ManagementManagement is a process of designing & maintaining environment in which individuals, working together in groups, efficiently accomplish selected aims

ManagementProcess of working with & through others to achieve organizational objectives in a changing environment. Central to this process is the effective & efficient use of limited resources.

Management It is the process of planning, organizing, leading and controlling, individual and resources to achieve organizational objectives

OrganizationA consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals

Components of OrganizationPeopleGoals or PurposeStructureTechnology

Characteristics of Todays Organization

Management Process

Management Functions

Management Functions

Management Functions: Planning, Organizing, leading & controlling

Interactive Nature of Management Process.LEADINGManagers direct, Influence, & Motivation employees to perform essential tasks

Managerial Functions

ManagerThe individuals who are responsible for completing the tasks that requires supervision of other members or organization or organizational resources.

Individual in an organization who direct the activities of others to achieve the organizational objectives. (Robbins)

ManagerPeople responsible for designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.

(Koontz)

Levels of Managers

Top Level ManagersThe individuals responsible for determining the goals, objectives and plans that chart the organizations long-range course. The most important task of Top-level management is strategic planning. Examples of Top Level Mangers are Managing Directors, Directors etc.

Middle Level ManagersAll levels of mangers between the Top level mangers and First Line Mangers are called Middle Level Managers. They involve in tactical planning and control. Examples of Middle Level Mangers are General Managers, Deputy General Managers and Managers etc.

First Line ManagersThey are directly responsible for planning and controlling the activities of workers so that higher-level targets are met; this is the lowest level of management in the organizational hierarchy. Examples of First Line Mangers are Assistant Managers, Supervisors, and Foremen etc.

Types of ManagersLine Managers

Staff Managers

Line ManagersThe term line refers to a position and describes managers whose organizational function contributes directly to the achievement of organizational objectives. Managers of Production, Quality and design functions are called line managers and their authority is called line authority.

Staff ManagersThe term staff refers to a position and describes managers who offer advice or assist line managers to perform their functions. They are not directly involved in production activities. Managers of Human Resource, Finance, Auditing and Security functions are called Staff Managers and their authority is called Staff Authority.

Management SkillsTechnical Skills

Human Skills

Conceptual Skills

Technical SkillIt is knowledge of and proficiency in activities involving methods, processes and procedures. It involves working with tools and specific techniques

Human SkillIt is the ability to work with people; it is cooperative effort; it is teamwork and creation of an environment in which people feel secure and free to express their opinions

Conceptual SkillIt is the ability to see the big picture, to recognize significant elements in a situation, to understand the relationships among the elements and the ability to solve problems in ways that will benefit the enterprise

Managers and Skills

Manager RolesInterpersonal Roles

Informational Roles

Decisional Roles

Interpersonal RolesAll managers are required to perform duties that are ceremonial and symbolic in nature-Interpersonal Roles. These are FigureheadLeaderLiaison

Informational RolesInformational Roles-receiving and collecting information from organizations and institutions their own. These roles areMonitorDisseminatorSpokesperson

Decisional RolesThese roles are the major part of managers responsibilities. They includeEntrepreneurDisturbance HandlerResource Allocation Role Negotiator

Management Seeks Efficiency & Effectiveness

PlanningPlanning is the process of establishing goals and a suitable course of action to achieve these goals. It requires decision making, that is, choosing future courses of action from alternatives

Types of Plans Single Use Plans Programs Projects Policies Procedures Budget Plans Contingency Plans

Mangers and PlanningStrategic PlanningTactical PlanningOperational Planning

Mangers and Planning

Strategic Planning Planning that apply to the entire organization, establishes the organizations overall objectives and seek to positions an organization in terms of its environment is called strategic planning. It takes place at the highest level of the organization.

Tactical PlanningIt is the technique of determining how strategic objectives will be accomplished. It is usually the job of Middle level Managers.

Operational Planning It specifies the detail how overall objectives are to be achieved. It is typically the job of First Line Managers.

Planning-Timeframe Long-Range Planning Intermediate Planning Short-Range Planning

Planning Process

Mission | VObjectives | VSituation Analysis | VStrategy Formulation | VImplementation | VControl

Organizational MissionConcern for survival: What is the organizations commitment to economic objectives?Customers: Who are the organizations customers?Products/Services: What are the organizations major products or services?Location: Where does the organization compete?

Organizational MissionTechnology: What is the firms basic technology?Philosophy: What are the basic beliefs, values, aspirations and philosophical priorities of the organization?Self-concept: What are the organizations major strengths and competitive advantages?

Organizational MissionConcern for public image: What are the organizations public responsibilities, and what image is desired?Concern for employees: What is the organizations attitude toward its employees?

Tools for PlanningBrain StormingForecastingBreakeven AnalysisGantt ChartProgram Evaluation and Review Technique (PERT)Critical Path Method (CPM)Delphi Technique

Barriers to PlanningInappropriate Goals Improper Reward SystemComplex EnvironmentResistance to ChangeConstraintsInformation Deficiency

Benefits of GoalsIncrease PerformanceClarify ExpectationsFacilitate the Controlling FunctionIncrease Motivation

Levels of Goals

Levels of GoalsStrategic Goals: Broadly defined targets or future end results set by top managementTactical goals: Targets or future end results usually set by middle management for specific departments or unitsOperational goals: Targets or future end results set by lower management that address specific measurable outcomes required from the lower levels

How Goals Facilitate Performance

Characteristics of Goals

SMARTERSpecificMeasurableAcceptable/AttainableRealistic/RelevantTimeframeExtendingRewarding

StrategyThe broad program for defining and achieving an organizations objectives. It can be Corporate Level Strategy Business Unit Strategy Functional Level Strategy

Types of StrategiesCorporate Level StrategyStrategy formulated by top management to oversee the interests and operations multiline corporationsBusiness Unit StrategyStrategy formulated to meet the goals of a particular businessFunctional Level StrategyStrategy formulated for a specific functional area to meet business unit objectives

Decision MakingThe process of selecting a course of action or alternative among different alternatives

Types of DecisionsProgrammed decisionsNonprogrammed decisions

Types of DecisionsProgrammed DecisionsType of problemFrequent, repetitive, routine, much certainty regarding cause and effect relationship.ProcedureDependence on policies, rules, and definite procedures.ExamplesBusiness, University, Healthcare. Nonprogrammed DecisionsType of problemNovel, unstructured, much uncertainty regarding cause and effect relationship.ProceduresNecessity for creativity, intuition, tolerance for ambiguity, creative problem solving.ExamplesBusiness, University, Healthcare.

Conditions of Decision-makingCertaintyRiskUncertainty

Barriers to Effective Decision MakingPsychological biasesIllusion of controlFarming effectDiscount the futureTime pressuresReal time informationInvolve people more effectively and efficientlySocial realities

Decision-making ProcessProblem IdentificationIdentification of Decision Criteria Allocating Weights to CriteriaGenerating Alternative SolutionsEvaluating AlternativesMaking the ChoiceImplementation of DecisionEvaluating the Decision

Decision Making Process

OrganizingIt is the process of arranging & allocating work authority & resources to achieve organization goals. It involves Identifying tasks to be performed Allocating the tasks among members Integrating efforts to achieve its objectives

Key Concepts Span of Management ControlThe number of subordinates reporting directly to a given manger Chain of CommandThe plan that specifies who reports to whom in an organization, such reporting lines are prominent features of organization chart

Key Concepts CoordinationThe integration of the activities of the separates parts of an organization to accomplish organizational goals DownsizingA version of organizational restructuring which results in decreasing the size of the organization and often results in a flatter organizational structure

Types of Organizational Structures

Functional Organization

Geographical Organization

Product Organization

Customer Organization

Matrix Organization

PowerThe ability to exert influence or force in an attempt to change attitude or behavior of individuals or groups.

Sources of PowerReward PowerCoercive PowerLegitimate PowerExpert PowerReferent Power

Sources of PowerReward PowerIt is the ability to reward another person for carrying out orders which may be expressed or impliedCoercive PowerThe negative side of reward power, it is the ability to punish another personLegitimate PowerIt is the lawfully entitled ability to exert influence or force on other. It is also called formal authority

Sources of PowerExpert PowerIt is based on the belief or understanding that the influencer has specific knowledge or relevant expertise that the influencee does not Referent PowerIt is the desire of the influencee to be like or identity with the influencer

AuthorityIt is the right to exert influence or force on other due someones position, knowledge or status. It is lawfully entitled power.

Types of AuthorityLine AuthorityStaff AuthorityFunctional Authority

Line AuthorityThe authority of those mangers directly responsible, throughout the organizations chain of command, for achieving organizational objectives

Staff AuthorityThe authority of those groups of individuals who provide line managers with advice, support and services

Functional AuthorityThe authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities

DelegationThe act of assigning formal authority and responsibility for completion of specific activities to a subordinate

Advantages of Delegation It provides opportunities to seek and accept increased responsibilities from higher level managers It causes employees to accept accountability and exercise judgment It not only train employees but also improves their self confidence and willing to take initiative

Advantages of Delegation It leads to better decisions It speeds up decision making process

CentralizationIn centralized organization considerable authority, responsibility and accountability remain at the top of the hierarchy

DecentralizationIn decentralized organization considerable authority, responsibility and accountability are passed down the organizational hierarchy

Job DesignThe division of an organizations wok among its employees

Job RedesignJob EnlargementJob EnrichmentJob Rotation

ControllingIt is the process of monitoring organizational activities to ensure that they are being accomplished as they planned and taking corrective actions if there are significant deviations

Control Process

MeasurePerformance

Does it matchstandards

EstablishStandards

Do Nothing

Take CorrectiveAction

NoYes

Why Control NeededTo create better qualityTo cope with changeTo create faster cyclesTo facilitate delegation and teamwork

Types of ControlsFinancial ControlsBudgetary ControlsAdministrative ControlsInternal ControlAuditing

Levels of ControlsStrategic ControlTactical ControlOperational Control

Stages of ControlsPreliminary or Feed forward Control Screening or Concurrent ControlPost Action or Feedback Control

Barriers to ControlSystem Barriers Behavioral Barriers Political Barriers

LeadershipLeadership empowers, motivates & organizes people to achieve common objective and provides moral guidance.

LeadershipIt is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals

LeadershipIt is the process of motivating and directing subordinates, selecting the most effective communication channels and resolving conflicts

LeadershipIt is the lifting of mans vision to higher sights, the praising of mans performance to higher standard, the building of mans personality beyond its normal limitations

Leader Versus ManagerLeaderManagerInnovatorAdministratorOriginatorCopierDevelopsMaintainInspire TrustControlFocus on PeopleFocus on SystemChallenge status coMaintain status coOwns the peopleClassic good soldierDoes the right thingDoes thing right

Characteristics of LeaderVisionCommunicationMotivationIntegrityPatienceInfluenceDecisive Persistent

MotivationIt is an energetic force within and outside human by which results lead into a behaviour. It is an attempt to satisfy need. The factors that cause, channel and sustain an individuals behaviour.

Theories of MotivationNeed TheoryMaslows Hierarchy of NeedsERG TheoryTwo Factor TheoryEquity TheoryExpectancy TheoryReinforcement TheoryGoal Setting Theory

Maslows Hierarchy of NeedsSelf-Actualization Needs

ERG TheoryThe theory of motivation that says people strive to meet a hierarchy of existence, relatedness and growth needs, if efforts to reach one level of needs are frustrated individuals will regress to a lower level.

Two Factor TheoryHerzbergs theory that work dissatisfaction and satisfaction arise from two different sets of factors. Dissatisfiers which he called hygiene factors included salary, working conditions, and company policy. Satisfiers or motivating factors include achievement, recognition, responsibility and advancement

Equity TheoryAccording to equity theory, individuals are motivated when they experience satisfaction with what they receive from an effort in proportion to the effort they apply.As input = Bs InputAs output = Bs output

Expectance TheoryA theory of motivation that says that people choose how to behave from among alternative courses of behaviour based on their expectations of what there is to gain from each behaviour. Expectancy Instrumentalities Valence

Reinforcement TheoryA theory of motivation based on law of effect- the behaviour with positive consequences tends to be repeated while behaviour with negative consequences tends not to be repeated.

Goal-Setting TheoryA theory of motivation that says that individuals are motivated when they behave in ways that move them to certain clear goals that they accept and can reasonably expect to attain.

Techniques of LeadershipTime Management or Budgeting of TimePutting First Things First- Pick the future as against the past- Focus on opportunities rather on problems- Choose own decisions rather than climb on bandwagon- Aim on something which will make differenceMaintenance of optionsAbility of making quick decisionsMobilizing Resource

Techniques of LeadershipCreate Friendship and avoid Enemies Do not Open so many FrontsBe Magnanimous (Ignore) instead of Vindictim (Revenge)

Theories or Approaches of Leadership

Trait Approach to LeadershipIt attempts to explain distinctive characteristics accounting for leadership effectiveness to identify a set of traits that all successful leaders possess. This approach assumed that leaders share certain inborn personality traits.

Trait Approach to LeadershipSpecific traits related leadership ability: Physical traits (energy, appearance, height) Intelligence & ability traits Personality traits (adaptability, aggressiveness, enthusiasm, self-confidence) Task-related characteristics (achievement, drive, persistence, tenacity) Social characteristics (cooperativeness, interpersonal skills, administrative ability).

Behavioural Approach to LeadershipIt attempts to explain distinctive styles used by effective leaders or the nature of their work. It determines the types of leadership behaviors that lead to successful task performance and employee satisfaction. Researchers at Ohio state and University of Michigan performed the most extensive series of leadership studies in developing this theory.

Leadership Styles

The Managerial GridIt is a network of management styles developed by Blake and Mouton which explains these styles by using two variables concerned for people and concerned for productivity.

Impoverish Managers (1,1)They do not have the initiative to resolve the conflict between the organizational objectives and employees objectivesThey neither identify with the people nor with the organizationThey avoid personal improvementsThey pass on the bug to others and do not make decisionsNeither they conduct evaluation and nor have effective communication skill

Task Managers (9,1)They show little concern for the development and morale of subordinatesThey tightly plan their goalsThey focus to avoid mistakesTheir communication is restricted and downward

Country Club Managers (1,9)They focus on being supportive and considerate of subordinates to the exclusion of concern for task efficiencyThey are overly concerned with morale and personal objectives of employeesTheir communication style is upward

Middle of the Road Managers (5,5)They maintain adequate task efficiency and satisfactory moraleThey do give specific instructions but also allow freedomThey evaluate success and failure quite objectivelyTheir style of communication is generally two way

Team Managers (9,9)They facilitate task efficiency and high morale by coordinating and integrating work related activitiesThey inspire people, motivate them and support them to the lastTheir evaluation is an ongoing process with objective to improve teamwork and enhance productivityTheir communication style is completely open, multidirectional and highly supported

Continuum of Leadership Behavior

Leader Behavior 4-44

Contingency or Situational Leadership Theory It attempts to explain the appropriate leadership style based on the leader, followers, and situation. It holds that there is no universal approach to leadership; rather, effective leadership behavior depends on situational factors that may change over time. Current leadership depends on three variables: the leader, the led, and the situation

Situational Leadership Model This approach to leadership by Hersey and Blanchard -describes how leaders should adjust their leadership style in response to their subordinates evolving desire for achievement, experience, ability & willingness to accept responsibility.

Situational Model of Leadership

Fiedlers Contingency Model of Leadership 4-65

Fiedlers Contingency Model of Leadership

The Future of Leadership TheoryTransactional LeadersTransformational LeadersCharismatic Leader

Transactional LeaderLeaders who determine what subordinates need to do to achieve objectives, classify those requirements and help subordinates become confident they can reach their objectives

Transformational LeaderLeaders who, through their personal vision and energy, inspire followers and have a major impact on their organizations also called charismatic leaders.

Phases of TransformationProcess

Webers CharismaticLeadershipInfluence based on follower perceptions that the leader is endowed with the gift of divine inspiration or supernatural qualities

Charisma and LeadershipIt is the capacity to be heroic and colourful. It steers the emotions of people and capture their heart and minds. Charismatic leadership can be disadvantageous and dangerous because people abdicate responsibility and put on their leader to take care of every problem.

Common CharacteristicsSelf-confidenceVisionAbility to articulateStrong convictionsOut of the ordinary behaviorPerceived as change agentsEnvironmentally sensitive

Strategies to DevelopCharismatic Qualities

.Ethical Charismatic Leader

Uses power to serve others Aligns vision with followers needs and aspirations Considers and learns from criticism Stimulates followers to think independently & to question the leaders viewOpen, two way communicationUnethical Charismatic Leader

Uses power only for personal gain or impact Promotes own personal vision Censures critical or opposing viewsDemands own decision be accepted without questionOne way communication

.Ethical Charismatic Leader

Coaches, develops, and supports followers; shares recognition with others Relies on internal moral standards to satisfy org & societal interests Unethical Charismatic Leader

Insensitive to followers needs Relies on convenient, external moral standards to satisfy self-interests

TeamTwo or more people who interact with and influence each other toward a common purpose. Each member of the team has a shared responsibility for getting the job done.

Types of TeamsFormal and Informal TeamsCommand TeamCommitteeTask Force or Project TeamSelf-Managed Teams

Group & Team

Characteristics of TeamsLeadership RolesTeam NormsTeam Cohesiveness

Leadership RolesEnhanced PerformanceIncreased Awareness and ChoiceMore Focus and IntegrationRationale Innovation and Risk TakingConducive Team Atmosphere

Team NormsThese are assumptions and expectations about how members of a group will behave. Norms can be carried over from society or it can be particular to a group or team.

Team CohesivenessIt is the degree of solidarity and positive feelings held by individuals toward their group or team. Ways to Improve cohesiveness: Introduce Competition Increase Interpersonal Attraction Increase InteractionCreate Common Goals and Fates

Stages of Team DevelopmentFormingStormingNormingPerformingAdjourning

Team RolesDriver (Develops ideas, directs & Innovates)Planner (Estimates needs, plans strategies & Schedules)Enabler (The fixer manages resources, promotes ideas & negotiates)Executor (The producer, co-ordinates & maintains the team)Controller (Records, audits & evaluates progress)

Drivers Characteristics DriverInnovatorDeveloperDirector

Planners Characteristics PlannerStrategistEstimatorScheduler

Enablers Characteristics ResourceManagerEnablerPromoterNegotiator

Executors Characteristics ProducerExecCoordinatorMaintainer

Controllers CharacteristicsAuditorMonitorEvaluatorController

Human Resource ManagementIt can be defined as the effective selection and utilization of employees to best achieve the goals and strategies of the organization, as well as the goals and needs of employees.

Challenges to HRM HRM

Diversification

Globalization Govt. Interference

Competition Technology Change Workforce Diversity

Organization Chart of HRM Function

A Human Resource Management Department

Vice President of Personnel/Human Resource ManagementEmployment DivisionJob Analysis Human resource planning Recruitment Interviewing Testing Placement Resignations Terminations RecordsTraining & Development DivisionOrganizational need analysis Career planning Development & training AppraisalWage & Salary DivisionJob Analysis Job Evaluation Wage/salary surveysEmployee Benefits & Services DivisionHealth services Insurance Safety Recreation facilities PensionsLabor Relations DivisionCollective bargaining Legal grievances Suggestion plans Contracts

Primary HRM FunctionsHuman Resource PlanningEqual Employment OpportunityStaffing (Recruitment and Selection)Compensation and BenefitsEmployee RelationsHealth, Safety and SecurityHuman Resource Development

Secondary HRM FunctionsOrganization/Job RedesignPerformance ManagementPerformance AppraisalResearch and Information Systems

Human Resource PlanningThe processes of planning, developing, implementing, administering and performing ongoing evaluation of recruiting, hiring, orientation and organizational exit, to ensure that the workforce will meet the organization's goals and objectives

Equal Employment OpportunityThese activities are intended to satisfy both the legal and moral responsibilities of the organization through the prevention of discriminatory policies, procedures, and practices.

Human Resource DevelopmentIt can be defined as a set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands.

Compensation and BenefitsThe processes of analyzing, developing, implementing, administering and performing ongoing evaluation of a total compensation and benefits system for all employee groups consistent with human resource management goals

Health, Safety and SecurityThe processes of analyzing, developing, implementing, administering and performing ongoing evaluation of programs, practices and services to promote the physical and mental well-being of individuals in the workplace and to protect individuals and the workplace from unsafe acts, unsafe working conditions and violence

Employee RelationsThe process of analyzing, developing, implementing, administering and performing ongoing evaluation of the workplace relationship between employer and employee (including the collective bargaining process and union relations), in order to maintain effective relationships and working conditions that balance the employer's needs with the employees' rights in support of the organization's strategic objectives

RecruitmentIt is the process of finding and attracting capable applicants for employment

Recruitment: Challenges and ConstraintsStrategic and Human Resource PlansEEO LegislationRecruiter HabitsEnvironmental ConditionsJob RequirementsCostsIncentivesOrganizational Policies

Recruitment ChannelsInternal Recruitment ChannelsExternal Recruitment Channels

Internal Recruitment ChannelsJob-Posting ProgramsDeparting Employees

External Recruitment ChannelsWalk-ins and Write-insEmployee ReferralsAdvertisingSate employment AgenciesPrivate Placement AgenciesProfessional Search FirmsEducational Institutions

External Recruitment ChannelsProfessional AssociationsLabour OrganizationsMilitary OperationsGovt Funded and Community Training ProgramsTemporary Help AgenciesLeased EmployeesInternational Recruiting Agencies

SelectionThe selection process is a series of specific steps used to decide which recruits should be hired. The process begins when recruits apply for employment and ends with the hiring decision

Steps in Selection ProcessReceipt of ApplicationsEmployment TestsSelection InterviewReference and Background ChecksMedical EvaluationSupervisory InterviewRealistic Job PreviewsHiring Decision

Types of InterviewsUnstructured InterviewsStructured InterviewsMixed InterviewsBehavioral InterviewsStress Interviews

Orientation or SocializationA program designed to help employees fit smoothly into an organization, also called socialization.

HRD FunctionsTraining and DevelopmentOrganization DevelopmentCareer Development

HRD ProcessNeed AssessmentDesign PhaseImplementationEvaluation

T & D ApproachesOn the Job TrainingOff-the Job Training

On-the Job TrainingJob Instruction TrainingJob RotationApprenticeshipsCoaching

Off-the Job TrainingLectureVideo PresentationRole PlayingCase StudySimulationLaboratory TrainingProgrammed Learning

Performance AppraisalIt is the process by which organizations evaluate individual job performance. It can be Informal Appraisal Formal Appraisal

Advantages of Performance AppraisalPersonal ImprovementCompensation AdjustmentsPlacement DecisionsTraining and Development NeedsCareer Planning and DevelopmentStaffing Process DeficienciesJob RedesignEqual Employment OpportunitiesFeedback to Human Resource

Outcomes of Performance AppraisalPromotionsTransfersDemotionsSeparations

Planned ChangeThe systematic attempt to redesign an organization in a way that will help it adapt to changes in the external environment or to achieve new goals.

Velocity of ChangeWhile change and uncertainty have always been a part of life, what has been shocking over the last years has been both the quantum and suddenness of change

Model for an Organizations Environment Macro or Far EnvironmentTechnological FactorsSocial FactorsPolitical FactorsEconomic FactorsNear or Operating EnvironmentCustomersClientsCompetitorsPartnersSuppliersORGANIZATION

Brain TeaserIt is not the strongest of the species that survives, nor the most intelligent, but rather the one most responsive to changeCharles Darwin

Forces for Change New Technology Workforce Competition Economic Shocks Social Trends World Politics

Sources of ResistanceOrganizational CultureSelf InterestsForce of HabitFear of UnknownEconomic ThreatsResource Allocation

Lewins Process of ChangeUnfreezingChangingRefreezing

Types of Planned ChangeStructural ChangeTechnological ChangeHuman ChangeCombined Change

Approaches to Planned Change Change in StructureTechno-Structural ChangeChange in Technology

Change in PeopleChange AgentOrganization Redesign Decentralization, Modification of Work FlowRedesign of Structure and Work Operations

Redesign of Work OperationsChanges in Skills, Attitudes, Expectations, PerceptionsImproved Organizational Performance

Techniques or Methods of Organizational ChangeMergers and AcquisitionsRe-organizationRestructuringRight-Sizing

The Creative ProcessGeneration of IdeasProblem Solving or Idea DevelopmentImplementation

Prescriptions for Fostering Organizational Creativity Develop an Acceptance of ChangeEncourage New IdeasPermit more InteractionTolerate FailureProvide Clear Objectives and the Freedom to achieve themOffer Recognition

Overcoming Resistance to Change Education and CommunicationParticipationNegotiationFacilitation and SupportManipulation and Co-operationCoercion

Operations ManagementThe management activity that includes planning, production, organizing resources, directing operations and personnel and monitoring system performance.

Operations Management System

Types of Operation FunctionManufacturing OperationsNon-manufacturing or Service Operations

Types of Manufacturing OperationsMake to Stock ProducersMake to Order ProducersAssemble to Order Producers

Production Management MethodsJob ShopsRepetitive or Process ManufacturingBatch Manufacturing

ProductivityIt is the measure of how well an operations system functions and indicator of the efficiency and competitiveness of a single firm or department.

Customers Competitive PrioritiesPricingQuality LevelReliabilityFlexibility

Designing Operations SystemsWhat to ProduceHow much to ProduceHow to ProduceWhom to ProduceWho and What will Produce

Inventory Management The process of maintaining and controlling supply of raw materials, work in process and finished goods in an organization to meet its operational need efficiently and effectively

Inventory Management Techniques ABC Inventory SystemEconomic Order QuantityJust in Time Inventory System

Just in Time Inventory System The system in which production quantities are ideally equal to delivery quantities, with material purchased and finished delivered just in time to be used also known as Kanban.

Important Elements of JIT A set Uniform Production RateA Pull Method of Coordinating Work CentersPurchasing and Producing in small lotsQuick, inexpensive setupsMulti-skilled workers and flexible facilities

Important Elements of JIT High Quality LevelsEffective Preventive MaintenanceContinual Work Improvement

Economic Order Quantity The ordering quantity at which Ordering Cost is equal to Carrying Cost and total cost is minimum

Total Quality Management It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach focused on continuous improvement

Key Issues in TQM The Cost of QualityA Cultural ChangeMechanism of ChangeImplementationManagement Behavior

Benefits of TQM Greater Customer LoyaltyMarket Share ImprovementsHigher Stock PricesReduced Service CostGreater ProductivityHigher Prices

Benchmarking It is the continuous process of comparing a companys strategy, products and processes with those of world leaders and best-in-class organizations in order to learn how they achieved excellence and then setting out to match and even surpass it.