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MANAGERIAL BEHAVIOUR
AND EFFECTIVENESS
UNIT – I
1. DEFINING THE MANAGERIAL JOB
1.1. Descriptive Dimensions of Managerial Jobs
1.2. Methods
1.3. Model
1.4. Time Dimensions in Managerial Jobs
1.5. Effective and Ineffective Job behavior
1.6. Functional and level differences in Managerial
Job behavior.
INTRODUCTION
• The manager is one who manages
himself/herself and is capable of
managing others for the accomplishment
of the organizational goals.
• Behaviour is conduct of a person.
DIMENSIONS OF MANAGERIAL JOB
Descriptive Behaviour
1. Gathering information, analysis & problem
solving
2. Planning & organizing the projects
3. Time management
4.Budgeting & financial management
HENDRY FAYOL MANAGERIAL
ACTIVITIES - FUNCTIONAL
• Technical (Production, Manufacturing)
• Commercial (Buying, selling, exchanging)
• Financial (obtaining and using capital)
• Security (Protecting of property and persons)
• Accounting (Balance sheet, Stock taking, Statistics and
costing)
• Managerial (Planning, organizing, commanding, co-
ordinating, control)
HENRY MINTZBERG ROLE DIMENSIONS
TIME MANAGEMENT
Act or process of exercising conscious
control over the amount of time spent on
specific activities to increase efficiency and
productivity
TIME MANAGEMENT PRINCIPLES
1. Principle of Brevity – Short Meetings, Comfortable for
prolong meetings.
2. Principle of Habit –routine meetings at the end of the
day
3. Delegation of authority – identify amount of work and
assigning
4. Time Estimates – Set a time limit
5. Principle of Prioritization – List and schedule as per
importance. Avoid big or small things
TIME MANAGEMENT PRINCIPLES
6. Write Goals: Paying off debts, finishing project
on dates.
7. Proper Implementation: Start meeting on
time. Reward people arrive on time rather than
laggards.
8. Proper planning and follow-up: Minutes
of meeting.
9. Principle of Effectiveness: Let subordinates
suggest solution.
THE TIME MANAGEMENT MATRIX
I
Activities:
Crises
Pressing Problems
Deadline-driven projects
II
Activities:
Prevention
Relationship Building
Recreation
New opportunities
III
Activities:
Interruption
Some Phone calls
Some mail
Some meetings
Popular activities
IV
Activities:
Trivia
Some mail
Some phone calls – Time
Wasters
Pleasure activities
Urgent Not Urgent
Important
Not
Important
SOME OF THE TIME WASTERS
Internal time wasters:
• Poor communication-written and verbal
• Procrastination
• Inability to say ‘No’
• Poor prioritizing
• Inadequate planning
• Failure to delegate
External time wasters
• Visitors
• Meetings
• Papers and correspondence
• Telephone
• Procedures and systems
• Travel
• Subordinates
TIME DIMENSIONS
• Three laws of time and effort management:
1. The law for planning time – Doing right work at
right time
2. The law for applying effort – Searching right
opportunity and utilizing
3. The law for investing talent – Utilization of talent
EFFECTIVE JOB BEHAVIOUR
INEFFECTIVE JOB BEHAVIOUR
LEVELS OF MANAGEMENT
• Top Level Management:
1. Determines the objectives, policies and plans of
the organisation.
2. Mobilises resources.
3. Work of thinking, planning and deciding. Called
as Brain of the organisation.
4. Prepare long-term plans
5. Final authority in the organisation.
6. Responsible to Shareholders, Government and
the General Public.
7. Success or failure depends on efficiency &
decision making.
8. They require more conceptual skills and less
technical Skills.
• Middle Level Management:
1. Middle level management gives recommendations
to the top level management.
2. It executes policies and plans.
3. Co-ordinate the activities of all the departments.
4. Communicate with the top level Management and
the lower level management.
5. Spend time in co-ordinating and communicating.
6. Prepare short-term plans of their departments
which are generally made for 1 to 5 years.
7. Intermediary between top and lower management.
8. Require more managerial and technical skills and
less conceptual skills.
• Lower Level Management:
1. Lower level management directs the workers /
employees.
2. Develop morale in the workers.
3. Maintains a link between workers and middle
management.
4. Inform the management about the
performance, difficulties, feelings, demands,
etc., of the workers.
5. Spend more time in directing and controlling.
6. The lower level managers make daily, weekly
and monthly plans.
7. Limited authority but important.
FUNCTIONAL LEVEL MANAGERS
1. Financial Manager: Responsible for accounting, cash management
and investment.
2. Marketing Manager: To develop new product, promote sales and
distribution of product or service.
3. Production Manager: In charge of production and maintenance of
machinery and equipments.
4. HR Manager: HRP, recruiting, selecting employees, T&D,
designing compensation and benefit system.
5. Operations Manager: Transform input to output. Deals with
layout, production, inventory and quality control.
6. Research and Development Manager: Coordinates the activities
of Scientist and engineers on scientific projects.
• General Managers:
– Not associated with any particular area.
– Basic familiarity with all the functions rather than
specialized training.
• Line Managers:
– Responsible for major work activities that
contribute to production or service.
• Staff Managers:
– Responsible for specialized services in support of
line managers
MODELS OF JOB BEHAVIOUR
• Heuristic Model: Indicates how the various managerial characteristics and
resourcefulness acting as inputs is being transformed into outputs through a
transformation process.
Organisation Environment
Individual
Characteristics
Intelligence
Aptitude
Knowledge
Temperament
Preference
Expectation
Ability
Motivation
Opportunity
Transformation Process
Managerial job
dimension
General functions
Special functions
Organisational Results
Profit Maximization
Organizational
efficiency
High Productivity
Employee satisfaction
Customer satisfaction
Person Process Product
MODELS OF JOB BEHAVIOUR
• Heroic Models of the manager
– It involves planning, assigning, monitoring and
coordinating the activities of the organisation.
– Participative decision-making is lacking in this model.
– It is manager centered and the success relies heavily on
control capabilities.
• Manager as Master Technician
– Emphasizes more on technical knowledge for success.
– More importance given for Individualistic attention and
expectations.
– Applicable in organizations where knowledge of
manager is very wide, interpersonal relations minimal
and where subordinates are not committed, co-operative
and highly dependent.
MODELS OF JOB BEHAVIOUR
• Manager as Conductor
Manager tries to resolve conflicts between managerial
and subordinate thinking.
Higher Involvement of subordinates in any activities.
Getting subordinates to buy ideas may be time
consuming.
• Manager as a Developer
Subordinates share managerial and task responsibility.
Crisis management is possible.
New opportunities can be assessed easily
Knowledge and expertise sharing becomes possible.
Creates opportunities for personal learning.
IDENTIFYING MANAGERIAL TALENT
• Talent identification is very important for
a business in identifying the talent within
their business, retaining that talent to
good use.
METHODS / WAYS OF IDENTIFYING
TALENT
• Traditional Method – IQ Test
• Interviews
• Simulations – work related behaviour
• Performance Appraisal – Individual’s record
of past managerial performance
STRATEGIES TO RETAIN TALENT
• Creating and Maintaining a Healthy Work Culture
• Employee Participation
• Provision of Benefits
• Fair and Competitive Salaries
• Fringe Benefits
• Training and Development
• Variety of Assignments
• Communicating Openly
• Flexibility
• Orientation Program
• Providing Best Possible Equipments
RECRUITMENT
Recruitment is the process of locating and
encouraging potential applicants to apply
for existing and anticipated job opening.
SOURCES OF RECRUITMENT
PROCESS OF RECRUITMENT
1. Recruitment Planning:
– Numbers of contact: number of applicants
necessary to fill all vacancies with the qualified
people.
– Types of contacts: qualifications and experience
expected.
2. Sources of Recruitment:
3. Contacting Sources:
• Objective Factor Theory: Evaluating based on characteristics of
employment offers, such as, financial compensation and
benefits, opportunities for advertisement, nature of work,
location etc.
• Subjective Factor Theory: Congruence between personality
patterns of the candidate and the image of the organization, and
the choice is made on highly personal and emotional basis.
• Critical Contact Theory: Candidate is unable to make a
meaningful differentiation of employment offers and terms of
objective and subjective factors because of his limited or very
short contact with the organization.
4. Application Pool: To attract as many candidates as possible.
5. Selection Process: Identify those with a greater likelihood of
success in a job.
SELECTION
• Employee Selection is the process of putting
right men on right job.
• It is a procedure of matching organizational
requirements with the skills and
qualifications of people.
PROCESS OF SELECTION
Placement Step 7
Hiring Decisions Step 6
Reference and Background Check Step 5
Medical Examination Step 4
Interview Step 3
Selection Tests Step 2
Screening Applicants Step 1
MANAGERIAL SKILL DEVELOPMENT
A systematic process of growth
and development by which the
managers develop their abilities
to manage.
METHODS OF MANAGERIAL
DEVELOPMENT PROGRAMME
• ON-THE-JOB TRAINING
On-the-Job training (OJT)
Job instruction training (JIT)
Coaching
Job Rotation
Understudy
Apprenticeship
METHODS OF MANAGERIAL
DEVELOPMENT PROGRAMME
• OFF-THE-JOB TRAINING
Lectures
Discussion Method
Demonstration
Simulation
Case Study
Role plays
Brain storming
Field Trip
METHODS OF TRAINING
EVALUATION
• Post-training performance evaluation.
• Pre- training performance evaluation.
• Attitudinal change.
• Test scores.
• Improvement in production or methods of
problem solving.
REWARDS
Objectives of Reward Management
• Support the organisation’s strategy
• Recruit & retain
• Motivate employees
• Internal & external equity
• Strengthen psychological contract
• Financially sustainable
• Comply with legislation
• Efficiently administered
TYPES OF REWARD
• Extrinsic rewards: concrete rewards that employee
receive.
– Bonuses
– Salary raise
– Gifts
– Promotion
– Other kinds of tangible rewards
• Intrinsic rewards: tend to give personal satisfaction to
individual
– Information / feedback
– Recognition
– Trust
– Relationship
– Empowerment
– Monogrammed name plaque
MOTIVATION THEORIES
Content (Need) Theories Process Theories Reinforcement Theories
a) Hierarchy Of Needs
b) ERG Theory
c) Manifest Needs
d) Two-Factor Theory
e) X And Y Theory
a) Equity Theory
b) Expectancy
Theory
c) Goal setting
Theory
a) Behavior Modification
b) Learning Theory
a) MASLOW’S HIERARCHY OF NEEDS
b) ALDERFER'S ERG THEORY
• Growth needs: Development of
competence and realization of
potential
• Relatedness needs: Satisfactory
relations with others
• Existence needs: Physical well-being
c) MANIFEST NEEDS BY MURRAY AND MCCLELLAND
Assumptions:
– There is no hierarchy of needs
– Needs are learned, not instinctive
– Needs are never completely satisfied
• (N Ach) Achievement
• (N Aff) Affiliation
• (N Aut) Autonomy
• (N Pow) Power (Dominance)
d) HERZBERG’S TWO FACTOR THEORY
Motivators (Intrinsic) Hygiene (Extrinsic)
Challenging work
Recognition
Responsibility
Status
Job security
Salary
Fringe benefits
Work conditions
e) MCGREGOR’S THEORY X AND THEORY Y
X THEORY Y THEORY
Employee does not like work.
He should be compelled, or warned
with punishment to achieve goals.
A close supervision is required on
part of managers.
Expect job security.
They have little or no aspiration/
ambition.
Employees generally dislike
responsibilities.
Employees resist change.
Employees needs formal direction.
Employees perceive job as relaxing
and normal.
No Need of supervision.
Employees can use self-direction and
self-control.
Employees’ show loyalty and
commitment to organization.
Employee can learn to admit and
recognize the responsibility.
The employees have skills and
capabilities.
2. PROCESS THEORY
a) Adam’s Equity Theory: Employees compare
their efforts and rewards with those of others
in similar work situations.
b) VROOM EXPECTANCY THEORY
Motivation (M) = Expectancy (E) * Instrumentality (I) * Valence (V)
• Expectancy is the person's perception that effort will result in performance.
• Instrumentality is the person's perception that performance will be
rewarded or punished.
• Valence is the strength of the reward or punishment that will result from the
performance.
c) GOAL SETTING THEORY
• Goal setting involves establishing SMART
goals.
• S – Specific
• M – Measurable
• A – Achievable
• R – Realistic
• T – Time Bound
3. REINFORCEMENT THEORIES
• Reinforcement theory of motivation was
proposed by BF Skinner.
• It is based on “law of effect”.
a) Behaviour Modification
• Positive Reinforcement- Ex: Immediately praising an employee for
coming early for job.
• Negative Reinforcement- Ex: A child cleans his or her room, and this
behavior is followed by the parent stopping “nagging”.
• Extinction: Weakening a behavior. Ex: Getting no goodies when do a
behavior, they stop doing it.
• Punishment: Example: Having your pay docked for lateness.
3. REINFORCEMENT THEORIES
b) Learning Theory
• Learning is a relatively permanent change in
behavior or potential behavior that results from
direct or indirect experience.
Key points:
• Changes in behavior
• Long-lasting effects
• Affects potential and actual behavior
• Caused by direct or indirect experience
METHODS OF PERFORMANCE APPRAISAL
• Ranking method
• Graphic scale rating method
• Forced choice method
• Essay appraisal method
• Paired comparison method
• Field review method
• Critical incidents method
• MBO method
BALANCE SCORECARD
Balance scorecard is a performance
measurement framework that translates an
organisation’s strategy in to clear objectives,
measures and targets.
CAREER MANAGEMENT
• A career is a person’s chosen profession or
occupation.
• A Career is all the jobs that held during
ones working life.
CAREER STAGES
1. Growth [4 to 13]: start to find ways to develop
competencies
2. Exploration [early teens to mid-twenties]: people begin
to crystallize, specify and implement an occupational
choice.
3. Establishment [mid-twenties through mid-forties]: a
suitable field is selected and efforts are made to secure
4. Maintenance [mid-forties to mid-sixties]: Stagnating
or enriching
5. Disengagement [mid-sixties]: decelerating from formal
employment to finding new roles with a view to retirement
CAREER MANAGEMENT ISSUES
• Career Plateau
• Dual career paths
– technical / professional vs. managerial
• Skills obsolescence
– continuous learning
• Balancing work and family
•
• Coping with job loss
UNIT III
Managerial Effectiveness
Managerial Effectives is a manager's ability to
achieve desired result.
Components of Managerial Effectiveness
• Leadership
• Motivation
• People Skills
• Administrative Skills
FACTORS INVOLVED IN
MANAGERIAL EFFECTIVENESS
• Role Performance
• Learning Behaviour
• Resilence
• Business Knowledge
MODELS OF MANAGERIAL EFFECTIVENESS
• Campbell, Dunnette, Lawler and Welek proposed PPP
Model
Organisation Environment
Individual
Characteristics
1. Intelligence
2. Aptitude
3. Knowledge
4. Temperament
5. Preference
6. Expectation
7. Ability
8. Motivation
9. Opportunity
Transformation Process
1. Planning
2. Goal setting
3. Decision Making
4. Delegating
5. Problem Solving
6. Communicating
7. Cooperating
8. Displaying
Organisational Results
1. Profit Maximization
2. Organizational
efficiency
3. Organizational
stability
4. High Productivity
5. Employee Welfare
6. Social Welfare
Person Process Product
PPP MODEL
• Person Approach: Individual manager’s
characteristic, traits and abilities.
• Process: Manager’s on-the-job behaviour and
activities
• Product: Outcome of effective management.
MEASURES OF MANAGERIAL
EFFECTIVENESS
• Superior’s Effectiveness and Performance
Ratings.
• Subordinates ratings of Satisfaction,
Organizational climate, Morale,
Motivation, and leadership Effectiveness.
• Unit Performance Indices.
MANAGERIAL GRID
BRIDGING THE GAP
• A managerial problem can be described
as the gap between a given current state
of affairs and a future desired state.
STEPS FOR PROBLEM SOLVING
• Problem Awareness
• Problem Definition
• Decision Making
• Action Plan Implementation
• Follow – Through
• Take Corrective Actions
MEASURING MANAGERIAL EFFECTIVENESS
• Supervisor’s Ratings
• Subordinate’s Ratings
• Unit Performance Indices
CURRENT INDUSTRIAL AND GOVERNMENT
PRACTICES
1. Procedures to ensure high quality of work
2. Arrange for training and EDPs
3. Career development program
4. Monitor the quality of work through
performance appraisal.
5. Verification of information through feedback.
CURRENT INDUSTRIAL AND GOVERNMENT
PRACTICES
6. Checking the accuracy of work.
7. Keep track of information or work progress.
8. Preparation for meetings and presentations.
9. Organizing information or materials.
10.Checking the accuracy of reports.
AREAS THAT REQUIRES ATTENTION
1. Developing Initiative
Drive: High motivation for work
Energy: Enthusiastic in work place.
Self-starter: Does jobs proactively
AREAS THAT REQUIRES ATTENTION
2. Encouraging self management approach
Team player: Works in a team, supports and
encourages team members.
Leader: Defines goals and standards of performance,
delegates work.
Develops subordinates: Identifies, train & involves
people in all activities.
Disciplined: Maintains decorum of the workplace,
has respect for others
AREAS THAT REQUIRES ATTENTION
3. Facilitating appropriate Communication
Articulate: Can communicate.
Persuasive: Sticks to a problem until it is
resolved.
Supportive: Supports subordinates.
Confident: Confidence in his values and action.
MANAGER AS AN OPTIMIZER
• Effective manager is said to be an optimizer in
utilizing all the available and potential
resources
• Effective manager is expected to work as an
optimizer by focusing on low waste and high
goal attainment.
COMPONENTS OF MAKING
MANAGER AN EFFECTIVE OPTIMIZER
• Mentoring
• Feedback
• Counseling
• Discipline
UNIT - IV
ENVIRONMENTAL ISSUES
IN MANAGERIAL
EFFECTIVENESS
ENVIRONMENTAL ISSUES IN
MANAGERIAL EFFECTIVENESS
• Changes in Social Environment
• Changes in Economic Environment
• Changes in Technical Environment
• Changes in Political Environment
• Changes in International Environment
Changes in Social Environment
• Population Explosion: New jobs, New method
of production and modes of living
• Educational Level: Eradicate literacy. Increase
Education level. Educated consumers
&Workers.
• Leisure Time: Reduced work hrs. Increased
automation. Tourism/Part time Jobs.
• Public Opinion: If people distrust market
system, they prefer government controls.
Changes in Economic Environment
• Environment will not remain confined to
land but would extend to ocean and space.
• Business Competition crosses national
borders.
• Big organizations continue to grow.
• Small firms will be needed to serve as
feeders to larger ones.
Changes in Technological Environment
• Automation:
– Jobs become routine and unchallenging.
– Robots created job-insecurity.
– Future organisation will be highly automated
man-machine system
• Information Technology:
– Electronic equipment to collect and process
data
– Simulation of higher order thinking
Changes in Political Environment
• Greater government interfaces to safeguard
the interest of workers, consumers & public.
• Government may restrict the scope of private
sectors in certain areas.
• Financial units will take active part in the
policy formulation of the firms whom they
have advanced funds.
Changes in International Environment
• Multilateral trade among the nations will
increase.
• The role of IMF, world bank and others will
change changes the globalization of
economies.
• The number of MNCs will increase.
PURPOSE OF ORGANIZING
• Facilitates Administration
• Facilitates growth and direction
• Facilitates adoption of new technology
• Stimulates creativity and initiative
• Intensive use of human resource
ORGANIZATIONAL PROCESSES
• Planning
• Communication
• Problem-Solving and Decision–Making
• Monitoring and Evaluation
IMPORTANCE OF ORGANISATION
• Optimum Utilization Of Resources
• Ensures Co-ordination
• Facilitates Effective Management
• Motivate Personnel
• Facilitates Delegation Of Authority
• Encourages Initiative And Innovation
• Technological Improvements
• Facilitates Growth
ORGANISATION AS A PROCESS
• Division of work
• Grouping of activities
• Assignment of duties
• Delegation of authority
• Defining relationship
ORGANIZATIONAL CLIMATE
Organizational climate is a set of
properties of the work environment,
perceived directly or indirectly by the
employees, that is assumed to be a major
force in influencing employee behavior.
CHARACTERISTICS OF ORGANIZATIONAL CLIMATE
• General Perception: Organizational climate is a general expression
of what the organization is.
• Qualitative Concept: It is an abstract and intangible concept. It is
difficult to explain the components of organizational climate in
quantifiable units.
• Distinct Identity: It reflects how an organization is different from
other organizations.
• Enduring quality: Represents a relatively enduring quality of the
internal environment that is experienced by the organizational
members.
• Multi – dimensional concept: Individual autonomy, authority
structure, leadership style, pattern of communication, degree of
conflicts and cooperation, etc.
FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
• Organizational context – mission, goals and objectives, function, etc.
• Organization structure – size, degree of centralization and operating
procedures.
• Leadership process – leadership styles, communication, decision-making
and related processes.
• Physical environment – employee safety, environmental stresses and
physical space characteristics.
• Organizational values and norms – conformity, loyalty, impersonality
and reciprocity.
• Overt & Covert factors of Organization climate
– Open factor: Hierarchy, Goals of organisation, Skills and abilities of employees
– Closed factor: Values, attitudes, Norms
APPROACHES TO LEADERSHIP
Early Approaches Contemporary Approaches
Trait
Theory
Behaviour
Theory
Situational Theory Transactional –
Transformational
Leaders
Charismatic
Leadership
Theory
Stogdill’s
Trait Factor
University
Iowa Studies
Fiedler’s Contingency Model
Leader
Continuum
Hersey and Blanchard’s
Situational Leadership
Ghiselli ‘s
Personal
Traits
Ohio State
University
Studies
Leadership Participation
Michingan
Research
Tannenbaum & Schmidt’s
Situational Continuum
Managerial
Grid
Path Goal Theory
Reddin’s Three Dimensional
Model
STOGDILL’S TRAIT FACTORS
1. Intelligence
2. Physical Features
3. Inner Motivation Drive
4. Maturity
5. Vision and Foresight
6. Acceptance of Responsibility
7. Open-mind and Adaptability
8. Self-Confidence
9. Human Relations Attitude
10.Fairness of Objectivity
GHISELLI ‘S PERSONAL TRAITS
1. Very Important
 Decisiveness
 Intellectual capacity
 Job achievement orientation
 Self-actualization feelings
 Self-confidence
 Management ability – Team builder
2. Moderately Important
 Affinity for working class
 Drive and initiative
 Need for a lot of money
 Need for job security
 Personal maturity
3. Almost No Importance
 Masculinity versus femininity
UNIVERSITY IOWA STUDIES
Behaviour Theories are based on
1. Employee-Centered
2. Job-Centered
University Iowa Studies
• Autocratic Leadership Style
• Democratic Leadership Style
LEADER CONTINUUM
• Autocratic
• Laissez – Faire
• Democratic
• Benevolent Autocrat
OHIO STATE UNIVERSITY STUDIES
• Initiating Structure
• Consideration
The findings of the study:
1. Initiating Structure: Positively related to
performance and negatively related to
absenteeism & Grievances.
2. Consideration: Negatively related to performance
and positively related to absenteeism &
Grievances.
3. Both: High performance and satisfaction
MICHINGAN RESEARCH
• Employee Centered Behaviour
• Production Centered Behaviour
Leaders will not be able to have an employee centered
behaviour and production centered behaviour at the same
time.
Employee Centered
Job Centered
MANAGERIAL GRID
• Concern for Production
• Concern for People
FIEDLER’S CONTINGENCY MODEL
• Task-oriented or controlling: Leader gains
satisfaction from seeing tasks performed
• Relationship-oriented or considerate:
Leader tries to achieve good interpersonal
relations with the subordinates.
HERSEY AND BLANCHARD’S SITUATIONAL
LEADERSHIP
LEADERSHIP PARTICIPATION
Leadership Styles
• Decide: Leader makes the decision alone and either announces or sells it to
the group.
• Consult Individually: Leader presents the problem to group members
individually and get their suggestions.
• Consult Group: Leader presents the problem to group in a meeting and
then makes a decision.
• Facilitate: Leader presents the group about the problem and the
boundaries within which a decision should be made.
• Delegate: Leader permits the group to make the decision within prescribed
limits.
TANNENBAUM AND SCHMIDT’S SITUATIONAL
CONTINUUM
PATH GOAL THEORY
The theory states that a leader's behavior is
dependent to the satisfaction, motivation and
performance of her or his subordinates.
REDDIN’S THREE DIMENSIONAL MODEL
Basic Style
Less Effective
Managerial Style
More Effective
Managerial Style
Separated Deserter Bureaucrat
Related Missionary Developer
Dedicated Autocrat Benevolent Autocrat
Integrated Compromiser Executive
• High relationship orientation & high task orientation is called
as INTEGRATED TYPE.
• High relationship orientation & low task orientation is called as
RELATED TYPE.
• Low relationship orientation & high task orientation is called as
DEDICATED TYPE.
• Low relationship orientation & low task orientation is called as
SEPARATED TYPE
TRANSACTIONAL –TRANSFORMATIONAL
LEADERS
• Transactional Leaders: Leaders who guide or
motivate their followers in the direction of
established goals by clarifying role and task
requirements.
• Transformational Leaders: Leaders who inspire
followers to transcend their own self-interests
and who are capable of having a profound and
extraordinary effect on followers.
CHARISMATIC LEADERSHIP THEORY
• Followers make attributions of heroic or
extraordinary leadership abilities when they
observe certain behaviors.
• The leader Communicates an attractive vision.
• Charismatic leader is the one who use his
personal charm to get things done. This can be an
extremely powerful way to lead others.
• The leader then communicates high performance
expectations and expresses confidence that
followers can attain them.
GROUP INFLUENCES
• Group may be defined as two or more
individuals interacting and interdependent,
who have come together to achieve
particular objectives.
DIFFERENT TYPES OF GROUPS
• Formal group
• Informal groups
• Psychological groups– extension of informal
groups
• Virtual Groups
• Interacting, Co-acting, and Counteracting
Groups
• Open and Closed Groups
• Closed groups
• Membership and Referent Groups
• In and out groups: In
FACTORS INFLUENCING GROUP
EFFECTIVENESS
• Work Team Structure Issues:
– Goals & Objectives
– Guidelines
– Performance measures
– Role specification.
• Work Team Process Issues
– Managing cooperative behaviors
– Managing competitive behaviors
• Diversity in Teams
– Plays a large role in groups’ effectiveness.
– Members contribute to team in one of four styles:
• Contributor
• Collaborator
• Communicator
• Challenger
• Integrator
• Dissimilarity in Teams
– Demographic dissimilarity influences absenteeism, commitment, turnover intentions, beliefs,
workgroup relationships, self-esteem, and organizational citizenship behavior.
– Can have positive or negative effects on teams
– Value dissimilarity negatively related to team involvement
• Structural Diversity
JOB CHALLENGE
• Job Challenge refers to the opportunity for
professionals to make fullest use of their
Skills.
JOB CHALLENGES FACED BY MANAGERS
• Unfamiliar Responsibilities
• Inherited Problems
• High Stakes
• External Pressure
• Work Across Cultures
• New Directions
• Problems with Employees
• Scope and Scale
• Influence without authority
• Work Group Diversity
COMPETITIVENESS
The degree to which a country can, under
free and fair market conditions, produce
goods and services which meet the test of
international markets, while simultaneously
maintaining and expanding the real incomes
of its people over the long-term
FACTORS INFLUENCING COMPETITIVENESS
• Domestic economy
• Internationalization
• Government
• Finance
• Infrastructure
• Management
• Science and technology
• Quality of people
MANAGERIAL STYLES
• Democratic Style
• Affliative Style
• Pacesetting Style
• Authoritative Style
• Coercive Style
• Coaching Style
UNIT V
DEVELOPING THE WINNING EDGE
 Self Development
Negotiation Skill
Knowledge Management
Developing competitive Spirit
Fostering Creativity & Innovation
NEGOTIATION
• Negotiation is a dialogue between two or more
people or parties, intended to reach an
understanding and resolve point of difference.
Skills Required
Attitude
Personal Skill
Knowledge on Problem
Defining Outcome
Framing & Reframing
NEGOTIATION PROCESS
Preparation & planning
Defining Ground Rules
Clarification & Justification
Bargaining & Problem Solving
Closure & implementation
APPROACHES TO NEGOTIATION
• Distributive Bargaining
Claiming value / Zero-Sum / Win-Lose
A competitive negotiation strategy used to
decide how to distribute a fixed resource.
• Integrative Bargaining
Interest Based / Collaborative / Win-Win
A negotiation strategy in which parties
collaborate to find a win-win solution to a
problem
ISSUES IN NEGOTIATION
• Biases in Decision Making
• Personality Traits
• Cultural Differences
• Third party Negotiation
Mediator: Mutually Satisfy & Strengthen Relationship
Arbitrator: Authority to dictate an outcome. Advantage is that
negotiations they are involved in always results in a settlement.
Conciliator: Someone acting only as a communication medium.
Consultant: Facilitate problem solving through communication &
analysis.
KNOWLEDGE MANAGEMENT
• KM comprise a wide range of strategy and
practices used in an organisation to create,
identify, store, share and application of
knowledge and experience.
Components of KM
Technology Component
Organisation Component
People Component
DRIVERS OF KM
 Technology Drivers
Process Drivers
Knowledge Related
Organisation Drivers
HR / Personnel Specific Drivers
Financial Drivers
KM PROCESS
• Knowledge Creation
• Knowledge Storage
• Knowledge Sharing
• Knowledge Sharing
Knowledge Conversion Process
• Tacit to Tacit - Socialization
• Tacit to Explicit - Externalization
• Explicit to Tacit - Internalization
• Explicit to Explicit - Communication
DIFFICULTIES IN KM
1. Justification of investment in KM
2. Support from Senior Management
3. Overcoming Cultural Hurdles
4. Encouraging Employees to use and share
knowledge
5. Confidentiality Issues
6. Collection & Storage of Wrong Information
7. Measure
8. KM system is not a static system
CREATIVITY
• Creativity is a mental and social process
involving the generation of new ides or
concepts
FOSTERING CREATIVITY
• Idea Box / Matrix Analysis: Input | Frequency |
Subject | Target Group.
• Heuristic: Rapidly coming to solution that is hoped to
be close to best
• Mind Mapping: Think visually about issues and
problems
• Synectics: Joining together of different unconnected
and irrelevant.
• Metaphor: Ability to link 2 different things
FOSTERING CREATIVITY
• Brainstorming: Discussion
• Forced Relationship: Finding relationship between 2
things.
• Visual Thinking: Graphs, diagrams, charts and
Models
• Morphological Analysis: Work at Various problem
and combining them to a new and novel ways.
• Serendipity: Discover of things by happy accidents or
chance.
INNOVATION
• Ability to create something new based on knowledge that has bee
attained.
Types
1. Product
2. Process
3. Paradigm
4. Radical
5. Systems
6. Incremental
7. Additive
8. Complementing
9. Technology
SOURCES OF INNOVATION
1. Unexpected Outcomes
2. Incongruities (Unsuitable)
3. Process Needs
4. Industry & Market Change
5. Demographic Change
6. Perceptual Changes
7. Knowledge Based Concepts
FACTORS INFLUENCING
INNOVATION & CREATIVITY
• Complex & Challenging Jobs
• Diversity
• Coworker
• Resources
• Adaptability
• Conflicts

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MBE

  • 2. UNIT – I 1. DEFINING THE MANAGERIAL JOB 1.1. Descriptive Dimensions of Managerial Jobs 1.2. Methods 1.3. Model 1.4. Time Dimensions in Managerial Jobs 1.5. Effective and Ineffective Job behavior 1.6. Functional and level differences in Managerial Job behavior.
  • 3. INTRODUCTION • The manager is one who manages himself/herself and is capable of managing others for the accomplishment of the organizational goals. • Behaviour is conduct of a person.
  • 4. DIMENSIONS OF MANAGERIAL JOB Descriptive Behaviour 1. Gathering information, analysis & problem solving 2. Planning & organizing the projects 3. Time management 4.Budgeting & financial management
  • 5.
  • 6.
  • 7. HENDRY FAYOL MANAGERIAL ACTIVITIES - FUNCTIONAL • Technical (Production, Manufacturing) • Commercial (Buying, selling, exchanging) • Financial (obtaining and using capital) • Security (Protecting of property and persons) • Accounting (Balance sheet, Stock taking, Statistics and costing) • Managerial (Planning, organizing, commanding, co- ordinating, control)
  • 8. HENRY MINTZBERG ROLE DIMENSIONS
  • 9. TIME MANAGEMENT Act or process of exercising conscious control over the amount of time spent on specific activities to increase efficiency and productivity
  • 10. TIME MANAGEMENT PRINCIPLES 1. Principle of Brevity – Short Meetings, Comfortable for prolong meetings. 2. Principle of Habit –routine meetings at the end of the day 3. Delegation of authority – identify amount of work and assigning 4. Time Estimates – Set a time limit 5. Principle of Prioritization – List and schedule as per importance. Avoid big or small things
  • 11. TIME MANAGEMENT PRINCIPLES 6. Write Goals: Paying off debts, finishing project on dates. 7. Proper Implementation: Start meeting on time. Reward people arrive on time rather than laggards. 8. Proper planning and follow-up: Minutes of meeting. 9. Principle of Effectiveness: Let subordinates suggest solution.
  • 12. THE TIME MANAGEMENT MATRIX I Activities: Crises Pressing Problems Deadline-driven projects II Activities: Prevention Relationship Building Recreation New opportunities III Activities: Interruption Some Phone calls Some mail Some meetings Popular activities IV Activities: Trivia Some mail Some phone calls – Time Wasters Pleasure activities Urgent Not Urgent Important Not Important
  • 13. SOME OF THE TIME WASTERS Internal time wasters: • Poor communication-written and verbal • Procrastination • Inability to say ‘No’ • Poor prioritizing • Inadequate planning • Failure to delegate External time wasters • Visitors • Meetings • Papers and correspondence • Telephone • Procedures and systems • Travel • Subordinates
  • 14. TIME DIMENSIONS • Three laws of time and effort management: 1. The law for planning time – Doing right work at right time 2. The law for applying effort – Searching right opportunity and utilizing 3. The law for investing talent – Utilization of talent
  • 18. • Top Level Management: 1. Determines the objectives, policies and plans of the organisation. 2. Mobilises resources. 3. Work of thinking, planning and deciding. Called as Brain of the organisation. 4. Prepare long-term plans 5. Final authority in the organisation. 6. Responsible to Shareholders, Government and the General Public. 7. Success or failure depends on efficiency & decision making. 8. They require more conceptual skills and less technical Skills.
  • 19. • Middle Level Management: 1. Middle level management gives recommendations to the top level management. 2. It executes policies and plans. 3. Co-ordinate the activities of all the departments. 4. Communicate with the top level Management and the lower level management. 5. Spend time in co-ordinating and communicating. 6. Prepare short-term plans of their departments which are generally made for 1 to 5 years. 7. Intermediary between top and lower management. 8. Require more managerial and technical skills and less conceptual skills.
  • 20. • Lower Level Management: 1. Lower level management directs the workers / employees. 2. Develop morale in the workers. 3. Maintains a link between workers and middle management. 4. Inform the management about the performance, difficulties, feelings, demands, etc., of the workers. 5. Spend more time in directing and controlling. 6. The lower level managers make daily, weekly and monthly plans. 7. Limited authority but important.
  • 21. FUNCTIONAL LEVEL MANAGERS 1. Financial Manager: Responsible for accounting, cash management and investment. 2. Marketing Manager: To develop new product, promote sales and distribution of product or service. 3. Production Manager: In charge of production and maintenance of machinery and equipments. 4. HR Manager: HRP, recruiting, selecting employees, T&D, designing compensation and benefit system. 5. Operations Manager: Transform input to output. Deals with layout, production, inventory and quality control. 6. Research and Development Manager: Coordinates the activities of Scientist and engineers on scientific projects.
  • 22. • General Managers: – Not associated with any particular area. – Basic familiarity with all the functions rather than specialized training. • Line Managers: – Responsible for major work activities that contribute to production or service. • Staff Managers: – Responsible for specialized services in support of line managers
  • 23. MODELS OF JOB BEHAVIOUR • Heuristic Model: Indicates how the various managerial characteristics and resourcefulness acting as inputs is being transformed into outputs through a transformation process. Organisation Environment Individual Characteristics Intelligence Aptitude Knowledge Temperament Preference Expectation Ability Motivation Opportunity Transformation Process Managerial job dimension General functions Special functions Organisational Results Profit Maximization Organizational efficiency High Productivity Employee satisfaction Customer satisfaction Person Process Product
  • 24. MODELS OF JOB BEHAVIOUR • Heroic Models of the manager – It involves planning, assigning, monitoring and coordinating the activities of the organisation. – Participative decision-making is lacking in this model. – It is manager centered and the success relies heavily on control capabilities. • Manager as Master Technician – Emphasizes more on technical knowledge for success. – More importance given for Individualistic attention and expectations. – Applicable in organizations where knowledge of manager is very wide, interpersonal relations minimal and where subordinates are not committed, co-operative and highly dependent.
  • 25. MODELS OF JOB BEHAVIOUR • Manager as Conductor Manager tries to resolve conflicts between managerial and subordinate thinking. Higher Involvement of subordinates in any activities. Getting subordinates to buy ideas may be time consuming. • Manager as a Developer Subordinates share managerial and task responsibility. Crisis management is possible. New opportunities can be assessed easily Knowledge and expertise sharing becomes possible. Creates opportunities for personal learning.
  • 26. IDENTIFYING MANAGERIAL TALENT • Talent identification is very important for a business in identifying the talent within their business, retaining that talent to good use.
  • 27. METHODS / WAYS OF IDENTIFYING TALENT • Traditional Method – IQ Test • Interviews • Simulations – work related behaviour • Performance Appraisal – Individual’s record of past managerial performance
  • 28. STRATEGIES TO RETAIN TALENT • Creating and Maintaining a Healthy Work Culture • Employee Participation • Provision of Benefits • Fair and Competitive Salaries • Fringe Benefits • Training and Development • Variety of Assignments • Communicating Openly • Flexibility • Orientation Program • Providing Best Possible Equipments
  • 29. RECRUITMENT Recruitment is the process of locating and encouraging potential applicants to apply for existing and anticipated job opening.
  • 32. 1. Recruitment Planning: – Numbers of contact: number of applicants necessary to fill all vacancies with the qualified people. – Types of contacts: qualifications and experience expected. 2. Sources of Recruitment:
  • 33. 3. Contacting Sources: • Objective Factor Theory: Evaluating based on characteristics of employment offers, such as, financial compensation and benefits, opportunities for advertisement, nature of work, location etc. • Subjective Factor Theory: Congruence between personality patterns of the candidate and the image of the organization, and the choice is made on highly personal and emotional basis. • Critical Contact Theory: Candidate is unable to make a meaningful differentiation of employment offers and terms of objective and subjective factors because of his limited or very short contact with the organization. 4. Application Pool: To attract as many candidates as possible. 5. Selection Process: Identify those with a greater likelihood of success in a job.
  • 34. SELECTION • Employee Selection is the process of putting right men on right job. • It is a procedure of matching organizational requirements with the skills and qualifications of people.
  • 35. PROCESS OF SELECTION Placement Step 7 Hiring Decisions Step 6 Reference and Background Check Step 5 Medical Examination Step 4 Interview Step 3 Selection Tests Step 2 Screening Applicants Step 1
  • 36. MANAGERIAL SKILL DEVELOPMENT A systematic process of growth and development by which the managers develop their abilities to manage.
  • 37. METHODS OF MANAGERIAL DEVELOPMENT PROGRAMME • ON-THE-JOB TRAINING On-the-Job training (OJT) Job instruction training (JIT) Coaching Job Rotation Understudy Apprenticeship
  • 38. METHODS OF MANAGERIAL DEVELOPMENT PROGRAMME • OFF-THE-JOB TRAINING Lectures Discussion Method Demonstration Simulation Case Study Role plays Brain storming Field Trip
  • 39. METHODS OF TRAINING EVALUATION • Post-training performance evaluation. • Pre- training performance evaluation. • Attitudinal change. • Test scores. • Improvement in production or methods of problem solving.
  • 40. REWARDS Objectives of Reward Management • Support the organisation’s strategy • Recruit & retain • Motivate employees • Internal & external equity • Strengthen psychological contract • Financially sustainable • Comply with legislation • Efficiently administered
  • 41. TYPES OF REWARD • Extrinsic rewards: concrete rewards that employee receive. – Bonuses – Salary raise – Gifts – Promotion – Other kinds of tangible rewards • Intrinsic rewards: tend to give personal satisfaction to individual – Information / feedback – Recognition – Trust – Relationship – Empowerment – Monogrammed name plaque
  • 42. MOTIVATION THEORIES Content (Need) Theories Process Theories Reinforcement Theories a) Hierarchy Of Needs b) ERG Theory c) Manifest Needs d) Two-Factor Theory e) X And Y Theory a) Equity Theory b) Expectancy Theory c) Goal setting Theory a) Behavior Modification b) Learning Theory
  • 44. b) ALDERFER'S ERG THEORY • Growth needs: Development of competence and realization of potential • Relatedness needs: Satisfactory relations with others • Existence needs: Physical well-being
  • 45. c) MANIFEST NEEDS BY MURRAY AND MCCLELLAND Assumptions: – There is no hierarchy of needs – Needs are learned, not instinctive – Needs are never completely satisfied • (N Ach) Achievement • (N Aff) Affiliation • (N Aut) Autonomy • (N Pow) Power (Dominance)
  • 46. d) HERZBERG’S TWO FACTOR THEORY Motivators (Intrinsic) Hygiene (Extrinsic) Challenging work Recognition Responsibility Status Job security Salary Fringe benefits Work conditions
  • 47. e) MCGREGOR’S THEORY X AND THEORY Y X THEORY Y THEORY Employee does not like work. He should be compelled, or warned with punishment to achieve goals. A close supervision is required on part of managers. Expect job security. They have little or no aspiration/ ambition. Employees generally dislike responsibilities. Employees resist change. Employees needs formal direction. Employees perceive job as relaxing and normal. No Need of supervision. Employees can use self-direction and self-control. Employees’ show loyalty and commitment to organization. Employee can learn to admit and recognize the responsibility. The employees have skills and capabilities.
  • 48. 2. PROCESS THEORY a) Adam’s Equity Theory: Employees compare their efforts and rewards with those of others in similar work situations.
  • 49. b) VROOM EXPECTANCY THEORY Motivation (M) = Expectancy (E) * Instrumentality (I) * Valence (V) • Expectancy is the person's perception that effort will result in performance. • Instrumentality is the person's perception that performance will be rewarded or punished. • Valence is the strength of the reward or punishment that will result from the performance.
  • 50. c) GOAL SETTING THEORY • Goal setting involves establishing SMART goals. • S – Specific • M – Measurable • A – Achievable • R – Realistic • T – Time Bound
  • 51. 3. REINFORCEMENT THEORIES • Reinforcement theory of motivation was proposed by BF Skinner. • It is based on “law of effect”. a) Behaviour Modification • Positive Reinforcement- Ex: Immediately praising an employee for coming early for job. • Negative Reinforcement- Ex: A child cleans his or her room, and this behavior is followed by the parent stopping “nagging”. • Extinction: Weakening a behavior. Ex: Getting no goodies when do a behavior, they stop doing it. • Punishment: Example: Having your pay docked for lateness.
  • 52. 3. REINFORCEMENT THEORIES b) Learning Theory • Learning is a relatively permanent change in behavior or potential behavior that results from direct or indirect experience. Key points: • Changes in behavior • Long-lasting effects • Affects potential and actual behavior • Caused by direct or indirect experience
  • 53. METHODS OF PERFORMANCE APPRAISAL • Ranking method • Graphic scale rating method • Forced choice method • Essay appraisal method • Paired comparison method • Field review method • Critical incidents method • MBO method
  • 54. BALANCE SCORECARD Balance scorecard is a performance measurement framework that translates an organisation’s strategy in to clear objectives, measures and targets.
  • 55. CAREER MANAGEMENT • A career is a person’s chosen profession or occupation. • A Career is all the jobs that held during ones working life.
  • 56. CAREER STAGES 1. Growth [4 to 13]: start to find ways to develop competencies 2. Exploration [early teens to mid-twenties]: people begin to crystallize, specify and implement an occupational choice. 3. Establishment [mid-twenties through mid-forties]: a suitable field is selected and efforts are made to secure 4. Maintenance [mid-forties to mid-sixties]: Stagnating or enriching 5. Disengagement [mid-sixties]: decelerating from formal employment to finding new roles with a view to retirement
  • 57. CAREER MANAGEMENT ISSUES • Career Plateau • Dual career paths – technical / professional vs. managerial • Skills obsolescence – continuous learning • Balancing work and family • • Coping with job loss
  • 58. UNIT III Managerial Effectiveness Managerial Effectives is a manager's ability to achieve desired result. Components of Managerial Effectiveness • Leadership • Motivation • People Skills • Administrative Skills
  • 59. FACTORS INVOLVED IN MANAGERIAL EFFECTIVENESS • Role Performance • Learning Behaviour • Resilence • Business Knowledge
  • 60. MODELS OF MANAGERIAL EFFECTIVENESS • Campbell, Dunnette, Lawler and Welek proposed PPP Model Organisation Environment Individual Characteristics 1. Intelligence 2. Aptitude 3. Knowledge 4. Temperament 5. Preference 6. Expectation 7. Ability 8. Motivation 9. Opportunity Transformation Process 1. Planning 2. Goal setting 3. Decision Making 4. Delegating 5. Problem Solving 6. Communicating 7. Cooperating 8. Displaying Organisational Results 1. Profit Maximization 2. Organizational efficiency 3. Organizational stability 4. High Productivity 5. Employee Welfare 6. Social Welfare Person Process Product
  • 61. PPP MODEL • Person Approach: Individual manager’s characteristic, traits and abilities. • Process: Manager’s on-the-job behaviour and activities • Product: Outcome of effective management.
  • 62. MEASURES OF MANAGERIAL EFFECTIVENESS • Superior’s Effectiveness and Performance Ratings. • Subordinates ratings of Satisfaction, Organizational climate, Morale, Motivation, and leadership Effectiveness. • Unit Performance Indices.
  • 64. BRIDGING THE GAP • A managerial problem can be described as the gap between a given current state of affairs and a future desired state.
  • 65. STEPS FOR PROBLEM SOLVING • Problem Awareness • Problem Definition • Decision Making • Action Plan Implementation • Follow – Through • Take Corrective Actions
  • 66. MEASURING MANAGERIAL EFFECTIVENESS • Supervisor’s Ratings • Subordinate’s Ratings • Unit Performance Indices
  • 67. CURRENT INDUSTRIAL AND GOVERNMENT PRACTICES 1. Procedures to ensure high quality of work 2. Arrange for training and EDPs 3. Career development program 4. Monitor the quality of work through performance appraisal. 5. Verification of information through feedback.
  • 68. CURRENT INDUSTRIAL AND GOVERNMENT PRACTICES 6. Checking the accuracy of work. 7. Keep track of information or work progress. 8. Preparation for meetings and presentations. 9. Organizing information or materials. 10.Checking the accuracy of reports.
  • 69. AREAS THAT REQUIRES ATTENTION 1. Developing Initiative Drive: High motivation for work Energy: Enthusiastic in work place. Self-starter: Does jobs proactively
  • 70. AREAS THAT REQUIRES ATTENTION 2. Encouraging self management approach Team player: Works in a team, supports and encourages team members. Leader: Defines goals and standards of performance, delegates work. Develops subordinates: Identifies, train & involves people in all activities. Disciplined: Maintains decorum of the workplace, has respect for others
  • 71. AREAS THAT REQUIRES ATTENTION 3. Facilitating appropriate Communication Articulate: Can communicate. Persuasive: Sticks to a problem until it is resolved. Supportive: Supports subordinates. Confident: Confidence in his values and action.
  • 72. MANAGER AS AN OPTIMIZER • Effective manager is said to be an optimizer in utilizing all the available and potential resources • Effective manager is expected to work as an optimizer by focusing on low waste and high goal attainment.
  • 73. COMPONENTS OF MAKING MANAGER AN EFFECTIVE OPTIMIZER • Mentoring • Feedback • Counseling • Discipline
  • 74. UNIT - IV ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS
  • 75. ENVIRONMENTAL ISSUES IN MANAGERIAL EFFECTIVENESS • Changes in Social Environment • Changes in Economic Environment • Changes in Technical Environment • Changes in Political Environment • Changes in International Environment
  • 76. Changes in Social Environment • Population Explosion: New jobs, New method of production and modes of living • Educational Level: Eradicate literacy. Increase Education level. Educated consumers &Workers. • Leisure Time: Reduced work hrs. Increased automation. Tourism/Part time Jobs. • Public Opinion: If people distrust market system, they prefer government controls.
  • 77. Changes in Economic Environment • Environment will not remain confined to land but would extend to ocean and space. • Business Competition crosses national borders. • Big organizations continue to grow. • Small firms will be needed to serve as feeders to larger ones.
  • 78. Changes in Technological Environment • Automation: – Jobs become routine and unchallenging. – Robots created job-insecurity. – Future organisation will be highly automated man-machine system • Information Technology: – Electronic equipment to collect and process data – Simulation of higher order thinking
  • 79. Changes in Political Environment • Greater government interfaces to safeguard the interest of workers, consumers & public. • Government may restrict the scope of private sectors in certain areas. • Financial units will take active part in the policy formulation of the firms whom they have advanced funds.
  • 80. Changes in International Environment • Multilateral trade among the nations will increase. • The role of IMF, world bank and others will change changes the globalization of economies. • The number of MNCs will increase.
  • 81. PURPOSE OF ORGANIZING • Facilitates Administration • Facilitates growth and direction • Facilitates adoption of new technology • Stimulates creativity and initiative • Intensive use of human resource
  • 82. ORGANIZATIONAL PROCESSES • Planning • Communication • Problem-Solving and Decision–Making • Monitoring and Evaluation
  • 83. IMPORTANCE OF ORGANISATION • Optimum Utilization Of Resources • Ensures Co-ordination • Facilitates Effective Management • Motivate Personnel • Facilitates Delegation Of Authority • Encourages Initiative And Innovation • Technological Improvements • Facilitates Growth
  • 84. ORGANISATION AS A PROCESS • Division of work • Grouping of activities • Assignment of duties • Delegation of authority • Defining relationship
  • 85. ORGANIZATIONAL CLIMATE Organizational climate is a set of properties of the work environment, perceived directly or indirectly by the employees, that is assumed to be a major force in influencing employee behavior.
  • 86. CHARACTERISTICS OF ORGANIZATIONAL CLIMATE • General Perception: Organizational climate is a general expression of what the organization is. • Qualitative Concept: It is an abstract and intangible concept. It is difficult to explain the components of organizational climate in quantifiable units. • Distinct Identity: It reflects how an organization is different from other organizations. • Enduring quality: Represents a relatively enduring quality of the internal environment that is experienced by the organizational members. • Multi – dimensional concept: Individual autonomy, authority structure, leadership style, pattern of communication, degree of conflicts and cooperation, etc.
  • 87. FACTORS INFLUENCING ORGANIZATIONAL CLIMATE • Organizational context – mission, goals and objectives, function, etc. • Organization structure – size, degree of centralization and operating procedures. • Leadership process – leadership styles, communication, decision-making and related processes. • Physical environment – employee safety, environmental stresses and physical space characteristics. • Organizational values and norms – conformity, loyalty, impersonality and reciprocity. • Overt & Covert factors of Organization climate – Open factor: Hierarchy, Goals of organisation, Skills and abilities of employees – Closed factor: Values, attitudes, Norms
  • 88. APPROACHES TO LEADERSHIP Early Approaches Contemporary Approaches Trait Theory Behaviour Theory Situational Theory Transactional – Transformational Leaders Charismatic Leadership Theory Stogdill’s Trait Factor University Iowa Studies Fiedler’s Contingency Model Leader Continuum Hersey and Blanchard’s Situational Leadership Ghiselli ‘s Personal Traits Ohio State University Studies Leadership Participation Michingan Research Tannenbaum & Schmidt’s Situational Continuum Managerial Grid Path Goal Theory Reddin’s Three Dimensional Model
  • 89. STOGDILL’S TRAIT FACTORS 1. Intelligence 2. Physical Features 3. Inner Motivation Drive 4. Maturity 5. Vision and Foresight 6. Acceptance of Responsibility 7. Open-mind and Adaptability 8. Self-Confidence 9. Human Relations Attitude 10.Fairness of Objectivity
  • 90. GHISELLI ‘S PERSONAL TRAITS 1. Very Important  Decisiveness  Intellectual capacity  Job achievement orientation  Self-actualization feelings  Self-confidence  Management ability – Team builder 2. Moderately Important  Affinity for working class  Drive and initiative  Need for a lot of money  Need for job security  Personal maturity 3. Almost No Importance  Masculinity versus femininity
  • 91. UNIVERSITY IOWA STUDIES Behaviour Theories are based on 1. Employee-Centered 2. Job-Centered University Iowa Studies • Autocratic Leadership Style • Democratic Leadership Style
  • 92. LEADER CONTINUUM • Autocratic • Laissez – Faire • Democratic • Benevolent Autocrat
  • 93. OHIO STATE UNIVERSITY STUDIES • Initiating Structure • Consideration The findings of the study: 1. Initiating Structure: Positively related to performance and negatively related to absenteeism & Grievances. 2. Consideration: Negatively related to performance and positively related to absenteeism & Grievances. 3. Both: High performance and satisfaction
  • 94. MICHINGAN RESEARCH • Employee Centered Behaviour • Production Centered Behaviour Leaders will not be able to have an employee centered behaviour and production centered behaviour at the same time. Employee Centered Job Centered
  • 95. MANAGERIAL GRID • Concern for Production • Concern for People
  • 96. FIEDLER’S CONTINGENCY MODEL • Task-oriented or controlling: Leader gains satisfaction from seeing tasks performed • Relationship-oriented or considerate: Leader tries to achieve good interpersonal relations with the subordinates.
  • 97. HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP
  • 98. LEADERSHIP PARTICIPATION Leadership Styles • Decide: Leader makes the decision alone and either announces or sells it to the group. • Consult Individually: Leader presents the problem to group members individually and get their suggestions. • Consult Group: Leader presents the problem to group in a meeting and then makes a decision. • Facilitate: Leader presents the group about the problem and the boundaries within which a decision should be made. • Delegate: Leader permits the group to make the decision within prescribed limits.
  • 99. TANNENBAUM AND SCHMIDT’S SITUATIONAL CONTINUUM
  • 100. PATH GOAL THEORY The theory states that a leader's behavior is dependent to the satisfaction, motivation and performance of her or his subordinates.
  • 102. Basic Style Less Effective Managerial Style More Effective Managerial Style Separated Deserter Bureaucrat Related Missionary Developer Dedicated Autocrat Benevolent Autocrat Integrated Compromiser Executive
  • 103. • High relationship orientation & high task orientation is called as INTEGRATED TYPE. • High relationship orientation & low task orientation is called as RELATED TYPE. • Low relationship orientation & high task orientation is called as DEDICATED TYPE. • Low relationship orientation & low task orientation is called as SEPARATED TYPE
  • 104. TRANSACTIONAL –TRANSFORMATIONAL LEADERS • Transactional Leaders: Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. • Transformational Leaders: Leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers.
  • 105. CHARISMATIC LEADERSHIP THEORY • Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. • The leader Communicates an attractive vision. • Charismatic leader is the one who use his personal charm to get things done. This can be an extremely powerful way to lead others. • The leader then communicates high performance expectations and expresses confidence that followers can attain them.
  • 106. GROUP INFLUENCES • Group may be defined as two or more individuals interacting and interdependent, who have come together to achieve particular objectives.
  • 107. DIFFERENT TYPES OF GROUPS • Formal group • Informal groups • Psychological groups– extension of informal groups • Virtual Groups • Interacting, Co-acting, and Counteracting Groups • Open and Closed Groups • Closed groups • Membership and Referent Groups • In and out groups: In
  • 108. FACTORS INFLUENCING GROUP EFFECTIVENESS • Work Team Structure Issues: – Goals & Objectives – Guidelines – Performance measures – Role specification. • Work Team Process Issues – Managing cooperative behaviors – Managing competitive behaviors • Diversity in Teams – Plays a large role in groups’ effectiveness. – Members contribute to team in one of four styles: • Contributor • Collaborator • Communicator • Challenger • Integrator • Dissimilarity in Teams – Demographic dissimilarity influences absenteeism, commitment, turnover intentions, beliefs, workgroup relationships, self-esteem, and organizational citizenship behavior. – Can have positive or negative effects on teams – Value dissimilarity negatively related to team involvement • Structural Diversity
  • 109. JOB CHALLENGE • Job Challenge refers to the opportunity for professionals to make fullest use of their Skills.
  • 110. JOB CHALLENGES FACED BY MANAGERS • Unfamiliar Responsibilities • Inherited Problems • High Stakes • External Pressure • Work Across Cultures • New Directions • Problems with Employees • Scope and Scale • Influence without authority • Work Group Diversity
  • 111. COMPETITIVENESS The degree to which a country can, under free and fair market conditions, produce goods and services which meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its people over the long-term
  • 112. FACTORS INFLUENCING COMPETITIVENESS • Domestic economy • Internationalization • Government • Finance • Infrastructure • Management • Science and technology • Quality of people
  • 113. MANAGERIAL STYLES • Democratic Style • Affliative Style • Pacesetting Style • Authoritative Style • Coercive Style • Coaching Style
  • 114. UNIT V DEVELOPING THE WINNING EDGE  Self Development Negotiation Skill Knowledge Management Developing competitive Spirit Fostering Creativity & Innovation
  • 115. NEGOTIATION • Negotiation is a dialogue between two or more people or parties, intended to reach an understanding and resolve point of difference. Skills Required Attitude Personal Skill Knowledge on Problem Defining Outcome Framing & Reframing
  • 116. NEGOTIATION PROCESS Preparation & planning Defining Ground Rules Clarification & Justification Bargaining & Problem Solving Closure & implementation
  • 117. APPROACHES TO NEGOTIATION • Distributive Bargaining Claiming value / Zero-Sum / Win-Lose A competitive negotiation strategy used to decide how to distribute a fixed resource. • Integrative Bargaining Interest Based / Collaborative / Win-Win A negotiation strategy in which parties collaborate to find a win-win solution to a problem
  • 118. ISSUES IN NEGOTIATION • Biases in Decision Making • Personality Traits • Cultural Differences • Third party Negotiation Mediator: Mutually Satisfy & Strengthen Relationship Arbitrator: Authority to dictate an outcome. Advantage is that negotiations they are involved in always results in a settlement. Conciliator: Someone acting only as a communication medium. Consultant: Facilitate problem solving through communication & analysis.
  • 119. KNOWLEDGE MANAGEMENT • KM comprise a wide range of strategy and practices used in an organisation to create, identify, store, share and application of knowledge and experience. Components of KM Technology Component Organisation Component People Component
  • 120. DRIVERS OF KM  Technology Drivers Process Drivers Knowledge Related Organisation Drivers HR / Personnel Specific Drivers Financial Drivers
  • 121. KM PROCESS • Knowledge Creation • Knowledge Storage • Knowledge Sharing • Knowledge Sharing Knowledge Conversion Process • Tacit to Tacit - Socialization • Tacit to Explicit - Externalization • Explicit to Tacit - Internalization • Explicit to Explicit - Communication
  • 122. DIFFICULTIES IN KM 1. Justification of investment in KM 2. Support from Senior Management 3. Overcoming Cultural Hurdles 4. Encouraging Employees to use and share knowledge 5. Confidentiality Issues 6. Collection & Storage of Wrong Information 7. Measure 8. KM system is not a static system
  • 123. CREATIVITY • Creativity is a mental and social process involving the generation of new ides or concepts
  • 124. FOSTERING CREATIVITY • Idea Box / Matrix Analysis: Input | Frequency | Subject | Target Group. • Heuristic: Rapidly coming to solution that is hoped to be close to best • Mind Mapping: Think visually about issues and problems • Synectics: Joining together of different unconnected and irrelevant. • Metaphor: Ability to link 2 different things
  • 125. FOSTERING CREATIVITY • Brainstorming: Discussion • Forced Relationship: Finding relationship between 2 things. • Visual Thinking: Graphs, diagrams, charts and Models • Morphological Analysis: Work at Various problem and combining them to a new and novel ways. • Serendipity: Discover of things by happy accidents or chance.
  • 126. INNOVATION • Ability to create something new based on knowledge that has bee attained. Types 1. Product 2. Process 3. Paradigm 4. Radical 5. Systems 6. Incremental 7. Additive 8. Complementing 9. Technology
  • 127. SOURCES OF INNOVATION 1. Unexpected Outcomes 2. Incongruities (Unsuitable) 3. Process Needs 4. Industry & Market Change 5. Demographic Change 6. Perceptual Changes 7. Knowledge Based Concepts
  • 128. FACTORS INFLUENCING INNOVATION & CREATIVITY • Complex & Challenging Jobs • Diversity • Coworker • Resources • Adaptability • Conflicts