Lectures in MPP

Acharya Institute of Management & Sciences

EMPOWERING MINDSDepartment of Management Studies (MBA)

An Introduction to

Management Principles & PracticesBy

Indranil Mutsuddi

What is Management..

What is Management..

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

An Ice Breaker…

Management as a Process….

• Manpower• Materials• Machines• Methods• Money• Markets

• Goods & Services desired by customers

INPUTS (the 6 Ms) OBJECTIVESManagement Functions

PLANNING DIRECTING

ORGANISINGCONTROLLINGSTAFFING

Nature of Management…

Utilization of Resources optimally & Economically Goal Oriented Distinct process Integrative Force Intangible force Multidisciplinary Result attained through others Universally applicable A System of Authority A Science or Art?

Management as a Science…

Management can be treated as a “Behavioral Science”- the principles and theories of which are “Situation bound/oriented” as their applicability does not necessarily lead to the same results every time.

Management as an Art….

Can be considered as one of the most “Creative Arts” as it requires a vast knowledge, along with innovation, initiatives, implementing & integrating skills in relation to goals, resources and results.

As an Art, management calls for a corpus of abilities, skills & judgment and a continuous practice of management concepts & principles.

Challenges of Management….

To achieve specific purpose & mission To make tasks more productive & worker achieving. To manage social impacts & social responsibilities.

Reconciling the competing Interests of Management….

Organization:

• Customer needs• Orgn Needs• Orgn Constraints

Individuals:

• Aspirations• Abilities• Potential

Groups:

• Aspirations• Abilities• Potential

A manager is an employee who forms part of a management team and is accountable for exercising delegated authority over human and financial resources so as to accomplish the objectives of the organization.

Who are Managers..

Management Functions: Importance of Goal Setting

Vision

Goals

Strategies

Actions

Set direction

Management

Leadership

What Managers Do

Need to have good interpersonal skill

OB focuses on the person-to-person aspects of work

H. Fayol

Managerial Functions

Planning

Organizing

Leading

Controlling

Big Hairy Audacious Goals

Quantitative or Qualitative Approach

1990

Become a $125 billion company by the year 2000

2000 net sales $156 billions2005 net sales $312 billions

Become the company most known for changing the worldwide poor-quality image of Japanese products

1950

$25.8 billion net sales

expertise with a new standard in healthcare for compassion and service


By 2010, we will be the best teaching hospital in the world, coupling unparalleled clinical

Nurses at The Johns Hopkins Hospital will be recognized as international leaders in the conduct and use of research and outcomes measurement to advance the practice of nursing


Role-model Approach

Become the Harvard of the West

1940s

Become the Nike of the cycling industry

(Giro Sport Design, 1986)


Internal-transformation Approach

Transform this company from a defense contractor into the best diversified high-technology company in the world

1995 Sold its aerospace and defense division to Boeing and later become

Effective & Ineffective Visions

Effective Vision– Imaginable– Desirable– Feasible– Focused/clear– Flexible– Communicable

Problem signs– We finish the ”vision thing” and

move on to other projects– Never been brought up in

strategy or planning sessions– Any employees who’ve been

with the company for 30 days or more can’t tell what the vision means to them

Your team visions?

Evaluation of Managerial Effectiveness

Efficiency of resources utilization labor, capital, time knowledge/expertise

Adaptability over time responsiveness innovative & change over time

Ability to hold people accountable ideas and innovation overall performance

Output quality consistency/reliability meet stakeholders’ expectation

Can I be called a manager….

Conventional Managerial Functions..

Top LevelMgrs

Middle LevelMgrs

First levelManagers

Managerial Functions

• Planning• Organizing• Staffing• Leading• Controlling & Coordinating

Technical Skills

Conceptual & Decision-Making Skills

Human Skills

Management Skills

Eleven Qualities of a successful manager…

1. Command of basic facts2. Relevant Professional Understanding1. Command of basic facts2. Relevant Professional Understanding

3. Sensitivity to events4. Analytical, Problem solving & Decision Making skills5. Social Skills & Abilities6. Emotional Resilience7. Proactive Behavior

3. Sensitivity to events4. Analytical, Problem solving & Decision Making skills5. Social Skills & Abilities6. Emotional Resilience7. Proactive Behavior

8. Creativity9. Mental Agility10.Balanced Learning Habits & Skills11.Self-Knowledge

8. Creativity9. Mental Agility10.Balanced Learning Habits & Skills11.Self-Knowledge

Basic Knowledge &Information

Basic Knowledge &Information

Skills &attributesSkills &

attributes

Meta QualitiesMeta Qualities

The Success-

Ful

Manager

The Success-

Ful

Manager

Basic Managerial Roles & their Relationship with the Organizational Resources…………

Human Resources

Financial Resources

Physical Resources

Information Resources

Effective & Efficient attainment of Organizational Goals

Pla

nn

ing

Org

an

izing

Lead

ing

Con

trollin

g Management of…

Effective Versus Successful Managerial Activities (Luthans)

1. Traditional management• Decision making, planning, and controlling

2. Communications• Exchanging routine information and processing

paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing,

and training

4. Networking• Socializing, politicking, and interacting with others

1. Traditional management• Decision making, planning, and controlling

2. Communications• Exchanging routine information and processing

paperwork

3. Human resource management• Motivating, disciplining, managing conflict, staffing,

and training

4. Networking• Socializing, politicking, and interacting with others

Effective Versus Successful Managers

Successful managers defined as those who were promoted the fastest

Effective managers defined as quality and quantity of performance, as well as, commitment to employees:

Topmanagers

84

70

33

61

45

545050

2531

65

38

Middlemanagers

Low levelmanagers

Imp

orta

nc

e

Henri Fayol & Management Functions

Plan

Organize

Lead

Control

0%

90%

Allocation of Activities by Time

Managerial Work at Different Levels

ExecutivesMiddle

managersFirst-line

Supervisors

Imp

orta

nc

e

0%

70%

Instructing subordinatesManaging individual perf.Managing group perf.

Resource allocationMonitor environment

Supervisingindividuals

Linkinggroups

An eye onThe outside

Representing people

(All levels)

Entrepreneur

Disturbance handler

Resource allocator

NegotiatorMonitor

Disseminator

Spokesperson

Figurehead

Leader

Liaison

What Do Managers Really Do?

Performing ceremonial duties

Motivating and directing subordinates

Spend time networkingwith outside contacts

Gathering information throughface to face communication

Pass on information tosubordinates

Explain things to peopleoutside the unit

Take initiativesBring about change

Handling disturbanceDamage control

Delegation, authorizationResource allocation

Argue with othersto get a better deal

Informational Roles

Interpersonal Roles

Decisional Roles

Typical Managerial Work

Constant pressure Overburdened with obligations

not easily delegate, thus overworked

Constant interruption Respond quickly Seek the tangible Prefer oral communication Make decision in small

increments Do everything abruptly

Managers’ effectiveness is significantly influenced by their insight into their own work

A manager is the one who manages: but what is he who mismanages ????

Behaving like a Manager..

Can I be called a manager….

?

Wanna b a manager? Get inspired..

Establish ur Identity in ur organization Exercise ur authority Don’t become a PO-PO..(Don’t count on

competence to be the sole criterion for success) Train & update urself on a regular basis. Use technology Depend on ur own soft skills Be generous with small mistakes Praise others & give their due credits where they

deserve..

Hey you…Wanna be a manager…

Be a Role Model…create examples thru ur own performance & contribution

Control & care for ur employees & subordinates.. Inculcate empathy for people & show ur

willingness & concern Know ur job well Be able & competent..show leadership qualities Follow deadlines, time & resource constraints Respect personal confidentiality of ur peers &

subordinates

Wanna be a manager…

I am a manager..yet I have no time..

Create a workplace free from biasness, prejudice & internal politics.

Show willingness to try out employee ideas innovations

Set firm rules & enforce them without exception & biasness.

Handle projects with work-teams, establish time & quality goals, give authority & autonomy to others based on their competencies.

Set goals review them from time to time


Hey what about me???

Give ur peers & subordinates reasons to both like & trust u…

Dare to dream big…but don’t daydream Have vision & share the same with others. Never abuse ur own power or position..be ethical Listen to others… Treat ur employees as “Internal Customers” Measure & track ur key strategies & tactics on a

regular basis...


Managerial Roles…

Mintzberg’s Managerial Roles

Interpersonal Roles

Figurehead Role

Leader Role

Liaison Role

Informational Roles

Recipient Role

Disseminator Role

Spokesperson Role

Decision RolesEntrepreneurial

Disturbance handler

Resource Allocator

Negotiator

E X H I B I T 1-1a

Mintzberg’s Managerial Roles

E X H I B I T 1-1b

Mintzberg’s Managerial Roles (cont’d)

E X H I B I T 1-1c

Mintzberg’s Managerial Roles (cont’d)

Know ur Management Gurus…

Henry

Mintzberg

Once upon a manager…

Results are proportional to efforts Quantity of work is more important than quality We need longer working hours No breaks please !!!! No one else can do it right This problem is urgent… I am all in all…

A Manager’s Mental Blocks…

Never b the manager where….

What is the vision & mission of my organization?

How objective am I in my approach to decision making, work & handling my subordinates?

Am I sufficiently well informed to pass judgments on people & proposals?

How do my subordinates react to my management style?

Pose urself a few questions as a manager….

Mission Impossible???

Is there any system to any time scheduling or am I just reacting to the pressure of the moment?

Do I spend too much time on current disposal? Do I recognize & follow the ethical standards in

the organization? Am I always objective, rational in my judgments? Do I always have a “parent ego” & do things for

others? Do I allow & appreciate other’s views & creative

ideas?

Pose urself a few questions as a manager….

Behaving like a Manager….Some Fundas

Rule 1: “The Boss is always RIGHT”

Rule 2: “If the Boss is not RIGHT, see & believe in Rule 1”

Yessssssss Bosssssssss…

Understand the Pyramid of Efficiency, Productivity, Effectiveness & Success…..


Efficiency

Effectiveness

Productivity

Success

• Efficiency: It is the achievement of the ends with the least amount of resources.• Productivity: It is the output- input ratio within a time period with due consideration for quality• Effectiveness: It is the extent to which the aimed objectives are achieved most economically & profitably.• Success: It is the achievement of aimed objectives.


Efficiency Effectiveness

Do things right Do right things

Solve Problems Produce creative alternatives

Safeguard Resources

Optimize Resource Utilization

Discharge duties Obtain Results

Look carefully & say what it is…

Wanna Be a Manager…. “B+ve”

“The Glass is half ______”

Wanna Be a Manager…. “B+ve”

Aint it looks different in terms of attitude???

Thinking it all –ve

“The Glass is half EMPTY”

Thinking it all +ve

“The Glass is half FULL”

Accentuate Positive Attitude

Be effective, yet be different Have a vision & ensure constructiveness Inculcate the aura of respect & teamwork

in ur organization. Ensure self-improvement on a regular

basis Contribute regularly (involvement) Count on time/deadlines & care for ethics Get inspired & inspire others

7 Principles of being a “+ve” Manager

What ur employees expect from u…

Manage ur people: The Win Win Mantra

The New People Management Mantra

“Coalescing Corporate needs with the individuals is

crucial”

“Global competitiveness can be achieved through the best technologies and plants, but by effectively motivating your employees to perform at global standards. A new approach to managing people becomes absolutely critical here..”

Sanjiv Goenka, Vice Chairman,RPG Enterprises

Manage ur people: The Win Win Mantra

Wanna b a good Manager? Believe in ur Organization’s Talents

Talent Pool with potential to attain full

growth / perfection

Grow ur Organization’s Talents

Competency

PotentialCapacity

Capacity = Demonstrated competencies + Unrealized potential

The four fundamental capacities are learning, thinking, relating and acting

Understanding ur Organization’s Talents

AQ: Action Quotient

CQ: Conceptual Quotient

RQ: Relationship Quotient

LQ: Learning Quotient

Talent Quotient

(AQ+CQ+RQ+LQ) x Values________________________

TalentMax Capacities are the DNA of any

organization

Point of Departure

Navigation Point of Arrival

Translating organizational vision into goals and mapping the required level of capacities and competencies required to achieve goals

Aligning individual values and vision with organizational values and vision

Clear understanding of the varied roles within the organization and appreciation of the value-addition from self and others leading to building a culture of trust, sharing and team orientation

Assessment of talent to profile the level of capacities and set of competencies possessed within the organization

Enhancing capacities to learn, think, relate and act through development initiatives

Individual growth to meet & accept varied, incremental and transformational roles in an overall scenario of acknowledged need for change

Gap analysis and identification of development path

Helping individuals realize their full potential through learning and development

Developed individuals enabling breakthrough performance

D N A

Are top managers clueless?

CEO Jeff Skilling thought Enron was “in excellent shape” when he quit a few months before it collapsed

Are top managers clueless?

Joseph Berardino, CEO of Enron’s auditor, Andersen Worldwide, said no one told him some of his partners thought the firm was at risk in approving Enron’s aggressive accounting practices.

Are top manager clueless?

Roger Smith said it was a “mystery” why General Motors lost market share throughout his tenure as CEO

Virtues and drawbacks of organization

Prevalence of large, complex organizations is historically recent

Much of society’s important work is done in or by organizations, but…

They often produce poor service, defective or dangerous products and…

Too often they exploit people and communities, and damage the environment

Signs of Cluelessness

Management errors produces 100s of bankruptcies of public companies every year

Most mergers fail, but companies keep on merging

One study estimates 50 to 75% of American managers are incompetent

Most change initiatives produce little change; some makes things worse

Strategies to improve organizations

Better management ConsultantsGovernment policy and regulation

Approaches To Management

Empirical / Case Approach Interpersonal behavior Approach Group Behavior Approach Cooperative Social Systems Approach Socio-technical Systems Approach Decision Theory Approach Systems Approach Mgt Science Approach Contingency Approach Managerial Roles Approach McKinsey’s 7-S Framework Operational Approach

Empirical or Case Approach

Case Situation

Case Situation

Why?Why?

SuccessFailures

Features:• To study experience through cases• To identify successes & failures

Limitations:• Situations are all different• Limited value for development of Management Theory

Interpersonal Behavior Approach

Focus Of Study

Features:• Focus on interpersonal behavior, human relations• Based on individual psychology,.

Limitations:• Ignores planning, organizing & controlling.• Psychological training is not enough to become an effective manager

Group Behavior Approach

Study of a Group Study of Groups interacting with each other

Features:• Emphasis on behavior of people in groups• Based on sociology & social psychology,.

Limitations:• Often not integrated with management concepts, principles.• Need for closer integration with organization structure, design etc.

Cooperative Social Systems Approach

Common Goal

Org

aniz

atio

n St

ruct

ure

Features:• Concerned with both interpersonal & group behavioral aspects leading to a system of cooperation.

Limitations:• Too broad a field for the study of management.• Overlooks many managerial concepts, principles & techniques.

Socio-technical Systems Approach

Machines Operations

Technical System

Social System

Personal Attitudes Group Behavior

Features:•Technical system has great effect on the social system (personal attitudes, group behavior).

Limitations:• Emphasis only on blue-collar & lower level office works.• Ignores much of other managerial knowledge.

Decision Theory Approach

Decision Theory

Process ofDecision making

IndividualDecisionmaking

Values ofDecisionMakers

GroupDecision making

Entire Area Of BusinessActivity

Nature ofOrganizationStructure

InformationFor Decisions

Features:• Focus on the making of decisions, persons or groups making decisions, & the decision making process.

Limitations:• There is more to managing than making decisions.• The focus is at the same time too narrow & too wide.

Systems Approach

Inputs OutputsTransformation

Process

ExternalEnvironment

Re-engineering the System

Features:• Systems have boundaries, but they also interact with the external environment ie. Organizations are considered as “Open Systems”

Limitations:• Analyzes of the inter-relatedness of systems & subsystems as well as the interactions of organizations with their external environment.

Management Science Approach

E = F ( Xi, Yi )YES

NO

Features:• Managing is seen as mathematical processes, concepts, symbols & models.• Looks at management as purely logical process, expressed in mathematical symbols & relationships.

Limitations:• Pre-occupation with mathematical models.• Many aspects in managing cannot be modeled.• Mathematics is an useful tool, but hardly a school or an approach to management.

Contingency or Situational Approach

Cause Effect

Contingency

Depends On

Features:• Managerial practice depends upon circumstances (ie a contingency or a situation.• This theory recognizes the influence of given solutions on the organizational behavioral patterns.

Limitations:• Managers have long realized that there is no one best way to do things• Difficulty in determining all relevant contingency factors & showing their relationships can be very complex.

Managerial Roles Approach

Interpersonal Roles

DecisionRoles

InformationalRoles

Features:• Interpersonal Roles: Figurehead, Leader, Liaison Roles• Informational Roles: Recipient, Disseminator, Spokesperson Roles • Decision Roles: Entrepreneurial, Disturbance-Handler, Resource- Allocator & Negotiator Roles.

Limitations:• Many important managerial activities & roles like appraising others were left out.

McKinsey’s 7-S Framework

Systems

Style

Staff

Shared ValuesSkills

Strategy

Structure

Features:

• The Seven S’s are: Strategy, Structure, Systems, Style, Staff, Shared Values & Skills

Operational Approach

OperationalApproach

Draws knowledge from approaches above

Integrates the approachesWith science & theory

That is practicalFeatures:• Draws together concepts, principles, techniques & knowledge from other fields & managerial approaches• The attempt is to develop science & theory with practical application• Distinguishes between managerial & non-managerial knowledge.• Develops classification system built around the managerial functions of planning, organizing, staffing, leading controlling.

Limitations:• Does not identify “representing” or “coordination” as a separate function.

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