Demand Forecasting and Supplier Selection for Incoming Material in RMG Industry: A Case Study
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1 Interntionl Journl of Business nd Mngement My, 2009 Demnd Forecsting nd Supplier Selection for Incoming Mteril in RMG Industry: A Cse Study Imrul Kes Executive, Len Mngement, Viyelltex Group 297, Khortoi, Stis Rod, Gzipur 1712, Bngldesh Tel: E-mil: imrul.likhon@gmil.com Abdullhil Azeem (Corresponding uthor) Deprtment of Industril nd Production Engineering Bngldesh University of Engineering & Technology Dhk 1000, Bngldesh Tel: E-mil: zeem@ipe.buet.c.bd Abstrct RMG sector is the single most importnt mnufcturing industry in Bngldesh. Almost ll of the rw mterils in this sector re being imported from brod. Hence, incoming mteril mngement is of prmount importnce for effective nd efficient mngement of the supply chin in this sector. This pper dels with incoming mteril mngement of 100% export-oriented knit composite fctory. Demnd forecsting nd supplier selection re two mjor components of incoming mteril mngement. Different techniques of demnd forecsting hve been implemented to find the best suitble model for prticulr rw mteril. In supplier selection, AHP technique hs been implemented to select the best supplier of the concerned rw mterils. Successful implementtion of the recommendtions of this pper cn significntly improve the level of mteril mngement nd thereby increse overll profit by reducing wste. Keywords: Demnd forecsting, Supplier selection, Anlyticl Hierrchy Process (AHP) 1. Introduction Redy-mde Grments (RMG) industry is the mjor export-bse for Bngldesh. It hs considerble impct on ntionl economy, s well s high of degree of socil implictions, s lrge number of femle workers re employed in this lbor-intensive industry. In the current post MFA er, interntionl competition in this sector hs been incresed lot. Therefore, grments compnies in Bngldesh need to become more competitive nd efficient to survive, to retin mrket position nd increse mrket bse. The foreign competitors hve upper-hnd bsiclly in three res: stronger bckwrd linkge, more skilled mnpower, nd better methodology of mnufcturing. Among these three, bckwrd linkge is the most importnt fctor s lmost ll of the rw mterils needed in this sector re being imported from different countries. Proper mngement of supply chin is of outmost importnce for smooth opertions of the mnufcturing processes in this sector tht cn help in mintining the delivery schedule. Highly competitive mrket is currently forcing every fctory to think globlly. Survivl becomes incresingly difficult nd criticl to find new wys to grow. Looking bck t North Americn nd Europen business trends, it seems tht strtegies hve been chnging nd updting frequently. How to do more ws emphsized in 60s; How to do it cheper becme importnt in 70s; How to do better qulity ws in the 80s nd How to do quicker ws the key in the 90s. All of those re still importnt in our business, however meeting the incresing time demnds of customers will become importnt. Shorter led time nd will be the strtegic focus for t lest the next decde. Time the number of seconds, minutes, hours, dys, months or yers is the yrdstick by which we incresingly judge round us prticulrly orgniztions providing mnufcturing services. Demnd forecsting is n integrl prt of ny kind of supply chin mngement nd very importnt to sustin profitbility. Improving demnd forecsting performnce hs long been concern of people involved in ny kind of industry (Armstrong & Grohmn, 1972). To this end, reserchers hve developed nd disseminted incresingly sophisticted forecsting techniques, believed to be more ccurtely model the fluctuting demnd ptterns (Fildes & 149
2 Vol. 4, No. 5 Interntionl Journl of Business nd Mngement Hstings, 1994). However, improved forecsting techniques re useful minly for different mngement prctices including decision mking nd plnning processes (Winklehofer, 1996). Surveys of sles forecsting prctice hve consistently shown tht qulittive methods re more widely used thn quntittive methods; however n extensive body of reserch supporting the superiority of quntittive forecsting techniques in most situtions (Dlrymple, 1987). Not ll the techniques re suitble for ech ctegory of the mterils used in production. Out of severl techniques, proper implementtion of the pproprite technique is very much importnt for ccurte demnd forecsting. Anlytic Hierrchy Process (AHP) is multi-criteri decision-mking pproch nd ws introduced by Sty (1977). The AHP hs ttrcted the interest of mny reserchers minly due to the nice mthemticl properties of the method nd the fct tht the required input dt re rther esy to obtin. The AHP is decision support tool which cn be used to solve complex, unstructured decision problems (Putrus, 1990). It uses multi-level hierrchicl structure of objectives, criteri, sub criteri, nd lterntives. Some of the industril engineering pplictions of the AHP include its use in integrted mnufcturing (Boucher & McStrvic, 1991), in the evlution of technology investment decisions [Wblickis, 1988], in loction plnning nd lyout design (Cmbron & Evns, 1991; Min, 1994], in softwre development (Finnie et. l., 1993), in project risk ssessment (Mustf & Al-bhr, 1991) nd lso in other engineering problems (Wng & Rz, 1991; Shtub & Dr-el, 1989). This pper focuses on selecting pproprite technique for demnd forecsting of rw mteril in RMG sector. A prticulr rw mteril, which is widely used in one selected fctory of this sector is tken into considertion to implement this technique. AHP technique hs been implemented to find out the best suitble supplier of this rw mteril. 2. Forecsting Models In this nlysis, ten different techniques hve been used to forecst the demnd of rw mterils used by the selected fctory. The techniques re simple verge (SA), moving verge (MA), weighting moving verge (WMA), single exponentil smoothing (SES), single exponentil smoothing with liner trend (SESLT), double exponentil smoothing (DES), double exponentil smoothing with liner trend (DESLT), dptive exponentil smoothing (AES), liner regression (LR), nd holts-winters dditive lgorithm (HWAA). Simple verge (SA) method simply let the forecst equl to the verge of ll prior demnd dt. As time pssed, our forecsts would stbilize nd converge towrds the level of the series, becuse in the long run the noise terms will cncel ech other out becuse their men is zero. The more dt we include in the verge, the greter will be the tendency of the noise terms to sum to zero, thus reveling the true vlue. Sometimes the demnd for n item in logistics system my be essentilly flt for long period but then undergo sudden shift or permnent chnge in level. In moving verge (MA) technique, the forecst would be clculted s the verge of the lst few observtions. If number of observtion is "smll", the forecst will quickly respond to ny "step", or chnge in level when it does occur; the "verging out" effect is lost which would cncel out noise when mny observtions re included. The optiml vlue in ny given sitution depends in firly complicted wy upon the level, the noise vrince, nd the size nd frequency of occurrence of the step or steps in the demnd process. It might seem more resonble to ssume tht historicl observtions ctully lose their predictive vlue "grdully", rther thn so "bruptly" s in the moving verge. As given dt point becomes older nd older, it becomes progressively more likely tht it occurred before the step chnge in level hppened, rther thn fter it did. It therefore might improve the ccurcy of the forecst if reltively more emphsis is plced on recent dt nd reltively less emphsis on less current experience. This ide leds to the concept of weighted moving verge (WMA) forecst, where the lst observtions re verged together, but where they re not given equl weight in the verge. A populr wy to cpture the benefit of the weighted moving verge pproch, while keeping the forecsting procedure simple nd esy to use, is clled single exponentil smoothing (SES), or occsionlly, the exponentilly weighted moving verge. In its simple computtionl form, forecst is mde for the next period by forming weighted combintion of the lst observtion nd the lst forecst using vrious coefficients nd tking the forecsting error in considertion. An upwrd nd downwrd trend in dt collection over sequence of time periods cuses the exponentil forecst to lwys lg behind (be bove or below) tht ctul occurrence. If such trend is observed in single exponentil smoothing then exponentilly smoothed forecsts cn be corrected somewht by dding liner trend (SESLT). To develop smoothing procedure tht will seprte the trend component from the noise in the series nd forecst trended dt without lg is clled Double Exponentil Smoothing (DES). Given smoothing coefficient of, simple smoothed verge of the dt is first clculted. This series would follow the slope of the originl dt while smoothing out some of the noise. A second series is then formed by smoothing the second series will lso tend to cpture the slope of the originl dt while further smoothing the noise. An upwrd nd downwrd trend in dt collection over 150
3 Interntionl Journl of Business nd Mngement My, 2009 sequence of time periods cuses the exponentil forecst to lwys lg behind (be bove or below) tht ctul occurrence. If such trend is observed in double exponentil smoothing then exponentilly smoothed forecsts cn be corrected somewht by dding new djustment (DESLT). A quntittive forecsting method (AES) in which verges derived from historicl dt re smoothed by coefficient, which is llowed to fluctute with time in reltion to chnges in demnd pttern. The lrger the coefficient, the greter the smoothing effect. One wy to del with trended demnd dt is to fit the historicl dt to liner model with n "ordinry lest squres" regression (LR). This procedure is n ttempt to decompose the demnd dt observtions into n initil level, trend component, nd noise components, which re modeled s the errors in the regression estimtes. Once estblished, the model cn be used for severl periods, or it could be updted nd re-estimted s ech new dt point is observed. It would often be the cse tht items in logistics system exhibit demnd ptterns tht include both trend nd sesonlity. It is possible to combine the logic of Holt s procedure for trended dt nd the sesonl index pproch so s to forecst level, trend, nd sesonlity. This pproch is embodied in Winter s Model for Trended/Sesonl Dt (HWAA). Ech component term of the forecst is estimted with exponentil smoothing, nd seprte smoothing coefficients. Out of mny forecsting models discussed bove, no single model is pproprite to forecst the demnd of different products in the mrket. Best suitble of these techniques need to be selected for ech individul product nd the rw mterils used for the respective product. In this pper, prticulr type of yrn, mrl combt, hs been picked up to forecst its future consumption by using ll the bove mentioned techniques. The ctul consumption nd forecsted dt for ech of the techniques re shown in Tble 1. Few criteri hve been chosen to select the most suitble technique for the prticulr yrn. Vlues of Cumultive forecst error (CFE), Men bsolute devition (MAD), Men squre error (MSE) nd Men bsolute percent error (MAPE) nd Trcking signl (TS) re shown in Tble 2 tht re being used to select the best model to suit the mteril. From the tble, it is obvious tht MAD, MSE nd MAPE vlues re the minimum for the Adptive Exponentil Smoothing model. In ddition, CFE nd TS vlues re lso considerbly lower for Adptive Exponentil Smoothing. Thus, it cn be scertined tht, for the chosen yrn, mrl combt, Adptive Exponentil Smoothing is the most suitble forecsting technique to be used. Figure 1 shows the forecsting trend of few techniques those give better result in forecsting the demnd of the selected mteril. The trends lso support the Adptive Exponentil Technique mong ll the models. 3. Supplier Selection Since decision mker bses judgments on the knowledge nd experience, then mkes decisions ccordingly, the AHP pproch grees well with the behvior of the decision mker. The strength of this pproch is tht it orgnizes tngible nd intngible fctors in systemtic wy, nd provides structure yet reltively simple solution to the decision mking problem. Decision mking process needs to consider multiple criteri, which re often qulittive nd conflicting s well in nture. This requires multi-criteri evlution using Anlyticl Hierrchy Process (AHP) technique developed by Stty [5]. Anlyticl Hierrchy Process (AHP) presents different pproch for the situtions in which ides, feelings & emotions re quntified to provide numeric scle for prioritizing decision lterntives. Figure 2 shows the process flow of AHP technique for the supplier evlution. The crux of AHP is the determintion of the reltive weights to rnk the decision lterntives. Assuming tht there re n criteri t given hierrchy, the procedure estblishes n n pir-wise comprison mtrix, A, tht reflects the decision mker s judgment of the reltive importnce of the different criteri. The numericl results of ttributes re presented to the decision mker(s) to ssign reltive importnce ccording to predefined scle. A judgment mtrix is then prepred to evlute the criteri nd the suppliers. Normlized weights of ech of the criteri nd suppliers hve been clculted using eqution (1) n n n3 1n 2n 3n nn b1 x1 b2 x2 Geometric Men Normlized Weight b 3 x3 bn xn (1) 1 n here, = priority of criterion/supplier 1 to criterion/supplier n n1 = priority of criterion/supplier n to criterion/supplier 1 x 1 x n = overll priority vectors of the selected criteri/suppliers 151
4 Vol. 4, No. 5 Interntionl Journl of Business nd Mngement In supplier qulifiction evlution for the mentioned yrn, mrl combt, three different suppliers hve been short-listed to be evluted bsed on 11 different criteri. The chosen criteri re: qulity, quntity, verstility, led time, cost, reputtion, experience, reltionship, trnsporttion, pyment flexibility & bureucrcy dvntge. The decision mker hs decided the priority to be ssigned to ech criterion compred to the others. In Tble 3, the vlues of the top-most row indicte which criterion is given how much preference compred to the ech of the other criteri. The remining cells re utomticlly clculted from the cells of the top-most row using simultion model tht confirms the consistency of priority mtrix. From Tble 3, normlized mtrix hs been clculted to find out the verge priority for ech of the criteri. This clculted priority fctors is shown in Figure 3. After prioritiztion of ech of the criteri tken into considertion, ll selected suppliers re then prioritized bsed on ech ctegory. For exmple, supplier A is 0.5 times preferred to supplier B nd 3 times preferred to supplier C with respect to qulity. Similr preference mtrices for different suppliers with respect to few selected criteri re shown in Tble 4. Finlly combining the priority mtrices of both criteri nd suppliers for ech criterion, n overll priority mtrix hs been generted using the mthemticl model of Anlyticl hierrchy Process (AHP). Tble 5 represents these finl overll priority vlues of ech pre-qulifying supplier for our cse study. Twelve different criteri nd three lterntive pre-qulified suppliers hve been considered in this study. Acceptnce is checked for ech priority mtrix. Acceptbility of lterntive nd ttribute is mesured in terms of consistency rtio (C.R.) which is the rtio between consistency index (C.R.) nd rndomly generted consistency index (R.I.). Here both qulittive nd quntittive criteri re considered. The qulittive criteri re judged by expert opinion nd quntittive criteri re judged ginst the collected nd clculted quntittive dt. By nlyzing, the overll priority vlues re clculted for different suppliers. Supplier B hs the highest overll priority vlue, then supplier A nd supplier C respectively. So, Supplier B should be selected from three different qulified suppliers. In figure 4 below, overll priority vlues of the pre-qulifying suppliers for our cse study is represented grphiclly. It is ssocited with its quntittive portion for its esy understnding. From the digrm nd overll priority tble (Tble 5), we cn esily find tht supplier B should be selected due to its highest overll priority. 4. Conclusions A detiled nlysis hs been done to customize the best forecsting model for selected rw mteril used in the concerned fctory. The obtined result shows tht the dptive exponentil smoothing method cn forecst the future demnd of the prticulr rw mteril very precisely. Similrly, demnd of ny other rw mteril used in the fctory cn be forecsted using the most suitble out of different forecsting models through similr nlysis. Lter, Anlyticl Hierrchy process (AHP) hs been implemented to select the best supplier bsed on few importnt criteri. The sme rw mteril tht hs been selected for demnd forecsting ws chosen to serve the purpose. Combining the priority fctors of ech criterion over the other s well s of ech supplier over nother, the best supplier hs been selected for the concerned rw mteril. Through converting subjective judgment into quntittive form, AHP provides better solution for selecting the best suitble supplier with less effort. References Armstrong, J. S. & Grohmn, M. C. (1972). A comprtive study of methods for long rnge mrket forecsting, Mngement Science, 19(2), Boucher, T. O. & McStrvic, E. L. (1991). Multi-ttribute Evlution within Present Vlue Frmework nd its Reltion to the Anlytic Hierrchy Process. The Engineering Economist, 37, 55-71, Cmbron, K. E. & Evns, G. W. (1991). Lyout Design Using the Anlytic Hierrchy Process. Computers nd Industril Engineers, 20, Dlrymple, D. J. (1987). Sles Forecsting Prctices results from United Sttes Survey. Interntionl Journl of Forecsting, 3, Fildes, R. & Hstings, R. (1994). The Orgniztion nd improvement of Mrket Forecsting. Journl of the Opertionl Reserch Society, 45(1), 1-16, Finnie, G. R., Witting, G. E., & Petkov, D. I. (1993). Prioritizing Softwre Development Productivity Fctors Using the Anlytic Hierrchy Process. System Softwre, 22(2), Min, H. (1994). Loction Anlysis of Interntionl Consolidtion Terminls Using the Anlytic Hierrchy Process. Journl of Business Logistics, 15(2), Mustf, M.A. & Al-bhr, J. F. (1991). Project Risk Assessment Using the Anlytic Hierrchy Process. IEEE Trnsctions on Engineering Mngement, 38(1),
5 Interntionl Journl of Business nd Mngement My, 2009 Putrus, P. (1990). Accounting for Intngibles in Integrted Mnufcturing. Informtion Strtegy, 6, Sty, T. L. (1977). A Scling Method for Priorities in Hierrchicl Structures. Journl of Mthemticl Psychology, 15, Shtub, A. & Dr-el, E. M. A. (1989). Methodology for the Selection of Assembly Systems. Interntionl Journl of Production Reserch, 27(1), Wblickis, R. N. (1988) Justifiction of FMS with the Anlytic Hierrchy Process. Journl of Mnufcturing Systems, 17, Wng, L. & Rz, T. (1991). Anlytic Hierrchy Process Bsed on Dt Flow Problem. Computers nd Industril Engineers, Vol. 20, pp Winklehofer, H., Dimntopoulos, A. & Witt, S. F. (1996). Forecsting Prctice: A Review of the Empiricl Literture nd n Agend for the Future Reserch. Interntionl Journl of Forecsting, 12(2), Tble 1. Actul consumption (tons) nd forecsted dt (tons) in 12 month period Model Month SA MA WMA SES SESLT DES DESLT AES LR HWAA Actul Tble 2. Forecsting errors using different techniques Model CFE MAD MSE MAPE TS SA MA WMA -7.63E E-06 SES SESLT DES DESLT AES LR HWAA
6 Vol. 4, No. 5 Interntionl Journl of Business nd Mngement Tble 3. Priority mtrix of different criteri Qulity Quntity Verstility Led Time Cost Pyment Flexibility Trnsporttion Bureucrcy Advntge Reputtion Experience Reltionship Qulity Quntity Verstility Led Time Cost Pyment Flexibility Trnsporttion Bureucrcy Advntge Reputtion Experience Reltionship Tble 4. Priority mtrix of different suppliers Criteri Qulity Quntity Ledtime Supplier A B C A B C A B C A B C Criteri Cost Reputtion Experience Supplier A B C A B C A B C A B C Criteri Pyment flexibility Trnsporttion Reltionship Supplier A B C A B C A B C A B C
7 Interntionl Journl of Business nd Mngement My, 2009 Tble 5. Overll priority vlues of different suppliers Qulity Quntity Verstility Led Time Cost Pyment Flexibility Trnsporttion Bureucrcy Advntge Reputtion Experience Reltionship Overll Priority Vector A B C Consumption (in tons) Jnury Februry Mrch April My June July Month August September October November December Actul MA WMA SESLT DESLT AES HWAA Figure 1. Forecsting trends of different techniques compred to ctul consumption 155
8 Vol. 4, No. 5 Interntionl Journl of Business nd Mngement Mteril Selection Define Minimum Qulifiction Level List of Suppliers Mke List of Qulified Suppliers Define Evlution Criteri Develop Decision Hierrchy Pirwise Comprison of Suppliers Pirwise Comprison of Criteri Reltive Priorities of Suppliers Reltive priorities of Criteri Clculte Overll Prioroties of Suppliers Select Supplier with Highest Priority Figure 2. Process flow of AHP technique for supplier selection 156
9 Interntionl Journl of Business nd Mngement My, Reltive Priority qulity quntity vestlity ledtime cost pymeny flexibility trnsporttion buriocrcy dvntge Criteri reputtion experience reltionship Figure 3. Clculted priority fctors of different criteri Overll Priority Supplier A Supplier B Supplier C Supplier Figure 4. Overll priority vlues of different suppliers 157
10 Vol. 4, No. 5 Interntionl Journl of Business nd Mngement Mngeril nd Ledership Perceptions of CEOs in Leding Turkish Compnies Ali Akdemir Deprtment of Business, Fculty of Business Administrtion nd Economics Cnkkle Onsekiz Mrt University Big 17200, Turkey Murt Ksimoglu Deprtment of Business, Fculty of Business Administrtion nd Economics Cnkkle Onsekiz Mrt University Big 17200, Turkey Tel: E-mil: mksimoglu@yhoo.co.uk Aslı Ekmekci Deprtment of Business, Fculty of Business Administrtion nd Economics Mrmr University Istnbul, Turkey Tel: E-mil: slikucuksln@yhoo.com Abstrct The im of this study ws to exmine the fctors ffecting the mngement nd ledership style nd mngeril perceptions of mngers in leding Turkish compnies. The empiricl reserch ws conducted with the prticiption of top-level mngers in the top 500 compnies of Turkey nd the dt ws sttisticlly nlyzed using the Poisson Regression Model. As result of the nlysis of the dt, it ws found tht the number of employees working in the orgniztion nd the ledership nd mngement styles of the mngers, hve significnt effects on mngeril perceptions of the mngers. Therefore, it is suggested tht the study will enble n understnding of the decision mking processes of top mngement in Turkey. Keywords: Mngement, Ledership, Mngeril perception, Turkey 1. Introduction Mngers re one of the min fctors tht ffect the success of orgniztions becuse they prticipte nd work through the decision-mking processes nd hve significnt influence during the orgniztionl resource plnning process. Within this frmework, studies on mngers effective decision-mking processes tended to focus especilly on the trit theory. In the trit theory, individul fctors were considered nd the impct of the physicl trits of the mngers on the mngeril processes ws exmined. Historiclly, this pproch cn be viewed s norml becuse of situtionl fctors; it cn lso be sid tht in previous times there were no other effective fctors when the subject is evluted from the viewpoint of the mngers power source. When this issue is evluted historiclly, it cn be seen tht there were very successful nd effective leders, mngers, kings, nd strtegy developers who ctully pplied modern mngement pproches. Therefore, when considering mngement nd mngeril prctices, these should be ssessed more widely nd more rtionlly. In this context, it is importnt to find out the common vlues of the success of leders throughout the centuries in order to help identify contemporry mngement models. However, the process of mngement studies nd reserches occurred differently. After the theory of the big mn, the subject ws exmined using behviorl models. Hence, mngement prctices were considered within orgniztionl 158
11 Interntionl Journl of Business nd Mngement My, 2009 prmeters nd studies especilly focused on the ttitudes nd behviors of mngers towrds production fctors. Therefore, the field of mngement nd subject of mngeril prctices gined new dimensions nd fresh, in-depth studies on the ttributes of the generl behviors of successful mngement model towrds production fctors were crried out. Reserches were conducted in two dimensions. Before ll else, mngement evlution scle ws developed in order to mesure how mnger cts nd performs in his position. This scle ws used to identify mngeril chrcteristics from the view of employees nd how the employees perceived their mngers cts nd ttributes could be mesured with the id of this scle. According to the findings of the scle, if the mngers gined high points in the structure prt, it ment tht those mngers dopted n effective process in mking progrms, plnning, nd effective communiction. If their totl points concerning employee reltions were high, it ment tht the mngers were listening to their employees, giving them informtion, nd trusting them. Mny studies showed tht giving importnce to the structurl nd humn side of the orgniztion hd positive correltions with other functions within the totl orgniztionl system. After this, mngeril studies were generlly evluted in two fields, nmely, employee focused nd job focused. The findings of these studies indicted three contingent fctors: tsk structure, member-leder reltion, nd position power. Tsks were reveled s being structured nd unstructured. The tsks tht hd high structured property were considered s hving only one method of solution nd the solution ws cler nd evident. Leder-member reltions nd the mnger s position were lso indicted s importnt fields within the mngeril processes. In ddition, uthority nd power sources effective in the mnger s in-group reltions were found to be contingent fctors which direct mngement processes. The bsic findings of ll the mngement studies nd reserches colesced round the sme vribles. The common points of the studies focused on the importnce of the efficiency of mngers during the decision-mking processes. Especilly, the resource use of orgniztions ws considered very importnt fctor nd number of empiricl studies were crried out on this spect which tried to determine whether the findings supported the cse or not. They concluded tht existing models were indequte to explin mngeril processes nd other fctors lso hd n importnt effect. Despite this, ll these studies nd findings mde n importnt contribution to the methodology nd scientific discussion of the field. By mens of these studies, mngement science benefited from hving well-developed model nd scientific knowledge for the study of mngement processes emerged. These studies lso contributed to the development of contemporry mngement models nd indicted new pproches concerning tody s mngement prctices. 2. Previous Studies on the Mngement Process When mngement reserches re nlyzed, it is seen tht mngement models were exmined in different dimensions nd from different perspectives. In Bennis (2004) studies, the common chrcteristics nd behviorl models of mngers, rther thn the differences, were exmined. The findings indicted tht mngers were individuls who do things right right jobs in orgniztions. Mngers were considered s hving n importnt role in the decision-mking processes nd tht there were bsic fctors tht enhnced their decision-mking. One of the bsic functions of mngers in orgniztions is to concentrte on the performnce of the tem they mnge nd to inspire nd motivte tem members. Mngers re individuls with vision tht enbles the tem members to rech their gols. According to Bennis (2004), one of the common chrcteristics of mngers is the mngement of mening. The mngers empower the members cretiveness by mens of which the members to prticipte in the processes nd shre the vision. Mngers hve to connect with the members visions nd the interction tht emerges leds to employees working collectively towrds common gol. Mngers hve to rtionlize their ides nd thoughts for members of the orgniztion nd should communicte them clerly by using nlogy nd metphors. An importnt chrcteristic of mngers is the mngement of trust reltions within the compny. The most importnt property of trust is being considered trustworthy by others. This cn be defined s exhibiting the sme behviors nd ttitudes in every circumstnce. In executing the job process, being conscious of their skills during the decision-mking processes nd developing these skills efficiently re very importnt for the mngers nd employees. It hs been emphsized tht mngement is process perceived by the entire workforce of the orgniztion nd which enhnces collective effort, good mutul reltions, nd energized employees. In the orgniztion, empowerment hs crucil role nd collective effect on ll employees. As consequence of empowerment, employees feel importnt becuse they belong to group, nd opportunities for their lerning nd skills development re given. All these fctors indicte different dimensions of the mngement process nd designte the vribles which ffect the orgniztion nd leder reltionship. These fctors re lso importnt for directing the strtegic decisions of mngers nd llowing those strtegies to hve n impct. Zleznik (2004) emphsizes tht the most importnt fctor bout being mnger is hving drems. According to him, this mens hving the bility to trnsform problem or difficulty into n opportunity. Briefly, this process mens motivting others to solve problems within the orgniztion. According to this pproch, creting opportunities nd finding solutions to problems re the most importnt fctors. Being n 159
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