8/12/2019 HRM 101

1/5

Qustion1: What is MBO. Discuss its importance and limi tation. How can we implement MBO

effi ciently in the fast changing and uncertain environment.

Answer : Introduction

It is a process where managers and subordinates jointly identify its common goals, define responsibility

and measure and assess the contribution of each member continuously. It combines planning andorganizing.

Steps or process in MBO

i) Define overall objectives of the organization ii). To formulate sub objectives or goals iii).Determination of individual targets iv). Periodic review and evaluation v). Performance appraisal

Advantages

i). It acts as a combination of planning and control ii). It integrates individual targets, departmental goalswith organizational goals iii). It helps in establishing specific, operational and measurable goals iv). It isgoal oriented and directed upon results, performance and contributions of employees v) It makesemployees more enthusiastic and goal oriented. vi) It encourages initiative and self control among

employees. Vii). It is highly objective and rational viii). It facilitates training and development ofsubordinates ix) It identifies key result areas and translates them into achievable results

Limitations

i). It is treated as a panacea for all the organizational problems ii). Since its focus is more on specific,measurable goals , it neglects long term, strategic goals of the organization iii). It takes too much of time

and effort and generates too much paperwork iv)It does not provide scientific training and

Implementation of MBO

1. It is important to secure top management support and commitment. Without this commitment, MBOcon never really be a success. The top managers and their subordinates should all consider themselves as

players of the some team. This means that the superiors must be willing to relinquish and shore the

necessary authority with subordinates.

2. The objectives should be clearly formulated, should be realistic and achievable. For example, it is not

realistic for the R&D department of on organization to set a goal of, say, 10 inventions per year. Thesegoals should be set with the participation of the subordinates. They must be properly communicated,clearly understood and accepted by all. MBO works best when goals are accepted.

3. MBO should be on overall philosophy of management and the entire organization, rather than simply adivisional process or a performance appraisal technique. MBO is a major undertaking and should replace

old systems rather than just being added to it. Felix M.Lopex has observed, when an organization ismanaged by objectives, it becomes performance oriented. It grows and it develops and it becomes sociallyuseful.

4. The goals must be continuously reviewed and modified, as the changed conditions require. The review

technique should be such that any deviations are caught early and corrected.5. All personnel involved should be given formal training in understanding the basics as well as thecontents of the programmed. Such education should include as to how to set goals, the methods to achievethese goals, methods of reviews and evaluation of performance and provisions to include any feedbackthat may be given.

6. Management by Objectives (MBO) system is a major undertaking based upon sound organizational

and psychological principles. Hence it should be totally accepted as a style of managing and should betotally synthesized with the organizational climate. All personnel involved must have a clear

8/12/2019 HRM 101

2/5

understanding of their role authority and their expectations. The system should be absorbed totally by allmembers of the organization.

Question2 : What is six sigma? What are the two methodologies for its implementation? Compare

and contrast six sigma and TQM.

The Six Sigma Methodology can be defined as one of the many highly controlled approaches in process

management. It helps companies boost their profits and trim down on costs. With the use of Six SigmaMethodology, companies are able to produce the finest products and services, higher proceeds and retain

more satisfied customers.The Six Sigma Methodology was originally instituted by the American telecommunications companyMotorola Inc. in 1986. After a Japanese firm took over a Motorola factory that produced television sets in

the United States in the late 1970s, the firm set about in effecting radical changes to the processes andways the factory operated. Thus, under the Japanese leadership, Motorola factory began producing TV

sets that had 1/20th of the original Motorola managements number of d efects. This prompted thecompany to commit to focusing on qualit

The Six Sigma Methodology was originally intended and focused for the purpose of quality improvement,

this methodology is one of the most common business improvement strategies used today. The idea ofusing the Six Sigma Methodology in business process improvement came about when managers and

analysts recognized that there are many possible improvements that can be done as well as many ways tomake processes more efficient

There are two known types of methodologies applied in Six Sigma projects. The simplicity of the twomethodologies makes its implementation in any organization possible. The two methodologies

areDMAIC andDMADV. Both methodologies can be best described by dissecting the meaning of theacronyms.

DMAIC

When the aim is to improve current business processes, DMAIC is the methodology used. The letters of

the acronym defines the steps that need to be done in order to implement it.Define: This phase of the methodology consists of identifying the goals and sub-goals of the project,

creating a plan to achieve these goals and project-planning to enhance functioning.Measure: This phase of the methodology comprises of collection of relevant data, determination ofmetrics or variables based on data and other information. This phase basically entails taking measurementof vital characteristics of the current process.Analyze: In this phase, deficiencies or defects are studied closely to find out the Cause and Effect

relationship. This step of the methodology ensures that any and all factors are thoroughly evaluated andestablishes the root causes of the different defects in the current process.Improve:This phase utilizes the data collected and measurement analysis done in the previous phases.The current process is enhanced by eliminating the root cause of defects through the employment of bettertechniques.

Control: In this phase continuous monitoring and control of process is done to ensure zero defects inproducts and services

DMADVAlso known as DFSS or Design for Six Sigma, DMADV is aimed and used in projects that create process

or product designs. A project team uses DMADV type of Six Sigma Methodology when their goal is toproduce a process or product that best suits the consumers needs. Like DMAIC, the steps and phases of

DMADV can be described by defining each of the letters in the acronym.

http://www.whatissixsigma.net/six-sigma-dmaic/http://www.whatissixsigma.net/six-sigma-dmadv/http://www.whatissixsigma.net/six-sigma-dmaic-define-phase/http://www.whatissixsigma.net/six-sigma-dmaic-define-phase/http://www.whatissixsigma.net/six-sigma-dmaic-measure-phase/http://www.whatissixsigma.net/six-sigma-dmaic-measure-phase/http://www.whatissixsigma.net/six-sigma-dmaic-analyze-phase/http://www.whatissixsigma.net/six-sigma-dmaic-analyze-phase/http://www.whatissixsigma.net/six-sigma-dmaic-improve-phase/http://www.whatissixsigma.net/six-sigma-dmaic-improve-phase/http://www.whatissixsigma.net/six-sigma-dmaic-control-phase/http://www.whatissixsigma.net/six-sigma-dmaic-control-phase/http://www.whatissixsigma.net/six-sigma-dmaic-control-phase/http://www.whatissixsigma.net/six-sigma-dmaic-improve-phase/http://www.whatissixsigma.net/six-sigma-dmaic-analyze-phase/http://www.whatissixsigma.net/six-sigma-dmaic-measure-phase/http://www.whatissixsigma.net/six-sigma-dmaic-define-phase/http://www.whatissixsigma.net/six-sigma-dmadv/http://www.whatissixsigma.net/six-sigma-dmaic/

8/12/2019 HRM 101

3/5

Define:In this phase of the DMADV type of methodology, the goals that meet the business needs of theorganization in conjunction with the customers needs or demands are determined.Measure:The measure phase in this Six Sigma methodology is when the team identifies and measuresthe characteristics or variables Critical To Quality orCTQ.This is also when customer needs, customerspecifications and product capabilities, risk factors and others are determined.Analyze:Alternative processes are created and analyzed. These processes are designed to meet customer

specifications and needs. After analysis, the design that best meets the requirements of the process,product, and customer specifications is selected.Design:This phase is where the best design selected from the previous phase is created, optimized andcarefully planned.Verify: In this phase of this type of methodology, the process designs performance and capability tomeet or answer the customer needs and specifications is verified

In comparison, Six Sigma is more than just a process improvement program as it is based on concepts thatfocus on continuous quality improvements for achieving near perfection by restricting the number of

possible defects to less than 3.4 defects per million. It is complementary to Statistical Process Control(SPC), which uses statistical methods for monitoring and controlling business processes. Although both

SPC and TQM help in improving quality, they often reach a stage after which no further qualityimprovements can be made. Six Sigma, on the other hand, is different as it focuses on taking quality

improvement processes to the next level.

Comparision of SIX SIGMA & TQM

The basic difference between Six Sigma and TQM is the approach. While TQM views quality asconformance to internal requirements, Six Sigma focuses on improving quality by reducing the number of

defects. The end result may be the same in both the concepts (i.e. producing better quality products). SixSigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time

reduction, and cost savings. It is different from conventional cost cutting measures that may reduce valueand quality. It focuses on identifying and eliminating costs that provide no value to customers such ascosts incurred due to waste.

TQM initiatives focus on improving individual operations within unrelated business processeswhereas Six Sigma program focus on improving all the operations within a single business process. SixSigma projects require the skills of professionals that are certified as black belts whereas TQMinitiatives are usually a part-time activity that can be managed by non-dedicated managers.

http://www.whatissixsigma.net/six-sigma-dmadv-define-phase/http://www.whatissixsigma.net/six-sigma-dmadv-define-phase/http://www.whatissixsigma.net/six-sigma-dmadv-measure-phase/http://www.whatissixsigma.net/six-sigma-dmadv-measure-phase/http://www.whatissixsigma.net/ctq-tree/http://www.whatissixsigma.net/six-sigma-dmadv-analyze-phase/http://www.whatissixsigma.net/six-sigma-dmadv-analyze-phase/http://www.whatissixsigma.net/six-sigma-dmadv-design-phase/http://www.whatissixsigma.net/six-sigma-dmadv-design-phase/http://www.whatissixsigma.net/six-sigma-dmadv-validate-phase/http://www.whatissixsigma.net/six-sigma-dmadv-validate-phase/http://www.sixsigmaonline.org/http://www.sixsigmaonline.org/http://www.whatissixsigma.net/six-sigma-dmadv-validate-phase/http://www.whatissixsigma.net/six-sigma-dmadv-design-phase/http://www.whatissixsigma.net/six-sigma-dmadv-analyze-phase/http://www.whatissixsigma.net/ctq-tree/http://www.whatissixsigma.net/six-sigma-dmadv-measure-phase/http://www.whatissixsigma.net/six-sigma-dmadv-define-phase/

8/12/2019 HRM 101

4/5

Question3 : Write short note on any two of the following

1. Project Management

Project

A project is a [temporary] sequence of unique, complex, and connected activities having one goal

or purpose and that must be completed by specific time, within budget, and according to

specification.

Project Management

Project management is the process of scoping, planning, staffing, organizing, directing, and

controlling the development of an acceptable system at a minimum cost within a specified time

frame.

Project Management Tools & Techniques

A PERT chart is a graphical network model that depicts a projects tasks and the relationships

between those tasks.

Program Evaluation and Review Technique

A Gantt chart is a simple horizontal bar chart that depicts project tasks against a calendar. Each

bar represents a named project task. The tasks are listed vertically in the left-hand column. The

horizontal axis is a calendar timeline.

Need for Project Management

:Project management is necessary because:-(a)A project requires huge investments which should not go waste( b ) A l o s s i n a n y p r o j e c t w o u l d h a v e d i r e c t o r i n d i r e c t i m p a c t o n t h e

s o c i e t y( c ) P r e v e n t f a i l u r e s i n p r o j e c t s( d ) S c o p e o f t h e p r o j e c t a c t i v i t y m a y u n d e r g o a c h a n g e(e)Technology used may change during the course of project execution(f)Consequences of negat ivi ty in project re la ted problems could be very serious

( g ) C h a n g e s i n e c o n o m i c c o n d i t i o n s m a y a f f e c t a p r o j e c t .

8/12/2019 HRM 101

5/5

2. Managerial Decision Making

Decision-making describes the process by which a course of action is selected to deal with a specific

problem. The success of an organization depends greatly on the decisions of managers. There are twomajor types of models used by managers to make decisions - (1) rational model and (2) non-rational

models. In the rational model, managers engage in rational decision-making processes.

At the time of decision-making, they possess as well as understand all the information that is relevant to

their decision. In contrast, non-rational models of managerial decision-making suggest that limitations ofinformation-gathering and information-processing make it difficult for managers to make optimal

decisions. The three non-rational models of decision-making discussed in the chapter are: satisfying,incremental, and garbage-can models.

Any decision-making process contains seven basic steps: (1) identifying the problem; (2) identifyingresources and constraints, (3) generating alternative solutions, (4) evaluating alternatives, (5) selecting an

alternative, (6) implementing the decision, and (7) monitoring the decision. Managerial decisions are oftwo types - programmed decisions, and non-programmed decisions. Programmed decisions involvesimple, common, frequently occurring problems.

They have well-established and understood solutions. Non-programmed decisions deal with unusual or

exceptional problems. Based on the degree of certainty involved, every decision-making situation fallsinto one of three categories: (i) certainty, (ii) risk, and (iii) uncertainty.

In order to carry out managerial functions effectively, managers at all levels require vital information withspeed, brevity, precision and economy. A management information system is a computer-based

information system that gathers comprehensive data, analyzes and summarizes it, and provides it in aform that is of value to functional managers. A decision support system is an interactive computer systemthat can be easily accessed and operated by people who are not computer specialists, and who use thissystem to help them in planning and decision-making.