Chapter 1 Introduction to Management.pdf
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Jul 07, 2024
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About This Presentation
Management and organization behavior
Slide Content
Management and Organisation
Behaviour
Behaviour
4
Unit Topics
1
IntroductiontoManagement:ConceptofManagement,Evolutionofmanagement–Classical,Neo-classicalandModernSystem
Theory,Managementprinciples,FunctionsofManagement,ManagerialSkills,DecisionMaking,TypesofDecisions,Processof
DecisionMaking,Recenttrendsinmanagement,ChangingroleofManagers.
2
IntroductiontoOBandIndividualBehaviour:
ConceptsofOB,Nature,scopeofOB,ContributingDisciplinestoOB,OBModel,RecenttrendsinOB.
Perception:Introduction,ProcessofPerception,Factorsinfluencingperception,PerceptualErrors.
Personality
TheconceptPersonality,Determinantsofpersonality,TheoriesofPersonality,ApplicationofPersonalitytheoriestoOB,BigFive
Personality,TypeAVs.TypeBPersonality.
AttitudeandValues:
Attitude:Characteristics,Components,Functions,Attitudeformation,Attitudemeasurement.Values:Introduction,Types,Terminal
versusInstrumental,Generational,International,Ethicalvalues.
Learning:ConceptofLearning,Principlesoflearning,Process,TheoriesofLearning-Cognitive,Behavioral,Sociallearningtheory.
Unit Topics
1
IntroductiontoManagement:ConceptofManagement,Evolutionofmanagement–Classical,Neo-classicalandModernSystem
Theory,Managementprinciples,FunctionsofManagement,ManagerialSkills,DecisionMaking,TypesofDecisions,Processof
DecisionMaking,Recenttrendsinmanagement,ChangingroleofManagers.
2
IntroductiontoOBandIndividualBehaviour:
ConceptsofOB,Nature,scopeofOB,ContributingDisciplinestoOB,OBModel,RecenttrendsinOB.
Perception:Introduction,ProcessofPerception,Factorsinfluencingperception,PerceptualErrors.
Personality
TheconceptPersonality,Determinantsofpersonality,TheoriesofPersonality,ApplicationofPersonalitytheoriestoOB,BigFive
Personality,TypeAVs.TypeBPersonality.
AttitudeandValues:
Attitude:Characteristics,Components,Functions,Attitudeformation,Attitudemeasurement.Values:Introduction,Types,Terminal
versusInstrumental,Generational,International,Ethicalvalues.
Learning:ConceptofLearning,Principlesoflearning,Process,TheoriesofLearning-Cognitive,Behavioral,Sociallearningtheory.
5
Reference Books:
1.Essentialsofmanagement:Aninternational,innovation,andleadership
perspective-Weihrich,H.,&V.Cannice,M.,NewDelhi:McGraw-HillEducation
(India)PrivateLimited,2020.
2.OrganizationalBehavior,FredLuthans–12/e,McGrawHillPublishingCompany,
NewYork,2013.
3.ManagementandOrganizationalBehaviour,StephenRobbins,MaryCoulter,14/e,
NewJersey:PearsonEducationInc,2017.
4.Organizationalbehaviour-StephenPRobbins,TimothyA.Judge,NeharikaVohra,
Pearson,18thEdition,2019.
5.ManagementandOrganizationalBehaviour-LaurieJMullins,11/e,Pearson
educationlimited,2016.
6.Dwivedi.(2008).HumanRelationsandOrganisationalBehaviour(5ed.).Laxmi
Publications.
Reference Books:
1.Essentialsofmanagement:Aninternational,innovation,andleadership
perspective-Weihrich,H.,&V.Cannice,M.,NewDelhi:McGraw-HillEducation
(India)PrivateLimited,2020.
2.OrganizationalBehavior,FredLuthans–12/e,McGrawHillPublishingCompany,
NewYork,2013.
3.ManagementandOrganizationalBehaviour,StephenRobbins,MaryCoulter,14/e,
NewJersey:PearsonEducationInc,2017.
4.Organizationalbehaviour-StephenPRobbins,TimothyA.Judge,NeharikaVohra,
Pearson,18thEdition,2019.
5.ManagementandOrganizationalBehaviour-LaurieJMullins,11/e,Pearson
educationlimited,2016.
6.Dwivedi.(2008).HumanRelationsandOrganisationalBehaviour(5ed.).Laxmi
Publications.
Chapter 1. Introduction to Management
•According to George R. Terry, "Management is a distinct process consisting of planning, organising,
actuating and controlling, performed to determine and accomplish stated objectives by the use of human
beings and other resources".
•According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate
and to control"
•According to George R. Terry, "Management is a distinct process consisting of planning, organising,
actuating and controlling, performed to determine and accomplish stated objectives by the use of human
beings and other resources".
•According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command, to coordinate
and to control"
Evolution of management
To understand the entire concept of evolution of the management thought, the topic is divided into 4 major
stages, which are as follows:
1.Pre-scientific management period
2.Classical theory
3.Neo-classical theory ( or behavior approach)
4.Bureaucratic Model of Max Weber
1. Pre-Scientific Management Period
As the industrial revolution occurred in the 18th century, there was a huge impact on management. The
scenario changed the method of raising capitals, organizing labor, and goods’ production for the
individuals and businesses. Entrepreneurs then had access to production factors like land, labor, and
capital. The final step was only to make some effort to combine these factors to achieve the target
successfully.
But, after the industrial revolution, the newer dimension taken by management is because of the
involvement of certain notable personalities who introduced some effective ideas and approaches for
giving management an acceptable and precise direction.
To understand the entire concept of evolution of the management thought, the topic is divided into 4 major
stages, which are as follows:
1.Pre-scientific management period
2.Classical theory
3.Neo-classical theory ( or behavior approach)
4.Bureaucratic Model of Max Weber
1. Pre-Scientific Management Period
As the industrial revolution occurred in the 18th century, there was a huge impact on management. The
scenario changed the method of raising capitals, organizing labor, and goods’ production for the
individuals and businesses. Entrepreneurs then had access to production factors like land, labor, and
capital. The final step was only to make some effort to combine these factors to achieve the target
successfully.
But, after the industrial revolution, the newer dimension taken by management is because of the
involvement of certain notable personalities who introduced some effective ideas and approaches for
giving management an acceptable and precise direction.
2. The Classical Theory
Robert Owens, Charles Babbage, and other prominent personalities are regarded as management’s
pioneers. However, their contribution to the evolution of management is lower. Further, by the last decade
of the 19th century, the science of management began, and with it, some professionals like H. L. Grant, F.
W. Taylor, Emerson, and others entered for the establishment of scientific management.
Further, during the classical period, management thought focused on standardization, job content, labor
division, and scientific approaches for the organization. It also related closely to the industrial
revolution and the rise of large-scale enterprises.
3. The Neo-Classical Theory
This duration of the evolution of management thought is a better version of classical theory. It is a
modified version of classical theory with several improvements. The classical theory focused mainly on
the areas of job including physical resources and their management, but Neoclassical theory focuses on
employee relationships in the work ecosystem.
4. The Bureaucratic Model
Max Weber, a German sociologist, proposed the bureaucratic model. This includes a system of labour
division, rules, authority hierarchy, and employees’ placement based on their technical capabilities.
Robert Owens, Charles Babbage, and other prominent personalities are regarded as management’s
pioneers. However, their contribution to the evolution of management is lower. Further, by the last decade
of the 19th century, the science of management began, and with it, some professionals like H. L. Grant, F.
W. Taylor, Emerson, and others entered for the establishment of scientific management.
Further, during the classical period, management thought focused on standardization, job content, labor
division, and scientific approaches for the organization. It also related closely to the industrial
revolution and the rise of large-scale enterprises.
3. The Neo-Classical Theory
This duration of the evolution of management thought is a better version of classical theory. It is a
modified version of classical theory with several improvements. The classical theory focused mainly on
the areas of job including physical resources and their management, but Neoclassical theory focuses on
employee relationships in the work ecosystem.
4. The Bureaucratic Model
Max Weber, a German sociologist, proposed the bureaucratic model. This includes a system of labour
division, rules, authority hierarchy, and employees’ placement based on their technical capabilities.
Modern theory of management
The modern management theory believes that employees work for numerous reasons, including to achieve
satisfaction, happiness and desired lifestyles. With this theory, managers understand employees' behaviors
and needs and can implement strategies to meet those needs and support their skill development over time.
Benefits:
•Boosts productivity
•Aids decision-making
•Improves employee engagement
•Promotes objectivity
•Enables adaptability
The modern management theory believes that employees work for numerous reasons, including to achieve
satisfaction, happiness and desired lifestyles. With this theory, managers understand employees' behaviors
and needs and can implement strategies to meet those needs and support their skill development over time.
Benefits:
•Boosts productivity
•Aids decision-making
•Improves employee engagement
•Promotes objectivity
•Enables adaptability
FUNCTIONS / ELEMENTS OF MANAGEMENT
FUNCTIONS/ELEMENTS OF MANAGEMENT
1.Planning: It involves determination of a course of action to achieve desired results/objectives.
Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the
problems of a business unit. Planning plays a pivotal role in business management It helps to visualize
the future problems and keeps management ready with possible solutions.
2. Organising: It means to bring the resources (men, materials, machines, etc.) together and use them
properly for achieving the objectives. Organising means arranging ways and means for the execution
of a business plan. It provides suitable administrative structure and facilitates execution of proposed
plan (such as departmentation, span of control delegation of authority, establishment of superior-
subordinate relationship and provision of mechanism for co-ordination of various business activities.)
3. Staffing: Staffing refers to manpower required for the execution of a business plan. Every business unit
needs efficient, stable and cooperative staff for the management of business activities. In many
organisations, manpower planning and development activities are entrusted to personnel manager or
HRD manager. 'Right man for the right job' is the basic principle in staffing.
1.Planning: It involves determination of a course of action to achieve desired results/objectives.
Planning is the key to success, stability and prosperity in business. It acts as a tool for solving the
problems of a business unit. Planning plays a pivotal role in business management It helps to visualize
the future problems and keeps management ready with possible solutions.
2. Organising: It means to bring the resources (men, materials, machines, etc.) together and use them
properly for achieving the objectives. Organising means arranging ways and means for the execution
of a business plan. It provides suitable administrative structure and facilitates execution of proposed
plan (such as departmentation, span of control delegation of authority, establishment of superior-
subordinate relationship and provision of mechanism for co-ordination of various business activities.)
3. Staffing: Staffing refers to manpower required for the execution of a business plan. Every business unit
needs efficient, stable and cooperative staff for the management of business activities. In many
organisations, manpower planning and development activities are entrusted to personnel manager or
HRD manager. 'Right man for the right job' is the basic principle in staffing.
4. Directing (Leading): It deals with guiding and instructing people to do the work in the right manner.
They have to work as leaders of their subordinates. It involves Directing as well as raising the morale of
subordinates. It also involves communicating, leading and motivating.
5. Controlling: Controlling is an important function of management. It is necessary in the case of
individuals and departments so as to avoid wrong actions and activities.
Controlling involves three broad aspects:
(a)establishing standards of performance,
(b)measuring work in progress and interpreting results achieved, and
(c)taking corrective actions, if required
Other functions:
6. Coordinating: Effective coordination and also integration of activities of different departments are
essential for orderly working of an Organisation. It gives one clear-cut direction to the activities of
individuals and departments. It also avoids misdirection and wastages and brings unity of action in the
Organisation. Co-ordination will not come automatically or on its own Special efforts are necessary on
the part of managers for achieving such coordination.
They have to work as leaders of their subordinates. It involves Directing as well as raising the morale of
subordinates. It also involves communicating, leading and motivating.
5. Controlling: Controlling is an important function of management. It is necessary in the case of
individuals and departments so as to avoid wrong actions and activities.
Controlling involves three broad aspects:
(a)establishing standards of performance,
(b)measuring work in progress and interpreting results achieved, and
(c)taking corrective actions, if required
Other functions:
6. Coordinating: Effective coordination and also integration of activities of different departments are
essential for orderly working of an Organisation. It gives one clear-cut direction to the activities of
individuals and departments. It also avoids misdirection and wastages and brings unity of action in the
Organisation. Co-ordination will not come automatically or on its own Special efforts are necessary on
the part of managers for achieving such coordination.
7. Motivating: Motivating means to encourage people to take more interest and initiative in the work
assigned. Organisations prosper when the employees are motivated through special efforts including
provision of facilities and incentives. Motivation is actually inspiring and encouraging people to work
more and contribute more to achieve organisational objectives. It is a psychological process of great
significance.
8. Communicating: Communication (written or oral) is necessary for the exchange of facts, opinions,
ideas and information between individual‘s and departments. In an organisation, communication is useful
for giving information, guidance and instructions. Managers should be good communicators.
assigned. Organisations prosper when the employees are motivated through special efforts including
provision of facilities and incentives. Motivation is actually inspiring and encouraging people to work
more and contribute more to achieve organisational objectives. It is a psychological process of great
significance.
8. Communicating: Communication (written or oral) is necessary for the exchange of facts, opinions,
ideas and information between individual‘s and departments. In an organisation, communication is useful
for giving information, guidance and instructions. Managers should be good communicators.
Henri Fayol 14 Principles of Management
Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the
concept of management. He introduced a general theory that can be applied to all levels of management
and every department. The Fayol theory is practised by the managers to organize and regulate the internal
activities of an organization. He concentrated on accomplishing managerial efficiency.
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division of work improves the productivity, efficiency,
accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a
technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the management to work efficiently,
and responsibility makes them responsible for the work done under their guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project or any management.
Good performance and sensible interrelation make the management job easy and comprehensive.
Employees good behaviour also helps them smoothly build and progress in their professional careers.
Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the
concept of management. He introduced a general theory that can be applied to all levels of management
and every department. The Fayol theory is practised by the managers to organize and regulate the internal
activities of an organization. He concentrated on accomplishing managerial efficiency.
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division of work improves the productivity, efficiency,
accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a
technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the management to work efficiently,
and responsibility makes them responsible for the work done under their guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project or any management.
Good performance and sensible interrelation make the management job easy and comprehensive.
Employees good behaviour also helps them smoothly build and progress in their professional careers.
4. Unity of Command-
This means an employee should have only one boss and follow his command. If an employee has to follow
more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all the person working in
a company should have one goal and motive which will make the work easier and achieve the set goal
easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company rather than personal
interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a
company.
7. Remuneration-
This plays an important role in motivating the workers of a company. Remuneration can be monetary or
non-monetary. However, it should be according to an individual’s efforts they have made.
This means an employee should have only one boss and follow his command. If an employee has to follow
more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all the person working in
a company should have one goal and motive which will make the work easier and achieve the set goal
easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company rather than personal
interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a
company.
7. Remuneration-
This plays an important role in motivating the workers of a company. Remuneration can be monetary or
non-monetary. However, it should be according to an individual’s efforts they have made.
8. Centralization-
In any company, the management or any authority responsible for the decision-making process should be
neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there
should be a balance between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is
necessary so that every employee knows their immediate senior also they should be able to contact any, if
needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work culture. The positive
atmosphere in the workplace will boost more positive productivity.
In any company, the management or any authority responsible for the decision-making process should be
neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there
should be a balance between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest. This is
necessary so that every employee knows their immediate senior also they should be able to contact any, if
needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work culture. The positive
atmosphere in the workplace will boost more positive productivity.
11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability- An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an organization. It will
help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of each other
regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no
employees face discrimination.
12. Stability- An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an organization. It will
help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of each other
regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.
Managerial Skills
1.Communication
2.Respect
3.Persuasion
4.Respect
5.Openness
6.Patience/self-control
7.Thoughtfulness
8.Macro-management
9.Preparation
10.Honesty
11.Feedback
12.Support
13.Decisiveness
14.Creativity
15.Leadership
1.Communication
2.Respect
3.Persuasion
4.Respect
5.Openness
6.Patience/self-control
7.Thoughtfulness
8.Macro-management
9.Preparation
10.Honesty
11.Feedback
12.Support
13.Decisiveness
14.Creativity
15.Leadership
Managerial Skills
1. Communication
To be an effectivepeople manager, communication is key. Good communication can
•Improveemployee engagement
•Increase productivity
•Create a positive work environment
2. Respect
Respect is a fundamental human need, and when it is shown to employees, they feel appreciated. This, in
turn, leads to increased productivity and employee satisfaction.
3. Persuasion
Persuading people to do something they may not want to do is a difficult task for managers. The key to
persuasion is understanding what the other person wants and needs. Once you know this, you can tailor
your message to appeal to their interests.
4. Trust
Trust is vital for any organization, but even more so as we enter an era ofremote work. When employees
feel trusted, they are more engaged in their work and more likely to surpass expectations. However, a lack
of trust can lead to employee disengagement and decreased productivity.
1. Communication
To be an effectivepeople manager, communication is key. Good communication can
•Improveemployee engagement
•Increase productivity
•Create a positive work environment
2. Respect
Respect is a fundamental human need, and when it is shown to employees, they feel appreciated. This, in
turn, leads to increased productivity and employee satisfaction.
3. Persuasion
Persuading people to do something they may not want to do is a difficult task for managers. The key to
persuasion is understanding what the other person wants and needs. Once you know this, you can tailor
your message to appeal to their interests.
4. Trust
Trust is vital for any organization, but even more so as we enter an era ofremote work. When employees
feel trusted, they are more engaged in their work and more likely to surpass expectations. However, a lack
of trust can lead to employee disengagement and decreased productivity.
5. Openness
In any workplace, managers need to be open to hearing about problems, errors, and other challenges. This
openness allows for a more fair and impartial way of responding to these issues.
6. Patience/Self-control
The ability of managers to lead calmly and effectively is more important than ever as the workplace is
changing at a fast clip as a result of COVID-19 and other societal factors. The best leaders know how to
keep a cool head in a crisis, view employee mistakes as learning opportunities, and maintain a positive
outlook. They can effectively do this by:
•Remaining calm and making clear-headed decisions that will benefit their employees and the company as
a whole.
•Fostering an environment of learning and innovation, in which mistakes are simply opportunities for
growth.
7. Thoughtfulness
Thoughtfulness is expressed in many ways—empathy for a co-worker who is having problems at home or
recognition that team members in an argument may each have valid points. It also means remembering to
give credit where credit is due, as well as smaller things, like remembering a birthday or a work
anniversary.
In any workplace, managers need to be open to hearing about problems, errors, and other challenges. This
openness allows for a more fair and impartial way of responding to these issues.
6. Patience/Self-control
The ability of managers to lead calmly and effectively is more important than ever as the workplace is
changing at a fast clip as a result of COVID-19 and other societal factors. The best leaders know how to
keep a cool head in a crisis, view employee mistakes as learning opportunities, and maintain a positive
outlook. They can effectively do this by:
•Remaining calm and making clear-headed decisions that will benefit their employees and the company as
a whole.
•Fostering an environment of learning and innovation, in which mistakes are simply opportunities for
growth.
7. Thoughtfulness
Thoughtfulness is expressed in many ways—empathy for a co-worker who is having problems at home or
recognition that team members in an argument may each have valid points. It also means remembering to
give credit where credit is due, as well as smaller things, like remembering a birthday or a work
anniversary.
8. Macro-management
The opposite of micromanagement, macro-management means a more hands-off style of leadership.
Macro-managers focus more on the big picture and less on the day-to-day operations, giving workers more
freedom to get the job done.
9. Preparation
Preparation is an important people manager skill that helps managers be successful in their roles. By taking
the time to prepare for meetings, events, and projects, managers can ensure that they are organized and
have all of the information they need to make sound decisions.
10. Honesty
Honesty is more than a value in people management; it is a skill. Managers who are skilled at being honest
with their employees create an environment of trust, which can lead to increased productivity and
creativity.
11. Feedback
While linked to honesty and communication, giving fair feedback is its own skill. It involves
understanding the role of the employee, their talents, and their needs and creating achievable goals with
them. Feedback also requires an ability to be objective and understand the company’s mission.
The opposite of micromanagement, macro-management means a more hands-off style of leadership.
Macro-managers focus more on the big picture and less on the day-to-day operations, giving workers more
freedom to get the job done.
9. Preparation
Preparation is an important people manager skill that helps managers be successful in their roles. By taking
the time to prepare for meetings, events, and projects, managers can ensure that they are organized and
have all of the information they need to make sound decisions.
10. Honesty
Honesty is more than a value in people management; it is a skill. Managers who are skilled at being honest
with their employees create an environment of trust, which can lead to increased productivity and
creativity.
11. Feedback
While linked to honesty and communication, giving fair feedback is its own skill. It involves
understanding the role of the employee, their talents, and their needs and creating achievable goals with
them. Feedback also requires an ability to be objective and understand the company’s mission.
12. Support
Supporting employees takes a combination of communication, thoughtfulness, honesty, and openness. It
also requires understanding your employees’ workload and not overloading them with projects and tasks
(especially busy work) and watching out for signs of burnout.
13. Decisiveness
Decisiveness is an important people management skill that inspires confidence. It’s the ability to make a
decision quickly and efficiently without over thinking or second-guessing yourself. This skill is essential
for people in management positions, as they need to be able to make decisions that will impact their team’s
work.
14. Creativity
Fostering a work environment that encourages creativity is an important leadership and people manager
skill; after all, creativity is what drives innovation and new ideas. And, without innovation, businesses
would stagnate.
15. Leadership
Leadership is an important skill needed for people management. Leaders set the tone for their team and are
responsible for creating a positive work environment. People managers must be able to motivate and
inspire their teams to achieve goals.
Supporting employees takes a combination of communication, thoughtfulness, honesty, and openness. It
also requires understanding your employees’ workload and not overloading them with projects and tasks
(especially busy work) and watching out for signs of burnout.
13. Decisiveness
Decisiveness is an important people management skill that inspires confidence. It’s the ability to make a
decision quickly and efficiently without over thinking or second-guessing yourself. This skill is essential
for people in management positions, as they need to be able to make decisions that will impact their team’s
work.
14. Creativity
Fostering a work environment that encourages creativity is an important leadership and people manager
skill; after all, creativity is what drives innovation and new ideas. And, without innovation, businesses
would stagnate.
15. Leadership
Leadership is an important skill needed for people management. Leaders set the tone for their team and are
responsible for creating a positive work environment. People managers must be able to motivate and
inspire their teams to achieve goals.
Decision making
Decision making isthe process of making choices by identifying a decision, gathering information,
and assessing alternative resolutions. Using a step-by-step decision-making process can help you make
more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
TYPES OF DECISIONS
1. Programmed and non-programmed decisions
2. Routine and strategic decisions:
3. Tactical (Policy) and operational decisions:
4. Organizational and personal decisions
5. Major and minor decisions
6. Individual and group decisions
Decision making isthe process of making choices by identifying a decision, gathering information,
and assessing alternative resolutions. Using a step-by-step decision-making process can help you make
more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
TYPES OF DECISIONS
1. Programmed and non-programmed decisions
2. Routine and strategic decisions:
3. Tactical (Policy) and operational decisions:
4. Organizational and personal decisions
5. Major and minor decisions
6. Individual and group decisions
1. Programmed and non-programmed decisions:
Programmed decisions are concerned with the problems of repetitive nature or routine type matters.
A standard procedure is followed for tackling such problems. These decisions are taken generally by lower
level managers. Decisions of this type may pertain to e.g. purchase of raw material, granting leave to
an employee and supply of goods and implements to the employees, etc.
Non-programmed decisions relate to difficult situations for which there is no easy solution. These
matters are very important for the organisation. For example, opening of a new branch of the
organisation or a large number of employees absenting from the organisation or introducing new product
in the market, etc., are the decisions which are normally taken at the higher level.
2. Routine and strategic decisions:
Routine decisions are related to the general functioning of the organisation. They do not require much
evaluation and analysis and can be taken quickly. Ample powers are delegated to lower ranks to take these
decisions within the broad policy structure of the organisation.
Strategic decisions are important which affect objectives, organisational goals and other important
policy matters. These decisions usually involve huge investments or funds. These are non-repetitive in
nature and are taken after careful analysis and evaluation of many alternatives. These decisions are taken at
the higher level of management.
Programmed decisions are concerned with the problems of repetitive nature or routine type matters.
A standard procedure is followed for tackling such problems. These decisions are taken generally by lower
level managers. Decisions of this type may pertain to e.g. purchase of raw material, granting leave to
an employee and supply of goods and implements to the employees, etc.
Non-programmed decisions relate to difficult situations for which there is no easy solution. These
matters are very important for the organisation. For example, opening of a new branch of the
organisation or a large number of employees absenting from the organisation or introducing new product
in the market, etc., are the decisions which are normally taken at the higher level.
2. Routine and strategic decisions:
Routine decisions are related to the general functioning of the organisation. They do not require much
evaluation and analysis and can be taken quickly. Ample powers are delegated to lower ranks to take these
decisions within the broad policy structure of the organisation.
Strategic decisions are important which affect objectives, organisational goals and other important
policy matters. These decisions usually involve huge investments or funds. These are non-repetitive in
nature and are taken after careful analysis and evaluation of many alternatives. These decisions are taken at
the higher level of management.
3. Tactical (Policy) and operational decisions:
Decisions pertaining to various policy matters of the organisation are policy decisions. These are taken
by the top management and have long term impact on the functioning of the concern. For example,
decisions regarding location of plant, volume of production and channels of distribution (Tactical) policies,
etc. are policy decisions.
Operating decisions relate to day-to-day functioning or operations of business. Middle and lower level
managers take these decisions. An example may be taken to distinguish these decisions. Decisions
concerning payment of bonus to employees are a policy decision. On the other hand if bonus is to be
given to the employees, calculation of bonus in respect of each employee is an operating decision.
4. Organisational and personal decisions:
When an individual takes decision as an executive in the official capacity, it is known as organisational
decision. If decision is taken by the executive in the personal capacity (thereby affecting his personal
life), it is known as personal decision.
Sometimes these decisions may affect functioning of the organisation also. For example, if an executive
leaves the organisation, it may affect the organisation. The authority of taking organizational decisions
may be delegated, whereas personal decisions cannot be delegated.
Decisions pertaining to various policy matters of the organisation are policy decisions. These are taken
by the top management and have long term impact on the functioning of the concern. For example,
decisions regarding location of plant, volume of production and channels of distribution (Tactical) policies,
etc. are policy decisions.
Operating decisions relate to day-to-day functioning or operations of business. Middle and lower level
managers take these decisions. An example may be taken to distinguish these decisions. Decisions
concerning payment of bonus to employees are a policy decision. On the other hand if bonus is to be
given to the employees, calculation of bonus in respect of each employee is an operating decision.
4. Organisational and personal decisions:
When an individual takes decision as an executive in the official capacity, it is known as organisational
decision. If decision is taken by the executive in the personal capacity (thereby affecting his personal
life), it is known as personal decision.
Sometimes these decisions may affect functioning of the organisation also. For example, if an executive
leaves the organisation, it may affect the organisation. The authority of taking organizational decisions
may be delegated, whereas personal decisions cannot be delegated.
5. Major and minor decisions:
Another classification of decisions is major and minor. Decision pertaining to purchase of new factory
premises is a major decision. Major decisions are taken by top management. Purchase of office stationery
is a minor decision which can be taken by office superintendent.
6. Individual and group decisions:
When the decision is taken by a single individual, it is known as individual decision. Usually routine type
decisions are taken by individuals within the broad policy framework of the organisation.
Group decisions are taken by group of individuals constituted in the form of a standing committee.
Generally very important and pertinent matters for the organisation are referred to this committee. The
main aim in taking group decisions is the involvement of maximum number of individuals in the process
of decision- making.
Another classification of decisions is major and minor. Decision pertaining to purchase of new factory
premises is a major decision. Major decisions are taken by top management. Purchase of office stationery
is a minor decision which can be taken by office superintendent.
6. Individual and group decisions:
When the decision is taken by a single individual, it is known as individual decision. Usually routine type
decisions are taken by individuals within the broad policy framework of the organisation.
Group decisions are taken by group of individuals constituted in the form of a standing committee.
Generally very important and pertinent matters for the organisation are referred to this committee. The
main aim in taking group decisions is the involvement of maximum number of individuals in the process
of decision- making.
Decision making process
1. Identify the decision
To make a decision, you must first identify the problem you need to solve or the question you need to
answer. Clearly define your decision. If you need to achieve a specific goal from your decision, make it
measurable and timely.
2. Gather relevant information
Once you have identified your decision, it’s time to gather the information relevant to that choice. Do an
internal assessment, seeing where your organization has succeeded and failed in areas related to your
decision. Also, seek information from external sources, including studies, market research, and, in some
cases, evaluation from paid consultants.
3. Identify the alternatives
With relevant information at your fingertips, identify possible solutions to your problem. There is usually
more than one option to consider when trying to meet a goal. For example, if your company is trying to
gain more engagement on social media, your alternatives could include paid social advertisements, a
change in your organic social media strategy, or a combination of the two.
To make a decision, you must first identify the problem you need to solve or the question you need to
answer. Clearly define your decision. If you need to achieve a specific goal from your decision, make it
measurable and timely.
2. Gather relevant information
Once you have identified your decision, it’s time to gather the information relevant to that choice. Do an
internal assessment, seeing where your organization has succeeded and failed in areas related to your
decision. Also, seek information from external sources, including studies, market research, and, in some
cases, evaluation from paid consultants.
3. Identify the alternatives
With relevant information at your fingertips, identify possible solutions to your problem. There is usually
more than one option to consider when trying to meet a goal. For example, if your company is trying to
gain more engagement on social media, your alternatives could include paid social advertisements, a
change in your organic social media strategy, or a combination of the two.
4. Weigh the evidence
Once you have identified multiple alternatives, weigh the evidence for or against said alternatives. See
what companies have done in the past to succeed in these areas, and take a good look at your
organization’s own wins and losses. Identify potential pitfalls for each of your alternatives, and weigh
those against the possible rewards.
5. Choose among alternatives
Here is the part of the decision-making process where you actually make the decision. Hopefully, you’ve
identified and clarified what decision needs to be made, gathered all relevant information, and developed
and considered the potential paths to take. You should be prepared to choose.
6. Take action
Once you’ve made your decision, act on it. Develop a plan to make your decision tangible and
achievable.Develop a project planrelated to your decision, and then assign tasks to your team.
7. Review your decision
After a predetermined amount of time, which you defined in step one of the decision-making process—
take an honest look back at your decision. Take note of what worked for future reference. If not, learn
from your mistakes as you begin the decision-making process again.
Once you have identified multiple alternatives, weigh the evidence for or against said alternatives. See
what companies have done in the past to succeed in these areas, and take a good look at your
organization’s own wins and losses. Identify potential pitfalls for each of your alternatives, and weigh
those against the possible rewards.
5. Choose among alternatives
Here is the part of the decision-making process where you actually make the decision. Hopefully, you’ve
identified and clarified what decision needs to be made, gathered all relevant information, and developed
and considered the potential paths to take. You should be prepared to choose.
6. Take action
Once you’ve made your decision, act on it. Develop a plan to make your decision tangible and
achievable.Develop a project planrelated to your decision, and then assign tasks to your team.
7. Review your decision
After a predetermined amount of time, which you defined in step one of the decision-making process—
take an honest look back at your decision. Take note of what worked for future reference. If not, learn
from your mistakes as you begin the decision-making process again.
Recent Trends in Management
Recent trends in management refer to the latestmanagerial practices that managers use to
effectively manage their employees. As the market situation evolves, the managerial trends
also evolve and change. These changes are subject to the market conditions of that time
period. The most popular recent trends in management are:
•Total Quality Management
•Risk Management
• Crisis Management
•Resistance to change
•Change through management hierarchy
•Concept of change management
•Global practices / international business
•Role of international manager etc.,
Recent trends in management refer to the latestmanagerial practices that managers use to
effectively manage their employees. As the market situation evolves, the managerial trends
also evolve and change. These changes are subject to the market conditions of that time
period. The most popular recent trends in management are:
•Total Quality Management
•Risk Management
• Crisis Management
•Resistance to change
•Change through management hierarchy
•Concept of change management
•Global practices / international business
•Role of international manager etc.,
Total Quality Management
All business management principles unanimously agree on the importance of quality. One can measure the
success of an organization from the quality of its goods andservices. Due to the importance of this factor,
total quality management has gained vast prominence over the years. Managers strive to maintain the
highest quality standards to meet their market competition.
Risk Management
The concept of risk management originates from the business ofinsurance. It has assumed significance
over the years as an important function of management. It basically consists of fiveprocessesthat aim to
mitigate business losses. No organization can completely eliminate risks but it is certainly possible to
prepare for them.
Crisis Management
One can never predict when a tragedy may strike. We can plan and try to prevent mishaps but they can still
happen. Crisis management in suchconditionsis one of the most important functions of managers. They
must always be able to rebuild their organization after a crisis occurs.
All business management principles unanimously agree on the importance of quality. One can measure the
success of an organization from the quality of its goods andservices. Due to the importance of this factor,
total quality management has gained vast prominence over the years. Managers strive to maintain the
highest quality standards to meet their market competition.
Risk Management
The concept of risk management originates from the business ofinsurance. It has assumed significance
over the years as an important function of management. It basically consists of fiveprocessesthat aim to
mitigate business losses. No organization can completely eliminate risks but it is certainly possible to
prepare for them.
Crisis Management
One can never predict when a tragedy may strike. We can plan and try to prevent mishaps but they can still
happen. Crisis management in suchconditionsis one of the most important functions of managers. They
must always be able to rebuild their organization after a crisis occurs.
Resistance to change
One of the most important tasks of managers is to facilitate changes smoothly. Change is always inevitable
but so isresistanceto change. It is basichumannature of people to try and keep their methods and customs
constant. This is where change management comes into play. Anorganizationalways must strive to adapt
to change if it wants to be successful.
Change through management hierarchy
It is usually the top level of a management hierarchy that makes the most important changes in any
organization. The lower level only implements these changes. Such a hierarchy often misses out small and
minute details ofplanning. Managers must, hence, understand how to plan for changes under
suchconditions.
Concept of change management
Change is often said to be the only constant in one’s life. Thisstatementholds true for business
organizations as well. External and internal factors almost always lead to changes in the way things
happen. One of the most important tasks of managers is to implement these changes smoothly. We refer to
this process as changemanagement.
One of the most important tasks of managers is to facilitate changes smoothly. Change is always inevitable
but so isresistanceto change. It is basichumannature of people to try and keep their methods and customs
constant. This is where change management comes into play. Anorganizationalways must strive to adapt
to change if it wants to be successful.
Change through management hierarchy
It is usually the top level of a management hierarchy that makes the most important changes in any
organization. The lower level only implements these changes. Such a hierarchy often misses out small and
minute details ofplanning. Managers must, hence, understand how to plan for changes under
suchconditions.
Concept of change management
Change is often said to be the only constant in one’s life. Thisstatementholds true for business
organizations as well. External and internal factors almost always lead to changes in the way things
happen. One of the most important tasks of managers is to implement these changes smoothly. We refer to
this process as changemanagement.
Global practices / international business
With the advent ofglobalization, global business practices and international business have become
commonphenomena. Large companies and MNCs often operate in more than one country. Managing such
cross-border operations requires a thorough understanding of localcultures, practices, laws andbusiness
environments. International managers, thus, have to play several important roles in their businesses.
Role of international manager
There are some basic functions that every business manager has to perform routinely. These functions
apply to international managers as well. Due to the peculiar nature ofinternational business, however,
international managers have to perform them a little differently.
With the advent ofglobalization, global business practices and international business have become
commonphenomena. Large companies and MNCs often operate in more than one country. Managing such
cross-border operations requires a thorough understanding of localcultures, practices, laws andbusiness
environments. International managers, thus, have to play several important roles in their businesses.
Role of international manager
There are some basic functions that every business manager has to perform routinely. These functions
apply to international managers as well. Due to the peculiar nature ofinternational business, however,
international managers have to perform them a little differently.
Changing role of managers
Managers today are often expected to 'manage' their boss or seniors with their own inputs and insights.
Somanagement is no longer confined to the top-down hierarchy model based on authority.
Furthermore, managers also interact and build relationships with partners and customers for the growth of
the organization.
Managers require these 4 capabilities to enable a competitive advantage for their company.
1.Develop People
2.Accelerate Performance
3.Advance Culture and Engagement
4.Develop Digital Intelligence
Managers today are often expected to 'manage' their boss or seniors with their own inputs and insights.
Somanagement is no longer confined to the top-down hierarchy model based on authority.
Furthermore, managers also interact and build relationships with partners and customers for the growth of
the organization.
Managers require these 4 capabilities to enable a competitive advantage for their company.
1.Develop People
2.Accelerate Performance
3.Advance Culture and Engagement
4.Develop Digital Intelligence
1.Develop People
Developing people is a business priority. Encourage people to take accountability for their own
development, offer appropriate guidance and discussion, organize suitable and ensure that agreed
development is actively pursued, and know your people well to assess for potential and readiness for
identified succession roles.
2.Accelerate Performance
Accelerating performance starts with having the best interests of your people in mind.Know how to create
and unleash the talent you already have within your organization.
3.Advance Culture and Engagement
How work gets done and how we feel about how work gets done is just as important as what work gets
done. Create environments rich in feedback, that promote discussing and rewarding culture and
engagement regularly.
4.Develop Digital Intelligence
Find a way to embrace the digital world and be comfortable with the latest trends in technology. Turn data
into meaningful insights that you can take advantage of – be curious and ask the right questions to bring
you one step closer in the digital age.
Developing people is a business priority. Encourage people to take accountability for their own
development, offer appropriate guidance and discussion, organize suitable and ensure that agreed
development is actively pursued, and know your people well to assess for potential and readiness for
identified succession roles.
2.Accelerate Performance
Accelerating performance starts with having the best interests of your people in mind.Know how to create
and unleash the talent you already have within your organization.
3.Advance Culture and Engagement
How work gets done and how we feel about how work gets done is just as important as what work gets
done. Create environments rich in feedback, that promote discussing and rewarding culture and
engagement regularly.
4.Develop Digital Intelligence
Find a way to embrace the digital world and be comfortable with the latest trends in technology. Turn data
into meaningful insights that you can take advantage of – be curious and ask the right questions to bring
you one step closer in the digital age.
Characteristics of Management
Universal: All the organizations, whether it is profit-making or not, they require management, for
managing their activities. Hence it is universal in nature.
Goal Oriented: Every organization is set up with a predetermined objective and management helps in
reaching those goals timely, and smoothly.
Continuous Process: It is an ongoing process which tends to persist as long as the organization exists. It is
required in every sphere of the organization whether it is production, human resource, finance or
marketing.
Multi-dimensional: Management is not confined to the administration of people only, but it also manages
work, processes and operations, which makes it a multi-disciplinary activity.
Group activity: An organization consists of various members who have different needs, expectations and
beliefs. Every person joins the organization with a different motive, but after becoming a part of the
organization they work for achieving the same goal. It requires supervision, teamwork and coordination,
and in this way, management comes into the picture.
managing their activities. Hence it is universal in nature.
Goal Oriented: Every organization is set up with a predetermined objective and management helps in
reaching those goals timely, and smoothly.
Continuous Process: It is an ongoing process which tends to persist as long as the organization exists. It is
required in every sphere of the organization whether it is production, human resource, finance or
marketing.
Multi-dimensional: Management is not confined to the administration of people only, but it also manages
work, processes and operations, which makes it a multi-disciplinary activity.
Group activity: An organization consists of various members who have different needs, expectations and
beliefs. Every person joins the organization with a different motive, but after becoming a part of the
organization they work for achieving the same goal. It requires supervision, teamwork and coordination,
and in this way, management comes into the picture.
Dynamic function: An organization exists in a business environment that has various factors like social,
political, legal, technological and economic. A slight change in any of these factors will affect the
organization’s growth and performance. So, to overcome these changes management formulates strategies
and implements them.
Intangible force: Management can neither be seen nor touched but one can feel its existence, in the way
the organization functions.
Precisely, all the functions, activities and processes of the organization are interconnected to one another.
And it is the task of the management to bring them together in such a way that they help in reaching the
intended result.
political, legal, technological and economic. A slight change in any of these factors will affect the
organization’s growth and performance. So, to overcome these changes management formulates strategies
and implements them.
Intangible force: Management can neither be seen nor touched but one can feel its existence, in the way
the organization functions.
Precisely, all the functions, activities and processes of the organization are interconnected to one another.
And it is the task of the management to bring them together in such a way that they help in reaching the
intended result.
Management as Science
✓the existence of a systematic body of knowledge encompassing a wide array of
principles;
✓ principles have to be evolved on the basis of constant enquiry and examination;
✓ principles must explain a phenomenon by establishing cause effect relationship;
✓ the principles should be amenable for verification in order to ensure accuracy and
universal applicability.
✓the existence of a systematic body of knowledge encompassing a wide array of
principles;
✓ principles have to be evolved on the basis of constant enquiry and examination;
✓ principles must explain a phenomenon by establishing cause effect relationship;
✓ the principles should be amenable for verification in order to ensure accuracy and
universal applicability.
Though management considering its subject matter and the practical utility may be considered as ‘science’,
for reason, it cannot be viewed as an ‘exact science’. In other words, it is a science, but an ‘inexact
science’ because:
• Firstly, management by definition involves getting the things done through people. Compared to the
other inputs, ‘people’, who constitute the human resource of any organization are unique in respect of
their aspirations, attitudes, perceptions and the like. Dissimilarities in the behavior pattern are so obvious
that standard research may not be obtained in otherwise similar conditions.
• Secondly, the behavior of the human beings cannot be accurately predicted. Hence, readymade and
standard solutions cannot be prescribed.
•Thirdly, management is more concerned with future which is complex and unpredictable. As the
saying goes, ‘many a slip between the cup and the lip’, changes in the environment may affect the plans
and render even the most well drawn plans ineffective.
• Lastly, since a business organization exists in an environment, it has a two way interaction with the
environment. The organization influences the environment by its several decisions and in turn is
influenced by the various elements of the environment. Important among these are technological,
economic, socio- cultural and political factors. The whole thing is so complex that however effective
the plans are, one is prone to be taken over by the unexpected changes in the environment.
for reason, it cannot be viewed as an ‘exact science’. In other words, it is a science, but an ‘inexact
science’ because:
• Firstly, management by definition involves getting the things done through people. Compared to the
other inputs, ‘people’, who constitute the human resource of any organization are unique in respect of
their aspirations, attitudes, perceptions and the like. Dissimilarities in the behavior pattern are so obvious
that standard research may not be obtained in otherwise similar conditions.
• Secondly, the behavior of the human beings cannot be accurately predicted. Hence, readymade and
standard solutions cannot be prescribed.
•Thirdly, management is more concerned with future which is complex and unpredictable. As the
saying goes, ‘many a slip between the cup and the lip’, changes in the environment may affect the plans
and render even the most well drawn plans ineffective.
• Lastly, since a business organization exists in an environment, it has a two way interaction with the
environment. The organization influences the environment by its several decisions and in turn is
influenced by the various elements of the environment. Important among these are technological,
economic, socio- cultural and political factors. The whole thing is so complex that however effective
the plans are, one is prone to be taken over by the unexpected changes in the environment.
Management as an Art
Art an understands how a particular activity can be done. Art can be acquired by
conscious effort and practice. Management is getting things done by and through other
people.
As the saying goes ‘practice makes a man perfect’, constant practice of the theoretical
concepts (knowledge) contributes for the formation and sharpening of the skills.
Therefore, what is required is the right blend of the theory and practice. The principles of
management cannot be implemented as learn, in the real world. They are to be applied after
making necessary modifications based on the real life situations.
Art an understands how a particular activity can be done. Art can be acquired by
conscious effort and practice. Management is getting things done by and through other
people.
As the saying goes ‘practice makes a man perfect’, constant practice of the theoretical
concepts (knowledge) contributes for the formation and sharpening of the skills.
Therefore, what is required is the right blend of the theory and practice. The principles of
management cannot be implemented as learn, in the real world. They are to be applied after
making necessary modifications based on the real life situations.
Management as both Science and Art
Management is both an art and a science. It is considered as a science because it has an
organized body of knowledge which contains certain universal truth. It is called an art
because managing requires certain skills which are personal possessions of managers.
Science provides the knowledge & art deals with the application of knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science & the
art of applying it. Therefore management is a judicious blend of science as well as an art
because it proves the principles and the way these principles are applied is a matter of art.
Science teaches to ’know’ and art teaches to ’do’.
Management is both an art and a science. It is considered as a science because it has an
organized body of knowledge which contains certain universal truth. It is called an art
because managing requires certain skills which are personal possessions of managers.
Science provides the knowledge & art deals with the application of knowledge and skills.
A manager to be successful in his profession must acquire the knowledge of science & the
art of applying it. Therefore management is a judicious blend of science as well as an art
because it proves the principles and the way these principles are applied is a matter of art.
Science teaches to ’know’ and art teaches to ’do’.
Management and Administration
On the Basis of Functions and Usage:
Basis Management Administration
Meaning Management is an art of getting things done
through others by directing their efforts towards
achievement of pre-determined goals.
It is concerned with formulation of
broad objectives, plans & policies.
Nature Management is an executing function. Administration is a decision-making
function.
On the Basis of Functions and Usage:
Basis Management Administration
Meaning Management is an art of getting things done
through others by directing their efforts towards
achievement of pre-determined goals.
It is concerned with formulation of
broad objectives, plans & policies.
Nature Management is an executing function. Administration is a decision-making
function.
Managerial Levels – Vertical Dimension
42
Top-management: e.g. Board
of Directors, CEO, President,
Vice President
Middle-management: e.g.
branch manager, department
head
First-line management: e.g.
supervisor, team leader
42
Top-management: e.g. Board
of Directors, CEO, President,
Vice President
Middle-management: e.g.
branch manager, department
head
First-line management: e.g.
supervisor, team leader
Top-management
•Managers at the level are ultimately responsible
for the following:
•Make long-term plans
•Establish policies
•Represent the company
•Referred to as executives of the company
•Oversees the overall planning for the company
•Example: The Board of Directors of the company
sets a goal of increasing company sales by 10% in
the next year
43
•Managers at the level are ultimately responsible
for the following:
•Make long-term plans
•Establish policies
•Represent the company
•Referred to as executives of the company
•Oversees the overall planning for the company
•Example: The Board of Directors of the company
sets a goal of increasing company sales by 10% in
the next year
43
Middle-management
•Managers at middle-level are responsible for the
following:
•Develop detailed plans and procedures to
implement goals
•Make decisions
•Direct first-level managers
•Example: Sales managers develop a new
advertising campaign for one of the company’s
products in order to achieve 10% sales growth in
next year.
44
•Managers at middle-level are responsible for the
following:
•Develop detailed plans and procedures to
implement goals
•Make decisions
•Direct first-level managers
•Example: Sales managers develop a new
advertising campaign for one of the company’s
products in order to achieve 10% sales growth in
next year.
44
First-line management
•First-line management is directly responsible for
the following:
•Implement plans
•Assist middle-level managers
•Oversee workers
•Oversee the day-to-day operations to ensure
the company is smoothly run
•Example: a store manager is responsible for
making sure that there are sufficient inventories
available for sale.
45
•First-line management is directly responsible for
the following:
•Implement plans
•Assist middle-level managers
•Oversee workers
•Oversee the day-to-day operations to ensure
the company is smoothly run
•Example: a store manager is responsible for
making sure that there are sufficient inventories
available for sale.
45
Importance of Management
1.It helps in Achieving Group Goals
2.Optimum Utilization of Resources
3.Reduces Costs
4.Establishes Sound Organization
5.Establishes Equilibrium
6.Essentials for Prosperity of Society
1.It helps in Achieving Group Goals
2.Optimum Utilization of Resources
3.Reduces Costs
4.Establishes Sound Organization
5.Establishes Equilibrium
6.Essentials for Prosperity of Society
Features of Management
1.Management is Goal-Oriented
2.Management integrates Human, Physical and Financial
Resources
3.Management is Continuous
4.Management is all Pervasive
5.Management is a Group Activity
6.Optimum Utilization of Resources
1.Management is Goal-Oriented
2.Management integrates Human, Physical and Financial
Resources
3.Management is Continuous
4.Management is all Pervasive
5.Management is a Group Activity
6.Optimum Utilization of Resources
Activity 1 – Group Discussion
•A restaurant wants to improve the service provided to its customers. One of
the targets is to reduce the waiting time for serving the food after the customer
places an order.
•Please design a controlling system to measure the efficiency of service and
customer satisfaction.
9
•A restaurant wants to improve the service provided to its customers. One of
the targets is to reduce the waiting time for serving the food after the customer
places an order.
•Please design a controlling system to measure the efficiency of service and
customer satisfaction.
9
Activity 1 – Suggested Solution
Step Action
1.Establishing
standard
The food will be ready in 20 minutes after customer places
an order.
2.Measuring actual
performance
Source of data: actual time taken to serve the food;
customer satisfaction survey.
Control criteria: time taken; satisfaction.
3.Comparing actual
performance with
standard
Identify if there are any discrepancies for the time taken
and the result of customer satisfaction survey.
4.Taking correct
action
See if it is too tough to get the food ready in 20 minutes if
the actual time required is far more than the standard and
revise the standard to be a more realistic and achievable
one.
10
Step Action
1.Establishing
standard
The food will be ready in 20 minutes after customer places
an order.
2.Measuring actual
performance
Source of data: actual time taken to serve the food;
customer satisfaction survey.
Control criteria: time taken; satisfaction.
3.Comparing actual
performance with
standard
Identify if there are any discrepancies for the time taken
and the result of customer satisfaction survey.
4.Taking correct
action
See if it is too tough to get the food ready in 20 minutes if
the actual time required is far more than the standard and
revise the standard to be a more realistic and achievable
one.
10
Activity 2 – Group Discussion
•The objective of ABC Limited is to reduce the production cost by 5%
this year. The production manager is therefore thinking about how to
achieve this goal. He tells the supervisor to enhance the quality
assurance procedure to reduce scrap rate and the waste of materials. He
also asks the merchandiser to negotiate the price with suppliers or to
reschedule the buying practice to obtain a bulk order discount.
•Describe the unity of command and unity of direction in this case.
13
•The objective of ABC Limited is to reduce the production cost by 5%
this year. The production manager is therefore thinking about how to
achieve this goal. He tells the supervisor to enhance the quality
assurance procedure to reduce scrap rate and the waste of materials. He
also asks the merchandiser to negotiate the price with suppliers or to
reschedule the buying practice to obtain a bulk order discount.
•Describe the unity of command and unity of direction in this case.
13
Activity 2 – Solution
Unity of Command Unity of Direction
PrincipleA subordinate must have one
supervisor and receive orders
only from him.
“One leader, one plan” to achieve the same
company objective.
ApplicationThe production manager gives
orders to his subordinates (i.e.
supervisor/ merchandiser) and
the subordinates should follow
the instruction of the manager
to perform their tasks.
The production manager in charge of
production activity (enhancement of quality
assurance) as well as buying activities
(negotiation of price, change of buying practice).
He directs his subordinates (i.e. supervisor and
merchandiser) to carry out such work to achieve
the goal of 5% reduction in production cost.
14
Unity of Command Unity of Direction
PrincipleA subordinate must have one
supervisor and receive orders
only from him.
“One leader, one plan” to achieve the same
company objective.
ApplicationThe production manager gives
orders to his subordinates (i.e.
supervisor/ merchandiser) and
the subordinates should follow
the instruction of the manager
to perform their tasks.
The production manager in charge of
production activity (enhancement of quality
assurance) as well as buying activities
(negotiation of price, change of buying practice).
He directs his subordinates (i.e. supervisor and
merchandiser) to carry out such work to achieve
the goal of 5% reduction in production cost.
14
Roles of Management
Decisional
Informational
Interpersonal
52
There are three general types of roles of management:
Decisional
Informational
Interpersonal
52
There are three general types of roles of management:
Decisional Role of Management
Managers should be able to make decisions such as deciding which new projects to invest,
handle unexpected event or crisis and assign resources between divisions of the company.
Example:
The Board of Directors considers whether to invest $3 million in research and
development of a new online game for young adults.
How will the management of an online game development company do when they are
facing a lawsuit from their competitor regarding the infringement of patent of a well
known game?
53
Managers should be able to make decisions such as deciding which new projects to invest,
handle unexpected event or crisis and assign resources between divisions of the company.
Example:
The Board of Directors considers whether to invest $3 million in research and
development of a new online game for young adults.
How will the management of an online game development company do when they are
facing a lawsuit from their competitor regarding the infringement of patent of a well
known game?
53
Informational Role of Management
Managers are required to receive and transmit both internal and external information for
analysis and decision-making.
Example:
The CEO of the online game developing company announces the financial performance
and future development of the company in its annual general meeting.
The Finance Manager reviews the financial report for announcement and explains it to
the CEO.
The Accounting Supervisor supervises the accounting staff to prepare the financial
report for Finance Manager’s review.
54
Managers are required to receive and transmit both internal and external information for
analysis and decision-making.
Example:
The CEO of the online game developing company announces the financial performance
and future development of the company in its annual general meeting.
The Finance Manager reviews the financial report for announcement and explains it to
the CEO.
The Accounting Supervisor supervises the accounting staff to prepare the financial
report for Finance Manager’s review.
54
Interpersonal Role of Management
Manager’s task is to co-ordinate different people of the company. i.e. to build
relationships with subordinates and outsiders.
Examples
Manager provides guidance to subordinates and resolves disputes or
grievances.
Manager also represents the company to interact with suppliers, customers
and investors.
55
Manager’s task is to co-ordinate different people of the company. i.e. to build
relationships with subordinates and outsiders.
Examples
Manager provides guidance to subordinates and resolves disputes or
grievances.
Manager also represents the company to interact with suppliers, customers
and investors.
55
Management as a set of roles
Day-to-day management activities are routine, orderly, and rational.
These include:
➢Interpersonal roles - communication with superiors, peers, subordinates,
and people from outside the organization.
➢Information Roles - obtaining, interpreting, and giving out information.
➢Decisional Roles - choosing among competing alternatives.
Day-to-day management activities are routine, orderly, and rational.
These include:
➢Interpersonal roles - communication with superiors, peers, subordinates,
and people from outside the organization.
➢Information Roles - obtaining, interpreting, and giving out information.
➢Decisional Roles - choosing among competing alternatives.
Activity 3 – Class Discussion
Identify the managerial role performed in each of the following activities.
Training
Budgeting
Hold meetings
Organising resources to develop new product
Hold press conference
Performing activities that involve outsiders
57
Identify the managerial role performed in each of the following activities.
Training
Budgeting
Hold meetings
Organising resources to develop new product
Hold press conference
Performing activities that involve outsiders
57
Activity 3 – Solution
Role Activities
Decisional Budgeting
Organising resources to develop new product
Informational Hold meetings
Hold press conference
interpersonal Training
Performing activities that involve outsiders
58
Role Activities
Decisional Budgeting
Organising resources to develop new product
Informational Hold meetings
Hold press conference
interpersonal Training
Performing activities that involve outsiders
58
Drafting the Case
1. Introduction
•Identify the key problems and issues in the case study.
•Formulate and include a thesis statement, summarizing the outcome of your analysis in 1–2 sentences.
2. Background
•Set the scene: background information, relevant facts, and the most important issues.
•Demonstrate that you have researched the problems in this case study.
3. Evaluation of the Case
•Outline the various pieces of the case study that you are focusing on.
•Evaluate these pieces by discussing what is working and what is not working.
•State why these parts of the case study are or are not working well.
4. Proposed Solution/Changes
•Provide specific and realistic solution(s) or changes needed.
•Explain why this solution was chosen.
•Support this solution with solid evidence, such as:
1.Concepts from class (text readings, discussions, lectures)
2.Outside research
3.Personal experience (anecdotes)
5. Recommendations
•Determine and discuss specific strategies for accomplishing the proposed solution.
•If applicable, recommend further action to resolve some of the issues.
•What should be done and who should do it?
6. Finalizing the Case
1. Introduction
•Identify the key problems and issues in the case study.
•Formulate and include a thesis statement, summarizing the outcome of your analysis in 1–2 sentences.
2. Background
•Set the scene: background information, relevant facts, and the most important issues.
•Demonstrate that you have researched the problems in this case study.
3. Evaluation of the Case
•Outline the various pieces of the case study that you are focusing on.
•Evaluate these pieces by discussing what is working and what is not working.
•State why these parts of the case study are or are not working well.
4. Proposed Solution/Changes
•Provide specific and realistic solution(s) or changes needed.
•Explain why this solution was chosen.
•Support this solution with solid evidence, such as:
1.Concepts from class (text readings, discussions, lectures)
2.Outside research
3.Personal experience (anecdotes)
5. Recommendations
•Determine and discuss specific strategies for accomplishing the proposed solution.
•If applicable, recommend further action to resolve some of the issues.
•What should be done and who should do it?
6. Finalizing the Case
Case study
A melting pot for forging success Peter Marsh FT MANAGEMENT IN THE NEWS Paul Belche uses a
culinary metaphor to explain how he tries to coax the best qualities from the mix of cultures at the steel
plant he runs in western Germany, close to the borders with France and Luxembourg. ‘If you mix the
yellow part of an egg with mustard and oil without being careful, you will produce something unexciting.
But, if you pay correct attention to the details, you end up with the best mayonnaise,’ he says. He is
explaining his approach to managing Dillinger Hütte, a global leader in specialist steels for applications
such as oil pipelines. Mr Belche’s tactics for getting the best out of his employees provide wider lessons
for managers of diverse workforces.
The company aims to take advantage of the different cultural characteristics of Saarland – the German
state where it is based that, over the centuries, has switched between French and German sovereignty. Of
the 5,500 employees in Dillinger, about 10 per cent have French as their main language, and the rest
German. Mr Belche, a 56-year-old physicist, is from Luxembourg. ‘The Germans are strong when it
comes to practical work. The French are good at theory and we try to get the best of these two
characteristics,’ he says. Mr Belche poses a question: ‘Who do you think would be better at plant safety –
the German [speakers] or the French? You might think it would be the Germans. But actually it’s the
French – they realise they are possibly behind in this field and so they work at it. Sometimes weakness can
be a strength – as long as it’s recognised.’
A melting pot for forging success Peter Marsh FT MANAGEMENT IN THE NEWS Paul Belche uses a
culinary metaphor to explain how he tries to coax the best qualities from the mix of cultures at the steel
plant he runs in western Germany, close to the borders with France and Luxembourg. ‘If you mix the
yellow part of an egg with mustard and oil without being careful, you will produce something unexciting.
But, if you pay correct attention to the details, you end up with the best mayonnaise,’ he says. He is
explaining his approach to managing Dillinger Hütte, a global leader in specialist steels for applications
such as oil pipelines. Mr Belche’s tactics for getting the best out of his employees provide wider lessons
for managers of diverse workforces.
The company aims to take advantage of the different cultural characteristics of Saarland – the German
state where it is based that, over the centuries, has switched between French and German sovereignty. Of
the 5,500 employees in Dillinger, about 10 per cent have French as their main language, and the rest
German. Mr Belche, a 56-year-old physicist, is from Luxembourg. ‘The Germans are strong when it
comes to practical work. The French are good at theory and we try to get the best of these two
characteristics,’ he says. Mr Belche poses a question: ‘Who do you think would be better at plant safety –
the German [speakers] or the French? You might think it would be the Germans. But actually it’s the
French – they realise they are possibly behind in this field and so they work at it. Sometimes weakness can
be a strength – as long as it’s recognised.’
His approach, he says, is to put teams of people from the different cultures together and
encourage them to learn from each other. The factory follows the French approach to
dining, with a siren announcing the end of the lunchtime break at 3pm, an hour later than is
normal at other German steelworks. ‘This is to give us time for a decent lunch,’ says Mr
Belche. When it comes to sales and technology, he says, the aim is to link the practical
aspects of steelmaking and its applications, which he considers more German, and the
theoretical, which he considers more French. This mixing of the practical and theoretical
must be linked to a single aim: making good products that will do a better job of solving
customers’ problems, Mr Belche says
encourage them to learn from each other. The factory follows the French approach to
dining, with a siren announcing the end of the lunchtime break at 3pm, an hour later than is
normal at other German steelworks. ‘This is to give us time for a decent lunch,’ says Mr
Belche. When it comes to sales and technology, he says, the aim is to link the practical
aspects of steelmaking and its applications, which he considers more German, and the
theoretical, which he considers more French. This mixing of the practical and theoretical
must be linked to a single aim: making good products that will do a better job of solving
customers’ problems, Mr Belche says
He sums up his philosophy: ‘The biggest costs are the ones that the accountant will miss. They come from
the products that you never developed or the prices [of specific types of steel] that you never reached
because you weren’t good enough at selling them.’ In the tough business of making money out of
steelmaking, it helps if companies can offer something special. In the effort to make this happen, the mix
of cultures at Dillinger provides a soufflé of experiences, Mr Belche believes, that gives it a decent chance
of success even in the current uncertain climate.
Discussion questions
1 Analyse the organisational behaviour elements of this article using the multidisciplinary framework .
What evidence can you find about factors relevant to each of the areas?
2 In the light of ideas put forward by Hofstede, Trompenaars and Hall, what do you think are the
advantages of having a culturally diverse workforce like this? What particular challenges do you think it
poses for managers
the products that you never developed or the prices [of specific types of steel] that you never reached
because you weren’t good enough at selling them.’ In the tough business of making money out of
steelmaking, it helps if companies can offer something special. In the effort to make this happen, the mix
of cultures at Dillinger provides a soufflé of experiences, Mr Belche believes, that gives it a decent chance
of success even in the current uncertain climate.
Discussion questions
1 Analyse the organisational behaviour elements of this article using the multidisciplinary framework .
What evidence can you find about factors relevant to each of the areas?
2 In the light of ideas put forward by Hofstede, Trompenaars and Hall, what do you think are the
advantages of having a culturally diverse workforce like this? What particular challenges do you think it
poses for managers
Dell Computers: the world at your fingertips
Breaking the mould The growth of the home personal computer (PC) market is one of the most
remarkable success stories of the last quarter century. If you own a home PC or an electronic notebook
and you live in the United States, then there is a one in three possibility that it arrived on your doorstep
packed in boxes labelled ‘Dell’. Whilst Dell has a smaller proportion of the PC market outside the
USA (it is locked in close competition with its nearest rival, Hewlett-Packard, which overtook Dell to
become the biggest seller of PCs in late 2008) there remains a strong possibility that your new PC was
assembled in Limerick, Penang or Xiamen. Any of these is a very long way from the bedroom of a campus
dormitory at the University of Texas at Austin, which is where Michael Dell began to build and sell
computers directly to customers in 1984 before dropping out of college to run his business full-time.
In 1984, building a PC from components was still a specialised activity, and while some people were able
to assemble their own equipment in order to save money and get precisely what they wanted, the
majority of domestic customers bought ready-made products from retailers. The distribution channel for
the industry usually contained five components: supplier (of components, chips, software etc.),
manufacturer, distributor, retailer and customer. Michael Dell’s idea was to sell direct, and at the
same time allow customers to have a PC partly tailored to their personal requirements by choosing options
from a list of components and specifications which he would then assemble to order. This move
eliminated two of the five elements of the distribution channel (the distributors and the retailers)
leaving only three players: the suppliers, Dell and the customer.
Breaking the mould The growth of the home personal computer (PC) market is one of the most
remarkable success stories of the last quarter century. If you own a home PC or an electronic notebook
and you live in the United States, then there is a one in three possibility that it arrived on your doorstep
packed in boxes labelled ‘Dell’. Whilst Dell has a smaller proportion of the PC market outside the
USA (it is locked in close competition with its nearest rival, Hewlett-Packard, which overtook Dell to
become the biggest seller of PCs in late 2008) there remains a strong possibility that your new PC was
assembled in Limerick, Penang or Xiamen. Any of these is a very long way from the bedroom of a campus
dormitory at the University of Texas at Austin, which is where Michael Dell began to build and sell
computers directly to customers in 1984 before dropping out of college to run his business full-time.
In 1984, building a PC from components was still a specialised activity, and while some people were able
to assemble their own equipment in order to save money and get precisely what they wanted, the
majority of domestic customers bought ready-made products from retailers. The distribution channel for
the industry usually contained five components: supplier (of components, chips, software etc.),
manufacturer, distributor, retailer and customer. Michael Dell’s idea was to sell direct, and at the
same time allow customers to have a PC partly tailored to their personal requirements by choosing options
from a list of components and specifications which he would then assemble to order. This move
eliminated two of the five elements of the distribution channel (the distributors and the retailers)
leaving only three players: the suppliers, Dell and the customer.
The opportunity to develop this new approach into a successful business was made possible by the
coalescence of three trends: increased levels of consumer confidence and knowledge about the
product itself; better and faster software which enabled first the phone-based and then the internet-
based ordering system to run effectively; and finally technological and manufacturing advances which
enabled Dell to lower the price of a PC to a level where it clearly became good value for money. Whilst
Dell supplied both business and individual customers, it was in the home PC market that the approach had
particular success. Each computer was assembled to order, with components purchased from suppliers as
they were required, so Dell was able to identify and respond to customer preferences and industry trends
very quickly, and without a significant amount of capital being tied up in inventory or stock (the value of
which would be declining rapidly as new and better products emerged). The system had the added
advantage that customers pre-paid for the goods, thus placing Dell on a firm financial footing from the
outset.
coalescence of three trends: increased levels of consumer confidence and knowledge about the
product itself; better and faster software which enabled first the phone-based and then the internet-
based ordering system to run effectively; and finally technological and manufacturing advances which
enabled Dell to lower the price of a PC to a level where it clearly became good value for money. Whilst
Dell supplied both business and individual customers, it was in the home PC market that the approach had
particular success. Each computer was assembled to order, with components purchased from suppliers as
they were required, so Dell was able to identify and respond to customer preferences and industry trends
very quickly, and without a significant amount of capital being tied up in inventory or stock (the value of
which would be declining rapidly as new and better products emerged). The system had the added
advantage that customers pre-paid for the goods, thus placing Dell on a firm financial footing from the
outset.
While this approach to the manufacture of consumer goods is by no means unique (the ‘lean
manufacturing’ approach is widely used in the car industry for example) and other players in the IT
market adopted it, Dell was able to make it work more successfully than its competitors. The basic
business model transferred readily to the internet, where the process of ‘mass customisation’ can be
managed even more effectively on-line.91 Dell’s growth at the turn of the century took it worldwide, and it
was placed first in a ranking of the ‘Most Admired Companies’ by Fortune magazine in February
2005. Dell has also won accolades for ethical standards of corporate behaviour.
Not all plain sailing The brand image which helped put Dell at the top of Fortune’s list in 2005 depended
very heavily on its ability to pull together both its own efforts and those of other organisations (i.e.
component manufacturers, transport and logistics organisations, delivery companies etc.), often in far-
flung regions of the world, to put together a package which offered both reliability and value for money
for its customers. As we have seen, its original strength was in its ability to cut out the ‘middle man’ and
deliver that package quickly and cheaply. But the IT business is both highly competitive and a
dizzyingly fast-moving environment; and in the early years of the 21st century Dell had to rebalance the
content of its package. The area where the Dell operation proved most vulnerable was that of customer
service and technical support. In the more traditional world of retail outlets, customers were able to
discuss purchases and return faulty equipment or seek support at a store. Such a network of
customer support was absent from the Dell model.
manufacturing’ approach is widely used in the car industry for example) and other players in the IT
market adopted it, Dell was able to make it work more successfully than its competitors. The basic
business model transferred readily to the internet, where the process of ‘mass customisation’ can be
managed even more effectively on-line.91 Dell’s growth at the turn of the century took it worldwide, and it
was placed first in a ranking of the ‘Most Admired Companies’ by Fortune magazine in February
2005. Dell has also won accolades for ethical standards of corporate behaviour.
Not all plain sailing The brand image which helped put Dell at the top of Fortune’s list in 2005 depended
very heavily on its ability to pull together both its own efforts and those of other organisations (i.e.
component manufacturers, transport and logistics organisations, delivery companies etc.), often in far-
flung regions of the world, to put together a package which offered both reliability and value for money
for its customers. As we have seen, its original strength was in its ability to cut out the ‘middle man’ and
deliver that package quickly and cheaply. But the IT business is both highly competitive and a
dizzyingly fast-moving environment; and in the early years of the 21st century Dell had to rebalance the
content of its package. The area where the Dell operation proved most vulnerable was that of customer
service and technical support. In the more traditional world of retail outlets, customers were able to
discuss purchases and return faulty equipment or seek support at a store. Such a network of
customer support was absent from the Dell model.
Initially Dell outsourced customer support (along with delivery), but as expectations about after-sales
service rose, its call centre support lagged behind these expectations resulting in some very public
criticism, not least of which was in the form of a long-running critical blog by dissatisfied customer and
journalist Jeff Jarvis. Dell brought its technical support centres back in-house; two were based in
Canada, but mostly they were ‘offshored’ (but not ‘outsourced’) to the Philippines, Malaysia and India,
where Dell opened new Business Centres in 2007. It also launched its own blog as a means of capturing
and responding to customer complaints. In July 2006, Dell’s share price dropped substantially after a
profit warning was issued following the decision to make a major investment in customer support systems.
The task then facing Dell’s management was to persuade investors that the proposed plan would result in
a long-term improvement of the company’s ability to stay ahead of the game and ultimately deliver a
good return on investment.
Why was this move necessary? To a large extent, the very success of Dell at the cheaper end of the market
meant that similar low-cost operators ceased to be a major competitive threat by the end of the 1990s.
However, as home computers became big business for more up-market companies and those which had
previously focused on business customers, Dell found itself competing directly with the very companies it
had side-stepped in the 1990s: HewlettPackard, Lenovo (the Chinese company which bought the IBM
computer manufacturing arm in 2005) and even Sony. These organisations were not only able to provide
high-quality, reliable products, but also had much stronger customer service support. This revealed a
strategic weakness in Dell’s operation and forced it to raise its game not only in terms of the computing
power it delivers, but also in terms of its after-sales service
service rose, its call centre support lagged behind these expectations resulting in some very public
criticism, not least of which was in the form of a long-running critical blog by dissatisfied customer and
journalist Jeff Jarvis. Dell brought its technical support centres back in-house; two were based in
Canada, but mostly they were ‘offshored’ (but not ‘outsourced’) to the Philippines, Malaysia and India,
where Dell opened new Business Centres in 2007. It also launched its own blog as a means of capturing
and responding to customer complaints. In July 2006, Dell’s share price dropped substantially after a
profit warning was issued following the decision to make a major investment in customer support systems.
The task then facing Dell’s management was to persuade investors that the proposed plan would result in
a long-term improvement of the company’s ability to stay ahead of the game and ultimately deliver a
good return on investment.
Why was this move necessary? To a large extent, the very success of Dell at the cheaper end of the market
meant that similar low-cost operators ceased to be a major competitive threat by the end of the 1990s.
However, as home computers became big business for more up-market companies and those which had
previously focused on business customers, Dell found itself competing directly with the very companies it
had side-stepped in the 1990s: HewlettPackard, Lenovo (the Chinese company which bought the IBM
computer manufacturing arm in 2005) and even Sony. These organisations were not only able to provide
high-quality, reliable products, but also had much stronger customer service support. This revealed a
strategic weakness in Dell’s operation and forced it to raise its game not only in terms of the computing
power it delivers, but also in terms of its after-sales service
The soul of Dell is keen to balance business performance with responsible operations; the overall
general philosophy is described by the company as ‘ The Soul of Dell’ and the Code of;
Conduct reflects its ambitions to conduct business the Dell Way – the right way, which is ‘Winning
with Integrity’. Simply put, we want all members of our team, along with our shareholders, customers,
suppliers and other stakeholders, to understand that they can believe what we say and trust what we do.
Feedback from the workforce as well as customers is clearly critical to the success of Dell, and the
workforce is encouraged to get involved in the process through its ‘ Tell Dell’ system.
There is change happening all across Dell, creating a revolution in how we interact and drive for business
results. Processes are changing, attitudes are shifting, objectives are being aligned, careers are being
enhanced and people are listening. Closely. At the core of it is Tell Dell. The Tell Dell survey program
has been continually refined over the past several years from being a good informational instrument to its
current use as a critical analytic and diagnostic tool for making Dell a better place to work and a
stronger company. Part of the Winning Culture philosophy is to engage directly with our employees,
the way we do with our customers. As managers at Dell, it is critical that we support our Winning Culture
by working to deliver an unbeatable employee experience each and every day.
general philosophy is described by the company as ‘ The Soul of Dell’ and the Code of;
Conduct reflects its ambitions to conduct business the Dell Way – the right way, which is ‘Winning
with Integrity’. Simply put, we want all members of our team, along with our shareholders, customers,
suppliers and other stakeholders, to understand that they can believe what we say and trust what we do.
Feedback from the workforce as well as customers is clearly critical to the success of Dell, and the
workforce is encouraged to get involved in the process through its ‘ Tell Dell’ system.
There is change happening all across Dell, creating a revolution in how we interact and drive for business
results. Processes are changing, attitudes are shifting, objectives are being aligned, careers are being
enhanced and people are listening. Closely. At the core of it is Tell Dell. The Tell Dell survey program
has been continually refined over the past several years from being a good informational instrument to its
current use as a critical analytic and diagnostic tool for making Dell a better place to work and a
stronger company. Part of the Winning Culture philosophy is to engage directly with our employees,
the way we do with our customers. As managers at Dell, it is critical that we support our Winning Culture
by working to deliver an unbeatable employee experience each and every day.
This case study is being written on a Dell computer. It was ordered from the front room of a terraced house
in the south of England at about 10pm one March evening. Within minutes, I had an email from Sunita at
the Hyderabad Customer Experience Centre to say she would be tracking my order to completion and
giving me updates on its progress. I could look at the progress it was making by following events on the
website, which told me that the components were on their way to Limerick, then that the PC had been
assembled, then that it had been dispatched to the distribution hub where it was joined by the chosen
accessories. I could see when it crossed from Ireland to the UK and when it had reached the local
distribution centre, and finally Sunita phoned me to announce the delivery day and time about one week
after the order was placed.
She rang again to ensure that it had arrived and was operating to my satisfaction. When I mentioned that
the cooling fan seemed rather noisy, she logged a call to the technical support team (also in India) and I
found myself, phone in one hand, screwdriver in the other, involved in what can only be described as the
postmodern experience of running a diagnostic test on my PC, with Sunita’s colleague talking me through
the process of opening the operating unit, dismantling the fan and checking the nature of the fault. As a
result, a local engineer was dispatched with a replacement component. Within ten days the whole
operation was complete to both my and Sunita’s satisfaction, and we said our farewells.
in the south of England at about 10pm one March evening. Within minutes, I had an email from Sunita at
the Hyderabad Customer Experience Centre to say she would be tracking my order to completion and
giving me updates on its progress. I could look at the progress it was making by following events on the
website, which told me that the components were on their way to Limerick, then that the PC had been
assembled, then that it had been dispatched to the distribution hub where it was joined by the chosen
accessories. I could see when it crossed from Ireland to the UK and when it had reached the local
distribution centre, and finally Sunita phoned me to announce the delivery day and time about one week
after the order was placed.
She rang again to ensure that it had arrived and was operating to my satisfaction. When I mentioned that
the cooling fan seemed rather noisy, she logged a call to the technical support team (also in India) and I
found myself, phone in one hand, screwdriver in the other, involved in what can only be described as the
postmodern experience of running a diagnostic test on my PC, with Sunita’s colleague talking me through
the process of opening the operating unit, dismantling the fan and checking the nature of the fault. As a
result, a local engineer was dispatched with a replacement component. Within ten days the whole
operation was complete to both my and Sunita’s satisfaction, and we said our farewells.
Your tasks
1 Analyse the organisational choices that Dell has made? Which approach do you think is more
appropriate and why?
2 What are the main organisational challenges which Dell faces in order to ‘conduct business the Dell
Way?’ What are the implications for line managers and supervisors of creating a corporate culture based
on the Dell Way?
3 Dell is using technologically sophisticated methods to collect ‘soft’ data about its performance from both
customers (Direct2Dell) and staff (Tell Dell). Evaluate these initiatives, and discuss the value of such
information in relation to ‘hard’ data (such as sales figures, share price etc.) as a management tool.
4 Critically review the concept of postmodernism as a means of understanding the nature of highly diverse
(in terms of geography, technology, organisation, technical specialisation and culture) organisations such
as Dell.
1 Analyse the organisational choices that Dell has made? Which approach do you think is more
appropriate and why?
2 What are the main organisational challenges which Dell faces in order to ‘conduct business the Dell
Way?’ What are the implications for line managers and supervisors of creating a corporate culture based
on the Dell Way?
3 Dell is using technologically sophisticated methods to collect ‘soft’ data about its performance from both
customers (Direct2Dell) and staff (Tell Dell). Evaluate these initiatives, and discuss the value of such
information in relation to ‘hard’ data (such as sales figures, share price etc.) as a management tool.
4 Critically review the concept of postmodernism as a means of understanding the nature of highly diverse
(in terms of geography, technology, organisation, technical specialisation and culture) organisations such
as Dell.
The Rise of Extreme Jobs
Before Barbara Agoglia left her job at American Express, she was spending 13 hours a day working
and commuting. She also had to be available via cell phone 24/7. The last straw came when she didn’t
have time to wait with her school-age son at his bus stop. Carolyn Buck also has an extreme job. She
usually works more than 60 hours a week for Ernst & Young and often has to travel to India and
China.
Agoglia and Buck are not alone. Most U.S. adults are working more hours than ever, but one group in
particular stands out: those with extreme jobs—people who spend more than half their time working and
commuting to and from work. More than 1.7 million people consider their jobs too extreme, according
to a recent study.
What accounts for the rise in extreme jobs? It’s not entirely clear, but the usual suspects of globalization
technology, and competitiveness are high on everyone’s lists.
As extreme as Agoglia and Buck’s jobs may seem, U.S. workers may have it comparatively easy. Most
surveys indicate extreme jobs are worse in developing counties. A 2006 Harvard Business Review study
of managers in 33 global companies indicated that compared to U.S. managers, managers in
developing countries were more than twice as likely to have extreme jobs.
Before Barbara Agoglia left her job at American Express, she was spending 13 hours a day working
and commuting. She also had to be available via cell phone 24/7. The last straw came when she didn’t
have time to wait with her school-age son at his bus stop. Carolyn Buck also has an extreme job. She
usually works more than 60 hours a week for Ernst & Young and often has to travel to India and
China.
Agoglia and Buck are not alone. Most U.S. adults are working more hours than ever, but one group in
particular stands out: those with extreme jobs—people who spend more than half their time working and
commuting to and from work. More than 1.7 million people consider their jobs too extreme, according
to a recent study.
What accounts for the rise in extreme jobs? It’s not entirely clear, but the usual suspects of globalization
technology, and competitiveness are high on everyone’s lists.
As extreme as Agoglia and Buck’s jobs may seem, U.S. workers may have it comparatively easy. Most
surveys indicate extreme jobs are worse in developing counties. A 2006 Harvard Business Review study
of managers in 33 global companies indicated that compared to U.S. managers, managers in
developing countries were more than twice as likely to have extreme jobs.
For those who hold extreme jobs, personal life often takes a back seat. Forty-four percent
take fewer than 10 vacation days per year. Many individuals with extreme jobs see
society changing into a “winner takes all” mode, where those who are willing to go the
extra mile will reap a disproportionate share of the intrinsic and extrinsic rewards.
Why do people take extreme jobs (or allow their jobs to become extreme)? A 2006 study
suggested that for both men and women, the number-one reason for working long, stressful
hours is not pay. Rather, it’s the rush they get from doing stimulating or challenging
work. As one Asian manager said, “Building this business in markets where no one has
done anything like this before is enormously exciting. And important. We’ve built
distribution centers that are vital to China’s growth—they contribute to the overall
prospects of our economy.”
take fewer than 10 vacation days per year. Many individuals with extreme jobs see
society changing into a “winner takes all” mode, where those who are willing to go the
extra mile will reap a disproportionate share of the intrinsic and extrinsic rewards.
Why do people take extreme jobs (or allow their jobs to become extreme)? A 2006 study
suggested that for both men and women, the number-one reason for working long, stressful
hours is not pay. Rather, it’s the rush they get from doing stimulating or challenging
work. As one Asian manager said, “Building this business in markets where no one has
done anything like this before is enormously exciting. And important. We’ve built
distribution centers that are vital to China’s growth—they contribute to the overall
prospects of our economy.”
Although this sounds all good, the situation is more complicated when you ask holders of extreme jobs
about what their jobs cost them. Among them, 66 percent of men and 77 percent of women say their job
interferes with their ability to maintain a home. For those with extreme jobs who have children, 65 percent
of men and 33 percent of women say it keeps them from having a relationship with their children.
The problem of overwork has become so pronounced in South Korea that many employers are forcing
employees to take time off and locking them out of their computer systems during scheduled vacation
times. Managers complain that Korean workers have become comparatively unproductive during their
work hours, in part because they are so exhausted they cannot perform effectively. One authority on
Korean society opines that employees are worried that if they do not work extreme hours, their
employers will see them as expendable.
Questions:-
1.Do you think you will ever have an extreme job? Are you sure? Explain.
2.Why do you think the number of extreme jobs has risen?
3.Do you think organizations should encourage extreme jobs, discourage them, or completely leave them
to an employee’s discretion?
4.Why do you think people take extreme jobs in the first place?
about what their jobs cost them. Among them, 66 percent of men and 77 percent of women say their job
interferes with their ability to maintain a home. For those with extreme jobs who have children, 65 percent
of men and 33 percent of women say it keeps them from having a relationship with their children.
The problem of overwork has become so pronounced in South Korea that many employers are forcing
employees to take time off and locking them out of their computer systems during scheduled vacation
times. Managers complain that Korean workers have become comparatively unproductive during their
work hours, in part because they are so exhausted they cannot perform effectively. One authority on
Korean society opines that employees are worried that if they do not work extreme hours, their
employers will see them as expendable.
Questions:-
1.Do you think you will ever have an extreme job? Are you sure? Explain.
2.Why do you think the number of extreme jobs has risen?
3.Do you think organizations should encourage extreme jobs, discourage them, or completely leave them
to an employee’s discretion?
4.Why do you think people take extreme jobs in the first place?
THANK YOU
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