Module A1 Managing in a dynamic environment

Dynamic change/ adjusments

Environment with in a context

Existing/Living in a dynamic society

  • always on the go
  • R&D is enabling more luxuries not necessarily being beneficial to the society in general
  • the public is more into trying to climb the social ladder

USE OF TECHNOLOGY

WANT AND NEEDS ARE SHIFTING

ASYMMETRY(asymmetry of information - there is a huge value in the information and knowledge. the potential has so much sources of information upon which they base their purchase decision

People around and the economics the peoples behaviour. THE SERVICE IS BUNDLED WITH IN PRODUCT CRM- CUSTOMER RELATIONSHIP MANAGEMENT

BEWARE COMMODITIZATION - it implies homogeneity where you cannot distinguish your product. With commodities, your cannot discern the difference - Unique Value Proposition - it is important to identify this state , it would further enable the firm to market it is product to the proper target group

Define Managers, Management and Organisation

Management internal and external environment of organisations
"Knowing what you want(people) to do and then seeing that they do it in the chepest way

Goal can be defined as a an outcome to be achieved or destination to be reached over time though the exercise of management functions and expenditure

what is an organisation* that people work together toward a specific goal

Joints ventures s a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a JV, each of the participants is responsible for profits, losses, and costs associated with it.


Alliances Collaborative business relationship between two or more entities that share assets, expertise, risks, rewards, and control to create greater value for their customers and for their own organizations than could be efficiently accomplished independently

Why would we opt for Joint ventures and alliances

  • To set prices - Oligopoly
  • Usually, there are serious implications when there are collisions
  • Maintain stability - coopetition
  • Inspire innovation thought which knowledge can be exchanged and intertwined in order to reinvent products

an organisation does NOT exist in vacume -> Closed system
and organisation MUST interact with its environment -> Open system

Types of Organisations

  • For Profit
  • Global Giant
  • Non Profit
  • Small start up

Services

  1. Intangibility
    a service cannot be seen and tasted
  1. Inseparability service cannot be separated from a supplier
  1. Variability quality of goods depends on a provider of a service and well as how where and when service has been provided
  1. Perishability a service cannot be stored or saved
    or be used later after a sale

Defining what managers do

  1. Planning defining an organization's goals anf proposing a way on how to reach them
  2. Organising creating a structured relationship to enable employees to carry out management plans and meet goals
    3 Leading Motivating staff to work in the best interest of the organisation
  3. Controlling consciously monitors feedback and performance and takes corrective actions

Controlling Procedures
SMART
1.Sets standards of performance

  1. Measure current performance against set sst standards
  2. Takes actions to correct deviations
  3. Adjust the standard if necessary

What makes a good manager

- education sound educational base continued lifelong educational
-Experience
Initial job experience

Managerial Effectiveness

Communication Competence
Most fundamental competency necessary for the deployment of all other competencies. Effective transfer of information and understanding between managers and others

  • Information Communication
    flexible and varies approach in different situation
    • Formal Communication
    • Negotiation

Planning & Administration
deciding what task need to be done determining how to do them, allocating resources
to those task those and monitoring them

  • Information gathering, analysis and problem solving
  • Planing and organizing projects
  • time management
  • budgeting and financial management

Teamwork Competency
accomplishing goal though small groups who are collectively responsible and whose work is interdependent

  • Designing teams
  • creating a supportive environment
  • Managing Team Dynamics

Strategic Action Competency
understanding Overall mission and values of the organisation ensuring that actions is aligned with the company mission

  • Understanding the industry
  • Understanding Organisation
  • Taking Strategic Action

Dimension of Global Awareness Competency
Work entailing resources (HR, Financial, material, info) from multiple countries and serving market spanning multiple countries

  • Cultural knowledge and understanding
  • Cultural openness and sensitivity

Self Management competency
taking responsibility for life at work and beyond. Not Blaming difficulties on the personal situation or others

  • Integrity and ethical conduct
  • Personal Drive and Resilience
  • Self-awareness and Development

Strategy all the organisation's employees must know
-Where they going
-How they can best get there

Strategy provides organisation with

  • Focus and rationale for ordering and deploying resources
  • Help determine what actions/process promote or obstruct progress
  • Help Measure progress
  • Possibility promotes creativity and innovation towards a central purpose

Goals need to Be SMART

  • Specific
  • Measurable
  • Attainable
  • Result-Based
  • Time based

Management is dynamic

The Environment Changes

  • Restructuring of organisation
  • a changing workforce
  • Changing technology
  • Globalisation

Restriction of Organisation
Downsizing like

  • Cutting Cost
  • Decentralisation
  • Cutting bureaucracy and layers of hierarchy
  • Improving customer relations

A changing workforce

  • Change in the age distribution of workforce
  • new Gender mix
  • Increased immigration and mobility
  • diversity initiatives
  • Multicultural organisation

Changing Technology

  • High Growth in high tech and service sector
  • Influence of technology on work

Globalisation Technological advances in transportation and communication have spurred growth in international commerce Change in the economics and political climate facilitate the movement of employees capital and finances across borders

Module A2 The evolution of management

Define Management as a set of activities planning organising leading controlling directed at an organisations resources aiming to achieve organisations Goals

Traditional or classical Management Theory
Focused on

  • Finding the one best way to perform and manage tasks
  • The manager's tole in a strict hierarchy
  • Efficient and consistent job Performance
  1. School Of thoughts Bureautic management
    Focus Whole organisation
    a. system that is relying on rules, hierarchy clear division of labour and detailed rules and procedures
    Max Weber (1864-1920)
    Has 7 Characteristics

1. Rules

2.Impersionality
Means that employees are given responsibilities not based on there personality or like them or not
But based on there capabilities

3. division of labour
each part of the process is broken into small process which allows employees to specialise into task of the process

4. Hierarchical Structure

5 Autority of structure

6. Lifelong career commitment

7. Rationality

Pros and Cons


Pros

  • Efficiency
  • Consistency

Cons

  • Rigid adherence to rule for their own sake
  • Managerial focus on authority not employee productivity
  • Slow decision Making
  • Incompatible with changing technology
  • Incompatible with professional value of

Assessing Classical Bureaucratic management
Most EFFECTIVE

  • Large amounts of standard info must be processed
  • Efficient processing methods
  • Customers needs are knowns and unchangeable
  • Technology is routine and stable
  • Many emp delivering standard product
  1. School of thought Scientific Management
    Focus On
  • Individual worker-machine relationship
  • Getting work done on the factory floor
  • Removing the guesswork from management

Fred Taylor (1856-1951)
At the time - Business was expanding
Capital was available
Labour was in short supply


Taylor used Time and motions studies to analyse

  • Work flows
  • Supervisory techniques
  • Work fatigue

Frank & Lilian Gilbreth (1878-1972) Used motion picture to redesign jobs for greater efficiency
Lilian championed

  • Standard working days
  • Scheduled breaks
    Child labour laws
    Safety issues

Henry Gantt
Focussed on *Production scheduling and Quota systems & Bonuses Gantt charts are used to date- to visually plan, schedule and project timelines

Pros Of classical Scientific Management

  • Provides employees with skills and training
  • Improves employee selection and seeks best way for performing task

Cons

  • Social needs working conditions, and job satisfactions
  • Limit worker's morale and participations afferenting their performance
  1. School of thought Administrative Management
  • Focus on the manager and the managerial function
    Henry Fayol (1841-1925) defined key management Functions: Plan, Organise, Lead and control
    Emphasises formal structure and processes - how individual task are geared to meet defined objectives
  1. Division of Labour
  2. Authority
  3. Discipline
  4. Unity of command
  5. Unity of direction
  6. Subordination to common goods
  7. Remuneration
  8. Centralisation
  9. Scalar Chain
  10. Order
  11. Equity
  12. Staff stability
  13. Initiative
  14. Esprit de corps

Pros

  • Provides a clear structure
  • Professionalism of managerial roles

Cons

  • internal Focus
  • Overemphasizes rational behaviour of managers

Behavioral Management Theory
Focus

  • Dealing with the human aspect in organisation
  • Individual attitude/ behaviour and group process
  • How many managers lead and communicate with subordinates
    Claims that manager need to change assumptions about people if they want to lead a high performance teams and organisations

Marry Follett
1, Management is a continuous process

  1. Employees should be involved int problem solving

Follet emphasised the importance of coordination

  • coordination among employees - also decision-makers should be in a direct contact
  • Coordination in planning and implications also address all factors in a situation
  • Coordinator should be worked at continuously

Follet argues in favour of good working relation proposing

  • Communication
  • Recognition

Chester Bernard (1886-1961)
2 contribution

  1. Organisation are social systems requiring
  • Employees cooperation to be effective
    Continual communication
  • Analysis of organisational environment and alignment of it is internal structure to maintain balance
  1. Acceptance Theory of Authority
    employees will follow management orders if they
  • Understand what is required
  • Believe the orders are consistent with organisations goal
  • See benefit to themselves in carrying them out

The Hawthorne contribution (1924 - 1933)
Illumination test at western hawthorne plant contributed in 3 observation

  1. Failure of classical scientific management principles
    Scientific management failed to increase productivity
  2. Productivity
    Productivity was increased by receiving special attention Not by physical changes such as lighting levels
  3. Motivation it is based on social needs rather than economics benefits

Pros of Behavioural management

  • Consider motivation, group dynamics and interpersonal process
  • Focuses managerial attentional on the processes
  • Employees are not tools - they are valuables resources

Cons of Behavioural management

  • Individual complexity makes behaviour prediction difficult
  • Many managers reluctant to practice such concepts

Assessing behavioural Management

  • Employees motivated by social needs a sense of identity
  • Employees more respond to managers who helps and satisfy their needs
  • Managers need to apportion work democratically to improve efficiency

Systems Management Theory Solving problems by diagnosing them within a framework of

  • Inputs
  • Transformation Process
  • Outputs
  • Feedback

Management's role is facilitating transformation Processes is through planning, organising, leading, and controlling
A system is an association of interrelated and interdependent parts
An organisation is an internal system with employees, teams, departments and levels linked to achieving it is a goal
An organisation is linked externally to suppliers, customers, shareholders regulating bodies

Quantitative Management theory
is focused on

  • decision Making
  • Mathematical Model
  • Alternative Based on economic criteria
  • computers essentials

Quantitative Management has 2 Branches
1. Operations Management
Techniques for efficient production of goods and services
Less Mathematically sophisticated
2. Management Science
Specific focus developing mathematical model
Equations are a representation of a reality


Pros

  • Sophisticated decision making techniques
  • Models increase awareness of complex organisational processes
  • Very useful in planning and controlling processes

Cons

  • cannot fully explain and predict people's behaviour in the organisation
  • Maths sophistication may come at expense of other skills
  • Models cannot require unrealistic/ unfounded assumptions
  • Models cannot account for human/ individual behaviour and attitudes

Assessing Quantitative Management

  • Used mainly in managing


    Transformation and change process


    Technical planning and decision making


  • Not used to dealing with the human aspect of management


Contingency Management Theory a situational approach proposing that management should be consistent with the

  • External Environment
  • Technology
  • Capabilities of employees

Assessing Contingency Management

  • Most Intuitively use this approach in everyday life
  • Makes sense to change a viewpoint depending on the situation
  • mangers must diagnose contingency variables for each situation

Total Quality Management
W.E Deming father of quality movement (helped rebuild japan after ww2)
Methods

  • Poor Q is unacceptable
  • Measure Q Thoughouth production
  • Rely on few Q suppliers - not on delivery sampling
  • Train employees for Q and empower them to decide and report on Q

TQM Concepts

  • Continuous process ensuring all aspects of production build product quality


  • Quality How well the product/service does what is is supposed to do

  • Customers ultimately defines quality in the market place

The quality Controls Process

  • Focus on Measuring 


    • Inputs 

    • Transformation operations 

    • Outputs

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