Chapter 3

ORGNIZATIONAL AND NATURAL ENVIRONMENTS

PG.60

Systems theory suggest that organizations are neither self sufficient nor self contained rather they exchange resources with & are dependent on external environment.

External environment

Inputs

Outputs

Direct action elements

Elemments of the direct action pg
63

Direct –action environment is made up of stakeholders( individuals or groups directly affected by organizations pursuit of its goals. They fall in two categories.

Some keyword defined

Special interest groups:

Groups of people who organize to us the political process to advance their position on political issues such as abortion or gun control

Political action groups: Groups organized to lobby and make campaign contributions to influence legislators.

Stakeholders relationship pg.74

The stakeholders framework is a method for understanding and influencing the direct action environment. Issues raised by SR

Networks and Coalitions

Multiple Roles

The Special Role of Management

Elements of the Indirect Action Environment.

This component affects in two ways.

First. Forces may dictate the formation of a group that eventually becomes a stakeholder.

Second. Indirect –action elements creates a climate- (rapidly changning technology, economic growth or decline , Changes in attitute toward work)in which the orgnization exist and to which it may ultimately have to respond.

Political Variabales:
Antitrust laws, government policy
Etc, that affect an orgnizations activities during a political process or climate.

Fahey and Narayanan grouped these interactions into four factors.

Social
Economic
Political &
Technological

Natural environment

Rise of Enviro- Movements

Frame for thinking about the natural environment.pg.83

The Cost benefit Framework or model p83

Simply mean if cost is more than the benefits than its useless.

If the 2^nd hand car is cheap but gives more troubles than its useless.

CFC free ACs,Fridges,

The Greening of organizations
four postures that orgs can adopt to become sensitive to Environment

THE LEGAL POSTURE:

Org to adopt a posture that they will obey any law, rule or regulation about environment

Managing Organizational & natural environment. Pg. 87

Chapter 4

Social responsibility & ethics

Pg. 96

Ethics & Social responsibiltyToday pg. 98

ETHICS: the Study of rights and of who is-or should be – benefited or harmed by an action. Or study of simply how are decisions affect others

Ethics sets new moral visions for the future by looking at past experiences and values.

The changing concept of Social responsibility.pg 99

Government regulations provide some ground rules for mangers but some pressing questions to be answered

Where does org socail responsibilty begins?
Where does it end?

ANDREW CARNEGIE pg 100

1835-1919 founder of US steel , author of The Gospel of wealth, he gave two principles

a) CHARITY PRINCIPLE: requires that more fortunate members of society to assist less fortunate members, including the unemployed , the handicapped, the sick & the elderly. They could be aided through Church, settlement houses, Community chest movement

Period ( 1930 to 1950)

b) Stewardship principle: derived from bible, required business & wealthy individuals to view themselves as the stewards , or caretakers of their property.

Idea is that rich hold their money in trust for the rest of society & can use it for any purpose that society deems legitimate

Example: Arial Maa- ( mother)

Dalda ( shokat Khanum trust)

Milton Friedmans Argument: 1970 to 1980

Milton argues that business primary responsibility is to make profits and leave the social problems to governments to handle.

ENLIGHTENED SELF-INTERST

Keith Davis said , that in long run those who do not use power in a manner that society considers responsible will ten to lose it.

CORPORATE SOCIAL RESPONSIVENES: pg 104

Robert Ackerman says its good for companies to respond rather than waste time in determining whose responsilbility.

He advises managers to be responsive to problems –don’t hide the info spread it , its good in the long run

For e.g research says women sitting for long hours on computer terminal have a chance of having problem pregnancies. If this info is given to employees they can find solutions.

CORPORATE SOCIAL PERFORMANCE pg104

IN 1979 Archi Carroll combined the idea of social responsibility with social responsiveness and called it Corporate Social performance.

The company should decisions and policies can reflect four stances:

Reactive

Defensive

Accommodative

Proactive.

The shift to ethics Pg 106

What is ethics? i.e. how our decisions affect other people.

FOUR LEVELS OF ETHICAL QUESTIONS IN BUSINESS

SOCIETAL

STAKEHOLDERS

INTERNAL POLICY

PERSONAL

THE TOOLS OF ETHICS pg 110

VALUES: Relatively permenent desires that seem to be good in themselves, like peace or goodwill.

HUMAN RELATIONSHIPS

pg. 111.

everyone is connected to other in a web of relationships.

The Morality of care pg 114

Recent Theorists Carol Gilligan & Nell Nodding- they say there are two strands of moral Theory

Morality of rule & justice (male perspective)

Morality of care ( female perspective )

12 Question see pg 114 Exhibit 4-1

Applying ethics

Institutionalizing Ethics

Globalization and management

Chapter 5

Pg 127

WHAT GLOBALIZIATION MEANS Pg. 127

GLOBALIZATION:

The recognition by organizations that business must have a global, not local focus. It has three interrelated factors-

Proximity

Location &

Attitude.

PROXIMITY:

First managers operate in closer proximity than ever before in a shrinking globe with customers, suppliers, competitors & Governments.
Another aspect of proximity is increasing technological and managerial capabilities of people around the world.

Treat customers as "equidistant" – Kenichi Ohamae

ATTITUDE: globalization refers an attitude about practicing management internationally. An attitude of overseas curiosity and our participation in global economy. As Ohmae says- Nothing is Overseas anymore.

The evolving concern after attitude is competitiveness.

GLOBALIZATION AND COMPETITVENESS. Pg. 129

Competitiveness:

The relative standing of one competitor against other. Its like a musical chair game, with finite seats.

Competitiveness has become a prominent business and government concern. For global business it’s a contest among nations.

Michael Porter-renowned expert on competition says, two competitiveness criteria's to understand globalization & Management ( criteria's differ in time perspective.

Relative standing Today, FUTURE

Relative standing Today, PAST

A) RELATIVE STANDING TODAY, FUTURE

It is the nations preparedness for future competitive interaction.

B ) RELATIVE STANDING TODAY PAST pg 131

Its works as benchmark for the past performance. Measure of Criterion are:

nations share of global market,

nations standard of living.

Per capita income

Life expectancy

Health care services etc.

These measures show of what has happened in the past ,until today.

How Government influences competitiveness? Pg 131

Global managers operate in a climate marked buy ,more aggressive government efforts to influence how they run their organizations

Porter traces that success to a significant degree , to the economic climate , institutions, and policies attributable to government actions.

THE BLURRING OF PUBLIC & PRIVATE SPHERES OF INFLUENCE:

The changing international scene Pg 133

Political changes, shifts in government policies, and new agreements among nations have impact on global market.

THE COMING OF EC( European community

EC was estb in 1992 on basis of Treaty of Rome 1957 for Common Market.

Goal- to eliminate trade barriers among member nations , create single market of 300 million people & foster political unity in Europe.

Single European Currency -Euros

EC’s implication on business:

First: it should increase Efficiency i.e. single product for all Europe. Single brand available in all of Europe, it will reduce cost of different marketing plans.

Second: European companies should become more formidable competitors in the global economy, as they have cooperative system.

Also Unifying of European markets & Increased profit potential will encourage Innovation.

Third: EC will encourage businesses to focus on their relationship with EC, rather than domestic governments. This will heighten political Unity in Europe.

CHINA pg.135

CHINA: It applied planned economy.

Under Mao Zedong Regime government owned all the means of production & distribution

After Mao death in 1976 new generation voiced –economic growth- due to which entrepreneurs emerged with state owned businesses.

Throughout 1980s China accelerated its reform program, attracting industrialized economies & businesses like Reebok, Squibb to invest in join ventures.

AFTER SOVIET UNION:pg. 136

Perestroika- economic restructuring

When Soviets showed interest in foreign investment. Europe Japan & America were responsive. Companies like Kodak, Johnson & Johnson , McDonald invested 5 to 10 billion $ for 15 year period.

Pepsi is the favorite drink there.

A brief modern history of globalization pg. 139

Global business practice pg. 143

Time plays an important role in global management. First managers cannot simply transform their orgs into global participants overnight.

Second: globalizations of business result in relationships of cross cultural manager, with different cultures and practices.

How companies go international

Exporting:

The selling of domestically produced goods in foreign markets

Global Strategic partnership:
Alliances formed by an organization with one or more foreign countries generally with an eye toward exploiting the other countries opportunities and toward assuming leadership in with supply or production

Inventing & reinventing Organizations

Chapter 6

Page 157

SMALL BUSINESS pg. 157

SMALL BUSINESS: Business that are locally owned and managed , often with very few employees working at a single location

36 Million American work for orgs with fewer than 100 employees.

53 % of all jobs in America were held by people working in orgs with less than 500 employees

GM ,Wal-mart, & AT&T all started as single stores

Joseph Schumpeter –Austrian Economist wrote in 1940 that a healthy economic system was on frequently buffeted by a "perennial gale of creative destruction "

Topic -2

THE MEANING OF ENTEREPRENEURSHIP

THE MEANING OF ENTEREPRENEURSHIP pg. 159

Entrepreneur: The Originator of a new business venture and a new organization for that venture.

He has the ability to take factors production –land, labor & capital and use them to produce new goods or services, he perceives opportunities , that others over look & creates an Organization.

Some entrepreneurs use available info to produce new thing, e.g.. Henry Ford automobile, In-box, Sony Walkman visioned by Akio Morita, ZRG international

Entrepreneurship v/s Management pg. 161

Entrepreneurship: The seemingly discontinuous process of combining resources to produce new goods or services.

Paul H. Wilken explains Entrepreneurship involve initiating changes in production. Whereas management involves the ongoing coordination of the production process.

Entrepreneurship is all about change. Entrepreneurs see change as norm and healthy.

Entrepreneurs search for change, respond to it and exploits it as an opportunity.-Peter Drucker Contemporary management writer.

The importance of Entrepreneurship Pg. 161

Function of Entrepreneur- organizing new productive resources to expand supply.

Start-up: Businesses founded by individuals intending to change the environment of a given industry by the introduction of either a new product or new production process

THE BENEFITS OF ENTERPRENEURSHIP pg. 162
It has four social benefits

TOPIC - 3

THE ENTERPRENUER

THE ENTERPRENEUR pg. 164

Researchers have tried to anlayze, personalities , skills & attitudes of enterpreneurs.

PSYCHOLOGICAL FACTORS: pg 164

David McClelland 1960-said people who pursued entrepreneur –like careers were high in need –achievement i.e. need to achieve.

Begly & Boyd 1980- identified five dimensions.

Need –achievement:
Locus of Control: idea that individual control their own lives.
Tolerance for risk
Tolerance for ambiguity.
Type A behavior: a drive to get more done in less time

Entrepreneurs V/s Manager

Ellen Fagenson

Entrepreneurs- tend to value self-respect, freedom, a sense of accomplishment & Exciting life style.

Manager- Tend to value true friendship, wisdom, salvation & pleasure.

Entrepreneur needs self-confidence, drive, Optimism, & courage to launch & operate new business

SOCIOLOGICAL FACTORS: pg. 165 Often members of minority groups feel employers discriminate against them. Minorities need to become majorities has evolved entrepreneurs among them.

BARRIERS TO ENTERPRENEURSHIP pg 166

Successful entrepreneurs make a business plan

Q. Why do entrepreneurs fail?

Karl Vesper says

- lack of Viable Concept

Lack of market knowledge.
Not to attract best people for the job.
Lack of technical skills.
Initial investment needed
General business know how

TOPIC-4

Reinventing organizations

PG. 168

Reinventing organizations

Decision Making

Decision Making 239

The process of identifying and selecting a course of action to solve a specific problem

Problem pg240

Situation that occurs when an actual state of affairs differs from a desired state of affairs.

THE PROBLEM FINDING PROCESS 240

FOUR SITUATIONS USUALLY ALERT MANAGERS TO POSSIBLE PROBLEMS

A deviation from past experience
A deviation from set plans
Other people bring problems to managers
The performance of competitor can also create problem-solving.

Problem Recognition

Alert managers often sense problems early.

Problem finding is not always straightforward sara and lee have identified 3 main categories of errors mangers make in sensing problems.

False association of events,
False expectation of events
And false self perception and social image

Opportunity Finding. 242

Opportunity: Situation that occurs when circumstances offer an organization the chance to exceed stated goals and objectives.

Opportunity finding 242 continued

Peter Drucker says,

Opportunities rather than problems are the key to organizational and managerial success. He observes that solving problem merely restores normality , whereas progress comes from exploitation of opportunities

THRESHOLD FOR PROBLEM RECOGNITION

Benchmarking
Setting priorities
Is the problem easy to deal with?
Might the problem resolve itself?
Is this my decision to make?

Talking IT Through

Most decisions are not made in isolation. Rather they are made in the context of relationships with others. Managers are finding that the best results emerge through teamwork, where people contribute varied insights

Non-programmed Decision Making

While there are generally policies and procedures in place to guide decision making in an emergency havoc resulting from 1994 Los Angeles-are earthquakes, such as the collapse of sections of the Santa Monica freeway, clearly call for non-programmed decision making

Programmed Decisions

Solutions to routine problems determine by rules, procedure, or habit.

Certainty

Decision making condition in which managers have accurate, measurable and reliable information about the outcome of various alternatives under considerations.

Risk

Decision making condition in which managers know the probability a given alternative will lead to a desired goal or outcome.

Uncertainty

Decision making condition in which managers face unpredictable external conditions or lack the information needed to establish the probability of the events.

Rational Model of Decision Making 248

A four-step process that helps managers weigh alternatives and choose the alternative with the best chance of success.

Rational Model of Decision Making( 248

1.INVESTIGATE THE SITUATION

Define Problem

Diagnose Causes

Identify Decision

Objectives

DEVELOP ALTERNATIVES

Seek Creative Alternative

Do not Evaluate yet

Brainstorming 250

Decision making and problem solving technique in which individuals or members try to improve creativity by spontaneously proposing alternatives without concern for reality or tradition.

TOPIC- 6

THE RATIONAL MODEL IN PERSPECTIVE

PG 253

Bounded Rationality 253

The concept that managers make the most logical decisions they can within the constraints of limited information and ability

Satisfice 253

Decision making technique in which managers accept the first satisfactory decision they cover.

Heuristic Principles 253

A method of decision making that proceeds along empirical lines, using rules of thumb, to find solution of the answer.

Game Theory 254

The study of people making interdependent choices

PLANNING AN OVERVIEW

Goals are important for 4 reasons

Goals provide a sense of direction
Goals focus our efforts
Goals guide our plans & direction
Goals help us evaluate our progress.

TOPIC 2

THE IMPORTANCE OF PLANNING AT ORGANAZATION

THE HIERARCHY OF ORG PLANS

organizations are typically managed according to two types of plans.

Both these plans are devised and carried out in hierarchical manner

TOPIC 3

HOW STRATEGIC AND OPERTATIONAL PLANS DIFFER

they differ in 3 major ways:

TOPIC 4

THE EVOLUTION OF THE CONCEPT OF STRATEGY

STRATEGY AS THE GRAND PLAN

Word Strategeia is Greek meaning, the art and sicience of being a genral. Greeks knew strategy was more than winning a battle.

Strategy has two components ie. Planning and action

Strategy = planning + action

THE RISE OF STRATEGIC MANAGEMENT: pg.267

STRATEGIC MGMT:The mgmt process that involves an orgnizations engaging in strategic planning and then acting on it.

SM= strategic planning + acting on it

Defination of strategy:

the determination of basic long term goals and objectives of and enterprise and

the adoption of course of action and

allocation of resources necessarry for carrying out these goals

3 things goals, resources, action,

THE STRATEGIC MANAGEMENT APPROACH. Hofer and schendel gave a defination based on principle " that the overall design of an organization can be described only if the attainment of objectives is added to pliicy and strategy as a key factor in SM process"

They focused on four key aspects of SM.

Goal setting
Strategy formulation
Administration or Strategy implementation
Strategic control.

STRATEGIC MANAGEMENT PROCESS:

TOPIC –5

LEVELS OF STRATEGY

THREE LEVELS OF STRATEGY ARE
CORPORATE LEVEL
BUSINESS-UNIT
FUNCTIONAL LEVEL

CORPORATE:

STRATEGY Formulated by top management to oversee the interest and operations of multiline corporations

TOPIC-6

THE CONTENT OF A CORPORTATE STRATEGY.

CORPORATE STRATEGY:

The idea about how people at an organization will interact with people at other organizations over time

BCG approach analyze a corporate portfolio and foucus on three aspects of each SBU.

Its sale,

The growth of its market and

Whether it absorbs or produces cash in operations.

Goal of BCG is to develop a balance among SBUs that use cash and and those that supply cash.

STAR: high relative market share in a rapidly growing market

Question Mark: a biz with relatively small market share in a rapidly growing market.

CASH COW:biz with high relative market share in a slowly growing market.

DOG: a biz with low relative market share in a slowly growing or stagnant market.

Success sequence in BCG:

is to invest cash;from the

Cash cow and the more successful dogs

in selected question marks

to enable them to become stars by increasing their relative market share.

Overtime as rate of market growth slows down , the stars will become cash cows.

Success plan for BCG

CHANDLERS THESIS pg 288

First STAGE: Organization is small( ie. There is single location, a single product, and single entrepreneurial decision maker. Organization then becomes a UNIT FIRM, with several field units and an administrative office to handle coordination, specialization and standardization among the units.

SECOND STAGE: VERTICAL INTEGRATION , Here organization keeps original Product ,but broadens its scope by buying or acquiring the supplier of raw material, and develops into a functional Organization, with Finance, marketing. Etc

THIRD STAGE: MULTIDIVISIONAL FIRM Here organization expands into different industries and diversifies its products. OR A collection of smaller businesses.

THE SEVEN-S MODEL
Seven key factors that can adversely affect successful change in organization are:

Seven S model pg/291

Topic: Using Procedures to Facilitate Implementation
Policies and procedures are powerful tools for implementing strat4hy and gaining greater commitment from employees. To show this we look at the following :

ANNUAL OBJECTIVES :

They identify precisely what must be accomplished each year to achieve and organizations strategic goals.

MBO:

A formal set of procedures that established and reviews a progress toward common goals for mangers and subordinates

Elements of MBO (Management by Objectives)

Commitment to the program

Top-Level goal setting

Individual goals

Participation

Autonomy in implementation of plans

Performance review.

CHAPTER 12

ORGNIZATIONAL DESIGN

AND

ORGANIZATIONAL STRUCUTURE

ORGNIZATIONAL DESIGN AND ORGNIZATIONAL STRUCTURE

ORGNIZATIONAL DESIGN:

The determination of the organizational structure that is most appropriate for the strategy ,people , technology , and tasks of the organization.

FOUR BUILDING BLOCKS:
Managers take four fundamental steps when they begin to make decisions about organizing.

Division of Work: Divide the total work load into tasks that can logically and comfortably be performed by individuals or groups.

Departmentalization: Combine task in a logical and efficient manner . The grouping of employees and task is generally called departmentalization

Hierarchy: Specify who reports to whom in the Organization.

Coordination.: Set up mechanism for integrating departmental activities into a coherent whole and monitoring the effectiveness of that integration

DIFFERENTIATION & INTEGRATION

DIFFERENTIATION:

Differences in attitudes and working styles , arising naturally among members of different departments , that can complicate the coordination of an organization’s activities

INTEGRATION:

In place of the term of Coordination , Lawrence and Lorsch use integration; to designate the degree to which members of various departments work together in a unified manner

TALL & FLAT HIERARCHY

DOWNSIZING:
or Shrinking the organization

A version of organizational restructuring which results in decreasing the size of the organization and often results in a flatter organizational structure; One way organization convert to leaner , more flexible structures that can respond more readily to the pace of change in global markets.

FORMAL AND INFORMAL ORGNIZATIONAL STRUCTURE

INFORMAL:

The undocumented & officially unrecognized relationships between members of an organization that inevitably emerge out of the personal and group need of employees.

POWER AND THE DISTRIBUTIION OF AUTHORITY.

power

Power

Line & Staff authority.

Views of formal authority

delegation

Decentralization & Centralization
Advantage & Disadvantage

Decentralization

Delegation

Decision making at the scene

Better training, morale, initiative at lower level & flexibility

Faster Decision making with changing environment.

Centralization is;

Purpose of Organization:

-Efficient integration of subunits for the pursuit of Organizational goals through the strategic plan-

Decentralization & Centralization

FACTORS INFLUENCING DECENTRALIZATION

Other characteristics of Decentralization

Job design

APPROACHES TO JOB DESIGN:

MECHANISTIC
MOTIVATIONAL
BIOLOGICAL.

Job design

MOTIVATIONAL JOB DESIGN

J.Richard Hackman identified 5 core dimensions.

Skill Variety – Dress Designer v.s Messenger
Task Identity- Software Designer v.s Assembly line worker
Task Significance- Air Traffic Controller v.s House painter
Autonomy- project manager v.s Cashier in store
Feedback- Professional Athlete v.s Security Guard.

BIOLOGICAL JOB DESIGN

ERGONOMICS:

systematic attempt to make work as safe as possible.

Human Resource Management
(HRM)

HRM ( Defined)

The management function that deals with recruitment, placement, training and development of organizations members.

HRM PROCESS pg 377

Human Resource planning

Recruitment

Selection

Socialization

Training & Development

Performance Appraisal

Promotions, transfers , demotion

HRM PROCESS pg 377

Human resource planning pg 377

Human Resource planning

Planning for the future personnel needs of an organization , taking into account both internal activities and factors in the external environment.

Recruitment pg 379

Recruitment:

The development of a pool of job candidates in accordance with a a human resource plan

1.JOB DESCRIPTION:

A written description of anon-management job, covering title , duties and responsibilities, and including its location on the organization chart.

Recruitment ( pg 379)

2.Position Description:

A written description of a management position , covering title ,duties and responsibilities , and including its location on the organization Chart.

3.Hiring Specification:

A written description of the education , experience and skills needed to perform a job or fill a position effectively.

Legal consideration 383

Comparable Worth: pg 384

the principle that jobs requiring comparable skills and knowledge merit equal compensation even if the nature of the work activity is different.

SELECTION pg 387

SELECTION:

The mutual process whereby the organization decides whether or not to make a job offer and the candidate decides whether or not to accept it.

Realistic Job Preview ( RJP)

Information a on a job provided by the organization to applicants an new employees that gives both positive & negative aspects of the job

Steps in selection process ( Pg. 387)

Completed job application

Initial Screening Interview

Testing

Background investigation

In-depth Selection Interview

Physical Examination

Job offer

Orientation & Socialization( Pg 389)

ORIENTATION:

A program designed to help employees fit smoothly into an organization , also called socialization.

Socialization 389

it conveys three type of information:

General info about the daily work routine.
A review of the organizations history, purpose , operations, and products or services as well as a sense of how the employees job contributes to the organizations needs.
A detailed presentation ( perhaps a brochure) of the organizations policies , work rules, and employee benefits.

Training & Development ( pg 390)

Training program:

A process designed to maintain or improve current job performance.

Development program:

A process designed to develop skills necessary for future work activities.

Training programs ( pg 391)

Performance appraisals: Each employees work is measured against the performance standards or objectives established for his or her job.

Analysis of job requirements: Skills specified in the appropriate job description are examined , and those employees without necessary sills become candidates for a training program

Training programs (continued)

3.Organizational Analysis: Effectiveness of the organization and its success in meeting its goals are analyzed to determine where differences exist.

4. Employee survey:Managers as well as non managers are asked to describe what problems they are experiencing in their work and what actions they believe are necessary to solve them

Management Development Programs (pg 392

ON-THE-JOB METHODS:

Coaching
Job rotation
Training Positions
Planned work activities.

OFF-THE-JOB METHODS:

Techniques that remove individuals from the stresses and ongoing demands of the workplace, enabling them to focus fully on the learning experience

Methods are:

In-house Classroom instruction
Management development programs ( by Universities)
Organizations ( AMA American Management Association)

LEADERSHIP

CHAPTER 17 , PART-V

LEADING

PAGE 470

TOPIC-1

DEFINING LEADERSHIP

470

DEFINING LEADERSHIP 470

LEADERSHIP: The process of directing and influencing the task-related activities of group members.

POWER: The ability to exert influence – That is, to change the attitudes or behavior of individuals or groups.

INFLUENCE: Any actions or examples of behavior that cause a change in attitude or behavior of another person or group.

TOPIC – 2

The Trait approach to leadership

471

The Trait approach to leadership 471

In Search for measurable leadership traits , researchers have taken tow approaches:

LEADERS AND NON LEADERS : Comparing the traits of those who have emerged as leaders with the traits of those who have not.
EFFECTIVE AND INEFFECTIVE LEADERS

comparing the traits of effective leaders with those of ineffective leaders.

TOPIC –3

THE BEHAVIORAL APPROACH TO LEADERSHIP 473

Instead of distinguishing traits of effective leaders here the researchers tried to determine what effective leaders do-

How they delegate tasks,
how they communicate with & try to motivate their followers or employees,
how they carry out their tasks
& so on

Behaviors unlike traits can be learned, The researchers have focused on two aspects of Leadership behavior

1. Leadership Functions, 2. Leadership Styles

LEADERSHIP BEHAVIOR

LEADERSHIP FUNCTIONS,

The group maintenance and task-related activities that must be performed by the leader or someone else, for a group to perform effectively

LEADERSHIP STYLES

The various patterns of behavior favored by leaders during eh process of directing and influencing worker.

OHIO STATE AND UNIVERSITY OF MICHIGAN STUDIES

THE MANAGERIAL GRID pg 478

MANAGERIAL GRID:

Diagram developed by Blake and mouton to measure a managers relative concern for people and production

LEADERSHP GRID

TOPIC - 4

CONTINGENCY APPROACHES TO LEADERSHIP 480

HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP MODEL 480

LEADERSHIP STYLE : THE FIEDLER MODEL (PG 482 )

Fielder believes most managers are not very flexible and trying to change a managers style to fit unpredictable or fluctuating situations is inefficient or useless. So effective group performance can only be achieved by matching the manager to the situation or by changing the situation to fit the manager.

LEAST PREFFERED CO-WORKER:

Fiedlers measuring instrument for locating a manager on the leadership-style continum. Or the employee with whom the person could work least well.

Fielder's 3 LEADERSHIP SITUATIONS
fielder's 3 Leadership situation that help determine which leadership style will be effective are

LEADER-MEMBER RELATION

The quality of the interaction between a leader and his or her employees.

2. TASK STRUCTURE

A work situation variable that , according to Fieldler, helps determine a managers power . In structured tasks , managers automatically have high power, in unstructured tasks, their power is diminished.

A PATH GOAL APPROACH TO LEADERSHIP pg 483

By Martin G.Evans & Robert house

A leadership theory emphasizing the leaders role in clarifying for subordinated how they can achieve high performance and its associated rewards.

They have determined most effective leadership style

The personal characteristics of employees
Environmental pressures and demands in the workplace

with which employees must cope

TOPIC 5

PERSONAL CHARACTERISTICS OF EMPLOYEES

Pg 485

Pg 485 TOPIC – 5) PERSONAL CHARACTERISTICS OF EMPLOYEES

Participatory leadership style: employees who believe their behavior affects the environment

Authoritarian Style: employees who believe events occur because of luck or fate

Supervisory Style: employees highly skilled

Directive Style: employees who are less skilled.

Environmental pressures and demands in the workplace 485

Some Environmental factors are:

1. Nature of employee tasks

2. Organizational formal authority system

3. Employees work group.

Pg.485) DECIDING WHEN TO INVOLVE SUBORDINATES, THE V-ROOM –YETTON AND VROOM JAGO MODEL

Suggested questions that manager can ask themselves to determine which style to use for the particular problem they are facing

Do I have enough information or skill to solve the problem on my own.?
Do I need to make a high quality decision that my employees are likely to disagree with?
Is this problem structured?
Is the acceptance of the group critical for the success of the decision?
If acceptance of the decision is important are my employees likely to disagree among themselves about which is the best solution.?

THE V-ROOM –YETTON AND VROOM JAGO MODEL ( continued)

V-room and Jago extends the approach by hypothesizing that the effectiveness of a decision depends on

Quality of the decision
The commitment made to the decision and
The time expended to make the decision.

They also believe

Overall effectiveness of leader =

TOPIC – 6

THE KOUZES-POSNER BEHAVIOURAL APPROACH: DYNAMIC ENGAGEMENT AGAIN 487

THE KOUZES-POSNER BEHAVIOURAL APPROACH: DYNAMIC ENGAGEMENT AGAIN

Challenging the process

Inspiring a shared vision

Enabling others to Act

Modeling the way

Encourage the heart

TOPIC - 7

THE FUTURE OF LEADERSHIP THEORY 487

THE FUTURE OF LEADERSHIP THEORY

CHARISMATIC LEADERSHIP

TRANSACTIONAL LEADER

TRANSFORMATIONAL LEADER

BASS THEORY OF TRANSFORMATIONAL LEADERSHIP

HOUSE`S THEORY OF CHRISMATIC LEADERSHIP

TEAM & TEAM WORK

Part V , Leading

CHAPTER 18

Page 496

TYPES OF TEAMS

TEAM: Two or more people who interact with and influence each other toward a common purpose. Two types formal & informal

FORMAL TEAMS

A] COMMAND TEAM

A Team composed of a manager and the employee that report to that manager

B] COMMITTEE

A formal organizational team ,usually relatively long lived ,created to carry out specific organizational tasks e.g. Academic council.

C] TASK FORCE

A temporary team formed to address a specific problem. Young master mind comp.

INFORMAL TEAMS

HIGH PERFORMANCE TEAMS OR SUPER TEAMS

REFERENCE GROUP

A group with whom individuals identify and compare themselves

SUPER TEAMS

Group of 3 to 30 workers drawn from different areas of a corporation who get together to solve the problems that workers deal with daily.

SELF MANAGED TEAMS

Self Managed teams- Teams that manage themselves without any formal supervision. Project management.

FOLLOWING CHARACTERISTICS

The team has responsibility for a relatively whole task
Team members each possess a variety of task-related skills.
The team has the power to determines such things as works methods , scheduling and assignment of members to different tasks.
The performance of the group as a whole is the basis for compensation and feedback.

CHARACTERISTICS OF TEAMS

The first step in learning to manage teams effectively is become aware of their characteristics; that is the way they develop.

LEADERSHIP Roles
Norms
Cohesiveness

CHARACTERISTICS OF TEAMS

LEADERSHIP Roles [ pg.505

The formal leader of a team is usually appointed or elected. Informal leader tend to emerge gradually as group member interact

The man who speaks up more than others
Who offer more and better suggestions than others
Who gives directions to the group activities

Usually becomes the Informal leader.

Stages of Team Development( )

1.FORMING

2.STORMING

3.NORMING

4.PERFORMING

5.ADJOURINING

Stages of Team Development( )

2. STORMING: As group members become more comfortable with one another , they may oppose the formation of a group structure as they begin to assert their individuals personalities

Stages of Team Development( )

4. PERFORMING:

Now that structural issues have been resolved , the group begins to operate as a unit. The structure of group now supports and eases group dynamics and performance. The structure becomes a tool for the groups use instead of an issue to be fought over. …..

5. ADJOURNING:

Finally for temporary groups, this is the time to wrap things up, with disbandment in mind , the group’s focus shifts from high task performance to closure.

b) Team Norms [pg 506]

Expectations about how they and the others members will behave.

TEAM COHESIVENESS [pg 507

How much influence the group has overt its individual members.

4 ways to improve cohesiveness pg. 508

Introduce competition
Increase interpersonal attraction
Increase interaction
Create common goals & common feats.

4 ways to improve cohesiveness pg. 508

Introduce competition

Conflict with outside individuals or other teams increases group cohesiveness.

2. Increase interpersonal attraction

People tend to join teams whose members they identify with or admire. Organization may want to begin by trying to attract employees who share certain key values

4 ways to improve cohesiveness pg. 508

3. Increase interaction

At times people don’t like each other with whom they work, increased interaction can improve camaraderie and communication

4. Create common goals & common feats.

Greogory Shea and Richard Guzzo have proposed that a groups effectiveness is a function of three variables:

A] Task Interdependence

B] Sense of Potency

C] Outcome Interdependence

CREATE COMMON GOAL & FEATS [pg 508]

A. TASK INTERDEPENDENCE:

The extent to which a group’s work requires its members to interact with one another.

C. OUTCOME INTERDEPENDENCE:

The degree to which the work of a group has consequences felt by all its members.

CREATE COMMON GOAL & FEATS [pg 508]

EFFECTIVE CONTROL

CHAPTER 20, PART-6, CONTROLLING

PAGE 555

TOPIC-1

THE MEAINING OF CONTROL ( pg 558)

CONTROL:

The process of ensuring that actual activities conform to planned activities.

A. STEPS IN THE CONTROL PROCESS:

Establish Standards & Methods for measuring performance
Measure the performance
Determine whether performance matches the Standards
Take Corrective action.

THE MEAINING OF CONTROL ( pg 558)

Establish Standards & Methods for measuring performance

Measure the performance

THE MEAINING OF CONTROL ( pg 558)

Determine whether performance matches the Standards

Take Corrective action.

B. Why control is needed ? (pg560)

To create better quality

To cope with change

To create faster cycles (speed & Customization)

To facilitate Delegation & Teamwork

TOPIC -2

DESIGN CONTROL SYSTEMS [ PG 562

A. IDENTIFYING

KEY PERFORMANCE AREAS

KEY RESULT AREAS ( KRAs)

* SEE CHART NEXT SLIDE

KEY PERFORMACE AREAS OR KEY RESULTS AREA ( KRAs) pg. 563

TOPIC-3

FINANCIAL CONTROLS Pg 565

3.FINANCIAL CONTROLS Pg 565

FINANCIAL STATEMENTS

BALANCE SHEET

INCOME STATEMENT

CASH FLOWS

3b) BALANCE SHEET:

Description of the organization in terms of its assets , liabilities and net worth.

TOPIC- 4

BUDGETRY CONTROL METHODS pg 568

4. BUDGETRY CONTROL METHODS pg 568

A. RESPONSIBILITY CENTERS pg 569

REVENUE CENTERS
EXPENSE CENTERS
PROFIT CENTERS
INVESTMENT CENTERS

RESPONSIBILITY CENTERS
pg 569

a) REVENUE CENTERS

Organizational unit in which outputs are measured in monetary term but are no directly compared to input costs.

b) EXPENSE CENTERS

Organizational units such as administrative, services and research departments, where inputs are measured in monetary terms bit outputs are not.

RESPONSIBILITY CENTERS
pg 569

c) PROFIT CENTERS

Organizational unit where performance is measured by numerical differences between revenues and expenditures.

d) INVESTMENT CENTERS

Organizational unit that not only measures the monetary value of inputs and outputs l but also compares outputs with assets used in producing them.

B. THE BUDGETING PROCESS [ PG 570]

THE ROLE OF BUDGET PERSONNEL
- The budget department
- The budget committee.

SOME PROBLEMS IN BUDGET DEVELOPMENT

TOPIC-5

TYPES OF BUDGET
(pg.572)

TYPES OF BUDGET
(pg.572) TWO KINDS:

OPERATING BUDGETS:
Expense budgets

I ) Engineered cost budgets

ii) Discretionary cost budgets

B. Revenue Budgets

C. Profit budgets

OPERATING BUDGETS:
pg 572

OPERATING BUDGETS:

Budget indicating the goods and services the organization expects to consume in a budget period.

FINANCIAL BUDGETS
pg 572

a) Fixed Cost:

Those expenses unaffected by the amount of work accumulated in the responsibility center.

b) Variable costs

Expenses that vary directly with the amount of work being performed

TOPIC-6 AUDITING (pg 574)
TWO TYPES

EXTERNAL AUDITING

Verification process involving the independent appraisal of financial accounts and statements.

OPERATIONS MANAGEMENT

CHAPTER 21 ,

PART 6 – CONTROLLING

PAGE 583

TOPIC-1

THE OPERATONS SYSTEM: A MODEL ( pg 584

OPERATIONS

OPERATIONS: The transformation activities of an organization.

TOPIC: 1 -THE OPERATIONS SYSTEM: A MODEL ( Pg. 584)

TOPIC –2,

The importance of Operations Management pg 586

TOPIC –2, The importance of Operations Management ( pg 586)

OPERATIONS MANAGEMENT:

Complex management activity that includes

Management / operations

Planning production,
Organizing resources,
Directing operations and personnel , and
Monitoring system performance

2A) To Improve Productivity: A measure of Efficiency

PRODUCTIVITY: Pg 586

Measure of how well an operations system functions and indicators of the efficiency and competitiveness of a single firm or department.

Productivity = output / input

PRODUCTIVITY:
Example

Tailor A stitches 4 dress per day and Tailor B tailor stitches 7 Dress per day so what is the difference in their productivity

TWO TYPES OF PRODUCTIVIY RATIOS ( 587)

TOTAL PRODUCTIVITY

T.P = Total Output / Total value of Input

2. PARTIAL PRODUCTIVITY.

P.P = all output / partial input

where partial Input =value of major categories of input

e.g. Labor productivity index or output per work-hour ratio

Uses of productivity ratios ( 588)

Human Capital:

An organizations investment in the training and development of it members

2B) TO MEET CUSTOMERS COMPETITIVE PRIORITIES ( 589)

COMPETITIVE PRIORITIES:

Four major criteria , including;

pricing ,

quality level,

quality reliability, and
flexibility,

on which products and services are evaluated.

COMPETITIVE PRIORITIES

PRICING

QUALITY LEVEL

QUALITY REALIBILITY

FLEXIBILITY.

TOPIC – 3

( DESIGNING OPERATIONS SYSTEMS ) pg 592

TOPIC – 3 ( DESIGNING OPERATIONS SYSTEMS )

becoming aware of competitive priorities is just one way managers can match operational plans to strategic plans .Designing an operations system involves making decision about the following:

WHAT TO PRODUCE ( product)

HOW MANY TO PRODUCE ( Number)

HOW TO PRODUCE( methods)

WHO WILL DO THE WORK ( staffing)

3a) WHAT TO PRODUCE ( product) pg 592
computer technology assists manager in product design

1. DESIGN FOR MANUFACTURE (DFM)

Technique that involves streamlining the design of products to simplify assembly.

3b) HOW MANY TO PRODUCE ( Number) or Capacity planning pg. 593

Capacity planning:

Operations decisions concerned with the quantity of goods or services to be produced

3.c. HOW TO PRODUCE (methods) or process pg 594

Process selection , which determines how the product or service will be produced involves four phases of technological decisions.

MAJOR TECHNOLOGICAL CHOICE
MINOR TECHNOLOGICAL CHOICE
SPECIFIC-COMPONET CHOICE
PROCESS FLOW CHOICE

a ) Facility location Planning

b) Layout Planning.

HOW TO PRODUCE (methods) or process pg 594

MAJOR TECHNOLOGICAL CHOICE (594

Some questions

Q. Does the technology exist to produce the product?

Q. Should innovations be licensed from somewhere.

Q. Should be develop the technology internally?

As there are Engineers, chemist, biogenetics & other techs are available

2. MINOR TECHNOLOGICAL CHOICE ( 594

HOW TO PRODUCE (methods) or process Pg 594

3. SPECIFIC-COMPONET CHOICE ( 595

Questions like:

What type of equipment should be used?

Should the equipment be dedicated or general use.

To what degree should machines replace people in performing and controlling the work?

a. CAD B) CAM

4. PROCESS FLOW CHOICE (595

a ) Facility location Planning

b) Layout Planning.

SPECIFIC-COMPONET CHOICE ( pg 595

A. CAD/CAM( Computer Aided Design / manufacturing):

Integrated approach in which the software used in designing products is also used to write a computer program to control the machinery.

b. CIM ( computer-integrated manufacturing)

Integrated approach that combines CAD/CAM with the use of robots and computerized inventory management Techniques.

4.PROCESS FLOW CHOICE ( pg595

4.PROCESS FLOW CHOICE ( pg595)

a ) Facility location Planning

Choosing where to locate the production facility is one of the most important design decisions which minimizes total production and distribution cost.

b) Layout Planning: it involves decisions about how to arrange space in the physical facilities. In layout;

Planning, process & equipment

decisions are translated to into physical arrangement for production

Space must be provided for:

Productive facilities

Non productive facilities

Supporting facilities.(rest ,waiting, parking)

3.d.) WHO WILL DO THE WORK ( pg 598)

The final decision in designing the operations system concerns the structure of the individual jobs. Because job design is reflected in labor expenses, any inefficiencies or mistake here will ultimately affect operating costs. Three issues for job design are:

WORKER SKILLS

WORKER SAFETY

WORKPLACE COLLABORATION

(TOPIC- 4)

OPERATIONAL PLANNING AND CONTROL DECISIONS

Pg. 600

(TOPIC- 4) OPERATIONAL PLANNING AND CONTROL DECISIONS

INVENTORY: pg 602

Supply of raw material, work in progress, and finished good an organization maintains to meet its operations al needs

WORK IN PROGRESS:

Partially finished goods

1.a )INVENTORY MANAGEMENT pg.602

3 Important methods;

MATERIAL-REQUIREMENTS PLANNING(MRP)
MATERIAL-RESOURCE PLANNING ( MRPII)
JUST-IN-TIME INVENTORY.

MATERIAL REQUIREMENTS PLANNING(MRP): pg 602

Operational planning system in which end products are analyzed to determine the material needed to produce them.

MATERIAL-RESOURCE PLANNING ( MRPII): pg 602

Operational planning system that extends MRP by comparing needs to known resources and calculates unit costs; can also be used with other computer programs to handle order entry, invoicing and other operations tasks.

kanban

c. JUST-IN-TIME INVENTORY.

Inventory system in which production quantities are ideally equal to delivery quantities , with materials purchased and finished goods delivered just in time to be used also known as kanban

CHAPTER 22
part 6 , controlling
pg. 611

INFORMATION SYSTEM

MANAGEMENT INFORMATION SYSTEM (622

Computer based information system for effective planning, decision making and control.

With information system playing such an important role in managing organizations,it is important for managers to understand how these systems should be designed ,implemented, and managed.

TOPIC -1

INFORMATION & CONTROL (612

The NATURE OF INFORMATION
(613

Managers view information as a valuable asset.

TOPIC -02

MANAGEMENT INFORMATION SYSTEM. (615

A formal method of making available to management the accurate and timely information necessary to facilitate the decision-making process and enable the organization planning, control, and operational functions to be carried out effectively. The system provides information about the past, present and projected future and about relevant events inside and outside the organization.

MANAGEMENT INFORMATION SYSTEM.(615

EDP (615

MIS EMERGES (615

DSS

DIFFERING INFORMATION FOR DIFFERENT MANAGEMENT LEVELS

THE ROLE OF THE CHIEF INFORMATION OFFICER (CIO)

MANAGEMENT INFORMATION SYSTEM.(615

2A. EDP ( 615

Computerized data-processing and information management , including report standardization for operating managers.

2B. MIS EMERGES

a) CBIS computer-based information systems:

Information systems that goes beyond the mere standardization of data to aid in the planning process.

MANAGEMENT INFORMATION SYSTEM.(615

2C) DSS

An interactive Computer system accessible to non-specialist to assist in planning and decision making.

It allows managers to gain online or real time access to the database in MIS.

It also allows managers to create their own database and electronically manipulate information as required.

Where MIS reports are necessary for monitoring ongoing operations, DSS permits less structured use of databases as special decision needs arise.

2D) DIFFERING INFORMATION FOR DIFFERENT MANAGEMENT LEVELS

Gorry and Morton point out that information system must provide info to managers with three levels of responsibilities.

Operational control
Management control
Strategic planning

Operational control:

An MIS for operational control must provide acuurate and detailed information on a daily or weekly basis.

CONTINUED

b. Management control or middle management:

Middle level managers are concerned with current and future performance of their divisions

c. Strategic planning or top management:

For top the MIS provides info on Strategic planning and management control.

For Strategic planning external info-economic conditions, technological developments, competitive actions – is required.

Pto.

CONTINUED

For management control functions of top managers, the sources of information must be both internal and external. Top require financial performance so they need

quarterly sales & profits reports,
quality level ,
customer satisfaction,
and competitors.

CONTINUED

Q. How can the various needs of different managerial levels be translated in to management information systems?

Supervisors: receive Daily reports on direct & indirect Labor

materials usage, scrap, production counts & machine downtime.

Superintendents & department heads: Weekly departmental cost summaries & product-cost reports.

Plant managers: Weekly & monthly financial statement analysis, analyses of important cost, & summarized product-cost reports.

Divisional managers: monthly plant comparisons, financial planning reports, product-cost summaries and plant –cost control reports

Top managers: receive overall monthly and quarterly financial reviews, financial analysis & summarized comparisons of divisional performance

2.E ) THE ROLE OF THE CHIEF INFORMATION OFFICER (CIO)

The CIO is the " human link" between the top management & and company's information system.

He is architect of CIS and is responsible for:

Overseeing the dissemination of policies and procedures for new & existing system.

He is also the change agent responsible for:

introduction of telecom, office automation, MIS,DSS, ES, etc.

He focuses on planning & developing creative ways to meet growing needs.

TOPIC-3

IMPLEMENTING A COMPUTER BASED MIS

IMPLEMENTING A COMPUTER-BASED MIS: (618)

PROBLEMS IN IMPLEMENTING A COMPUTER-BASED MIS:

1.Does the MIS disrupt established departmental boundaries.?

2. Does the MIS disrupt informal system.

3. Does the MIS Challenge specific individual characteristics

4. Is the MIS supported by the organizational culture.

5. Do employees have a say in how the change is implemented.?

TOPIC-4

IMPLEMENTATION & SECURITY (620

IMPLEMENTATION & SECURITY

TOPIC –5

END-USER COMPUTING ( Pg 620

DEFINED

End-user computing: pg 620.

The creative use of computer by employees who are not experts n data processing.

DSS & AI are two examples of end-user computing that are becoming more useful for managers.They offer managers the ability too receive filtered, condensed, and analyzed information that can enhance their job performance

a.) DECISION SUPPORT SYSTEM: pg 620

EXPERT SYSTEM & ARTIFICAIL INTELLEGENCE.(622

b) EXPERT SYSTEM (622

A computer based system using artificial intelligence techniques to diagnose problems recommend approaches to solving or avoiding them, and provide a rational for these recommendations.

CONTINUED

Ess) is a tool for improving,

organizational decision making and

control.

Expert system are built on,

known facts and

responses to situations.

Es rely on AI , so Es use AI techniques to

diagnose problems ,

recommended strategies to avert or solve problems and

offer rationale for recommendations.

In fact ES acts like " human experts" in analyzing unstructured situations and unstructured situations are non-routine decisions.

CONTINUED

ES are designed to apply the fruits of AI research to,

scientific ,

technological &

business problems

by emulating the abilities and judgments of human experts and making the experts point of view available to non-experts.

Typically a ‘human expert’ has specialized knowledge that he uses to solve specific problems.

CONTINUED

ES performs like human expert. They can:

diagnose problems,
recommend alternative solutions and strategies ,
offer rationale for their diagnosis and recommendations and
in some instances learn from previous experiences by adding info developed (or grew) in solving problems to their current base of knowledge.

ES is used in areas like,

medical diagnosis,
Mineral & Oil exploration ,
And equipment fault locating

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