Managerial Processes

DOSHEM

Management Perspectives

• Process: Plan, Organize, Coordinate, Control

• Skills: Technical, Human, Conceptual

• Roles: Interpersonal, Informational, Decisional

Management Essentials

• Primary Functions of Management– Planning – establishing goals– Organizing – structuring activities to

accomplish goals– Leading – assuring the right people are

motivated to get the job done – Controlling – monitoring activities to be

sure goals are met

Planning

• Thinking out in advance the sequence of actions to accomplish objectives

• All activities that lead to the definition of objectives

Organizing

• Identifying what needs to be done, how it should be done, where it should be done, who should do it, and when it should be done

• All activities that lead to the definition of objectives

Coordinating

• Making the necessary contacts to ensure that work is effectively carried out without any hitch

• It is the integration of all aspects of the programmes to achieve desired outcomes

Controlling

• Setting up points at which to check results

• Regulation of all activities so that actual performance conforms to expected organizational standards and goals

Key Management Functions

• Marketing (Client Service)

• Human Resource Management

• Financial Management

• Operations (Facilities) Management

Marketing (Client Service)

• Product

• Price

• Place

• Promotion

• Public sector: Promotion, Facilitation, Customer Service, Sales

Human Resource Management

Four basic functions:

• Staffing

• Training and Development

• Motivation

• Maintenance

Financial Management

• Budgeting

• P&L

• Balance Sheet

• Cash Flow

• In the Public Sector key issues include Financial Administration, Procurement and Audit

Operations Management

• Operations: services & manufacturing

• For public sector Facilities: offices etc., computers etc.

Thinking Analysis and Process

Strategic Planning

Strategic Corporate Planning

• Corporate planning is a management process which involves the continuous assessment of the totality of a business enterprise (or organisation or entity) and its environment to determine what it is NOW, what it must be in the FUTURE, and HOW it can become what it must be.

Key Elements

• Strategic Thinking

• Strategic Analysis

• Corporate Targets and Objectives

• Corporate Strategies Development

• Strategic Business/Departmental Objectives

• Action Planning

• Financial Projections

Example Strategic Plan

• Executive Summary

• Introduction

• Historical Perspective

• Mission

• Review

• Planning Assumptions

• Key Areas

• Monitoring and Review

HIERARCHY OF PLANS CORPORATE PLANFor the entire organisation

(Break down into strategic plans)

Strategic Plans

Promotion,Facilitating,Client Service strategies for Services Markets Customers etc

Finance strategies for financial controls funding etc

Facilities strategies for officesstructures computers etc

Human resource strategies for skills, Training Manpower

Other strategies for other strategies issues

Which are summarized into the business plan

THE BUSINESS PLAN(QUANTITY AND SUMMARIZE ALL THESE STRATEGIES AND OPERATIONAL PLANS)

Annual Budgets

Cash flows Plans

Staffing, development, compensation

Capital Expenditure

Information Systems

Others

OPERATIONAL PLANS at Divisional, Departmental, unit and sectional levels

Strategy Defined

• Strategy is the pattern of resource commitments of an organisation which

- reflects the company’s purpose

- is more than purely economic

- Results from a continuous process

purpose

• reflects the company’s purpose and objectives, and a concept of its activities

culture

• Is more than purely economic, and corresponds to the values of the owners, managers and workers of the firm, their sense of identity, and their ways of perceiving their environments

continuous

• Results from a continuous process, a stream of perceptions, analyses, decisions and actions, intertwined with the discovery of new goals and objectives and the mobilising of people towards them

Vision

• States– what the organisation wants to be– what it must be in the future– a desire that inspires– picture providing clear decision criteria

Mission

• A mission statement describes what the organization seeks to do, why it exists and who it serves (its customers are).

Strategic Thinking

• In strategic planning the thinking is everything

• Proactive thinking instead of day-to-day fire fighting or crisis management

• Innovation instead of ‘that is how we have

• Creativity instead of the same old thing

Assessment

• How do we assess …• Examine the fundamentals• Analyse the totality of the organisation• - Strengths• - Weaknesses• Analyse the environment• - opportunitiesi - threats• Establish direction/set objectives• Develop strategies

Strategic Analysis

• SWOT Analysis

• Strengths

• Weaknesses

• Opportunities

• Threats

- Internal Analysis – Strengths and Weaknesses

- External Analysis – Opportunities and Threats

The SWOT diagram may summarise the results of analyses

Strengths Weaknesses

OpportunitiesThreats

InternalAnalyses

InternalAnalyses

ExternalAnalyses

ExternalAnalyses

Techniques in use in strategic planning processes

Technique % Using

Core competencies analysis 72Scenario Planning 69Benchmarking 56Total Quality Management 44Shareholder Value Analysis 44Value Chain Analysis 44Business Process Redesign 33Time-based Competition 25

Cited in Macmillan & Tampoe as Adapted from: Wilson, I. “Strategic Planning Isn’t Dead - it changed” Long Range Planning 1994

Requirements

• It requires the readiness to accept a formal factual and disciplined approach to organisations (entities). For an organisation to succeed, corporate planning requires the commitment of the chief executive and the entire management team to the discipline of keeping the organisation on course to implement the agreed plan and not yield to the easy temptation of fire fighting.

OBJECTIVES

• We have formulated a vision

• We have developed a mission statement

• The SWOT

• We need to balance the present position

• We need to find the right mix of objectives

IMPORTANCE OF OBJECTIVES

• Objectives help translate our vision and mission into reality through achievable results

OBJECTIVES

• Hoped for results or goals to be achieved within a specific time period

• Indications of management intentions

• Fundamental standards against which performance can be measured

Organizational Strategies

• Organizational strategies are actions that affect the organization as a whole, and which are taken because management believes that this would enable the organization achieve its vision, mission and objectives

Strategy development

• A simple approach to strategy development is considering the action to be taken to deal with every item arising from the strategic planning process eg.:

vision

mission

strengths (capitalise on them)

weaknesses (eliminate or minimise effects)

Strategy Implementation

• Divisions, departments and units and even down to individuals must set out clearly for themselves the set of actions in their various responsibility areas they need to take to implement the agreed strategies

• Second, each major area of strategy is detailed to show responsibility assignment, timing, costs and resource requirements

• A large number of individual plans will be drawn up for services, finance, human resources etc.

Action Plans

• Expected result

• Set of actions to be taken to effect the result

• Timing of completion and sequencing of each action

• Person responsible

Action Plans

• Action plans cover the day to day work on the ground. It is what you actually do. You are very familiar with these activities, which are this time derived from the strategic business plan, itself derived from the corporate strategic plan.

Organizational Strategies

• Organizational strategies are actions that affect the organization as a whole, and which are taken because management believes that this would enable the organization achieve its vision, mission and objectives

Strategy

• Is the pattern of resource commitment of an organization which

– Reflects the organization’s purpose and objectives and a concept of its activities

– Is more than purely economic, and corresponds to the values

– Results from a continuous process, a stream of perceptions, analyses, decisions and actions

Strategy development

• A simple approach to strategy development is considering the action to be taken to deal with every item arising from the strategic planning process eg.:

vision

mission

strengths (capitalise on them)

weaknesses (eliminate or minimise effects)

Core values in public sector

Honesty and integrity, impartiality, respect for the law, respect for persons, diligence, economy and

efficiency, responsiveness and

accountability.

(T. Sherman. Public Sector Ethics: Finding and Implementing Values: 15)

Ethics, Responsibility

• ETHICS

The system or Code of Morals of a particular person, religion, group, or profession.

• Corporate Social Responsibility

obligation of the organization to act in ways that serve both its own interests and the interests of its many external publics

LEADERSHIP DEFINED

(1) Leadership is an activity or a set of activities, observable to others, that occurs in a group, organisation, or institution involving a leader and followers who willingly subscribe to common purposes and work together to achieve them (Clark and Clark. 1994).

(2) Leadership appears to be the art of getting others to want to do something that you are convinced should be done (Kouzes and Posner, 1990).

Leadership Theories

• Traits and skills

• Action-centred Leadership (J. Adair, 1979, 1984).

• Style Theories (Lewin et al 1939).

• Leadership systems

Leadership systems

• Exploitative Authoritative

• Benevolent Authoritarian

• Consultative System

• Democratic/Participative

Human Resource Strategy

Introduce human resource management policies and procedures that will attract and retain the best qualified and committed personnel

The Motivation Function

• Activities in HRM concerned with helping employees exert at high energy levels.

• Implications are:– Individual– Managerial– Organizational

• Function of two factors:– Ability– Willingness

• Respect

The Motivation Function

• Managing motivation includes:– Job design– Setting performance standards– Establishing effective compensation and

benefits programs– Understanding motivational theories

The Motivation Function

• Classic Motivation Theories– Hierarchy of Needs –Maslow– Theory X – Theory Y –McGregor– Motivation – Hygiene – Herzberg– Achievement, Affiliation, and Power Motives

– McClelland

The Changing World of Technology

• Has altered the way people work. • Has changed the way information is

created, stored, used, and shared.• The move from agriculture to

industrialization created a new group of workers – the blue-collar industrial worker.

• Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs.

The Changing World of Technology

• Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information.

• Why the emphasis on technology:– makes organizations more productive– helps them create and maintain a

competitive advantage– provides better, more useful information

The Changing World of Technology

• How Technology Affects HRM Practices – Recruiting– Employee Selection– Training and Development– Ethics and Employee Rights– Motivating Knowledge Workers– Paying Employees Market Value– Communication– Decentralized Work Sites– Skill Levels– Legal Concerns

Workforce Diversity

• The challenge is to make organizations more accommodating to diverse groups of people.

Workforce Diversity

• The Workforce Today – minorities and women have become the

fastest growing segments– the numbers of immigrant workers and

older workers are increasing

Workforce Diversity

• How Diversity Affects HRM – Need to attract and maintain a diversified

work force that is reflective of the diversity in the general population.

– Need to foster increased sensitivity to group differences.

– Must deal with the different• Values• Needs• Interests• Expectations of employees

Workforce Diversity

• What Is a Work/Life Balance?– A balance between personal life and work– Causes of the blur between work and life

• The creation of global organizations means the world never sleeps.

• Communication technologies allow employees to work at home.

• Organizations are asking employees to put in longer hours.

• Fewer families have a single breadwinner.

Continuous Improvement Programs

• Continuous improvement - making constant efforts to provide better products and service to customers– External– Internal

• Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.

Continuous Improvement Programs

• Key components of continuous improvement are:– Focus on the customer – Concern for continuous improvement – Improvement in the quality of everything

– Accurate measurement– Empowerment of employees

Continuous Improvement Programs

• HPT Promise

• HRM Assists

– Helps employees deal with the emotional aspects of conflict and change

– Provides skills training– Adapts HR systems, such as

compensation, benefits, and performance standards.

Employee Involvement

• Delegation – having the authority to make decisions in one’s job

• Work teams – workers of various specializations who work together in an organization

• HRM must provide training to help empower employees in their new roles.

• Involvement programs can achieve:– greater productivity– increased employee loyalty and commitment