Management Perspectives
• Process: Plan, Organize, Coordinate, Control
• Skills: Technical, Human, Conceptual
• Roles: Interpersonal, Informational, Decisional
Management Essentials
• Primary Functions of Management– Planning – establishing goals– Organizing – structuring activities to
accomplish goals– Leading – assuring the right people are
motivated to get the job done – Controlling – monitoring activities to be
sure goals are met
Planning
• Thinking out in advance the sequence of actions to accomplish objectives
• All activities that lead to the definition of objectives
Organizing
• Identifying what needs to be done, how it should be done, where it should be done, who should do it, and when it should be done
• All activities that lead to the definition of objectives
Coordinating
• Making the necessary contacts to ensure that work is effectively carried out without any hitch
• It is the integration of all aspects of the programmes to achieve desired outcomes
Controlling
• Setting up points at which to check results
• Regulation of all activities so that actual performance conforms to expected organizational standards and goals
Key Management Functions
• Marketing (Client Service)
• Human Resource Management
• Financial Management
• Operations (Facilities) Management
Marketing (Client Service)
• Product
• Price
• Place
• Promotion
• Public sector: Promotion, Facilitation, Customer Service, Sales
Human Resource Management
Four basic functions:
• Staffing
• Training and Development
• Motivation
• Maintenance
Financial Management
• Budgeting
• P&L
• Balance Sheet
• Cash Flow
• In the Public Sector key issues include Financial Administration, Procurement and Audit
Operations Management
• Operations: services & manufacturing
• For public sector Facilities: offices etc., computers etc.
Strategic Corporate Planning
• Corporate planning is a management process which involves the continuous assessment of the totality of a business enterprise (or organisation or entity) and its environment to determine what it is NOW, what it must be in the FUTURE, and HOW it can become what it must be.
Key Elements
• Strategic Thinking
• Strategic Analysis
• Corporate Targets and Objectives
• Corporate Strategies Development
• Strategic Business/Departmental Objectives
• Action Planning
• Financial Projections
Example Strategic Plan
• Executive Summary
• Introduction
• Historical Perspective
• Mission
• Review
• Planning Assumptions
• Key Areas
• Monitoring and Review
HIERARCHY OF PLANS CORPORATE PLANFor the entire organisation
(Break down into strategic plans)
Strategic Plans
Promotion,Facilitating,Client Service strategies for Services Markets Customers etc
Finance strategies for financial controls funding etc
Facilities strategies for officesstructures computers etc
Human resource strategies for skills, Training Manpower
Other strategies for other strategies issues
Which are summarized into the business plan
THE BUSINESS PLAN(QUANTITY AND SUMMARIZE ALL THESE STRATEGIES AND OPERATIONAL PLANS)
Annual Budgets
Cash flows Plans
Staffing, development, compensation
Capital Expenditure
Information Systems
Others
OPERATIONAL PLANS at Divisional, Departmental, unit and sectional levels
Strategy Defined
• Strategy is the pattern of resource commitments of an organisation which
- reflects the company’s purpose
- is more than purely economic
- Results from a continuous process
culture
• Is more than purely economic, and corresponds to the values of the owners, managers and workers of the firm, their sense of identity, and their ways of perceiving their environments
continuous
• Results from a continuous process, a stream of perceptions, analyses, decisions and actions, intertwined with the discovery of new goals and objectives and the mobilising of people towards them
Vision
• States– what the organisation wants to be– what it must be in the future– a desire that inspires– picture providing clear decision criteria
Mission
• A mission statement describes what the organization seeks to do, why it exists and who it serves (its customers are).
Strategic Thinking
• In strategic planning the thinking is everything
• Proactive thinking instead of day-to-day fire fighting or crisis management
• Innovation instead of ‘that is how we have
• Creativity instead of the same old thing
Assessment
• How do we assess …• Examine the fundamentals• Analyse the totality of the organisation• - Strengths• - Weaknesses• Analyse the environment• - opportunitiesi - threats• Establish direction/set objectives• Develop strategies
Strategic Analysis
• SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
- Internal Analysis – Strengths and Weaknesses
- External Analysis – Opportunities and Threats
The SWOT diagram may summarise the results of analyses
Strengths Weaknesses
OpportunitiesThreats
InternalAnalyses
InternalAnalyses
ExternalAnalyses
ExternalAnalyses
Techniques in use in strategic planning processes
Technique % Using
Core competencies analysis 72Scenario Planning 69Benchmarking 56Total Quality Management 44Shareholder Value Analysis 44Value Chain Analysis 44Business Process Redesign 33Time-based Competition 25
Cited in Macmillan & Tampoe as Adapted from: Wilson, I. “Strategic Planning Isn’t Dead - it changed” Long Range Planning 1994
Requirements
• It requires the readiness to accept a formal factual and disciplined approach to organisations (entities). For an organisation to succeed, corporate planning requires the commitment of the chief executive and the entire management team to the discipline of keeping the organisation on course to implement the agreed plan and not yield to the easy temptation of fire fighting.
OBJECTIVES
• We have formulated a vision
• We have developed a mission statement
• The SWOT
• We need to balance the present position
• We need to find the right mix of objectives
IMPORTANCE OF OBJECTIVES
• Objectives help translate our vision and mission into reality through achievable results
OBJECTIVES
• Hoped for results or goals to be achieved within a specific time period
• Indications of management intentions
• Fundamental standards against which performance can be measured
Organizational Strategies
• Organizational strategies are actions that affect the organization as a whole, and which are taken because management believes that this would enable the organization achieve its vision, mission and objectives
Strategy development
• A simple approach to strategy development is considering the action to be taken to deal with every item arising from the strategic planning process eg.:
vision
mission
strengths (capitalise on them)
weaknesses (eliminate or minimise effects)
Strategy Implementation
• Divisions, departments and units and even down to individuals must set out clearly for themselves the set of actions in their various responsibility areas they need to take to implement the agreed strategies
• Second, each major area of strategy is detailed to show responsibility assignment, timing, costs and resource requirements
• A large number of individual plans will be drawn up for services, finance, human resources etc.
Action Plans
• Expected result
• Set of actions to be taken to effect the result
• Timing of completion and sequencing of each action
• Person responsible
Action Plans
• Action plans cover the day to day work on the ground. It is what you actually do. You are very familiar with these activities, which are this time derived from the strategic business plan, itself derived from the corporate strategic plan.
Organizational Strategies
• Organizational strategies are actions that affect the organization as a whole, and which are taken because management believes that this would enable the organization achieve its vision, mission and objectives
Strategy
• Is the pattern of resource commitment of an organization which
– Reflects the organization’s purpose and objectives and a concept of its activities
– Is more than purely economic, and corresponds to the values
– Results from a continuous process, a stream of perceptions, analyses, decisions and actions
Strategy development
• A simple approach to strategy development is considering the action to be taken to deal with every item arising from the strategic planning process eg.:
vision
mission
strengths (capitalise on them)
weaknesses (eliminate or minimise effects)
Core values in public sector
Honesty and integrity, impartiality, respect for the law, respect for persons, diligence, economy and
efficiency, responsiveness and
accountability.
(T. Sherman. Public Sector Ethics: Finding and Implementing Values: 15)
Ethics, Responsibility
• ETHICS
The system or Code of Morals of a particular person, religion, group, or profession.
• Corporate Social Responsibility
obligation of the organization to act in ways that serve both its own interests and the interests of its many external publics
LEADERSHIP DEFINED
(1) Leadership is an activity or a set of activities, observable to others, that occurs in a group, organisation, or institution involving a leader and followers who willingly subscribe to common purposes and work together to achieve them (Clark and Clark. 1994).
(2) Leadership appears to be the art of getting others to want to do something that you are convinced should be done (Kouzes and Posner, 1990).
Leadership Theories
• Traits and skills
• Action-centred Leadership (J. Adair, 1979, 1984).
• Style Theories (Lewin et al 1939).
• Leadership systems
Leadership systems
• Exploitative Authoritative
• Benevolent Authoritarian
• Consultative System
• Democratic/Participative
Human Resource Strategy
Introduce human resource management policies and procedures that will attract and retain the best qualified and committed personnel
The Motivation Function
• Activities in HRM concerned with helping employees exert at high energy levels.
• Implications are:– Individual– Managerial– Organizational
• Function of two factors:– Ability– Willingness
• Respect
The Motivation Function
• Managing motivation includes:– Job design– Setting performance standards– Establishing effective compensation and
benefits programs– Understanding motivational theories
The Motivation Function
• Classic Motivation Theories– Hierarchy of Needs –Maslow– Theory X – Theory Y –McGregor– Motivation – Hygiene – Herzberg– Achievement, Affiliation, and Power Motives
– McClelland
The Changing World of Technology
• Has altered the way people work. • Has changed the way information is
created, stored, used, and shared.• The move from agriculture to
industrialization created a new group of workers – the blue-collar industrial worker.
• Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs.
The Changing World of Technology
• Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information.
• Why the emphasis on technology:– makes organizations more productive– helps them create and maintain a
competitive advantage– provides better, more useful information
The Changing World of Technology
• How Technology Affects HRM Practices – Recruiting– Employee Selection– Training and Development– Ethics and Employee Rights– Motivating Knowledge Workers– Paying Employees Market Value– Communication– Decentralized Work Sites– Skill Levels– Legal Concerns
Workforce Diversity
• The challenge is to make organizations more accommodating to diverse groups of people.
Workforce Diversity
• The Workforce Today – minorities and women have become the
fastest growing segments– the numbers of immigrant workers and
older workers are increasing
Workforce Diversity
• How Diversity Affects HRM – Need to attract and maintain a diversified
work force that is reflective of the diversity in the general population.
– Need to foster increased sensitivity to group differences.
– Must deal with the different• Values• Needs• Interests• Expectations of employees
Workforce Diversity
• What Is a Work/Life Balance?– A balance between personal life and work– Causes of the blur between work and life
• The creation of global organizations means the world never sleeps.
• Communication technologies allow employees to work at home.
• Organizations are asking employees to put in longer hours.
• Fewer families have a single breadwinner.
Continuous Improvement Programs
• Continuous improvement - making constant efforts to provide better products and service to customers– External– Internal
• Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.
Continuous Improvement Programs
• Key components of continuous improvement are:– Focus on the customer – Concern for continuous improvement – Improvement in the quality of everything
– Accurate measurement– Empowerment of employees
Continuous Improvement Programs
• HPT Promise
• HRM Assists
– Helps employees deal with the emotional aspects of conflict and change
– Provides skills training– Adapts HR systems, such as
compensation, benefits, and performance standards.
Employee Involvement
• Delegation – having the authority to make decisions in one’s job
• Work teams – workers of various specializations who work together in an organization
• HRM must provide training to help empower employees in their new roles.
• Involvement programs can achieve:– greater productivity– increased employee loyalty and commitment
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