3 Efficiently and Effectively Efficiently (Focus on Process/means) Getting work done with a minimum of effort, expense, or wasteDoings things right—most output for least inputAbility to do the things in right wayEx. Ability to determine appropriate objectivesEffectively (Focus on ends)Accomplishing tasks that help fulfill organizational objectivesAbility to do the right thingsEx. Ability to minimize the expenditure in achieving the objectives
4 ManageMenTManagement is the process of designing & maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aimsMANGETMenMachineTransformationPRODUCTMaterialMoney
5 ManageMenTProcess of doing rightThingsTimeMethodPlace
7 The Father of Scientific Management Important ContributionsTime and Motion StudiesReduce motions in order to improve productivityto establish appropriate standards for task performanceWage - Incentive SystemMore wages when task is performed according to specifications within the allotted timeOrdinary wages if the time allotment is exceededF. W. Taylor( )
8 Developed the specific principles of Scientific Management Frederick TaylorDeveloped the specific principles of Scientific Management
9 Taylor’s 4 Principles of Scientific Management Scientifically study each part of a task and develop the best method for performing the taskCarefully select workers and train them to perform the task by using the scientifically developed methodCooperate fully with workers to ensure that they use the proper methodDivide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly
10 Henri Fayol - Administrative Management FATHER OF MODERN MANAGEMENT
11 Fayol’s 14 Principles of Management Division of WorkAuthorityDisciplineUnity of CommandUnity of DirectionSubordination of Individual Interests to the General InterestRemunerationCentralization9. Scalar Chain10. Order11. Equity12. Stability of Tenure of Personnel13. Initiative14. Esprit de corps
12 1. Division Of WorkWork should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.
13 2. AuthorityThe concepts of Authority and Responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes Authority also assumes Responsibility.
14 3. Discipline Employees must obey. A successful organization requires the common effort of workers.Penalties should be applied judiciously to encourage this common effort.
15 4. Unity Of CommandEach worker should have only one boss with no other conflicting lines of command.
16 5. Unity of DirectionThe entire organization should be moving towards a common objective in a common direction.
17 6. Subordination of individual interest The interests of one person should not take priority over the interests of the organization as a whole.
18 7. RemunerationPayment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
19 8. Centralization (Or Decentralization) Centralization is lowering the importance of the subordinate’s role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.
20 9. Scalar chain (Line of Authority) A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
21 10. OrderBoth material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
22 11. EquityAll employees should be treated as equally as possible.
23 12. Stability of Tenure of Personnel Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
24 13. InitiativeAllowing all personnel to show their initiative in some way is a source of strength for the organization.Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.
25 14. Esprit de CorpsManagement should encourage harmony and general good feelings among employees.
30 Planning If you are planning for a year, sow the rice If you are planning for a decade,plant the treesIf you are planning for a lifetime,educate the people
31 & Strategy Formulation Analyze the Organization Hierarchy of Plans& Strategy FormulationStrategic Plans Plans reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goalsAnalyze the OrganizationMatch the Organization and its EnvironmentFormulate StrategySet Strategic GoalsAnalyze the Environment
32 The Nature of PlanningTop management makes Strategic Plans.Middle Management makes Annual Plans (to implement the above).Supervisors planning period is usually a week, day, or shift ( to deal with daily work).
33 The Planning Process Define the purpose or problem and set objectives Collect & evaluate data relevant to forecasting the future (focus on the present)Develop alternative courses of actionDecide on the best course of actionCarry out the plan
34 ForecastingForecasting: Predicting future needs on the basis of historical data, present conditions, and assured future.Forecasting controls staffing, purchasing, and production decisions.Forecasting is a very important function!
35 Qualities of a Good Plan Provides a workable solution and meets the stated objectives.Is comprehensive; it raises all relevant questions and answers them.Minimizes the degree of risks.Is specific as to time, place, supplies, tools, etc.Is flexible (can be adapted to a change in the situation).
36 Types of Plans and Planning Standing Plan: established routine, formula, or set of procedures designed to be used in a reoccurring situation.They standardize actions so the supervisors’ need to manage is reduced to seeing that workers meet standards and dealing with unexpected events known as management by exception.Potential drawback: Rigidity, must make them flexible enough to deal with daily realities.These plans must be updated regularly.
37 The Single Use PlanA one time plan developed for a single occasion or purpose.The amount of time you spend on it depends on its nature and importance.Often its purpose is a major change of some sort or budgets.
38 Day-by-Day Planning Top priority of the first line supervisor. Primary concern is what is to be done, who will be doing it, and adjusting various standing plans.Plan before the day begins.Establish routines simplify planning.Whenever possible reduce risks by increasing predictability.
39 Planning for Change Define problem and set objectives Gather past, present, and probable future dataEvaluate pros and cons, generate alternativesMake the nessicary decisionsImplement the plan
40 Management Functions RESOURCES (Human, Financial, Raw Materials, Technological, Information)PLANNINGSelectgoalsand waysto attain themORGANIZINGAssignresponsibilityfor taskaccomplishmentLEADINGUseinfluenceto motivatefollowersThe work a manager performs toarrange and relate work tobe done so it can be performedeffectively by peopleTo provide the means of groupingpeople and assigned activities togetherso that the unit’s objectives are mosteffectively accomplishedDefine each job within the organizationAssign activitiesEstablish clear communication channelsAssign responsibility and authorityIdentify and limit the span of controlCONTROLLINGMonitoractivitiesAndmake correctionsPERFORMANCE(Attain Goals, Products/Service, Efficiency, Effectiveness)
41 Organizational Structure Specifically, they include:1. Division of labor2. Delegation of authority3. Departmentation4. Span of control5. Coordination41
42 Organizational ChartA schematic drawing that depicts hierarchical relationships (chain of command) among all positions in the organization.NonmanagerNonmanagersManagersKeyManagerDirectorVice PresidentPresident
43 The Universalism of Management BusinessAcross Organizations of Different Size and TypesGovernmentalAgenciesEducationalInstitutionsSocialServicesHealth CareDeliveryAcross Organizational LevelsMiddleManagementTopLowerAcross Functional AreasProductionMarketingFinancePersonnel
44 LeadingA function that includes Motivating employees, Directing others, selecting the most effective Communication channels, and Resolve conflicts.
45 Adjust Performance or Standards Control ProcessEstablish StandardsMeasure PerformanceDoes measured performance match standards?NOYESContinue CurrentActivitiesAdjust Performance or Standards5 - 45
49 Basic Management Skills Technical Skills Skills needed to perform specialized tasksHuman Relations Skills Skills in understanding and getting along with peopleConceptual Skills Abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situationDecision-making Skills Skills in defining problems and selecting the best courses of action
50 Fundamental Management Skills Skills and the ManagerTechnical SkillsInterpersonal SkillsConceptual SkillsFundamental Management SkillsDiagnostic SkillsCommunication SkillsDecision-Making SkillsTime-Management Skills
53 Skills needed at all levels MANAGING HUMAN RELATIONSSkills needed at all levelsLevels of ManagementSkills neededTopMiddleSupervisory5%35%Managerial and AdministrativeTechnical and ProfessionalHuman Relations20%60%20%5%35%
54 The Three Levels of Management Top managersCEO, president, or vice presidentMiddle managersSales manager, branch manager, or department headFirst-line managersCrew leader, supervisor, head nurse, or office manager
55 TYPES OF ORGANISATIONAL STRUCTURES 1. LINE, MILITARY OR SCALER ORGANISATION
56 LINE, MILITARY OR SCALER ORGANISATION The oldest and the simples organisational structure.There is a hierarchical arrangement of authority.Each department is self contained and works independently of other departments.Lines of authority are vertical i.e. from top to bottom.Line structures are suitable for,Small businesses where there are few subordinates,Organisations where there is largely of routine nature and methods of operations are simple.
57 LINE, MILITARY OR SCALER ORGANISATION AdvantagesSimple to establish and operatePromotes prompt decision making.Easy to control as the managers have direct control over their subordinates.Communication is fast and easy as there is only vertical flow of communication.DisadvantagesLack of specialisationManagers might get overloaded with too many things to do.Failure of one manager to take proper decisions might affect the whole organisation.
58 TYPES OF ORGANISATIONAL STRUCTURES 2. FUNCTIONAL ORGANISATION
59 Functional Organisation The organisation is divided into a number of functional areas.This organisation has grouping of activities in accordance with the functions of an organisation such as production, marketing, finance, human resource and so on.
60 Functional Organisation AdvantagesIs logical and reflection of functionsFollows principle of occupation specialisationSimplifies trainingBetter control as the manger in charge of each functional department is usually an specialist.DisadvantagesOverspecialisation and narrow viewpoints of key personnel can limit the organisation growth.Reduced coordination between functions.Conflicts between different functions could be detrimental for the organisation as a whole.Difficult for general managers to coordinate different departments.
61 Line and Staff Organisation It is a combination of line and functional structures.In this organisation structure, the authority flows in a vertical line and get the help of staff specialist who are in advisory. When the line executives need advice, information about any specific area, these staff specialists are consulted.
62 Functions of Management Leadership“A leader is a person who has the ability to get other with people to do what they don’t want to do and like it”–Harry Truman
63 Functions of Management A leader is best when people barely know he exists Not so good when people obey and acclaim him Worse when they despise him But of a good leader who talks little when this work is done his aim fulfilled they will say: “WE DID IT OURSELVES” - Lao-tse (c. 565 B.C.) (Philosopher in Ancient China)
64 Functions of Management Leadership“I suppose leadership at one time meant muscles; but today it means getting along with people.” -Mohandas K. Gandhi
65 Leading“A group of donkeys lead by a lion can defeat a group of lion lead by a donkey.”Socrates said
66 Leading Leading is a process of Functions of ManagementLeadingLeading is a process ofInspiring, motivating or directing people so that they will contribute to organizational objective.Leading involves motivation, leadership theories and communication.An important role of a manager is to motivate the people working on a project.
67 LeadingLeadership involves using power, personality, and influence,, and communication skillsOutcome of leadership is highly motivated and committed workforce
68 LEADINGTrait Approach – focusses on personal qualities such as height, intelligence, genetic etcTransformational Approach – leads the organisation in new direction through leaders talent and driveCharismatic Approach – leads through personal magnetism, charm and other qualities – Eg Steve Jobs of Apple Computers, JW Marriott of Marriott HotelsNarcisstic Approach – leads through personal skills, magnetic attraction and also are distrustful of others and consider themselves invincible – Eg Napolean, Bill Gates,
69 10 Commandments of Leadership Treat everyone with respect and dignitySet the example for others to followBe activeMaintain the highest standards of honesty and dignityInsist on excellence and hold your people accountableBuild group cohesiveness and prideShow confidence in your peopleMaintain a strong sense of urgencyBe available and visible to your staffDevelop yourself to your highest potential video
70 Qualities of leadership Positive Self ImageClear VisionKey Leadership QualitiesInnovative Ideas to ProblemsQuickly Sense and Respond to Changes
72 Leadership stylesA leadership style where the leader makes all decisions independently or without consulting with othersAdvantages: good in certain circumstances, such as urgent tasks or military actionsDisadvantages: poor decisions, poor level of employee motivationAutocratic
73 Leadership stylesA leadership style where a leader encourages employee participation in decision-makingpersuasive or consultativeAdvantages: better decisions, employee motivationDisadvantages: delayed decision, long consultationAutocraticDemocratic
76 Decision Making What is Decision Making? The word decision is defined as:“A choice between two or more alternatives”.Thus decision-making can be defined as:“The selection of a course of action from among alternatives ”.
77 Decision MakingDecision Making is at the heart of organizational effectiveness, climate, and health.Decision MakingThe process by which managers respond to opportunities and threats that confront them by analyzing options and making determinations about specific organizational goals and courses of action.
78 Decision Making Decisions in response to opportunities occurs when managers respond to ways to improve organizational performance to benefit customers, employees, and other stakeholder groupsDecisions in response to threatsevents inside or outside the organization are adversely affecting organizational performance
80 Decision Making Steps Step 1. Recognize Need for a Decision Sparked by an event such as environment changes.Managers must first realize that a decision must be made.Step 2. Generate AlternativesManagers must develop feasible alternative courses of action.If good alternatives are missed, the resulting decision is poor.It is hard to develop creative alternatives, so managers need to look for new ideas.
81 Decision Making Steps Step 3. Evaluate Alternatives What are the advantages and disadvantages of each alternative?Managers should specify criteria, then evaluate.
82 Decision Making StepsStep 3. Evaluate alternatives
83 Decision Making Steps Step 4. Choose Among Alternatives Rank the various alternatives and make a decisionManagers must be sure all the information available is brought to bear on the problem or issue at hand
84 Decision Making Steps Step 5. Implement Chosen Alternative Managers must now carry out the alternative.Often a decision is made and not implemented.Step 6. Learn From FeedbackManagers should consider what went right and wrong with the decision and learn for the future.Without feedback, managers do not learn from experience and will repeat the same mistake over.
85 Types of decisions Major & Minor Decisions: Major decisions involve more risk & heavy expenditures and vice versa.e.g. Major decisions: Purchase of land, machine.Minor decisions: Purchase of stationary like pen, pencils, etc.
86 Types of decisions Policy & operating decisions: Top management takes policy decisions whereas middle & lower management takes operating decisions.Individual & Group Decisions:Programmed & Non-programmed Decisions:
88 CommunicatingCommunicating is a process by which instructions, ideas, thoughts or information are transmitted, received and understand, by the person working in organisation.
89 Process of Effective Communication Creating idea information need by the senderEncoding (Designing)Transmission of Message over a channelReceiving the message by receiverReceiver analyses, interprets & decodes the messageActionProcess of Effective CommunicationFeedback
90 Process of Effective Communication Step 1. Idea Creation: It is preliminary step where the sender creates an idea to communicate. Step 2. Encoding: Use of proper codes like printed, sounds, gestures, pictures and real objects. Step 3. Transmission: Selection of proper channel like written papers, letter, lecture, speech, illustration, pictures, phone calls, etc. (Contd….)
91 Process of Effective Communication Step 4. Receiving: Step 5. Decoding: Decoding means the act of translating the message by the receiver in his own words and experience. Step 6. Action: It is the response from the receiver. Step 7. Feed Back: video
92 Methods of Communication Verbal or Written CommunicationFormal or Informal CommunicationDownward, Upward or Horizontal Communication
93 Verbal or Written Communication Examples of Verbal Communication: Face to face conversion, telephonic talk, lectures, conferences, interviews, etc. Examples of Written Communication: Letters, memos, s, notice, circulars, newsletters, etc.
94 Formal or Informal Communication Mostly in written form.e.g. when manager instructs his subordinates by virtue of his superior position.Informal Communication
95 Downward, Upward or Horizontal Communication Downward Communication takes place from top executive to the lower grade executive whereas in Upward Communication messages are sent from subordinates to superiors.Horizontal Communication takes place between persons having the same level of authority in the organisation.
97 “Everything that increasing the role of subordinates is decentralisation and that decreases the role is centralisation.”
98 DIFFERENCE BETWEEN CENTRALISATION & DECENTRALISATION
99 Proper coordination and Leadership BASIS FOR COMPARISONCENTRALIZATIONDECENTRALIZATIONMeaningThe retention of powers and authority with respect to planning and decisions, with the top management, is known as Centralization.The dissemination of authority, responsibility and accountability to the various management levels, is known as Decentralization.Communication FlowVerticalOpen and FreeDecision MakingSlowComparatively fasterAdvantageProper coordination and LeadershipSharing of burden and responsibility
100 Power of decision making Lies with the top management. BASIS FOR COMPARISONCENTRALIZATIONDECENTRALIZATIONPower of decision makingLies with the top management.Multiple persons have the power of decision making.ReasonsInadequate control over the organizationConsiderable control over the organizationBest suited forSmall sized organizationLarge sized organization