mgmt functions and behaviour

7/30/2019 Mgmt Functions and Behaviour

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Management Functions &

Behavior


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Role of a manager


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Tasks of a professional Manager

Providing purposeful direction to the firm Managing survival & growth Maintaining firms efficiency in terms of

profit generation Meeting the challenge of increasing

competition Managing for Innovation

Building human organizations Retaining talent & inculcating sense ofloyalty

Sustaining leadership effectiveness


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Tasks of a professional Manager

Maintaining balance between creativity &conformity

Meeting the challenge of change Coping with growing technological

sophistication Coping with growing public criticism &

political opposition both objective &irrational

Coping with increasing level of aspiration Maintaining relations with various societysegments


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Responsibilities of a

Professional Manager

Responsibilities Towards: Customers Shareholders Employees Suppliers Distributors & Retailers Industry & Competition Union Government Society


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The Systems Concept

A system is defined as a sum total ofindividuals but inter-related parts (sub-systems) and are put together according to aspecific scheme or plan to achieve the pre-stated objectives.

System has following components: Number of sub-systems

Boundaries within which the exist A specific goal, expressed in terms of outputs

which is formed by receiving inputs & processingit

Close inter-relationship and inter-dependenciesamongst the various sub-systems


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Management Information

Systems

Management Information Systems (MIS),sometimes referred to as InformationManagement and Systems, is the discipline

covering the application ofpeople,technologies, and procedures collectivelycalled information systems to solvingbusiness problems.

Management Information Systems aredistinct from regular information systems inthat they are used to analyze otherinformation systems applied in operational

activities in the organization


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Management Information

Systems

An effective MIS should be: Timely

Accurate

Relevant

Level of management

Top

Middle

Operating


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Management Processes

Planning

Making Choices

Committing Resources

Defining Time Horizon Controlling (CPM, PERT)

Establishment of standards

Measurement of performance

Correcting deviations


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Management Processes

Organizing Organization Structure

Degree of Centralization

Levels of Management

Staffing

Leading

Motivating the team

Grooming & Development


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Decision Making


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Decision Making

How are decisions made in organizations?

What are the useful decision making

models? How do intuition, judgment, and creativity

affect decision making?

How can the decision-making process bemanaged?

How do technology, culture, and ethicsinfluence decision making?


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How are decisions made

in organizations?

Decision Making

The process of choosing a course of action for

dealing with a problem or opportunity.


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How are decisions madein organizations? Steps in systematic decision making.

Recognize and define the problem or opportunity.

Identify and analyze alternative courses of action, and

estimate their effects on the problem or opportunity.

Choose a preferred course of action.

Implement the preferred course of action.

Evaluate the results and follow up as necessary.


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in organizations?

The systematic decision-making process may notbe followed where substantial change occurs and

many new technologies prevail. Novel decision techniques may yield superior

performance in certain situations. Ethical consequences of decision making must

be considered


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How are decisions madein organizations? Decision environments include:

Certain environments.

Risk environments.

Uncertain environments.


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How are decisions madein organizations?

Certain environments.

Exist when information is sufficient to predict theresults of each alternative in advance of

implementation.

Certainty is the ideal problem solving and decision

making environment.


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in organizations?

Risk environments.

Exist when decision makers lack complete

certainty regarding the outcomes of various

courses of action, but they can assign probabilities

of occurrence.

Probabilities can be assigned through objectivestatistical procedures or personal intuition.


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How are decisions madein organizations?Uncertain environments.

Exist when managers have so little information

that they cannot even assign probabilities tovarious alternatives and possible outcomes.

Uncertainty forces decision makers to rely onindividual and group creativity to succeed inproblem solving.


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in organizations?

Uncertain environments cont.

Also characterized by rapidly changing:

External conditions.

Information technology requirements.

Personnel influencing problem and choicedefinitions.

These rapid changes are also called organizedanarchy.


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Types of Decisions Personal

Cannot be delegated to others in ordinary

conditions Affects an individual and at times an organization

Organizational Can be delegated

Affects an organization and at times an individual


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Types of Decisions

Basic

One time/ Unique decisions

Top level management decisions

Routine

Everyday decisions/ Highly repetitive


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Types of Decisions

Programmed decisions. Involve routine problems that arise regularly and can

be addressed through standard responses. Bureaucratic ways of handling decision making

Nonprogrammed decisions. Involve nonroutine problems that require solutions

specifically tailored to the situation at hand

Non-bureaucratic ways of handling decision making


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Types of Decisions

Judgmental

Decisions(Marketing,

Investments)

Mechanistic

Decisions

(Routine, Scheduled

Activities)

Analytical

Decisions

(complex prod and

Engg problems)

Adaptive

Decisions(R&D, Long term

Corporate Plan)

Low High

Problem

Complexity

Uncertainty of

Outcomes

High

Low


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What are the usefuldecision making models?Classical decision theory.

Views the decision maker as acting in a world of

complete certainty.

Behavioral decision theory.

Accepts a world with bounded rationality andviews the decision maker as acting only in terms ofwhat he/she perceives about a given situation.


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What are the usefuldecision making models?Classical decision theory.

The classical decision maker:

Faces a clearly defined problem.

Knows all possible action alternatives and theirconsequences.

Chooses the optimum alternative.

Is often used as a model of how managers shouldmake decisions.


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Three Models for Decision-Making

Satisficing Model

Implicit Favorite Model Maximizing or Rational Decision-

Making Model


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The Satisficing Model

Expand onalternatives

Does alternativemeet satisficing

Criteria?

Select firstalternativethat meetscriteria andis considered

good enough

Problemidentified

Problemsimplified

Satisficingcriteria set

Identifyalternatives

Comparealternativesone at a timeagainst criteria

YES

NO


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The Implicit Favorite Model

Need for adecision isdetermined

Select animplicitfavorite

alternative

Identifyotheralternatives

Establishcriteria tomatch implicitfavorite

Compare

alternatives withimplicit favoritecriteria

Confirmimplicitfavorite

Selectimplicitfavorite

1 2 3

45


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Six Steps to the Rational/MaximizingDecision-Making Model Identify the need for a decision

Identify the decision criteria

Allocate weights to the criteria

Develop the alternatives

Evaluate the alternatives

Select the best alternative


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How do intuition, judgment, andcreativity affect decision making? Intuition.

The ability to know or recognize quickly and

readily the possibilities of a given situation.

A key element of decision making under risk and

uncertainty.


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How do intuition, judgment, andcreativity affect decision making? Judgmental heuristics.

Simplifying strategies or rules of thumb used to

make decisions.

Makes it easier to to deal with uncertainty and

limited information.

Can lead to systematic errors that affect thequality and/or ethics of decisions.


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How do intuition, judgment, and

creativity affect decision making? Judgment

Simplifying strategies or rules of thumb used to

make decisions. Makes it easier to to deal with uncertainty and

limited information.

Can lead to systematic errors that affect thequality and/or ethics of decisions.


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creativity affect decision making? General judgmental biases in decision making.

Confirmation trap.

The tendency to seek confirmation for what isalready thought to be true and to not search fordisconfirming information.

Hindsight trap. The tendency to overestimate the degree to which an

event that has already taken place could have beenpredicted.


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creativity affect decision making?

Creativity factors.

Creativity in decision making involves thedevelopment of unique and novel responses to

problems and opportunities.

Creativity is especially important in a dynamicenvironment full of nonroutine problems.


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creativity affect decision making? Stages in the creative thinking process.

Preparation.

Concentration.

Incubation.

Illumination

Verification.

How do technology culture and


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How do technology, culture, and

ethics influence decision making?

Information technology and decisionmaking.

Artificial intelligence.

The study of how computers can be programmed to think

like human beings.

Will allow computers to displace many decision makers.

Expert systems that support decision making by

following either-or rules to make deductions.



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Information technology and decision makingcont.

Fuzzy logic and neural networks that reasoninductively.

Computer support for decision making.

The Internet.

Company intranets.

Decision support software to facilitate virtualteamwork.



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Cultural factors and decision making. Culture is the way in which a group of people

solves problems.

North American culture stresses decisiveness,

speed, and the individual selection of alternatives. Other cultures place less emphasis on individual

choice than on developing implementations thatwork.

The most important impact of culture on decisionmaking concerns which issues are elevated to thestatus of problems solvable with the firm.



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Ethical issues and decision making. Ethical dilemma.

A situation in which a person must decidewhether or not to do something that, although

personally or organizationally beneficial, may beconsidered unethical and perhaps illegal.

Ethical dilemmas are often associated with:

Risk and uncertainty.

Nonroutine problem situations.



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Ethical decision-making checklist. Is my action legal?

Is it right?

Is it beneficial?

How would I feel if my family found out aboutthis?

How would I feel if my decision were printedin the local newspaper?



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Suggestions for integrating ethical decisionmaking into the firm.

Develop a code of ethics and follow it.

Establish procedures for reporting violations.

Involve employees in identifying ethical

issues.

Monitor ethical performance.

Reward ethical behavior. Publicize ethical efforts.


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Objectives, Goals,

Missions, &

Visions


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IntroductionVision where you are heading Mission defines your fundamental

purpose(s) Goals specific measurable components

aligned with mission and visionstatements

Objective

action step taken in order tomeet goals


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Vision Describes the direction you are heading

Is brief

Idealistic and imaginative

Writing:

Ask yourself where you want to go and what you

want to become.


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Mission Principles by which you operate/ Piurpose of

organization

Mission Statement should include: Who your company is, What you do What you stand for

And why you do it Is brief and accurate


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Writing Mission Statement Brainstorm a list of words and phrases that

describe your passions and purpose think

about what motivates you and what you want toaccomplish Eg. Livestock, leader, integrity, etc.

Identify major themes that the words andphrases represent

Use themes to write your mission statement


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Difference between Vision &

MissionVision

Something to be pursued

Tend to be short

General

Mission

Something to be accomplished

Tend to be longer

Specific


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Example Tata Consultancy

Services Vision Statement: To be among the global top 10

by 2010

Mission Statement: To help customers achievetheir business objectives by providinginnovative, best-in-class consulting, IT solutionsand services. Make it a joy for all stakeholders towork with us.

G l


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Goals

A goal is a broad statement about what is tobe accomplished. To operate a women's softball league during the

summer of 2007. A Goal statement should be measurable and

should: Begin with To Be realistic Requires action

Writing:

Ask yourself what you need to do in order toachieve your mission and vision

Think about what you need to accomplish in orderto get where you want to be

Obj i


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Objectives

Individual action steps Address specific goals

Usually multiple objectives are written foreach goal

Objectives are SMART ( specific,measurable, achievable, realistic and time-related

Writing: Look at each goal and list the action steps that

must occur in order to achieve the goal.


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Example Goal: To increase appreciation of Latin music

amongst the participants

Objective: Participants will listen to 20 differentLatin songs, create a play list with 5 differentartists, identify 5 different rhythms,

Management By Objective


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Management By Objective(MBO)

MBOis a process of agreeing upon objectiveswithin an organization so that managementand employees agree to the objectives andunderstand what they are.

The term "management by objectives" wasfirst popularized by Peter Drucker in his1954

Objectives can be set in all domains ofactivities (production, services, sales, R&D,human resources, finance, informationsystems etc.).

Some objectives are collective, for a whole

P ti f MBO


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Practice of MBO

MBO is often achieved using set targets. MBO introduced the SMART criteria:Objectives for MBO must be SMART

Several managers have employed this

management technique and have applied itto their company. Mukesh Ambani is anadvocate of MBO

Objectives need quantifying and monitoring.Reliable management information systemsare needed to establish relevant objectivesand monitor their "reach ratio" in anobjective way.

Pay incentives (bonuses) are often linked toresults in reachin the ob ectives


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Organization Climate & Change


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Organizational culture Organizational culture, or corporate

culture, comprises the attitudes, experiences,

beliefs and values of an organization. It is defined as "the specific collection of values

and norms that are shared by people and groupsin an organization and that control the way theyinteract with each other and with stakeholdersoutside the organization.

Di i f O i ti C lt


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Dimensions of Organization Culture

Those characteristics that constitute theUniqueness of organization and differentiatesit from other Individual Autonomy Position Structure Reward Orientation Consideration, Warmth & Support Conflicts Progressiveness & Development Risk Taking Control


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Determinants of Organization

Culture Economic Condition

Leadership Style

Organization Policies Managerial Values

Organization Structure

Organization Size


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Insights on Evolving Corporate

Culture The Blame culture

Multi-directional culture

Live and let live culture

Brand Congruent Culture

Leadership Enriched Culture


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Types of Conflicts Conflicts within an Individual

Conflicts between Individuals

Conflicts between Individual & Group

Conflicts between Groups

Conflicts between Organizations

Sources of Conflict


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Sources of Conflict

Competition for limited resources Diversity of Goals Task Interdependency Differences in Values & Perception Management & Labor Conflict Organizational Ambiguity Introduction of Change

Mergers & Acquisition Aggressive Nature of People


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Organizational Change Organizations face numerous forces for change

because they are open systems that need to

adapt to changing environments. Some currentenvironmental dynamics include computertechnology, globalization, competition anddemographics.


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Organizational Change Almost all organizational change efforts face one

or more forms of employee resistance. The main

reasons why people resist change are: Self-interest

Fear of the Unknown

Differing Perceptions

Suspicion

Conservatism


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Managing Change Requires Looking

at All the Dimensions Past History in Putting Change in Place Degree of Sponsorship Authenticity of Sponsorship (Walk the

Talk?) Organizational and Individual CurrentStress

Who Will Be Impacted by the Change

Cultural Fit of the Change Addressing Whats in It for Me Communication of the Change and Its

Progress Skill Sets of the Change Agents


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Organization Structure & Design


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Organizational Structure The ways in which an organization divides it

tasks and then coordinates them.

One of the key concepts underlyingorganizational structure is division of labor.


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Organization designmanagement

decisions and actions that result in a

specific organization structure.


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Organizational Design Decisions1. Managers decide how to divide the overall taskinto successively smaller jobs

2. Managers decide the bases by which to group the

jobs

3. Managers decide the appropriate size of the group

reporting to each superior

4. Managers distribute authority among the jobs


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Division of Labor:

Departmentalization:

Span of Control:

High Low

Homogeneous Heterogeneous

ManyFew

Authority:LowHigh

Specialization

Basis

Number

Delegation

The Four Key Design Decisions


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Division of Labor Division of labor concerns the extent to

which jobs are specialized

It is the process of dividing work into relativelyspecialized jobs to achieve advantages ofspecialization


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Division of Labor Occurs inThree Different Ways:

1. Personal specialties

e.g., accountants, software engineers, graphic designers,

scientists, etc.2. Natural sequence of work

e.g., dividing work in a manufacturing plant into fabricatingand assembly (horizontal specialization)

3. Vertical plane

e.g., hierarchy of authority from lowest-level manager tohighest-level manager


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Delegation of Authority Managers decide how much authority should be

delegated to each job and to each jobholder

Delegation of authority process ofdistributing authority downward in anorganization


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Reasons to Decentralize Authority1. Relatively high delegation of authority

encourages the development of professional

managers

2. High delegation of authority can lead to a

competitive climate within the organization

3. Managers who have relatively high authority can

exercise more autonomy, and thus satisfy their

desires to participate in problem solving


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Reasons to Centralize Authority(1 of

2)

1. Managers must be trained to make the decisionsthat go with delegated authority

2. Many managers are accustomed to makingdecisions and resist delegating authority to their

subordinates


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Reasons to Centralize Authority(2 of

2)

3. Administrative costs are incurred because newcontrol systems must be developed to provide

top management with information about theeffects of subordinates decisions

4. Decentralization means duplication of functions


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Delegation Decision Guidelines(1 of

2)

How routine and straightforward are the jobs or unitsrequired decisions?

The authority for routine decisions can be centralized Are individuals competent to make the decision?

Even if the decision is non-routine, if the local manager is notcapable, then the decision should be centralized

Delegation of authority can differ among individualsdepending upon each ones ability to make the decision


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Delegation Decision Guidelines(2 of

2)

Are individuals motivated to make the decision?

Capable individuals are not always motivated individuals

Motivation must accompany competency to create conduciveconditions for decentralization

Do the benefits of decentralization outweigh its costs?


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Departmentalizationprocess in

which an organization is structurally

divided by combining jobs indepartments according to some

shared characteristic or basis.


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Functional Geographic

Product Customer

Departmentalization Bases

D l B


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Departmental Bases:

Functional Departmentalization

Jobs are combined according to the functionsof the organization

The principal advantage is efficiency By having departments of specialists,

management creates efficient units

A major disadvantage is that organizationalgoals may be sacrificed in favor ofdepartmental goals


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Engineering Reliability Finance

Manufacturing DistributionHuman

Resources

Public

Relations

Purchasing

OBM Company

Functional Departmentalization

Structure

Departmental Bases:


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Departmental Bases:

Geographic

Departmentalization Establish groups according to geographic

area

The logic is that all activities in a given regionshould be assigned to a manager

Advantageous in large organizations because

physical separation of activities makescentralized coordination difficult

Provides a training ground for managerialpersonnel

Geographic Departmentalization


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Northeast Midwest Southeast Pacific

OBMCompany

Southwest

Structure


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OBM Company

Small

Household

Appliances

Large

Household

Appliances

Commercial

Appliances

Building

Materials and

Products

Lawn and

Garden

Products

Automotive

Products

Product Departmentalization

Structure

D t t l B


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Departmental Bases:

Customer Departmentalization

The importance of customer satisfaction hasstimulated firms to search for creative ways to

serve people better

Organizations with customer-based departmentsare better able to satisfy customer-identified needs

than organizations that base departments on non-

customer factors

Customer DepartmentalizationSt t


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RetailStores

Mail Order On-LineSales

GovernmentContracts

OBMCompany

InstitutionalSales

Structure


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Managerial Communication Your success in business will depend upon your

ability to communicate

The workplace is much more diverse andcomplex than it was just a few decades ago, andit requires more sophisticated managementcommunication skills.


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Contemporary Dynamics Affecting

Managerial Communication Diversity managers not only must be able to

communicate with a greater variety of audiences,

but also must help their employees see diversityas a corporate asset rather than a liability.

The contemporary manager should beparticularly aware of four types ofdiversity

that are becoming more predominant: gender,culture, age, and education

Gender Diversity


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Gender Diversity

During the past two decades, much has beenwritten about how men and womencommunicate differently:

Are men more assertive than women? Dowomen show more social support andsympathy to colleagues? Do men andwomen provide different types of feedback?Do leadership styles of men and womendiffer? Do women convey a differentnonverbal message with the same gesture?Do men use space differently with other menthan with women? Do men and women usedifferent persuasive strategies


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Cultural Diversity Managers must be able to communicate with

other managers and employees of all cultural

backgrounds. Minorities accounted for over 30% of the newentrants in the U.S. work force between 2000and 2005

The concentration of minorities varies bygeographic area.


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Age & Education Diversity What communication difficulties can be

experienced as result of age differences?

Higher educational attainment meansemployees will readily question managers, andyou need to be able to anticipate and answerthese questions competently


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When you communicate, you

engage in three basic processes: Sending messages,

Receiving messages,

Establishing relationships


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Sending MessagesUse of symbols in communication

How is business communication symbolic?

What symbols do we use to communicate ourintended message?


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To achieve mutual understanding

in business. Use symbols familiar to your audience every

organization and profession tends to use

technical terms and acronyms that can increasethe accuracy or speed of communication.However, recognize that not everyoneunderstands specialized language, so choose

laymans language for those who many notunderstand.


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To achieve mutual understanding

in business. Define symbols Recognize that other people

may not use symbols the same way you do.

When you use unfamiliar symbols or commonsymbols that for you have special meaning,describe the meaning for the other person.

Use multiple kinds of symbols The more

different kinds of symbols you use to representthe message, the more likely it will be that thereceiver will pay attention and understand yourmeaning. Combine writing, speaking, and


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When a message is critical Meet face-to-face

Be an expressive speaker

Use visual aids Provide a hard copy

Repeat your message


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Receiving Messages For effective communication to occur, another

person must accurately interpret the messages

you display Misunderstandings and miscommunications are

inevitable, but how can we minimize them?


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Limit distractions

Seek specifics

Paraphrase Familiarize yourself with others and their

situations

Find ways to make the message meaningful


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Establishing Relationships We establish relationships along two primary

dimensions: dominant-subordinate and cold-

warm Dominating is an attempt to control

communication; subordinating is yieldingcontrol

Managerial Communication


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g

Memo From Director General to Manager:

Today at 11 O'clock There Will Be a Total Eclipse of the Sun.This Is When the Sun Disappears Behind the Moon for TwoMinutes. As This Is Something That Cannot Be Seen EveryDay, Time Will Be Allowed for Employees to View the Eclipsein the Car Park. People Should Meet in the Car Parking Area atTen to Eleven, When I Will Deliver a Short Speech Introducing

the Eclipse, and Giving Some Background Information. SafetyGoggles Will Be Made Available at a Small Cost.

Memo From Manager to Department Head:Today at Ten to Eleven, All Staff Should Meet in the CarParking Area. This Will Be Followed by a Total Eclipse of the

Sun, Which Will Disappear for Two Minutes. For a ModerateCost, This Will Be Made Safe With Goggles. The DirectorGeneral Will Deliver a Short Speech Beforehand to Give Us AllSome Background Information. This Is Not Something ThatCan Be Seen Every Day.

Managerial Communication


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g

Memo From Department Head to Floor Manager:

The Director General Will Today Deliver a Short Speech toMake the Sun Disappear for Two Minutes in an Eclipse. This IsSomething That Can Not Be Seen Every Day, So People WillMeet in the Car Parking Area at Ten or Eleven. This Will BeSafe, If You Pay a Moderate Cost.

Memo From Floor Manager to Supervisor:Ten or Eleven Staff Are to Go to the Car Parking Area, Wherethe Director General Will Eclipse the Sun for Two Minutes.This Doesn't Happen Every Day. It Will Be Safe, but It WillCost You.

Memo From Supervisor to Workers:Some Workers Will Go to the Car Parking Area Today to Seethe Director General Disappear. It Is a Pity This Doesn'tHappen Every Day!


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Behavioral Dynamics

Group dynamics


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Group dynamics is the study of groups,and also a general term for group processes.

Groups develop a number of dynamicprocesses that separate them from a random

collection of individuals. These processesinclude norms, roles, relations,development, need to belong, socialinfluence, and effects on behavior


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Thank You

mgmt functions and behaviour

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