Professional Documents
Culture Documents
1 |Page
Functions of Managers
Managers just don't go out and haphazardly perform their responsibilities.
Good managers discover how to master five basic functions: planning,
organizing, staffing, leading, and controlling.
2 |Page
Interperso
nal
Decisional
Spokesperso
n
Figurehead
Leader
Liaison
Category
Role
Activity
adapt to environments.
Resource
allocator
Negotiator
specializations.
2. Atmosphere is collegial and hence there is more information exchange
and discussion
(instead of orders and directions).
3. Decision making is decentralized and decisions are taken on demand by
people who are
currently involved in the operations at hand (which also assumes that
people at the top
need not be the best person to decide for the problem at hand).
4. Boundaries inside the organization are flexible and horizontal
relationships are
encouraged across teams or departments who are equally important
and/or responsive to
the problem.
Centralization and Decentralization.
Centralization means that the authority for most decisions is concentrated
at the top apex and in
decentralization authority is delegated through all levels of the
organization. As is the case
mostly, neither is it possible to have a purely centralized organization
except a very small
company and it is also not possible to have complete decentralization.
10 | P a g e
perfectly correlated.
Investopedia explains 'Diversification'
STUDIES AND MATHEMATICAL MODELS HAVE SHOWN THAT MAINTAINING A WELLDIVERSIFIED PORTFOLIO OF 25 TO 30 STOCKS WILL YIELD THE MOST COST EFFECTIVE LEVEL OF RISK REDUCTION . I NVESTING IN MORE SECURITIES WILL STILL
YIELD FURTHER DIVERSIFICATION BENEFITS , ALBEIT AT A DRASTICALLY SMALLER RATE.
FURTHER
MOST
11 | P a g e
Planning in Management
Planning is deciding in advance what to do and how to do.It is one of the
basic managerial functions. Before doing something, the manager must
formulate an idea of how to work on a particular task. Thus, planning is
closely connected with creativity and innovation. It involves setting
objectives and developing appropriate courses of action to achieve these
objectives.
Planning Definition
"Planning bridges the gap from where we are to where we want
to go. It makes it possible for things to occur which would not
otherwise happen" - Koontz and O'Donnel.
Importance of Planning
Features of planning
Planning is pervasive
Planning is continuous
Planning is futuristic
Planning Process
Setting objectives: Objectives may be set for the entire organisation
and each department or unit within the organisation.
Developing premises: Planning is concerned with the future which is
uncertain and every planner is using conjucture about what might happen
in future.
Identifying alternative courses of action: Once objectives are set,
assumptions are made. Then the next step would be to act upon them.
Evaluating alternative courses: The next step is to weigh the pros and
cons of each alternative.
Selecting an alternative: This is the real point of decision making. The
best plan has to be adopted and implemented.
Implement the plan: This is concerned with putting the plan into action.
Follow-up action: Monitoring the plans are equally important to ensure
that objectives
Types of Plans
Objectives: Objectives are very basic to the organisation and they are
defined as ends which the management seeks to achieve by its
operations.They serve as a guide for overall business planning.
Strategy: strategy is a comprehensive plan for accomplishing an
organisation objectives. This comprehensive plan will include three
dimensions,
(a) determining long term objectives,
(b) adopting a particular course of action, and
(c) allocating resources necessary to achieve the objective.
Policy: They are guides to managerial action and decisions in the
implementation of strategy.
Procedure: Procedures are routine steps on how to carry out activities.
Procedures are specified steps to be followed in particular circumstances.
Method: Methods provide the prescribed ways or manner in which a task
has to be performed considering the objective. It deals with a task
comprising one step of a procedure and specifies how this step is to be
performed.
Rule: Rules are specific statements that inform what is to be done. They
do not allow for any flexibility or discretion.
Programme: Programmes are detailed statements about a project which
outlines the objectives, policies, procedures, rules, tasks, human and
physical resources required and the budget to implement any course of
action.
Budget: It is a plan which quantifies future facts and figures. It is a
fundamental planning instrument in many organisations.
PROBLEM -SOLVING
13 | P a g e
14 | P a g e
15 | P a g e
1. Define and clarify the issue - does it warrant action? If so, now? Is
the matter urgent, important or both. See the Pareto Principle.
2. Gather all the facts and understand their causes.
3. Think about or brainstorm possible options and solutions.
(See brainstorming process)
16 | P a g e
4. Consider and compare the pros and cons of each option - consult if
necessary - it probably will be.
5. Select the best option - avoid vagueness or 'foot in both camps'
compromise.
6. Explain your decision to those involved and affected, and follow up
to ensure proper and effective implementation.
http://www.slideshare.net/bsetm/chapter-6-decision-making-the-essenceof-the-manager-s-job
the flexible type requested, both real and perspective are influenced by
the competitors, this meaning that the
organization has to study and analyze the competitors on regular basis.
2. THEORETICAL FUNDAMENTS
The flexible organization registers a competitive advantage also through
the agency of speed and surprise.
Speed refers to the quick evolution of products and services and of the
modality of developing activities
comparatively to those of the competitors. In this way the organization
becomes a leader, the industry being in a
leading position owing to the capacity of rapid and efficient adjustment.
The character of environmental changes as
well as the profile of the competitors influence the time necessary to
flexibility referring process has to be realized on a short, medium and long
term. For these different times, different types of flexibility are suitable.
Surprise
brings a competitive advantage through the fact that the flexible
organization studies the environment on regular
basis, having the capacity of identifying the opportunities such as new
products, markets and technological process,
efficient from the standpoint of cost, before the competitors do. A flexible
organization may influence the
environment through its activities and all the more creating uncertainties
for the rival competitors so that it may
register a competitive advantage.
Thus flexibility is a strategic and important instrument which the
administration may use in order to create
and maintain the competitive advantage.
There is a close connection among strategy, flexibility and change. The
change has to be approached in
such a manner so that the flexibility in the organization should be
maintained with the purpose of adjusting to the
future change. Any decision affecting flexibility should be taken into
consideration within the strategic parameters.
The strategy plays the role of constraint for the flexibility (Ansoff 1988),
that is why the character of
19 | P a g e
New needs of
the clients
Requirements towards the company, e.g. from the clients,
competitors, society etc.
Figure 1.The integrated model for the innovation management within the
example of the product innovation
Source: Turbulence and Organizational Flexibility, Economic Printing
House,2007:119
4. DISCUSSION
This vision is characterized not only through integrating the market and
technology requirements; it also
refers to integrating the external partners, as for example the suppliers
within a concept of Simultaneous
Engineering. Thus through organizational and technical provisions, they
try to connect the innovative process of the
suppliers with that of the manufacturers aiming at entering the market
before the competitors do.
In this case it is obvious the fact that the innovation may be initiated both
by the company and through the
22 | P a g e
24 | P a g e
to the company.
Formal vs informal culture : The work culture of an organisation, to a
large
extent, is influenced by the formal components of organisational culture.
Roles,
responsibilities, accountability, rules and regulations are components of
formal
culture. They set the expectations that the organisation has from every
member and indicates the consequences if these expectations are not
fulfilled. Table 1.1 presents
some of the components of formal culture and their implication for
organisations.
4.
Informal culture on the other hand has tangible and intangible, specific
and non
specific manifestations of shared values, beliefs, and assumptions. This
part of Organisational culture comprising of artifacts, symbols,
ceremonies, rites, and stories is highlighted in almost all the definitions of
organisational culture.
clear functions and roles. Each thinking role is identified with a colored
symbolic "thinking hat." By mentally wearing and switching "hats," you
can easily focus or redirect thoughts, the conversation, or the meeting.
28 | P a g e
S IX T HINKING H ATS A S
31 | P a g e
OF
ENVIRONMENT
Internal analysis of the environment is the first step of environment scanning. Org
should observe the internal organizational environment. This includes employee interac
other employees, employee interaction with management, manager interaction with ot
managers, and management interaction with shareholders, access to natural resources
awareness, organizational structure, main staff, operational potential, etc.
Also, discussions, interviews, and surveys can be used to assess the internal environme
of internal environment helps in identifying strengths and weaknesses of an organizatio
As business becomes more competitive, and there are rapid changes in
the external environment, information from external environment adds
crucial elements to the effectiveness of long-term plans. As environment
is dynamic, it becomes essential to identify competitors moves and
actions. Organizations have also to update the core competencies and
internal environment as per external environment. Environmental factors
are infinite, hence, organization should be agile and vigile to accept and
adjust to the environmental changes. For instance - Monitoring might
indicate that an original forecast of the prices of the raw materials that are
involved in the product are no more credible, which could imply the
requirement for more focused scanning, forecasting and analysis to create
a more trustworthy prediction about the input costs. In a similar manner,
there can be changes in factors such as competitors activities,
technology, market tastes and preferences.
While in external analysis, three correlated environment should be
studied and analyzed
national environment
IN
Strategy formulation refers to the process of choosing the most appropriate course of a
realization of organizational goals and objectives and thereby achieving the organizatio
vision. The process of strategy formulation basically involves six main steps. T
steps do not follow a rigid chronological order, however they are very rational and can
followed in this order.
33 | P a g e
34 | P a g e
Portofolio mix
Options in Your Market
For each product, we explored four distinctive marketing strategies:
1. Penetrate your current market to reach more customers (with your
current product).
2. Extend your marketing to reach customers in new markets (with your
current product).
3. Develop a new product for your current customers (to replace the
current product).
4. Diversify the products you offer in ways that complement your current
product.
Small companies tend follow one strategy for each product at a time and,
as Bill rightly pointed out, it takes 18 months to properly test the market
response to a strategy change. So we discussed the strategy for the
product A.
Gary is the technical design member on the team so he liked the third
approach - selling new products and services to the current clients.
Bill has more sales skills and favoured the first approach (selling the
existing products and services to new clients who are similar to the
current clientle) together with the second approach (reaching clients in
new areas of the market).
Options with Your Products
35 | P a g e
For each product, the team considered, discussed, argued and finally
agreed what they wanted to do. Next we folded the 'product strategies'
into a 'company strategy' by working out how the marketing of each
product would impact the marketing of the others.
This resulted in a decision to treat products A and D as a pair and to find
complementary products for the B and C products - aiming to have seven
products in their portfolio by next year.
Building the strategy into the business plans
With this company strategy, Tim then amended the Business Plan to
reflect the decisions taken while Bill and Gary amended their respective
Marketing and Production Plans.
How their clients respond to the new marketing push will be interesting
and Tim, Gary and Bill will need to amend their plans as they see what
happens. My hope is that developing their marketing portfolio like this,
they will have more control of where their company is going and what
their clients buy from them.
PRODUCT
B OX )
P O RT FO L I O
THE
B O S T O N M AT R I X ( O R B O S T O N
Introduction
The business portfolio is the collection of businesses and products that
make up the company. The best business portfolio is one that fits the
company's strengths and helps exploit the most attractive opportunities.
The company must:
(1) Analyse its current business portfolio and decide which businesses
should receive more or less investment, and
(2) Develop growth strategies for adding new products and businesses to
the portfolio, whilst at the same time deciding when products and
businesses should no longer be retained.
Methods of Portfolio Planning
The two best-known portfolio planning methods are from the Boston
Consulting Group (the subject of this revision note) and by General
Electric/Shell. In each method, the first step is to identify the various
Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit
of the company that has a separate mission and objectives and that can
36 | P a g e
Using the BCG Box (an example is illustrated above) a company classifies
all its SBU's according to two dimensions:
On the horizontal axis: relative market share - this serves as a
measure of SBU strength in the market
On the vertical axis: market growth rate - this provides a measure of
market attractiveness
By dividing the matrix into four areas, four types of SBU can be
distinguished:
Stars - Stars are high growth businesses or products competing in
markets where they are relatively strong compared with the competition.
Often they need heavy investment to sustain their growth. Eventually
their growth will slow and, assuming they maintain their relative market
share, will become cash cows.
Cash Cows - Cash cows are low-growth
relatively high market share. These are
with relatively little need for investment.
continued profit - so that they continue to
that the company needs for its Stars.
37 | P a g e
38 | P a g e