CC 01-Principles & Practices of Management

Transcription

1 Module-4

2 CC 01-Principles & Practices of Management Module 4 Leadership & Modern Trends Directing: - Leadership Leadership Traits Leadership Styles Principles in Directing Emerging Trends in Management; Management of Creativity & Innovation Creative Process Managing E-Business World Challenges Management in Globalized Era Organizational Social Responsibility

3 Directing Directing is a function of management which is related with instructing, guiding and inspiring human factor in the organisation to achieve the objectives of the organisation.

4 Nature/ Features/ Characteristics Concerned with issuing orders and instructions to the subordinates Supervision of the work of subordinate to ensure that it conform to the plans Guiding and counseling the subordinates in their work to improve their performance Need to be performed by the managers at all levels of the organisation Follows a top-down approach Direction is a continuous function.

5 Elements in Direction The important elements in direction are Communication Supervision Leadership Motivation

6 Elements in Direction Communication Supervision Motivation Leadership Helps in understanding the roles/ tasks and duties clearly Flow/ direction of communication(upward, downward, Horizontal, diagonal) - Ensure a two-way communication Monitoring subordinates efforts in performing tasks/ duties and holding them accountable for specific results. It is a force that inspire a person at work to intensify his willingness to use the best of his capability for achievement of specify objectives. Leadership is the ability to persuade and motivate others to work in a desired way for achieving the goal.

7 Motivation

8 Nature of motivation Performance of an individual depends on his or her ability backed by motivation Stated algebraically the principle is Performance=f ( ability x motivation)

9 Motivational Factors Monetary Factors: Salaries or wages Bonus Incentives Insurance Travelling allowance Stock options(esop) Non Monetary Factors: Appreciation and recognition Working conditions Job security Workers participation Cordial relations Good superiors Status or job title

10 Need and importance of motivation Motivation offers several importance to the organization and to the employees: Higher efficiency Reduce absenteeism Reduces employee turn over Good relations Improved morale Improved employee satisfaction Reduced wastages and breakage. Reduced accidents

11 Motivational Theories Maslow s Hierarchy of Needs SA Esteem Love (Social) Safety & Security Physiological There are 5 levels of needs. Needs are arranged in order of importance (hierarchy of needs) Lower level needs must be met first. Each level must be at least minimally satisfied before a higher level need occurs Only unmet needs motivate

12 Motivational Theories Theory X And Theory Y Proposed by Douglas McGregor. He proposed two distinct views of human beings. One basically negative, labeled Theory X & Another one basically positive, labeled Theory Y. Theory X - a set of assumptions of how to manage individuals motivated by lower order needs Theory Y - a set of assumptions of how to manage individuals motivated by higher order needs

13 ERG Theory (Clayton Alderfer) ERG Theory There are three groups of core needs: existence, relatedness, and growth. Core Needs Existence: provision of basic material requirements. Relatedness: desire for relationships. Growth: desire for personal development. Concepts: More than one need can be operative at the same time. If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.

14 David McClelland s Theory of Needs Need for Achievement The drive to excel, to achieve in relation to a set of standards, strive to succeed. Need for Affiliation The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise. nach npow naff

15 Different Theories of Motivation Maslow's Need hierarchy theory Theory x and Theory y Alderfer s ERG Theory McClelland s Theory of needs Selfactualization Theory Y Growth n(achievement) Esteem n(power) Social Relatedness n(affiliation) Security Theory X Physiological Existence

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17 Leadership Leadership is a process of influencing/inspiring people so that they will strive willingly and enthusiastically towards the achievement of group goals.

18 Distinguishing Leaders and Managers Role. Carve organizational vision Formulate Strategy to Implement vision Implement Organizational strategy Leaders Role Managers Role

19 Leaders Vs Managers Leader Characteristics Innovates Develop Focuses on people Inspires trust Long range perspective Eye on horizon Do the right things Manager Characteristics Administers Maintain Focuses on systems and structures Relies on control Short range view Eye on bottom line Do things right

20 Major Leadership Traits Intelligence Self-confidence Determination Creativity Honesty & Integrity Inspire others Communication skills Sociability Emotional Intelligence (EI): the ability to monitor and control one s emotions and behavior in complex social settings.

21 Leadership styles Based on attitude or behavior How much authority is retained by the leader and how much is delegated to subordinates 1. Autocratic 2. Laissez faire 3. Democratic or participative 4. Paternalistic Based on concern for production vs. concern for people 1. Managerial Grid

22 Leadership styles Autocratic/ Authoritarian Style The leader takes the decision with out consulting with other. No suggestion or initiative from subordinates is entertained. The leader forces the subordinate to obey him without questioning One-way communication

23 Autocratic Leadership Autocratic Leader Follower Follower Follower Appropriate conditions to use it Shortage of time( Emergency Situations) Subordinates are less skilled Managers have all the information to solve problem

24 Leadership styles Laissez-faire / free-rein style The leader allows the employees to make the decisions. Subordinates set their own goals and means of achieving them. The leader is still responsible for the decisions that are made. The leader provides help only when required by the subordinates otherwise he/she does not interfere in their work. Act as a contact point with group s external environment. This is used when employees are able to analyze the situation and determine what needs to be done and how to do it.

25 Laissez-faire / Free-rein style Free-Rein Leader Follower Follower Follower Follower This is used When the employees are able to analyse the situation and determine what needs to be done and how to do it Leader is having full trust and confidence in employees

26 Leadership styles Democratic/participative style Compromise between autocratic and laissez-fair style Supervisor acts according to mutual consent and the decisions reached after consulting the subordinates. Subordinates are encouraged to make suggestions and take initiative. Leader maintains the final decision making authority. It provides necessary motivation to workers by ensuring their participation and acceptance of work methods

27 Democratic/Participative Leadership Democratic Leader Follower Follower Follower Normally used when Managers have part of the information Employees have the knowledge and are trustworthy

28 Leadership styles Paternalistic leadership Leader assumes that his function is paternal/ fatherly Leader tries to help, Guide, protect and keep his followers happy by working together Leader ensure that subordinate enjoy good working conditions, benefits & services

29 The Leadership Grid / Managerial Grid Developed by Blake and Mouton A nine by nine matrix outlining 81 different leadership styles. Concern for production: the desire to achieve greater output, cost-effectiveness, and profits. Concern for people: promoting friendships, helping coworkers get the job done, and attending to things that matter to people.

30 Concern for people The Managerial Grid High ,9 Country club management Care and concern for the people, with a comfortable and friendly environment and collegial style. But a low focus on task may give questionable results. 9,9 Team management people are committed to task and leader is committed to people 6 Low ,1 Impoverished Management Minimum effort to get the work done. A basically lazy approach that avoids as much work as possible. 5,5 Organization Man Management Doing enough to get things done, but not pushing the boundaries of what may be possible. 9,1 Authority-Obedience Strong focus on task, but with little concern for people. Focus on efficiency, including the elimination of people wherever possible. 1 Low Concern for production High

31 Behavioral Styles Theories of The Leadership Grid Styles Leadership 9, 1 style(authority-obedience ): Primary concern for production; people secondary. 1, 9 style(country club management): Primary concern for people; production secondary. 1, 1 style (Impoverished Management ): Minimal concern for production or people 5, 5 style(organization Man Management ): Moderate concern for both production and people to maintain the status quo. 9, 9 style(team management): High concern for both production and people (commitment, trust, and teamwork)

32 Factors influencing Leadership Effectiveness Leader Characteristics Traits Behaviour Situational Characteristics Task Position Power Resource Adequacy Follower Characteristics Abilities and skills Attitudes Motivation

33 Principles in Directing Harmony of objectives Motivation Unity of command Unity of direction Effective communication Managers need to integrate individual and organisational objectives Harmony of objectives makes the task of direction easy Managers need to carefully assess the motivational techniques for its effectiveness Subordinates should get orders and instructions from one superior There should be one head and one plan for a group of activities having the same objectives Need to maintain a two-way communication between subordinates and superiors

34 Principles in Directing Communication clarity Communication Integrity Supplemental use of informal channels of communication Communication tends to be clear when it is expressed in a language that can be understood by receiver The greater the integrity of the sender, the greater will be the acceptance of message by the receiver Managers need to effectively utilize the informal channels of communication to supplement formal channels Direct supervision Supervisors need to maintain direct and personal contact with subordinates so as to infuse a sense of participation Effective leadership Superior must possess the qualities of a good leader Follow-up A manager has to monitor the performance of the subordinate to ensure that work is performed as per the plans

35 Electronic Business Electronic business (e-business) refers to the use of the Web, Internet, intranets, extranets or some combination thereof to conduct business. E-business goes beyond the simple buying and selling of products and services online (e-commerce). E-business includes a much wider range of businesses processes spanning the entire value-chain, such as supply chain management, electronic order processing and customer relationship management and cooperating with business partners. E-business help companies to operate more effectively and efficiently.

36 E- business Models Intel Amazon Fiverr OLX

37 Managing E-Business World Privacy Security Internet fraud/crimes Use of technology in managing the business Collaborating with business partners Managing employees who are geographically dispersed Use of computers and internet in improving management functions ( planning, organising, directing, staffing and controlling etc)

38 Management in Globalized Era- Globalisation Workforce diversity Challenges Stimulating Innovation and change Total Quality Management A philosophy of management that is driven by the constant attainment of customer satisfaction through continuous improvement of all organizational process Empowerment and Teams Downsizing Contingent/ Temporary workforce

39 Management of Creativity & Innovation Creativity refers to the ability and power to develop new ideas. Innovation usually means the use of these ideas. Eg: new product, new services, or new ways of doing things Organisations should not only generate new ideas but translate them in to practical applications too

40 Creative Process These steps or stages are iterative( they are not necessarily in a linear fashion) Preparation Individual becomes curious after encountering a problem. Collecting as much information as possible related to the area Incubation All the information collected will be churned in the back of your mind, in the sub-consciousness. it can takes days, or weeks, or months or sometimes even years. Insight/ illumination Bringing the ideas from the sub-conscious to the conscious part of mind. how to piece together thoughts in to an idea that makes sense. Evaluation Self criticism and reflection Elaboration Individual begins the process of transforming her thoughts into a final product

41 Innovation within the organization depends upon Basic orientation of the organization toward innovation Shared vision Providing rewards and recognition Emphasis on maintaining the status quo. Organisational Resources including time, funding, information and materials.

42 Barriers to creativity Organizational Impediments Internal political problems Harsh criticism of new ideas Destructive internal competition Avoidance of risk and overemphasis on the status quo Workload Pressures such as extreme time pressure, unrealistic expectations, or distractions

43 Managing Creativity and innovation in organisation Acceptance of Risk taking Welcoming new ideas and ways of doing things Ensuring a free flow of information Giving employees access to knowledge sources Support for good ideas by executives Rewarding innovators Design the physical space so that contact between the teammates are frequent and convenient.

44 Organizational Social Responsibility Also Known as Corporate Social Responsibility (CSR) CSR is a gesture of showing the organization's concern & commitment towards society s sustainability and development Social responsibility is an ethical framework and suggests that an organization has an obligation to act for the benefit of society at large.

45 Social Responsibility of Managers/ Organisations

46 Social Responsibility of Business Responsibility towards Employees To provide a healthy working environment. To grant regular & fair wages. To provide welfare services To provide training & promotion facilities. To recognize the unions To provide efficient mechanism to redress worker s grievances Proper recognition of efficiency & hard work. Responsibility towards Owners Should run the business efficiently Proper utilization of capital and resources Timely repayment of on capital invested

47 Social Responsibility of Business Responsibility towards Suppliers Timely Payments Provide information about the changing trends in the market Establishing Long term relationship with suppliers Responsibility towards Society Carrying on business with moral& ethical standards Prevention of environmental pollution. Contributing towards the development of society (Health, Education Poverty eradication, community development) Overall development of locality.

48 Social Responsibility of Business Responsibility towards Government Pay taxes and be fair in its endeavours Support government in community development projects Responsibility towards Creditors Repay the loans as per the repayment schedule Inform the developments in the company from time to time. Live up to the moral and ethical expectations of its creditors.

49 Social Responsibility of Business Responsibility towards Shareholders Fair return on capital Provide regular, accurate full information about the working of the enterprise To build reputation & goodwill of the company. To remain transparent &accountable. Responsibility towards Customers Quality products and services at reasonable price. Consider customer suggestion Provide after sales services.

50 Globalisation Emerging Trends in Management The melting of barriers among nations and their increasing interconnectedness Technology Influence of Information technology in driving the business Sustainability and Corporate Social Responsibility "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Enabling companies to incorporate creation of social, environmental, as well as economic, value into core strategy and operations. Business ecosystems A business ecosystem is the network of organizations including suppliers, distributors, customers, competitors, government agencies, and so on involved in the delivery of a specific product or service through both competition and cooperation. Green Management green business, is an enterprise that has minimal negative impact on the global or local environment, community, society, or economy a business that strives to meet the triple bottom line ( People, planet and profit).

51 CC 01-Principles & Practices of Management Module 4 Leadership & Modern Trends Directing: - Leadership Leadership Traits Leadership Styles Principles in Directing Emerging Trends in Management; Management of Creativity & Innovation Creative Process Managing E-Business World Challenges Management in Globalized Era Organizational Social Responsibility