Abridged Version - The Management Syndrome

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THE MANAGEMENTSYNDROME... HOW TO

DEAL WITH IT!

A Guide to Leadership, Ethics, Teamwork and Teamwork in the 21stCentury

Maxwell Pinto

XLIBRIS CORPORATION (2009)USA


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THE MANAGEMENT SYNDROME... HOWTO DEAL WITH IT!A Guide to Leadership, Ethics and Teamwork in the 21stCentury

Copyright Maxwell Pinto 2009

All Rights Reserved

No part of this book may be reproduced in any formby photocopying or by any electronic or mechanical means,

including information storage or retrieval systems,without permission in writing from both the copyright

owner and the publisher of this book.

ISBN 1 86106 852 2

First Published 1998 byMINERVA PRESS195 KnightsbridgeLondon SW7 1RE

Printed in THE USA for XLIBRIS

For a soft copy of this book or my other books on leadership,ethics, teamwork, motivation, women in the workforce, etc., please

follow the link below:

http://www.smashwords.com/profile/view/MaxPinto


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THE MANAGEMENTSYNDROME... HOW TO

DEAL WITH IT!A Guide to Leadership, Ethics and Teamwork in the 21stCentury


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Contents

I Introduction to the Problem 21

Approach 23Limitation 23

II An Approach to Sound Management 24

Leadership 25Guidelines for Effective Leadership 26How to Practise Leadership... 27and Perfect Leadership Potential 28Understanding and Meeting Responsibilities 28

Developing a Capable Understudy/Subordinate 29Other Matters 30

III To Be or Not to Be... a Human Being 33

The Various Needs and Wants of Man 33Man is a Social Creature 35Psychoanalytical i.e. a Biological Theory of Personality 35Social and Cultural 36Business and Society 36Religion 36Ethics and Business Morality 37Social Objectives 37Pragmatic Views 37A Cross-Cultural Analysis of Profits in Western Society 37Perception, Motivation and Business Behavior 38A Behavioral Approach to the Theory of Business 38Motivation 39Objectives of the Business Enterprise 40Conditions of Work 40Technical Efficiency not Enough 41Provision of Interesting Work 41Reduction of Exhausting Work 41Some Views on Business Behavior 42Employees Right of Appeal 42Joint Court of Appeal 42A Study of Labor-Management Conflict 43

IV Some Views on Personnel Relations 45


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The Laws of Human Association 46Attitudes 46Symptoms of Frustration 48Building Good Human Relations 49Manage the Employee and his/her Work 51

Appraisal Interview 51Salaries and Benefits 52Correction and Discipline 52Taking Corrective Action 53Correction Interview 54Maintaining Good Discipline 54Labor Relations 55The Manager and the Labor Agreement 55The Human Resources Manager 55Importance of the Human Resources Department 56Success of the Human Resources Department 56

Selection and Recruitment of Employees 56Selection of Interviewees 57Employment through Selection Consultants 57

V The Role and Significance of Training and Communication 58

Motivation and the Learning Process 58Training Methods Adopted Depend on Goals 58Simple but Varied Presentation 59Friendly Competition 59Determining Training Needs 59Performance Standards 59Training Methods 60Summary of Training Methods 63Communication 63Importance of Effective Communication 64Psychology of Communication 64Hidden Messages Employees Send 64Breakdowns in Communication 65Communication Skills 65Methods of Downward Communication 66Methods of Upward Communication 66Horizontal Communication 67The Grapevine 67Channels of Communication 67Strategies of Effective Interviewing 68How to Run a Meeting 68Functions of a Meeting 69What Sort of Meeting 69Prior to the Meeting 69


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The Election of a Chairperson 70The Chairpersons Duties 70The Secretarys Duties 70Motions and Amendments 70Minutes 71

Miscellaneous Matters 71

VI Elements of Cost Control and Work Simplification 72

Availability of Cost Data 72Work Simplification 72Analyzing Office Layout 74The Office Landscape 75

VII Fundamental Concepts: Planning, Organization and Control 76

Management by Objective (MBO) 77The Organization and Control of Office Procedures 77Planning and Layout 77Time is Money 78Managers Should Avoid Wasting Time 79Budgeting and Controlling Your Time 80Organizing 80Basic Principles of Organization 80Types of Organization 81Controlling 82Value of Controls 82Procedure for Reorganization 82Conclusion 83

VIII Factory Planning and Control 84

Location of Departments and Sections 84Supervision 84Plant and Equipment 85Materials 85Stores Department 85Production Control 86Work Study 86Maintenance Department 86Manufacturing and Corporate Strategy 86Major Characteristics of the Focused Factory 87Conclusion 87

IX Motivation and Co-ordination their Role in Promoting Success 88


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Factors to Consider in Developing Employee Initiative 88Relating the Employees Job to the Firms Operations 89Developing a Spirit of Professionalism in Employees 89Responsibility Encourages Participation 89Growth within Employees 89

Understanding Employees 90Rivalry or Competition 90Comfortable Standard of Living 90Friendship or Companionship 90Clear Conscience 90Needs 90Employee Morale 90Mutual Confidence and Respect 91Keep your Promises 91Be Fair and Impartial 91Make Prompt Decisions 91

Be Easy to Talk to 91Employee Orientation 92Why Employees Stay 93Pragmatic Approach to People Problems 93Management via Team Effort 93The Relevance of Physical Fitness 94Co-ordination 94Vertical Co-ordination 94Horizontal Co-ordination 94Policies and Procedures 94Administrative Orders and Conferences 95Staff Meetings and Advisory Committees 95

X Information Technology the New World 96

Profit or Loss 98Other Important Matters 99Steering Committee 100Database Management Systems (DBMS) 100What is Dbase IV? 100Conventional Files vs. Databases 101Objectives of Database Management Systems 101Implications for Auditing of DBMS 101Innovative Accounting Systems Using Databases (IASD) 103Data Dictionaries 104Data Administration 104Implications for Control 105Areas of Exposure 106Control Techniques for Database Management Systems 107Design, Development and Maintenance 107


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Input, Updating and Integrity Checking 108Access Control 108Back-Up and Recovery Controls 109Audit Implications 109International Management Information Systems 111

XI Marketing Management 112

The Market Research Manager 112Sources of Data 113Entry into a Foreign Market 114The Sales Manager 114The Art of Salesmanship 114The Advertising Manager 116The Public Relations Manager 117Ethics and Public Relations (PR) 117

Selling and Distribution 118Marketing and Sales Management 118Other Matters 118

XII Financial Control in a Broader Context 120

Implications for Managers 120Cost Effectiveness of the Office 120Ratio Analysis 121Finance: Equity vs. Debentures/Loans 121Advantages of Loans/Debentures 123Limitations of Loans/Debt Finance 123Factoring its Implications for Liquidity 123Factoring and International Trade 124Foreign Exchange Risk Management 125A Model MIS 125Internal Hedging Techniques 125External Hedging Techniques 127Setting Hedging Strategy 127Integration with Liquidity Management 128

XIII Documentary Letters of Credit 129

General/Open/Special Credits 130London Acceptance Credit 130Transferable Credit 130Red Clause 130Back-to-Back 130Deferred Payment 130Cable Credit 130


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Revolving Credit 131Standby Credit 131Revocable and Irrevocable Credits 131Legal Aspects of L/Cs 131The Sellers Drafts 132

Warranty as to Documents 132Transmission of the Benefit of a Credit 132Legal Nature of Transfer 132The Buyer-Applicant 132Back-to-Back Credits 133Forged Documents Presented for Payment under L/Cs 133The Bankers Security 133Conflicts (of Laws) 133

XIV Close Encounters of the Management Kind 134

Growth 134Effective Pricing 134The General Manager 135Inflation 135The West vs. Japan 135Other Problem Situations 136

XV Management and the Law 137

Sources of English Law 137Ratio Decidendi and Obiter Dicta 138Legislation 138Forms of Liability 139The Nature of Criminal and Civil Liability 139Nature of a Crime 139The Classification of Civil Law 139Liability in Contract and Tort 139

XVI The Law of Contract 141

Offer 142Invitation to Treat 142Auctions 142Lapse of Offer 143Revocation of Offer 143Rejection of Offer 143Acceptance 143Intention to Create Legal Relations (Legal Intent) 144Consideration 144Rules of the Doctrine of Consideration 145


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Promissory Estoppel 146Formality 146Contracts Requiring a Deed 146Capacity 147Minors 147

Terms 149Conditions and Warranties 149Express and Implied Terms 149Exclusion Clauses 150

XVII The Law of Contract Part 2 151

Mistake 151Non est Factum 152Misrepresentation 152Contracts Uberrimae Fidei 153

Inducement 154Types of Misrepresentation 154Rescission 154Criminal Penalties 155Duress and Undue Influence 155Contracts in Restraint of Trade 155Severance 156Discharge of Contract 156Provision for Discharge 157Form of Discharge 157Time of Performance 158Remedies for Breach of Contract 159

XVIII The Contract of Employment 161

Formation 161The Employers Duties 162The Truck Acts (1831-1940) 162The Payment of Wages Act (1960 and 1986) 162Provision of an Itemized Pay Statement 162Sickness Pay 162Other Duties Regarding Wages 163Other Duties of Employer 163The Employees Duties 164Termination of Employment 164Remedies at Common Law 164Unfair Dismissal 164Dismissal 164Unfair Dismissal 165Fair Dismissal 165


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Remedies for Unfair Dismissal 165Written Reasons for Dismissal 165Redundancy 165

XIX Sale of Goods and Hire Purchase 166

Formation of the Contract 167Implied Terms 167Exclusion of the Implied Terms 168Transfer of Property in the Goods 168Specific Goods 169Unascertained Goods 170Reservation of Title 170Sale by Non-Owner 170Performance of the Contract 172Rights of Unpaid Seller 172

Remedies of the Buyer 173Consumer Credit Agreement 174Distinction between Hire Purchase, Credit Saleand Conditional Sale 174Hire Purchase 175Formalities 175

XX Agency 177

Creation of Agency 177Effects of Contracts Made by Agents 178Relationship between Agent and Principal 179Termination of Agency 180Effect of Revocation 180Irrevocable Agency 181

XXI Company Law 182

Formation 182Certificate of Incorporation 182Pre-Incorporation Contracts 183Commencement of Business 183The Memorandum of Association (M/A) 183Amendment of an M/A 183Name of the Company 184Status 184Domicile 184Objects Clause 185Contracts and the Doctrine ofUltra Vires 186Criticism of Doctrine ofUltra Vires 186


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Remedies of a Party to an Ultra Vires Contract 186Rights of the Company Under an Ultra Vires Transaction 187Alterations to the Objects Clause 187Dissentient Debenture Holders 188Notes on Procedure 188

Limited Liability 188Capital Clause 188The Articles of Association (A/A) 188Table A 188Alteration to Articles of Association 189Enforcement of A/A 189Contracts Incorporating an A/A 190The Nature and Form of Company Securities 190

XXII Company Law Part 2 191

Management of Registered Companies 191Types of Company Meeting 191Extraordinary General Meetings (EGM) 191Requisites of a Valid Meeting 191Chairperson 192Quorum 192Voting 192Corporate Representatives 192Proxies 192Resolutions 193Filing 193Directors 193Duties of Directors 194

XXIII The Law of Partnerships 195

Profits and Sharing of Profits 195Types of Partners 196Number of Partners 196Meaning of Firm 196Choice of Name 196Capacity 197Relation of Partners to Persons Dealing with Them 197Partners Liability for Debt and Breaches of Contractby Firm 198Partners Liability in Tort 199Misapplication of Property (including Money) 199Improper Employment of Trust Money 199Partnership by Estoppel or Holding Out 199Continuing Guarantees 200


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Other Effects of Changes in the Constitution of the Firm 200Relationship Between Partners 200Partnership Property 200Business Matters 200Transmission of a Partners Share 201

Remedies for Breach of a Partnership Agreement 201Dissolution of Partnership Agreement (Review InsolventPartnerships Order 1994) 201Powers of Partners upon Dissolution 202Treatment of Assets upon Dissolution 202Profits After Dissolution 202Rescission of a Partnership Agreement 202Limited Partnerships 203

XXIV Sexual Harassment a Burgeoning Problem in the Corporate World

What is the Problem? 205Sexual Harassment and the Law 207Education and Knowledge Why? 207Quid Pro Quo 208Sexual Favoritism 208Threats as a Result of Refusal 208Harassment of Customers/Clients 208Harassment of Non-Employees 208

XXV Women... Yesterday, Today, Tomorrow... 211

Sexual Harassment 212Preventing Sexual Harassment 213Sexual Discrimination 213Exploring the Glass Ceiling 214The Feminine Advantage 215Practical Examples of Change 216Women and Family 216Making a Statement... the Corporate Attire 217The Last Tango 218

XXVI Conclusions and Views 220

Other Matters 221

Bibliography 224


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To my family and friends whohave continuously offered me continued support and encouragement in my effort to

produce a

dossier on management techniques.

Hopefully, this reference manual will provide valuable reading for students

professionals and businessmen alike.For a soft copy of this book or my other books on leadership,

ethics, teamwork, motivation, women in the workforce, etc., please

follow the link below:



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DURING THE PREPARATION of this book, several books were reviewed and lost dueto an unfortunate incident. I thank the publishers and authors of those books and sourcesthat I accessed on the internet and I apologize for not being able to include their names inthe bibliography to this book.


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About the Author

Dr Maxwell S. Pinto is an established Business Consultant with a PhD in Business

Administration from Pacific Southern University, California, USA. He is also a memberof the Institute of Chartered Accountants (England and Wales) and a life member of theInstitute of Professional Managers (UK). Dr. Pinto is listed in Marquis Whos Who in theWorld and in several publications of the International Biographical Centre, Cambridge,England.

Dr Pinto is fluent in five languages. His international experience includesmanagement consulting, corporate analysis, management information systems, trainingand development, valuation and sale of business, raising venture capital, administrationand finance. Dr. Pinto believes that sound theory promotes desirable practice and thatthere is always room for improvement.

Dr Pinto has also conducted lectures and seminars in business management,

human resource management, business ethics, business law, marketing research,economics, and accounting for graduates, experienced businessmen and professionals.This is the third edition of this reference manual and is a follow-up to his highly

acclaimed and authoritative manuals on business management, Management: Flirtingwith Disaster! and Management: Tidbits for the New Millennium! and is the result of DrPintos disillusionment with the approach adopted by managers all over the world. As anindependent management consultant, Dr Pinto has a specific commitment towardsworking with businessmen, managers and other professionals in a bottom line approachto solving their problems.


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Preface

In the real world, there is no substitute for common sense. This being the case, booksalone cannot create managers. Nevertheless, this reference manual does attempt tohighlight the main areas of management within a human environment, where a degree of

knowledge and appreciation of Psychology, Sociology and Law are often lacking in mostmanagement personnel.This edition has been revised in the light of comments received from readers

including existing and retired businessmen, professionals: management consultants,engineers, accountants, lawyers, bankers, principals in established educationalinstitutions, lecturers and students at universities and colleges, as well as lay people, onan international basis. For those readers who believe that this is a practical book, setagainst a theoretical background, I would like to stress the words of an eminent author:A theoretical approach is often characterized as likely to yield impracticable decisions it implies a method, which appears to be impressive on paper, but will not work in thereal world. This is rather misleading, for it is the role of theory to improve practice and

the latter is generally capable of improvement by sound theory!This being a book on management, it is essential to understand the meaning andnature of the terms Management and Leadership as discussed in Chapter II, and toappreciate that management is effected within a human environment (the implications ofwhich are elaborated upon in Chapters III and IV) in line with the Corporate Plan.

Having noted the importance of the proper recruitment and selection ofemployees for success in implementing the Corporate Plan, we can proceed to considerthe importance of subsequent training, planning, organization, delegation, control,motivation and co-ordination.

The role of information technology cannot be undermined and the same applies tomarketing, with a view to gaining an ever-increasing share of the market(s) involved.These topics are discussed in Chapters X and XI.

As far as financial control is concerned, one looks forward to a thoroughunderstanding (of this area of operations), not only by accountants but also by allmanagers. Hence, the inclusion of Chapter XII.

Documentary letters of credit are relevant mainly to foreign trade. The mainconcepts involved are discussed in Chapter XIII.

Chapter XIV attempts to draw the readers attention to some problem areas facedby managers.

Chapters XV-XXIII highlight the main areas and concepts of law that managersshould be aware of i.e. sources of law, the law of contract, the contract of employment,sale of goods and hire purchase, agency, companies and partnerships. These chaptershave been introduced following feedback from readers of the first and second editions,who felt that this manual would be even more valuable if it included a special section onthe main aspects of business law.

Chapters XXIV and XXV consider the role and significance of women in todaysworld, coupled with the growing awareness of sexual harassment and bullying in thecorporate world.

Conclusions and views are presented in Chapter XXVI, followed by a

bibliography at the end of this Reference Manual.For a soft copy of this book


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or my other books on leadership, ethics, teamwork, motivation,

women in the workforce, etc., please follow the link below:



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Acknowledgements

Dr Robert Holland, PhD; Dr Ahmed Mesbah, PhD, Krishna Prasad, BSc; Aley Thomas,MBA; Lee Broadie, MA; Maurice Pinto, Mark Pinto, MBA, ChFC; Eusebia Fernandez,

MA, MSc; Mari-jane Sutton; Aaron Pinto; Vanessa; Paresh; Josie Gelacio, Carrie Garbasand others, whose names I may have overlooked, but to whom I am eternally grateful.


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Chapter I

Introduction to the Problem

Most of the problems highlighted in this chapter are mainly applicable to developingcountries, where planning is minimal and control is either misdirected or insufficientlyapplied! Therefore, one needs to identify the problems, appreciate their significance andcontrast the approach adopted in developing countries with feasible techniques, some ofwhich are used in the more advanced countries of the world.

In a normal business enterprise, managers usually think... decide... and then act. Indeveloping countries, the managers are usually guilty of reverse-gear management,whereby they act... think... decide... and later on reverse the initial action! This is theresult of improper employee selection and job evaluation procedures, coupled with vaguejob descriptions, which together, spell chaos within the firm in question. Moreover, manyschool leavers have the tendency to consider themselves as managers, having hardly

faced difficult times, and wish to start their employment careers almost at the top of theladder or in middle management. This is duly encouraged by the shareholders and seniormanagers, on the grounds that they should help their own people rather than foreigners,with good jobs and remuneration packages!

Consider the example of X Ltd, a medium-sized engineering enterprise financedby five shareholders, dealing in the manufacture and sale of electrical switchgear in adeveloping country and abroad and note the evidence of a lack of planning from theoutset.

1. In a country of climatic extremes, the shareholders built a factory without centralcooling or heating and this adversely affected efficiency and profitable growth.

2. The office was located above the factory unit. Lack of soundproofing of factoryand offices compounded the adverse effects on effectiveness of factory and officeemployees. Moreover, management staff displayed a growing tendency to shout atsubordinates in public, thereby adding to the already existent noisy atmosphere.

3. Lack of dust-proofing, loosely fitted air-conditioning units, and managementslack of desire to employ a decent full-time cleaner compounded the problem, asfar as the efficiency of employees was concerned.

4. The absence of a canteen or vending machine for employees demonstrated a lackof concern for employee welfare.

5. Location of the tiny kitchen next to the toilet implied ignorance of the conditionsof normal hygiene.

6. The inventory location was split into four sections, one of which was outside thefactory and open to access and abuse, thus confirming the lack of proper planningon the part of the shareholders and management.

7. Several of the three thousand plus inventory items in the stores areas were noteasily identifiable, with consequences for the design, purchasing and productiondepartments and implications for excessive inventory levels, costs related theretoand the risks involved. No positive attempts were made to identify and dispose ofslow-moving and obsolete inventories.


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8. The computer configuration and software were chosen by the Managing Director,who did not have a clue as to the accounting and other requirements of the firm.Needless to say, he had no computer background either. The result: an abortivemanagement information system!

9. Administrative instructions were often illogical and impractical e.g.:

a) Personal telephone calls are not allowed because the telephone is aninstrument of work. Consider the effect on employee morale and thereaction of employees relatives, who might need their help in anemergency situation.

b) Employees who arrived even one minute late were penalized, in theabsence of a clock which could match the standards of accuracy of BigBen (in London), England!

10. Most members of management did not possess a working knowledge of thenational language.

11. Off-the-job training by way of internal and external courses was neithersponsored nor encouraged by the firm.

12. The selling price of the final product did not take into account the replacementcost of component parts and probable delays in payment by the customer.13. Debtors and creditors were not carefully analyzed with regard to their size,

importance and possible delays in settlement. The Finance Manager behaved and performed more like a cash collector than a financial controller. Cash flowtechniques were rarely used, and, when used, were not sufficiently detailed toenable success in this area. Cost-benefit analysis was hardly ever undertaken.

14. Diversification of products from the start of the companys operations, withoutadequate experience, caused problems for customers and inventory management.This was compounded by lack of standardized products, with adverse results oninventory holdings and labor efficiency.

Approach

What follows is a suggested consolidated approach to management, based on my studies,research and experience over the past several years in North America, Europe and theMiddle-east. Several people have been interviewed including members of topmanagement, middle management, other employees, businessmen, professionals,consultants and other independent personnel.

Limitation

The main limitation of this study lies in the time factor. Nevertheless, I hope the materialcontained herein will prove useful to managers, intending managers, professionals and businessmen all over the world, with special emphasis on those who operate indeveloping countries. Statistics have been excluded from this book, which is meant toaddress an international (rather than any specific national) audience. Bias which couldresult from any specific national sample has thereby been eliminated.


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Chapter II

An Approach to Sound Management

Management is the art of achieving results through the efforts of other people, who must

be willing to perform the task(s) required of them. The manager should thereforeunderstand and appreciate the values of his/her subordinates, because thesevalues/standards determine their opinions, attitudes, preferences and actions. Congruencein the values of the organization, its top executives and other employees, leads toorganizational effectiveness. Failure to understand values leads to barriers incommunication, wastage of time and energy and distrust, plus ill-feelings within theenterprise. These factors have adverse implications for effectiveness in line with pre-determined objectives (as specified by the Corporate Plan).

The Authoritarian type of manager insists on his/her instructions being carried outto the letter, without due regard for the psychological impact on his/her subordinates.This implies that he/she considers himself/herself to be a Mr. (or Ms) Know-all.

The Democratic type of manager attempts to achieve employee and departmentaleffectiveness by being nice. This is also an extreme type of manager, who places moreemphasis on courtesy than on effectiveness.

Neither of the above styles of management challenges the employee or promoteseffective performance.

The Non-entity type of manager is content to accept the decisions of others andmaintain a low profile, rather than be directly involved in any decisions or actions. This ishardly conducive to good leadership or effectiveness.

The Fence-sitting type of manager attempts to achieve results without disturbingemployee morale (through confrontation).

The Ideal manager leads by example and encourages team effort and participationof employees in an ethical manner. The latter should have been selected in accordancewith proper employee selection procedures, with due respect for qualifications,experience, background and the ability to perform effectively within a team environment.The Ideal manager regularly and frequently evaluates employees. Responsibilities andtargets are mutually set (and altered if necessary) and personal matters and goals areregularly discussed, to spur the employee towards motivated effectiveness, in line withcorporate objectives and goals. The Ideal Manager ensures that:

1. Co-ordination is achieved whereby everybody who is affected by any decision isduly informed.

2. Organization is effected so that there is a proper chain of command, delegation ofauthority and responsibility and orderly working relationships betweensubordinates and others, thus facilitating harmony. Praise or criticism is on thebasis of fairness, with motivation and the bottom-line in mind. Each memberunderstands how his/her job relates to those of other team members anddepartmental members, with goals and procedures being specified and altered ifnecessary, thus maintaining an adequate degree of flexibility. In the event ofconflict, the ideal manager approaches those involved, ascertains the cause(s) andsolves the problem.


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3. Discipline is effected for control purposes. Self-control is often the most difficultto maintain, especially in cases where most managers feel that one set ofdisciplinary rules applies to employees and another set applies to managers!

4. Objectives are communicated to those involved and the same is true of authority,responsibilities and methods. The main objective is normally profit maximization;

decisions and actions should not be based on politics, nationality, friendship orother irrelevant factors, which are contrary to what profit maximization demands!

Leadership

To be effective, a manager must understand the basic principles of leadership. A goodleader is one who can significantly influence employees and others to achieve the desiredresults (in accordance with organizational objectives) through a logical and reasonableapproach, which convinces them of the need for such results. He/she must serve theinterests of the organization and its employees, so that the latter are geared towards

working at maximum potential. He/she then helps them to solve most problems, withouthis/her direct involvement in the solution to such problems. The leaders behavior affectshis/her followers and organizational development.

Decision making may need to be aggressive at times, but should not be postponedunduly, otherwise frustration will ensue for those concerned, i.e. the team and others.Moreover, decisions may be obsolete and ineffectual, when taken.

Guidelines for Effective Leadership

a) Be knowledgeable to a greater degree than your followers, as regards jobs,responsibilities, procedures and occurrences in the past and present, as well aspossibilities in the near future;

b) Be enthusiastic and inspired so that it influences followers and others;c) Capitalize on your authority and learn from the good and bad experiences of other

leaders within and outside the firm. Remember that you can learn importantmanagement techniques even from non-managers;

d) Ensure optimal usage of employees, assets and outsiders in your attempts to attainthe firms goals as specified by the business plan; ensure job satisfaction and fairappraisal plus careful grooming of potential and actual managers;

e) Motivate employees upon understanding their values and desires;f) Work effectively with people by appealing to their human/emotional side and

influencing them via logical and reasonable methods; encourage team effort butoverrule the groups decisions where necessary;

g) Be responsive to the needs of others and do not discriminate on the basis ofgender, race, religion, and rank in the organization or any other criteria. Do nottake undue advantage of individuals who are in need of experience to enhance

their resume's, by asking them to work for you free of charge, based on the factthat the experience you are offering will benefit them;

h) Maintain respect through example and lack of being too familiar;


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i) Ensure profit-sharing facilitiesfor all; j) Ensure decent location of business premises, in terms of neighborhood,

community feeling, transport, schools, banks, post offices and related matters;k) Aim for congruence in values of the firm and its employees this is very difficult

to achieve, because each individual has his/her own set of values and the

treatment accorded to him/her must take the latter into account.l) Never undermine the importance of gut feeling.

Lack of contentment among employees will result in high costs and poor service, withadverse effects on the firm concerned.1

Peter Druckers View: The Corporation A Symphony Orchestra?

For a soft copy of this book or my other books on leadership, ethics, teamwork,

motivation, women in the workforce, etc., please follow the link below:http://www.smashwords.com/profile/view/MaxPinto

1 Loftus, John T., Modern Management, USA, 1971.


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Chapter III

To Be or Not to Be. . . a Human Being!

In most countries, employers are vastly outnumbered by employees and are dependentupon the latter for the success of their entrepreneurial activity. Success in business callsfor sound leadership: creative thinking, planning, organization, direction, co-ordination,control, delegation, communication, motivation and decision-making ability. Even in thepresence of the foregoing, the organization can fall to pieces because of the inherentselfish nature of human beings.

Human beings, like most other live species, have a tendency to care forthemselves, to the direct exclusion of all others. It is, in essence, this very attribute whichleads to the detriment of most firms, hitherto profit or growth-bound, but thwarted alongthe way by the selfishness that abounds everywhere. There is, therefore, vast scope for

improvement in the area of human relations, with consequent benefits for all involved.

The Various Needs and Wants of Man

Abraham Maslow believed that, of all the resources at a managers disposal, humanresources are the most important people are the life-giving element in any organization,despite which, they are hardly understood and continue to remain a puzzle.

According to Freud, man is basically a beast aggressive, lustful andunscrupulous. Maslow challenged this view and believed that man is basically good anddecent. Maslow felt that human needs form a hierarchy; they are like a pyramid, withphysical needs at the base and knowledge at the apex. When, and only when, a humanbeing satisfies one level of need will he/she move to the next level of needs:

i) Physiological/Basic Needs: air, water, food, shelter and sleep;ii) Safety Needs: at work and includes security/permanency of job plus insurance;iii) Love and Belongingness Needs: as a social animal, he/she wants friends plus love

at work and at home;iv) Esteem Needs: recognition and status, without which he/she feels doubtful of

himself/herself and insecure;v) Self - actualization : to perform at maximum potential and accomplish all he/she

has ever wished for;

Man is constantly in search of something which he/she does not possess. He/she,therefore, remains active, motivated and geared towards self-perfection.


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Although behavior is normally a function of the variables discussed earlierincluding values, experiences, upbringing and a given stimulus may be strong enough tooverride these variables, in any given situation.

The stimulus situation consists of physical, social and cultural objects andprocesses that initiate decision-making. The individual has to contend with various types

of situation, when dealing with people from different segments of society i.e.government, business and employment.Employers often drown themselves in an ocean of commitment, without realizing

the basic wants of their employees: job satisfaction, recognition, security and status,equitable wages, sound communication, motivation, fair treatment, a sense of belongingand the opportunity to participate in policy and decision making. They ignore the adverseeffect on efficiency and subsequently complain of the undesirable results. Employersshould concentrate on co-coordinating human, rather than technical, activity by directingtheir attention to and trying to influence group norms, rather than individual norms.

While possessing the qualities required of successful leaders qualifications,experience, effectiveness, personality, creativity, honesty, fairness, a friendly attitude and

courage to be decisive, a manager may yet be restricted by the imprecise nature of his/her job description. Lack of clarity in defining his/her own authority and accountabilityreduces his/her effectiveness. There are managers who are unsuited to their posts butcontinue to fill them, because of obscurity in defining their responsibilities.

Psychology and sociology have focused on the essential nature of human beings.Human beings have been endowed with a certain level of intelligence and temperament,which are subject to modification within any given environment i.e. organic desires ofhunger, thirst and sex. People long for love, emotional security, social status and a feelingof belonging to a group. Loss of status results in social isolation and possible neurosis.The loyalty of an individual rests with his/her primary group and with his/her secondarygroup (only to the extent that the interests of the two groups coincide). With this in mind,management must create an atmosphere which fosters desirable moral attitudes,intellectual skill, improved communication and co-operation through alterations inoriginal structure. A healthy working environment promotes effective operations.

Man is a Social Creature

The Hawthorne Investigations and subsequent studies confirmed that the employees behavior is governed by groups, rather than by selfish individual motives. Thiscontradicts Taylors findings in relation to scientific management.

Psychoanalytical i.e. a Biological Theory of Personality

Human beings are selfish but do need others: employers/employees, customers, suppliers,colleagues, the law and trade unions. Individuals deal with others as a means to an end,rather than an end in itself.

Human beings feel the need to belong to a group, for reasons related to friendship,love, happiness and security, at the very minimum. Man loses his/her identity in a group


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which welcomes him/her and he/she begins to function well, to smile, laugh, gossip,throw paper balls and, generally, to develop a family feeling within the group. Properunderstanding of groups promotes team effort and organizational effectiveness, bearingin mind that the group leader plays an important role in building up an effective team.Every group involves emotional relations of like and dislike among its members,

develops norms of its own and a hierarchy of prestige, often culminating in a singleperson, who has a dominating influence W.J.H. Sprott, in his bookHuman Groups.

Social and Cultural

Language, customs, beliefs, cultural-social and geographical environment do influencebehavior. Even though the same cultural elements are found in a plurality of societies,each will be found to have a distinctive cultural basis which differentiates it from others.

The weight of each variable will vary among individuals and under varyingbehavioral conditions; therefore, individual predictability may not be possible. However,

it may be possible to group individuals in business according to attributes such asincome, ethnic group, age, sex, occupation and other factors to determine what empiricalregularities exist under various decision-making situations. Management cannot coerceworkers but has to win their confidence and respect, educate them, develop them andsecure their wholehearted participation in the mainstream of productive activities of thebusiness enterprise. People do not like being ordered around or being exploited. Theylook for respect, equality and the ability to participate; hence, profit sharing, jointconsultation, explanations to employees and appropriate training methods.

Business and Society

There are those who believe that businessmen should concentrate on making money andhelping the economy grow. Others believe that businessmen should contribute to socialwelfare, rather than being a parasite on society and focusing on money alone. In thiscontext, one is advised to review the stockholder and stakeholder theories, as discussedby Milton Friedman, Edward Freeman and Immanuel Kant.

Stockholder vs. Stakeholder




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Chapter IV

Some Views on Personnel Relations

Human beings are not machines; they have feelings which, if well handled, will bring outthe best in them, in terms of efficient teamwork and desirable results. Cold calculationsand ridiculous procedures, rules and policies will not help achieve the firms objectives.1

Employee relations are taken care of by departmental heads and/or the humanresources department. This department should always be aware of the various labor lawsand employment rules. The human resources department may also be responsible forwage and salary administration, employee selection for interviews based on head-huntingtechniques, insurance, health, safety, communications, recreation, training, counseling,public relations, research and dealings with trade unions.

Most problems of subordinates should be solved by department managersconcerned in line with their knowledge of employees, the firms rules and agreementswith unions and the law. Managers are useful to their employers only if they can workeffectively with people. They should be aware of factors influencing behavior.

a) Environmental Influences: The manager who wants to alter an individualsbehavior must influence the individual or the factors that affect the individual,such as his/her circumstances and the environment.

b) Values and Personality: People have values, willpower and a personality therefore they are not slaves to external factors.

c) Job Influence: Individuals seek to maximize their standards of living throughincreases in income, which adversely affect firms which aim to maximize profits.

Managers should try to identify the causes of certain patterns of behavior by observation,noting attendance records, performance records, employee complaints, morale surveysand other methods. Once the cause(s) of undesirable behavior is known, the managershould attempt to influence or eliminate the same, with a logical and open-mindedapproach. He/she should then proceed to study the results following from his/her actionson the cause(s) while being alert for changes in job performance or behavior.

The Laws of Human Association

No two individuals are exactly alike, although they will have some traits in common.Each person behaves in a manner which he/she believes will fulfill a need or combinationof needs, whether physical, emotional or whatever. Therefore, one must study peoplecarefully and deal with them accordingly.

i) Anxiety produced upon first contact should be relieved by the manager;

1 Hall, L.,Business Administration , L.J.K. 1976.


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ii) Strong need for participation in groups is predominant in most individuals;iii) Need for approval and appreciation from superiors is very strong;iv) Will to win exists very strongly in most people because our society always

respects a winner and usually despises a loser;v) Sound mind and body are essential for healthy decisions and subsequent actions;

vi) Influence of invisible forces is present in almost every person, although the mostimportant influence of the subconscious may not be realized.

Attitudes

Attitudes are shaped by several factors including backgrounds, experiences, cultural

influences: such as traditions, customs, family, friends, and group memberships inreligious and educational institutions. A manager should realize that attitudes differbetween individuals and his/her attitude should not be rigid or illogical. He/she cannot,for example, assume that all bearded men are cheats.

Since attitudes affect behavior and performance, a good manager should helpdevelop constructive attitudes in his/her subordinates and others. Observation,conversation and other techniques discussed earlier are important in understandingattitudes, predicting behavior and acting accordingly.

Managers should be available to solve problems while being accessible tosuperiors, peers and subordinates. Managers should be concerned about the feelings ofothers and the effect on work performance, without any indications of prying intopeoples affairs. The manager should set aside time for his/her own work.

If the manager is an honest person without preconceived notions and ideas and prepared to give the devil his/her due, his/her subordinates will learn from his/herexample. The manager should follow up by interviewing his/her subordinates from timeto time and trying to replace their undesirable attitudes with favorable ones.

Even individuals with exemplary attitudes and sound environmental influencescan exhibit unsatisfactory behavior in the following circumstances:

a) Frustration may result from poor working conditions, delays in decision making,unfulfilled promises or unreasonable demands made by the manager; this willreduce effectiveness;

b) Level of tolerance is higher for more flexible persons, but disappointment willoccur beyond a certain point;

c) Needs of the moment may influence a person to behave in a way which displayshis/her frustration;

d) Interpretation of the situation may lead to a certain pattern of behavior, partlybecause of the way an individual feels towards his/her manager and job;


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Symptoms of Frustration

An adverse change in job performance or continued regression after months or years ofexcellence is indicative of a reasonable degree of frustration. Aggressive behavior or anegative attitude may follow and can be more detrimental than a punch in the nose.

Resignation is a sure sign of frustration and may take the form of physical quittingor functioning in name only. To eliminate frustration, define precisely the role of each ofyour subordinates, set achievable targets, guide your subordinates and provide necessarytraining, review progress and praise or criticize (politely). Act as counselor and listencarefully to their problems during and after working hours, thus helping to relieve theirtension. Constantly reassure your subordinates and increase job security.

Frustration also results from unsuccessful marital and other relationships, whichundermine the importance of love, communication, understanding, compromise, patienceand commitment. In some cases, this adversely affects performance at work, whereas inother cases, the employee turns to his/her job with an even greater sense of commitment. 2

As regards counseling interviews, plan them to ensure an informal and friendlyatmosphere so that you may gain the employees confidence. He/she may then disclosehis/her problems... you are present to listen and advise only, if requested to do so. Thefact that the employee has approached you indicates that he/she trusts and respects you.

Building Good Human Relations

Thoughtful leadership and an intelligent and considerate approach to building goodworking relations will help your teams performance. Consider the following guidelines:

Be self-motivated so that you can motivate others

Observe and evaluate the actions of others

Control your emotions before you attempt to control others

2 Bartolome, F., The Work Alibi When Its Harder to Go Home, Harvard Business Review, USA 1985.


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Tactfully correct and change the behavior of others

Communicate with your subordinates and learn from them

Increase job knowledge

Motivate

Persuade

Keep subordinates informed

Encourage creativity

Counsel your subordinates

Understand yourself before you attempt to understand others and always seek perfection.

Manage the Employee and the Employees Work

The personnel function is responsible for employment, promotions, safety, pension plansand labor relations. Appraisals should be regular, frequent and based on fair standards.The manager should assign work, salary and promotion recommendations/evaluationsaccordingly. Appraisals help to ascertain the worth of an employee to the firm and shouldmake use of:

i) Up-to-date personnel records: Education, qualifications, experience, length ofservice, attendance record, disciplinary action, participation in the firmsactivities, as a team member and physical health reports.

ii) Employee merit appraisals forms: Quality of work, promptness, dependability,initiative, ability to learn, co-operation, judgment, ability to get along with people,care exercised in using materials and equipment, and job performance.

Individuals are different in mental, physical and character traits therefore, examine eachtrait of each individual separately and without bias, prejudice or preconceived notions.Avoid generalization and over-emphasis on isolated events and then rate each employeeon actual rather than potential traits, as discussed above.


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Appraisal Interview

Prior to this interview you will have rated the employee carefully and noted down whichpoints you wish to discuss at the interview and in what order and manner. Decide on aplan of improvement and in which areas you need additional information.3

Then arrange a time for the interview, when neither of you will be under pressureand when there will be no interruptions. Be friendly and informal and explain the purposeof the interview. Ask the subordinate how he/she is progressing with his/her job and otheremployees and whether he/she has any problems which you could help him/her solve.Listen carefully so that you understand his/her feelings.

Start on the employees strong points and praise him/her for the same. Then

continue with his/her weak points and criticize politely and constructively but do notgeneralize in your criticism be precise and state facts and instances. If the employeedisagrees with you, let him/her explain his/her point rather than allow yourself to loseyour temper.

Following the discussion of strengths and weaknesses of the subordinate, sit downwith the employee and frame a program for the latters improvement. Offer and acceptsuggestions because this is a team effort aimed at improving the subordinatesperformance. Close the interview on a friendly note and encourage the worker to comeback if necessary. Leave the subordinate with a desire to improve.

Record the pertinent points and essential information for further use andsubsequent interviews. Live up to your end of the plan for improvement and continuallyreview the subordinates progress for comparison with the plan.

Progressive transfers between departments, with improvements in pay and otherbenefits, should be discussed between the manager and subordinate before being effectedand should be in the interests of the firm and the employee.



3 Trull, Samuel, Strategies of Effective Interviewing, Harvard Business Review, USA 1964.


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Chapter V

The Role and Significance of Training and Communication

Training is a method of transferring knowledge and ability, whereby the individual istaught what to do, how to do it and why it should be done in a particular manner. Thismay be taught on the job and otherwise, via seminars and internal plus external courses.

People learn by listening, observing and using their intellectual capacity. Theyshould be tested to ensure that they meet the required standards.

Motivation and the Learning Process

The importance of the training should be discussed and trainees should be persuaded infavor of the training. People should be made to realize their own goals and the goals ofthe firm therefore, cultivate in them a desire to learn continuously.

A comfortable place, a friendly atmosphere, skilful instructions and participationof trainees will help ensure successful training. They should be taught one step at a time,with each step being related to their previous level of knowledge and experience. Eachstep should be more difficult than the preceding one. Give them practice by way ofconstant tests and case studies to keep the trainees mentally active.

The objectives of the training should be duly specified and progress, measured, ona continual and consolidated basis, to ascertain the knowledge gained by each trainee.The course should proceed in the light of its objectives, as specified by the traininginstructor, prior to commencement of the training.

Training Methods Adopted Depend on Goals

Lectures, classroom discussions, visual aids, on-the-job training, conferences andcorrespondence courses are all useful methods of teaching and training employees. Thespecific method of training which is adopted depends on the goals of the training.

Simple but Varied Presentation

Present the new material in several ways and from more than one point of view, using thespoken word, and demonstrating with real equipment or mock-ups and audio-visual aidssuch as charts or motion pictures. The instruction provides opportunities for the traineesto use their eyes, ears and brain, with difficult words being defined precisely. Thetraining package should be split into units, as discussed earlier.


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Training should be adapted to meet the needs of the individuals, who differ inbackground, knowledge and ability. Trainees should be allowed to progress at the desiredpace and slow individuals should be given special attention so that they keep pace withthe rest. The trainees should be tested on a continual basis, and their strengths reinforcedwhile their weaknesses are eliminated in a polite manner, without excessive emotion.

Friendly Competition

This stimulates transfer of the desired learning. Competition on a group basis encouragesparticipation and may be less harmful than competition on an individual basis.

Determining Training Needs

Managers are in contact with their subordinates and must sense their potential needs forthe acquisition of knowledge, skills and attitudes to help satisfy their job requirements.The department may be in need of simpler procedures, more realistic working conditions,

lower expenses, lower employee absenteeism and turnover, no duplication of work,deadlines which are met on time, fewer customer complaints and higher employeemorale. Jobs must be analyzed carefully before training employees for them.

Performance Standards

These standards should be realistic and up-to-date and must be set by somebody who iswell aware of and fully understands the work involved.

If performance does not meet the required standards, the cause should beascertained; is it equipment problems, systems problems, lack of training, laziness orsome other cause, such as unrealistic standards?

Training Methods

Conferences help to communicate objectives and ensure that problems are discussed by agroup of people, with the active planned guidance of a leader. The purpose may includedecision making, creative planning, info-sharing, review and evaluation. The sharing ofviews and brainstorming are conducive to sound business relations and operations.

Effective business conferences are the result of sound planning, leadership and participation, in the light of objectives of the conference. The steps in planning aconference are:

i) Ascertain the purpose of the meeting;ii) Consider the participants;iii) Prepare an agenda;iv) Arrange facilities and notify participants;v) Report on the results.


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The leader should ensure that the conference does not get out of hand. Each attendantshould be allowed to express his/her opinion, bearing in mind that differences will exist.

Lectures are effective if the material can be tailored to suit the subject andaudience. Factual material is best presented in short sentences: more difficult conceptsmay have to be elaborated upon. Lectures should be precise and in simple language.

Seminars attempt to relate the knowledge gained during the seminar to real worldsituations, through participation and exchange of information. Consider the following:

i) Presentation tell what is to be learned;ii) Demonstration show and explain what is to be learned;iii) Supplementary instruction the class of trainees must do outside reading and

related course assignments;iv) Application show how the learning is to be applied;v) Examination ensure that the trainees have learnt what you wanted them to learn.

Correspondence courses enable subjects to be taught through relatively short, well-

prepared texts that trainees read and study alone in their own time. This method iseffective, well known, and widely accepted by industry.Programmed instruction enables the trainees to be taught by way of programmed

texts, followed by questions for marking by the instructors. This method consists oflogical learning steps which are well planned, prepared and allow for participation bytrainees, whose knowledge and minds are thoroughly tested.

But the trainees must exert self-discipline since they cannot ask questions. Theymay become bored with the texts if they absorb knowledge too quickly.

Resident training usually involves training via the lecture or seminar method withtheir advantages and disadvantages.

On-the-job training is effected on a daily basis, where the trainee is taught byhis/her boss or seniors, one step at a time and tested as he/she works.

Informal oral instruction requires minimum preparation and is usually used whenproblems require a soft rather than a formal approach. This method can be administeredto several persons at any given time.

Written instructions or procedures should be logical, practical and clearlywritten/prepared, with adequate details that can be presented to large groups at any giventime and can be referred to at a future date.

TABLEOF ADVANTAGESAND DISADVANTAGESOF TRAINING METHODS

Training Methods Advantages DisadvantagesConferences Consultation Mainly for general subjects

Participation May not present definiteobjective.

Exchange of informationand opinions.

Difficult to control: somepeople get carried away.Annoying to some people.Trainees must haveexperience in the subject


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area.Lectures Participation Difficult to evaluate

trainees progress.Exchange of informationand opinions.

More suited to experiencedtrainees.

Seminars Participation Requires an experiencedleader.Exchange of info andopinions based mainly oncase studies.

Requires long planning,equipment and facilities.

Paced according torequirement of trainees.

Requires development ofmuch material.

Progress can be evaluated Limited to small groups ofpeople.

Correspondence Coursesand Programmed

Instruction

An unlimited number ofpeople can be instructed at

the same time.

Requires self discipline.

Can reinforce traineesknowledge in their sparetime, off the job.

Response from trainer totrainees responses toquestions can be very long.

Trainees can proceed at apace which suits them andprogress can be reviewed.

Resident Training Normally via the Lecture or Seminar methodOn-the-job Training Allows several senses:

sight, hearing and touch.A limited number of peoplecan be trainedsimultaneously.

Learning by repetition onthe job.

Needs encouragement fromtrainer because trainees arenervous initially.

Trainees can note their own progress and evaluation iseasy.

Takes up costly productiontime, which must be offset by additional benefitsresulting from the training.

Informal Oral Instruction Requires minimumpreparation.

Can be inaccurate due tohaste and human errors.

Can be administered toseveral traineessimultaneously.

May not be geared to theunderstanding of individualtrainees. Requiresunderstanding uponinterpretation.Cannot be referred tocategorically at a later date.

Written Instructions orProcedures

Helps develop soundwriting skills.

Takes time to plan andprepare.

Can be administered to May not be easily


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large groupssimultaneously.

comprehensible.

Can be boring to read andunderstand.

Summary of Training Methods

The human resources department and managers are responsible for continual training ofemployees, improved effectiveness and morale and goodwill resulting there from.

Communication

This often underrated tool of management is the means of effecting change in peoplethrough an exchange of ideas, to help use human resources at their optimum.Communication is a two-way process, which involves meeting of the minds and musttherefore be understood, whether effected verbally, in writing or through body language.The ideas must be developed, transmitted, received, interpreted and evaluated and theremust be feedback to the sender, to ensure that the message was received correctly.

The message must be timely, clear, concise and relevant. Moreover, personsinvolved must derive the same meaning from it, otherwise the communication isineffective i.e. understanding is the critical step in communication.

Sound communication builds relationships through exchange of views, ideas andopinions and facilitates successful business operations, especially in the large andcomplex modern enterprise of today.

Importance of Effective Communication


motivation, women in the workforce, etc., please follow the link below:



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Chapter VI

Elements of Cost Control and Work Simplification

Cost control, although often considered to be the function of the Finance Department, isactually relates to how well management uses resources i.e. time, employees, equipmentand materials. Stakeholders, including customers and investors must be satisfied.1

In a world of ever-increasing competition, where the selling price is normallyinfluenced by the market, the ability to control costs and increase contribution usually

makes the difference between a profitable firm and the loss-making ones.Managers should analyze favorable and unfavorable variances and their effects on profits, for subsequent action. A favorable materials price variance may cause anunfavorable labor variance, where unfamiliar cheap materials have been incorporated inthe final product.

Managers should understand that costs consist of direct material, direct labor,direct expenses and overheads. They should be aware of the marginal costing approachand the activity-based costing approach, which is becoming increasingly important.

Availability of Cost Data

This should be relevant, accurate and timely and presented in a form which iscomprehensible and suitably measured.

Work Simplification

This should be effected on a continuous basis to enable efficiency in the use of people,equipment and material. A good example is the computer industry: hardware andsoftware. Do not wait for work to simplify itself be the initiator this is yourresponsibility as manager.

Work simplification will affect internal and external relationships plus profits andgrowth as the firm becomes more effective. Some work may have to be transferred toother departments. There are two concepts involved:

i) the belief that there is always a better way, andii) the organized use of curiosity and common sense to find the easier and safer

method of doing the job, using the suggestions of employees and manager.

1 Loftus, John T.,How to Control Costs and Simplify Work, USA, 1966.


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Work simplification relies strongly on training and/or recruitment and teamwork andinvolves an open mind to save time, energy and material. It is based on fact rather thanopinion; tactful persuasion is often necessary to make people change their approach toworking, upon presentation of the facts in an organized manner. Proceed as follows:

a) Identify the problem which shows the greatest need for elimination: delay,customer complaints, high staff turnover, excessive overtime and high costs arethe effects of serious problems;

b) Record and analyze the job on paper;c) Work out a better method(s) which may include improved office layout;d) Convince yourself of the improved method, which is based upon feedback from

others; then convince your subordinates and superiors, if necessary, and follow upby implementing the new methods. Some jobs can be amalgamated whereas otherjobs should be eliminated. The pertinent questions are:

What is done?Why is it done?

Can we eliminate this job?

Where is it done?Where should it be done and by whom?

Can we combine or rearrange this job?

How should it be done, if necessary to bedone?

Can we simplify the method(s)?

Analyzing Office Layout

Office space costs money. The more space required for an operation, the greater the cost.Therefore, consider the following, when analyzing or planning layout:

a) Reduce the lines of communication for smooth flow in factory and office.b) Conserve space: Use space economically, without cramping in individuals. The

sales department should be easily accessible to customers, who need not walk pastother departments and disturb them, to get to the sales department.

c) Organize around the important flows: The layout should be built around the major

flows of work. Minor activities should be grouped around the major activities.When additional space for major activities is required, it should be possible tomove minor activities by relocation.

d) Make the layout flexible: Expansion should be forecast as much as possible andallowed for in a flexible layout e.g. movable partitions.

e) Consider units being serviced: Service departments should be nearest to thedepartments they serve. Departments which have the greatest amount of cross-


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examination should be located next to each other. To reduce work flow to aminimum, departments that work closest to each other should be in adjacent areas.

f) Provide good working conditions to reduce strain and fatigue and maintain highefficiency. These conditions include lighting, heating, ventilation and decoration.The guiding principle should be maximum economy for the total organization and

the best possible working conditions for most people.g) Use systems information: Before the layout is effected, a basic knowledge of thedepartments involved must be obtained:i) the nature and flow of work in each department;ii) inter-departmental work flow;iii) the original locations and responsibilities of each unit;iv) the most important time cycles;v) the number of persons performing the various duties in each unit; andvi) the kind and quantity of equipment required.

A good layout enables:

i) efficient usage of resources including employees and equipment and reducesdelays and wastage while preventing bottlenecks;ii) high output capacity;iii) low-cost handling methods;iv) production control plus flexibility and future expansions;v) efficient supervision;vi) desirable working conditions.

The Office Landscape

The traditional office layout is characterized by isolated groups and private offices, whichmay hinder commercialization and work-flow. To overcome this drawback, a newconcept the office landscape has emerged: an open plan in which functional, technicaland behavioral factors are combined to determine the layout of the individual workcenters, work groups and departments. Privacy is provided through the use of movable,sound-absorbing screens and plants. Worker-status is determined more by workassignments than by location or the amount of space allocated. This is said to create agreater naturalness in worker relationships as well as greater efficiency of movement anda more favorable visual impact. More and more offices are using this concept.




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Chapter VII

Fundamental Concepts: Planning, Organization and Control

A plan is a predetermined course of action aimed at achieving a specific objective(s). Inthe face of increasing uncertainty, the plan should be based on relevant, accurate andtimely information and the people plus other resources at the managers disposal. Theplan may be used once, as in the installation of a Management Information System(MIS), or several times, as in the preparation of the monthly payroll. Decisions, forecasts,methods and procedures are related to plans.

a) Decisions taken by a manager usually reflect a compromise between what he/shewants and what he/she considers possible, within the given constraints. Thesedecisions are based on the information at his/her disposal plus his/her knowledge,experience, common sense and judgment.

b) Forecasts help to anticipate the future and act accordingly but these should be aneducated guess rather than merely a gamble.c) Policies such as promoting people from within the organization to higher and

more demanding posts are general guides to decision making, and the same can besaid of methods and procedures.

Successful planning helps combat uncertainty and follows from precisely defined andunderstood major and minor objectives which are ranked in order of priority and dealtwith in an appropriate manner. Ensure optimal employee performance. Since peopleconstitute the main difference between a successful and an unsuccessful organization,employees should be selected on the basis of merit, trained, instructed, motivated andcontrolled with a view to achieving the firms and individuals objectives. Listen to theiradvice and suggestions. Departmental heads are responsible for ensuring that corporateobjectives are satisfied. They may have to split major objectives into minor objectives,before delegation of some of these minor objectives. Management by Objective (MBO) isthe key to success in business, but the human factor should never be ignored.

Management by Objective (MBO)

The boss and his/her subordinates sit down together and, upon mutual discussion andbrainstorming, set out objectives periodically. These objectives may be modified uponsubsequent developments and mutual discussion. In setting these objectives, theknowledge and experience of all concerned is taken into account. This enables the settingof realistic objectives and teamwork because of participation by allconcerned in settingthe objectives themselves. Therefore, the objectives, instead of people, direct and controlthe working of the organization. The entire organizational strength i.e. knowledge, skillsand imagination is unified and directed towards achieving the given objectives. There isvery little misdirection of effort and excellent team spirit and teamwork.


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Peter Drucker, who is widely regarded as the foremost guru of management,believes that MBO represents a definite philosophy of management, since it has full faithin the potentialities of men. It shares the belief that people like to work and developthemselves; given the proper opportunities, they will strive to the best of their abilities forthe attainment of mutually set objectives. It is not necessary to control them externally

because they control and direct themselves towards improved performance. MBOpromotes freedom for the individual and democracy. (See also: Peter Druckers views onbusiness being conducted like a symphony orchestra, as discussed in Chapter 2).

Sound planning helps to optimize usage of time and leads to increasedconfidence, respect, goodwill, friendship, morale and decreased costs. It relieves tensionand facilitates availability of more time for extra jobs.1

The Organization and Control of Office Procedures

The office serves as the administrative centre of any business enterprise where assets and

employees are located and information is prepared and kept in order to run theorganization efficiently.2

Planning and Layout

This should enable maximum effectiveness at the lowest possible cost. As regardslocation, banks, the post office, transport and other services should be considered. Sizeshould allow for possible expansion, with the possibility of premises being sublet on atemporary basis.

As regards layout, an organization chart should allow for flexibility of departmentlocation such that the logical flow of documents can be easily handled. Servicedepartments should be located near the departments which they serve, with sound-proofing to eliminate or reduce noise from office machinery.

Having decided upon the location of the various departments, and the area to beallocated to each of them, prepare a plan for each area, taking into account employeesand office equipment. An Open Plan allows greater supervision but limits privacy. AFunctional Plan is based upon the natural divisions of work undertaken and theSystematic Plan is based on documentary flow in one direction. Other factors whichshould be considered are legal requirements, minimum movements, distraction andsound-proofing of office equipment. Moreover, placing of desks and equipment shouldallow wide passageways free of obstruction and natural plus artificial lighting, heatingand cooling, without shadows on employees desks or excessive heat or cool on anyemployees direct self. A good layout should enable easy and direct verbal and writtencommunication, in view of the desired results.

Time is Money

1 Loftus, T., Modern Management, USA, 1971.2 Hall, L.,Business Administration , UK, 1976.


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In a world of increasing product and market complexities, technological changes, newconcepts in management and multinational currency considerations, concern over pollution, housing, education, and transportation, the value of time is increasing.Therefore, executives and others should plan the usage of their time logically,systematically and quantitatively, possibly with computer aided info-based decisions.

Routine decisions should be delegated to worthy staff whereas other importantdecisions should be effected by managers themselves.

Projects should be ranked using the limited resource (or key factor) criterion, be itcapital, executive time or whatever, otherwise the firm will not be able to fully undertakethe chosen projects.3

Managers Should Avoid Wasting Time



3 Jones, Curtis, The Money Value of Time, Harvard Business Review, USA, 1985.


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CHAPTER V111Factory Planning and Control

Since most countries have an industrial base, let us consider planning and control in thecontext of a factory. Factory planning and control is easier at the outset than when one isfaced with the need to improve an already established system.1

The selected site should allow for a factory, inventory store, medical facilities,rest room, recreational facilities, canteen, office and parking area, while allowing forextensions. The location should facilitate access to water, raw materials, labor, powersupplies, transport, banking, postal and other services.

Location of Departments and Sections

Location of departments and sections should be logical and allow for sequential flow ofwork without any overlapping or omission. The premier departments should be given dueconsideration while service departments are located near the departments which theyserve. No department should be adversely affected by noises, smells or any kind ofdisturbances from other departments.

In the interests of control, security and minimized risk of hazard, I would suggestthat the inventory department normally be in one location with a single entrance and exit.

Supervision

In order to be effective, sections should report to section heads while departments are theresponsibility of department heads. The nature and extent of supervision will be afunction of the type and volume of work involved in the section or department concerned.

Plant and Equipment

Plant and equipment should serve the purpose required, in addition to being easy to useand reliable, bearing in mind after sales service. There will normally be a need forgeneral and special purpose machines.

Materials

1 Hall, L.,Business Administration , UK, 1976.


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The purchasing manager should ensure acquisition of suitable good quality materials ontime so that there are no shortages or excess materials, with implications for capital tiedup, interest or income loss, storage space, insurance and risks involved.

A smooth flow of materials from receipt to incorporation in final products isdesirable. This is aided by sound production layout and handling methods, thus reducing

labor costs of handling and storage and enabling better management of limited space.

Inventory Department

A sound system of inventory control enables optimum inventory levels, thus eliminatingproblems associated with excessive inventories such as obsolescence, wastage, pilferage,capital flow and cost of capital tied up, insurance, storage and risk in addition to wastageof time by the storekeepers.

Problems associated with low levels of inventory, such as stock-outs and loss ofcustomer goodwill, expensive interruptions of production runs are also eliminated.

The inventory area should be suitably located, well-planned and efficientlyorganized to enable easy identification, issues, receipts and recording plus checking ofthe same. Inventory checks may be periodic, perpetual or a combination of both methods.

Production Control

Co-ordination between Marketing, Research and Development, Production, Design andPurchasing will ensure delivery on time of high quality finished products demanded bythe customer at the lowest cost. Critical Path Analysis, Queuing Theory, LinearProgramming or Simulation Techniques may be used to help plan production schedules.

Work Study

Work study is an attempt to simplify methods and control costs of operation by settingsuitable standards and offering fair incentives to help promote optimal performance.

Maintenance Department

The Maintenance Department ensures smooth and efficient running of machines and plant through regular and continuous checks, repairs and overhauls, in an attempt toprevent or minimize time lost through breakdowns.

Manufacturing and Corporate Strategy


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Instead of merely focusing on low costs, high quality and acceptable customer service,manufacturing must aim at satisfying corporate strategy e.g. shorter production cycle andquicker delivery, in an attempt to increase competitive strength.2

To facilitate control of manufacturing activity, it is not essential for topmanagement to possess knowledge of engineering techniques regarding plant layout,

work study or whatever, or to be knowledgeable in the field of computers and operationsresearch methods. Top management must set manufacturing objectives and ensuresuccess in their achievement, irrespective of the unwarranted tendencies of specialists inengineering, production, computers, design and operations research, to attempt to justifytheir own existence regardless of corporate needs.

Major Characteristics of the Focused Factory



2 Skinner, Wickham, Manufacturing Missing Link in Corporate Strategy, Harvard Business Review, USA,1985.


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Chapter IX

Motivation and Co-ordination their Role in Promoting Success

Motivation of properly selected and appraised personnel helps to promote team effort, jobsatisfaction and subsequent achievement plus profitable growth of the individual and thefirm concerned. Those who perform well need to be appreciated as human beings andrewarded in terms of respect, money, promotion and other benefits such as restaurant andrecreation facilities, and insurance coverage, in addition to continuous praise.

Employees should also be assigned challenging tasks, thus encouraging initiativeand emotional plus intellectual involvement and providing further motivation to workefficiently. Moreover, the firms policies and procedures, employer-employeerelationships, job status, power of position and job security also provide sources ofmotivation or de-motivation, as do sound communication, good working conditions, fair

appraisal systems and participation in decision-making on a team effort basis.

Factors to Consider in Developing Employee Initiative

Employees must be well trained for their jobs and should understand their objectives,responsibility and authority, and how these relate to the jobs of others. They should beassigned challenging tasks and given opportunities to grow in stature. They should begiven adequate, but not one hundred per cent instructions, guidance and praise orcriticism in a polite but straightforward manner.

They should be encouraged to think, decide and perform without being spoon-fedall the way. This will help them to use their initiative and build up management potential.

Relating the Employees Job to the Firms Operations

This helps an employee to appreciate the importance of excelling in his/her job. Anemployees own sense of pride and challenge will help develop his/her professionalism.1

Developing a Spirit of Professionalism in Employees

An employee should be respected for his/her qualifications and performance and allowedto contribute his/her own ideas towards improving effectiveness.

1 Mawley, Patrick J.,How to Motivate and Co-ordinate, USA, 1975.


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A motivated employee will extend himself/herself beyond the bounds of normalhealth limits because he/she feels that the job is worth doing, no matter what the price.Extra effort means job satisfaction and an enrichment of his/her life. All employees needto feel involved and fulfilled in their goal-oriented and always challenging jobs.

Responsibility Encourages Participation


motivation, women in the workforce, etc., please follow the link below:



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Chapter X

Information Technology the New World

It has been said that, at the limit, a man with a computer and robots can rule anycompany. This is, however, an exaggeration and a move towards (perhaps) wishfulthinking! The manager should know his/her business well, be aware of its strengths andweaknesses and be positively involved in and control the development and cost of his/herequipment, systems and other resources. The systems should be tailored to the firmsrequirements in order to increase managerial effectiveness.

It helps if the manager has a background in computers and is able to lay down and

communicate his/her requirements to computer experts in precise terms. Employees whowill be affected by the implementation should be made aware of the resulting changes.1

Computers process large volumes of data speedily and efficiently, if supported bygood software, programmers, engineers and suitably trained staff. The stages involved inswitching over to a computerized system are as follows:

a) Initial Feasibility Study: This is an investigation into the areas of a business whichmay need computerization usually due to growth, change and the need for moresophisticated reporting. A Recommendation Report follows, mentioning the pros,cons, outlays involved and benefits expected, some of which may be quantifiablein precise monetary terms.

b) Specification of Requirements: This involves gathering facts regarding workcarried out, methods adopted, volume of work i