS FARGO (Financial
Institution)– For selling motivated 1st line employees with slogan;Mind share plus
Heart share = Market share– Rewards employees– Spends time with employees interacting, giving pep talks– Awarded Banker of the Year 2003; cr to his 1,40, 000 employees.
Effective Leader
COMBINE Transactional + Transformational
Qualities
THE LEVEL 5 LEADER