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LogisticiansLogisticians

Executive Placement 2003 BIMSchool of Management Studies – Striving towards Excellence

Vels University www.velsuniv.org

OrganizationOrganization

• A systematic arrangement of people A systematic arrangement of people brought together to accomplish the brought together to accomplish the Objectives Objectives



What Is An Organization?What Is An Organization?

• An Organization DefinedAn Organization Defined– A deliberate arrangement of people to accomplish some A deliberate arrangement of people to accomplish some

specific purposespecific purpose

• Common Characteristics of OrganizationsCommon Characteristics of Organizations– Have a distinct purpose (goal)Have a distinct purpose (goal)– Are composed of peopleAre composed of people– Have a deliberate structureHave a deliberate structure



Characteristics of OrganizationsCharacteristics of Organizations

DeliberateStructure

DistinctPurpose

People

DeliberateStructure

DistinctPurpose

People



MiddleManagers

First-LineManagers

Front-Line Employees

TopManagers

The Levels of an OrganizationThe Levels of an Organization

Workon Jobs



MANAGEMENTMANAGEMENT

• Management is the process of designing and Management is the process of designing and maintaining an environment in which individuals maintaining an environment in which individuals and groups working together, efficiently to and groups working together, efficiently to accomplish the objectivesaccomplish the objectives



What Is Management?What Is Management?

• • Managerial ConcernsManagerial Concerns– EfficiencyEfficiency

• ““Doing things Doing things right”right”

– Getting the most output Getting the most output for the least inputfor the least input

– EffectivenessEffectiveness• ““Doing the right Doing the right

things”things”– Attaining organizational Attaining organizational

goalsgoals



ManagementManagement• Process of getting things done, efficiently and Process of getting things done, efficiently and

effectively, through and with other peopleeffectively, through and with other people

• ““The conventional definition of management is The conventional definition of management is getting work done through people, getting work done through people,

but real management is developing people but real management is developing people through work”.through work”.



Definition by various authorsDefinition by various authors

Management is the accomplishment of results Management is the accomplishment of results through the efforts of other people. through the efforts of other people.

(Lawrence A. Appley) (Lawrence A. Appley)

• • Management is the art of getting things done Management is the art of getting things done through and with the people in formally through and with the people in formally

organised groups. (Koontz H.) organised groups. (Koontz H.)

• • Management is a process of planning organising, Management is a process of planning organising, actuating and controlling to determine actuating and controlling to determine

and accomplish the objectives by the use of people and accomplish the objectives by the use of people and resources. (Terry G.) and resources. (Terry G.)

••



Management is the process by which managers Management is the process by which managers

create, direct, maintain and operate create, direct, maintain and operate

purposive organisations through systematic, purposive organisations through systematic, coordinated, cooperative human effort. coordinated, cooperative human effort.

(McFarland) (McFarland)

• • It is the coordination of all resources through the It is the coordination of all resources through the process of planning organising, process of planning organising,

directing and controlling in order to attain stated directing and controlling in order to attain stated objectives. (Sisk)objectives. (Sisk)



ManagerManager

• Someone who works with and through other Someone who works with and through other people by coordinating their work activities in people by coordinating their work activities in order to accomplish organizational goals order to accomplish organizational goals



SBU level

Functional level Or

Operational Level

Corporate Level

The Levels of ManagementThe Levels of Management

Responsibilityon Jobs



Managerial LevelsManagerial Levels

•

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees

TopManagers

Middle Managers

First-Line Managers

Nonmanagerial Employees



Levels of ManagementLevels of Management

• Operational Level or First-line ManagersOperational Level or First-line Managers– Are at the lowest level of management and manage the Are at the lowest level of management and manage the

work of non-managerial employeeswork of non-managerial employees

• SBU Level ManagersSBU Level Managers– Manage the work of first-line managersManage the work of first-line managers

• Corporate ManagersCorporate Managers– Are responsible for making organization-wide decisions Are responsible for making organization-wide decisions

and establishing plans and goals that affect the entire and establishing plans and goals that affect the entire organizationorganization



Efficiency and Effectiveness Efficiency and Effectiveness

Goals

LowWaste

HighAttainment

MeansEfficiency

EndsEffectiveness

Res

ourc

e U

sage

Goal A

ttainm

ent

FOM 1.9



Efficiency and Effectiveness in Efficiency and Effectiveness in ManagementManagement

GoalAttainment

Effectiveness (Ends)

ResourceUsage

Management Strives for:Low Resource Waste (high efficiency)

High Goal Attainment (high effectiveness)

Efficiency (Means)

Low Waste High Attainment



• Planning

Defining goals and establishingaction plans

ControllingMonitoring activitiesto ensure that they

are achievingresults

LeadingGuiding and motivating all

involved parties

OrganizingDetermining what

needs to be done, in what order, and by

whom

Management ActivitiesManagement Activities

EffectiveManagement



Management FunctionsManagement Functions

Planning

Defining goals,establishingstrategy, anddevelopingsubplans tocoordinateactivities

Lead toOrganizing

Determiningwhat needsto be done,how it willbe done, andwho is to do it

Leading

Directing andmotivating allinvolved partiesand resolvingconflicts

Controlling

Monitoringactivitiesto ensurethat they areaccomplishedas planned

Achieving theorganization’s

statedpurpose



FOM 1.19

Mintzberg’sManagerial Roles

Interpersonal Decisional

Informational



Role of a ManagerRole of a Manager

• Mintzberg’s Management Mintzberg’s Management

Roles Approach Roles Approach – Interpersonal rolesInterpersonal roles

• Figurehead, leader, liaisonFigurehead, leader, liaison

– Informational rolesInformational roles• Monitor, disseminator, Monitor, disseminator,

spokespersonspokesperson

– Decisional rolesDecisional roles• Entrepreneur, disturbance Entrepreneur, disturbance

handler, resource allocator, handler, resource allocator, negotiatornegotiator



Goal of ManagersGoal of Managers

• ProductivityProductivity• EffectivenessEffectiveness• EfficiencyEfficiency



Management as Process Management as Process

Management as a process refers to a series of inter-Management as a process refers to a series of inter-related functions, such as related functions, such as

planning, organising staffing, leading and planning, organising staffing, leading and controlling. In actuality, managers are known by controlling. In actuality, managers are known by

the work they do. A manager lays down the the work they do. A manager lays down the objectives of an organisation. He provides an objectives of an organisation. He provides an

environment that is helpful to team work and environment that is helpful to team work and development. He offers incentives to those development. He offers incentives to those

who perform better than others do and thus helps who perform better than others do and thus helps the organisation realise its goals. the organisation realise its goals.

According to James Lundy, ‘Management is what According to James Lundy, ‘Management is what management does’. Management process management does’. Management process

suggests that all managers perform certain suggests that all managers perform certain functions in order to realise certain goals.functions in order to realise certain goals.



Management as a process Management as a process

1.1. Social processSocial process

2.2. Integrating processIntegrating process

3.3. Continuous process Continuous process

4.4. Universal processUniversal process



Management ApproachesManagement Approaches

Early management approaches Early management approaches which are which are represented by scientific managementrepresented by scientific management

the administrative management theory and the administrative management theory and

the human relations movement the human relations movement

Modern management approaches Modern management approaches which are which are represented by scientific management, represented by scientific management,

the the administrative/management science administrative/management science approach, approach,

the systems approach and the systems approach and

the the contingency approach contingency approach



• Empirical or Case approachEmpirical or Case approach• Interpersonal Behavior approachInterpersonal Behavior approach• Group behavior approachGroup behavior approach• Cooperative social systems approachCooperative social systems approach• Sociotechnical approachSociotechnical approach• Decision theory approachDecision theory approach• Systems approachSystems approach• Mathematical or Managerial Science approachMathematical or Managerial Science approach• Contingency or situational approachContingency or situational approach• Mckinsey’s 7-S frameworkMckinsey’s 7-S framework• Operational approachOperational approach



Management ThoughtManagement Thought

(1) the classical school (1) the classical school

(2) the behavioral school (2) the behavioral school

(3) the quantitative or management science school (3) the quantitative or management science school

(4) the systems school (4) the systems school

(5) and the contingency school. (5) and the contingency school.



THE CLASSICAL SCHOOLTHE CLASSICAL SCHOOL

• The classical school is the oldest formal school of The classical school is the oldest formal school of management thought. Its roots pre-date the management thought. Its roots pre-date the twentieth century. The classical school of thought twentieth century. The classical school of thought generally concerns ways to manage work and generally concerns ways to manage work and organizations more efficiently. Three areas of organizations more efficiently. Three areas of study that can be grouped under the classical study that can be grouped under the classical school are scientific management, administrative school are scientific management, administrative management, and bureaucratic management.management, and bureaucratic management.



SCIENTIFIC MANAGEMENTSCIENTIFIC MANAGEMENT

• In the late 19th century, management decisions In the late 19th century, management decisions were often arbitrary and workers often worked at were often arbitrary and workers often worked at an intentionally slow pacean intentionally slow pace

• Scientific management had a tremendous Scientific management had a tremendous influence on management practice in the early influence on management practice in the early twentieth century. Although it does not represent twentieth century. Although it does not represent a complete theory of management, it has a complete theory of management, it has contributed to the study of management and contributed to the study of management and organizations in many areas, including human organizations in many areas, including human resource management and industrial engineering. resource management and industrial engineering. Many of the tenets of scientific management are Many of the tenets of scientific management are still valid today.still valid today.



ADMINISTRATIVE MANAGEMENTADMINISTRATIVE MANAGEMENT

• Administrative management focuses on the Administrative management focuses on the management process and principles of management process and principles of management. In contrast to scientific management. In contrast to scientific management, which deals largely with jobs and management, which deals largely with jobs and work at the individual level of analysis, work at the individual level of analysis, administrative management provides a more administrative management provides a more general theory of management. Henri Fayol is the general theory of management. Henri Fayol is the major contributor to this school of management major contributor to this school of management thought.thought.

• Fayol was a management practitioner who Fayol was a management practitioner who brought his experience to bear on the subject of brought his experience to bear on the subject of management functions and principles. management functions and principles.



BUREAUCRATIC MANAGEMENTBUREAUCRATIC MANAGEMENT• Bureaucratic management focuses on the ideal form Bureaucratic management focuses on the ideal form

of organization. Max Weber was the major of organization. Max Weber was the major contributor to bureaucratic management. Based on contributor to bureaucratic management. Based on observation, Weber concluded that many early observation, Weber concluded that many early organizations were inefficiently managed, with organizations were inefficiently managed, with decisions based on personal relationships and decisions based on personal relationships and loyalty. He proposed that a form of organization, loyalty. He proposed that a form of organization, called a bureaucracy, characterized by division of called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on the selection and promotion of employees based on ability, would lead to more efficient management. ability, would lead to more efficient management. Weber also contended that managers' authority in Weber also contended that managers' authority in an organization should be based not on tradition or an organization should be based not on tradition or charisma but on the position held by managers in charisma but on the position held by managers in the organizational hierarchy.the organizational hierarchy.



THE BEHAVIORAL SCHOOLTHE BEHAVIORAL SCHOOL

• The behavioral school of management thought The behavioral school of management thought developed, in part, because of perceived developed, in part, because of perceived weaknesses in the assumptions of the classical weaknesses in the assumptions of the classical school. The classical school emphasized school. The classical school emphasized efficiency, process, and principles. Some felt that efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of this emphasis disregarded important aspects of organizational life, particularly as it related to organizational life, particularly as it related to human behavior. Thus, the behavioral school human behavior. Thus, the behavioral school focused on trying to understand the factors that focused on trying to understand the factors that affect human behavior at work.affect human behavior at work.



HUMAN RELATIONSHUMAN RELATIONS

• The Hawthorne Experiments began in 1924 and The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variety of continued through the early 1930s. A variety of researchers participated in the studies, including Clair researchers participated in the studies, including Clair Turner, Fritz J. Roethlisberger, and Elton Mayo, whose Turner, Fritz J. Roethlisberger, and Elton Mayo, whose respective books on the studies are perhaps the best respective books on the studies are perhaps the best known. One of the major conclusions of the known. One of the major conclusions of the HawthorneHawthorne studies studies was that was that workers' attitudes workers' attitudes are are associated with associated with productivityproductivity. Another was that the . Another was that the workplaceworkplace is a is a social system and informal group social system and informal group influence influence could exert a powerful effect on individual could exert a powerful effect on individual behavior. A third was that the behavior. A third was that the style of supervision style of supervision is is an important factor in increasing an important factor in increasing workers' job workers' job satisfactionsatisfaction



BEHAVIORAL SCIENCEBEHAVIORAL SCIENCE

• Behavioral science and the study of Behavioral science and the study of organizational behavior emerged in the 1950s organizational behavior emerged in the 1950s and 1960s. The behavioral science school was a and 1960s. The behavioral science school was a natural progression of the human relations natural progression of the human relations movement. It focused on applying conceptual and movement. It focused on applying conceptual and analytical tools to the problem of understanding analytical tools to the problem of understanding and predicting behavior in the workplace. and predicting behavior in the workplace.



THE QUANTITATIVE SCHOOLTHE QUANTITATIVE SCHOOL

• The quantitative school focuses on improving The quantitative school focuses on improving decision making via the application of decision making via the application of quantitative techniques. Its roots can be traced quantitative techniques. Its roots can be traced back to scientific management.back to scientific management.



MANAGEMENT SCIENCE AND MISMANAGEMENT SCIENCE AND MIS

• Management science Management science (also called operations research) (also called operations research) uses mathematical and statistical approaches to solve uses mathematical and statistical approaches to solve management problems.management problems.

• Management science and management information Management science and management information systems (MIS) systems (MIS) are intertwined. MIS focuses on are intertwined. MIS focuses on providing needed information to managers in a useful providing needed information to managers in a useful format and at the proper time. Decision support format and at the proper time. Decision support systems (DSS) attempt to integrate decision models, systems (DSS) attempt to integrate decision models, data, and the decision maker into a system that data, and the decision maker into a system that supports better management decisions.supports better management decisions.



PRODUCTION AND OPERATIONS PRODUCTION AND OPERATIONS MANAGEMENTMANAGEMENT

• This school focuses on the operation and control of This school focuses on the operation and control of the production process that transforms resources the production process that transforms resources into finished goods and services. It has its roots in into finished goods and services. It has its roots in scientific management but became an identifiable scientific management but became an identifiable area of management study after World War II. It area of management study after World War II. It uses many of the tools of management science.uses many of the tools of management science.

• Operations management emphasizes productivity Operations management emphasizes productivity and quality of both manufacturing and service and quality of both manufacturing and service organizations. W. Edwards Deming exerted a organizations. W. Edwards Deming exerted a tremendous influence in shaping modern ideas tremendous influence in shaping modern ideas about improving productivity and quality. about improving productivity and quality.



SYSTEMS SCHOOLSYSTEMS SCHOOL• The systems school focuses on understanding the The systems school focuses on understanding the

organization as an open system that transforms organization as an open system that transforms inputs into outputs. This school is based on the work inputs into outputs. This school is based on the work of a biologist, Ludwig von Bertalanffy, who believed of a biologist, Ludwig von Bertalanffy, who believed that a general systems model could be used to unite that a general systems model could be used to unite science. Early contributors to this school included science. Early contributors to this school included Kenneth Boulding, Richard Johnson, Fremont Kast, Kenneth Boulding, Richard Johnson, Fremont Kast, and James Rosenzweig.and James Rosenzweig.

• The systems school began to have a strong impact The systems school began to have a strong impact on management thought in the 1960s as a way of on management thought in the 1960s as a way of thinking about managing techniques that would allow thinking about managing techniques that would allow managers to relate different specialties and parts of managers to relate different specialties and parts of the company to one another, as well as to external the company to one another, as well as to external environmental factors. The systems school focuses environmental factors. The systems school focuses on the organization as a whole, its interaction with on the organization as a whole, its interaction with the environment, and its need to achieve equilibriumthe environment, and its need to achieve equilibrium



CONTINGENCY SCHOOLCONTINGENCY SCHOOL• The contingency school focuses on applying The contingency school focuses on applying

management principles and processes as dictated management principles and processes as dictated by the unique characteristics of each situation. It by the unique characteristics of each situation. It emphasizes that there is no one best way to emphasizes that there is no one best way to manage and that it depends on various situational manage and that it depends on various situational factors, such as the external environment, factors, such as the external environment, technology, organizational characteristics, technology, organizational characteristics, characteristics of the manager, and characteristics characteristics of the manager, and characteristics of the subordinates. Contingency theorists often of the subordinates. Contingency theorists often implicitly or explicitly criticize the classical school implicitly or explicitly criticize the classical school for its emphasis on the universality of management for its emphasis on the universality of management principles; however, most classical writers principles; however, most classical writers recognized the need to consider aspects of the recognized the need to consider aspects of the situation when applying management principles.situation when applying management principles.



CONTEMPORARY "SCHOOLS" OF CONTEMPORARY "SCHOOLS" OF MANAGEMENT THOUGHTMANAGEMENT THOUGHT

• Management research and practice continues to Management research and practice continues to evolve and new approaches to the study of evolve and new approaches to the study of management continue to be advanced. This management continue to be advanced. This section briefly reviews two contemporary section briefly reviews two contemporary approachesapproaches: total quality management (TQM) : total quality management (TQM) and and the learning organization. While neither of these the learning organization. While neither of these management approaches offer a complete theory management approaches offer a complete theory of management, they do offer additional insights of management, they do offer additional insights into the management field.into the management field.



TOTAL QUALITY MANAGEMENTTOTAL QUALITY MANAGEMENT• Total quality management (TQM) is a philosophy or Total quality management (TQM) is a philosophy or

approach to management that focuses on managing approach to management that focuses on managing the entire organization to deliver quality goods and the entire organization to deliver quality goods and services to customers. This approach to services to customers. This approach to management was implemented in Japan after World management was implemented in Japan after World War II and was a major factor in their economic War II and was a major factor in their economic renaissance. TQM has at least four major elements. renaissance. TQM has at least four major elements. Employee involvement is essential in preventing Employee involvement is essential in preventing quality problems before they occur. A customer quality problems before they occur. A customer focus means that the organization must attempt to focus means that the organization must attempt to determine customer needs and wants and deliver determine customer needs and wants and deliver products and services that address them.products and services that address them.

• Benchmarking means that the organization is always Benchmarking means that the organization is always seeking out other organizations that perform a seeking out other organizations that perform a function or process more effectively and using them function or process more effectively and using them as a standard, or benchmark, to judge their own as a standard, or benchmark, to judge their own performance.performance.



LEARNING ORGANIZATIONLEARNING ORGANIZATION

• The contemporary organization faces The contemporary organization faces unprecedented environmental and technological unprecedented environmental and technological change. Thus, one of the biggest challenges for change. Thus, one of the biggest challenges for organizations is to continuously change in a way organizations is to continuously change in a way that meets the demands of this turbulent that meets the demands of this turbulent competitive environment. The learning organization competitive environment. The learning organization can be defined as one in which all employees are can be defined as one in which all employees are involved in identifying and solving problems, which involved in identifying and solving problems, which allows the organization to continually increase its allows the organization to continually increase its ability to grow, learn, and achieve its purpose. The ability to grow, learn, and achieve its purpose. The organizing principle of the learning organization is organizing principle of the learning organization is not efficiency, but problem solving. Three key not efficiency, but problem solving. Three key aspects of the learning organization are a team-aspects of the learning organization are a team-based structure, empowered employees, and open based structure, empowered employees, and open information. information.

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Www.velsuniv.org Subject Code: 12CMBS11Subject Code: 12CMBS11 Subject Name: Management Principles for LogisticiansSubject Name: Management Principles for