PREPARATORY SESSION Management Flow Diagram

The steps

Firm-level activity: Levels

Step-one SWOT analysis for an integrated scanning of external (Exogeneous) and internal (Endogeneous) variables, at a point of time Identify firms relative position at a point of time (Depending on the firms culture) Top Management, aided by staff level of experts. Formation of long-term Goals (Mission, Vision)

Step-two Problems and their magnitude Top, aided by experts (Internal or external

Step-three Present limitations and constraints, if any Middle Management/staff level.

Step-four Desired objectives short term, usually Quantitative, specific targets. Staff/functional personnel.

Step-five How to reach these objectives, solve identified problems and within known limitations? Alternative generation. Functional and staff level experts.

Step-six Process of decision making by using a cost-benefit analytical (CBA) technique: weigh alternative(s) Optimal decision making. Staff level with (If needed) functional heads.

Steps Step-seven Plan for implementation (P.F.I.) ie. activity analysis who will do what, when, how, through whom and at what cost and time?

Organizational levels

Staff vs. functional needs.

Use: for large projects Programme evaluation and review technique (PERT) Also, critical path method (C.P.M.)

Step-eight For a new organization Develop new organization Usually top Management

For an established firm (If needed) Organisational re-engineering.

Step-nine Management Control System Motivation, control, guidance of all internal employees (Develop healthy work climate). Middle Management.

Step-ten For a new set-up Small scale test start-up For an established set-up Re-structuring/ restructure (If needed) Entire organization

Step-eleven

Full-scale commercialization.

Entire organization (Especially Operational Management).

Step-twelve Time-based Management audit Follow-up, feedback, replan Internal cell on Management Information System (MIS).

DIAGNOSTIC PROCESS

STEPS

PROCESS

STATUS

Step-1

Diagnosis

Current standing vis--vis competitors

Step-2

Prognosis

Achievable targets given exogeneous and endogeneous variables to be same/similar

Step-3

Objective setting

Desired aims (SWOT analysis) Decision for Gap analysis

Step-4

Strategic planning

Step-5

Tactical issues (6 Ps)

Step-6

Follow up, feedback and replanning

BASIS FOR QUALITY MANAGEMENT EDUCATION

1. QUALITY STUDENT POPULATION [EDUCATION, SERIOUSNESS, DEDICATION AND INVOLVEMENT] 2. TOP GRADE/QUALITY FACULTY, WHO ARE EDUCATED, EXPERIENCED AND DEDICATED 3. PROCESS FOR CONVERSION OF RAW MATERIALS TO FINISHED PRODUCTS THIS WILL INVOLVE THE PROCESS OF DISSEMINATION OF QUALITY MANAGERIAL KNOWLEDGE [DOMAIN KNOWLEDGE] + AUDIO VISUAL PRESENTATION TECHNIQUE (COMMUNICATION SKILLS)

TEAM WORK

CONTINUOUS EVALUATION SYSTEM [EVERY SESSION: 5-1 ORDINAL SCALE] CASE STUDIES [PRACTICAL ORIENTATION]

4. REGULAR, PLANNED INTERACTIONS WITH THE RELEVANT INDUSTRY. AIMS: (OF POINT NO. 4) (i) (ii) EMPLOYMENT OPPORTUNITIES REGULAR INPUTS REGARDING WHAT THE INDUSTRY IS LOOKING FOR FROM MBA PROFESSIONALS

NOTE-1

WHY CASE METHOD IS RECOMMENDED FOR QUALITY KNOWLEDGE DISSEMINATION? Introduction: In a very prestigious Management Institute in USA in early 60s, over a three year period, an experiment was organized with three different batches, every year. In each batch, yearwise, separate teaching methodology had been used. These are: 1. Category-1: They were mainly taught through the Lecture System. Advantage was that set course guidelines were fully completed within allotted time. Another sub-section was taught through a combination of lectures and available case studies, which were obviously, at that point of time, USA-industry specific. In this sub-section of students, their paradigm for knowledge dissemination was a mix of the following: Basic inputs (Via) Few start up lectures Regular usage of case studies from different industries in USA Intermittent role-playing exercises and business games Short-term, course specific project work Planned class-room level interactions with all MBA students Regular inputs (Once a month) from concerned industry experts.

2.

Category-2:

3.

Category-3:

Indicators of the output, which were assessed, was as follows separately for each category of students, yearwise: 1. 2. 3. Quality of knowledge Internalization Develop proactive and smart MBAs Relative acceptability by the final Buyers ie the end-usage industries.

The findings: 1. Quality of knowledge internalization was far higher in category-3. Category-2 students were relatively lower. Category-1 was the lowest. 2 Poor pro-activity: It can be surmised that category-3 students came up with flying colours due to regular, planned internal interactions. Their quality of presentation and communication skills was the highest. Category-2 was lower. Category-1 was the lowest. 2. Industry-level acceptance: Category-3 was highest Category-2 was lower Category-1 was lowest. A footnote: Since this is one of the best Business Schools in USA, at that point of time, all students of Management were gainfully employed may be with variations in salary packages!!

USE OF COST-BENEFIT ANALYSIS (CBA) TECHNIQUE: PROBLEM SOLVING AND DECISION MAKING DISHA CASELET Goal: A fresh graduate(MBA) wants to make a mark for herself by getting a good job in a good company, settle down professionally socially, personally (May be get married, start a family) and be Happy, contented [Qualitative aspects].

Objective(s): Attend an interview in the heart of Kolkata city. Ms.Disha stays near the Kolkata Airport. She has to travel about 15 kms. from her residence upto Dalhousie. Assumption has been made that there is no direct bus connection from her residence near the Airport upto the interview location (Stephen House) Ms. Disha, therefore, has to plan in advance when she should start from her home, but not before 8 AM due to family reasons. Basic parameters for the interview are to reach in time ie. well before 10 AM and in spic and span condition. While she is confident of getting the job, she is worried about reaching on time and in a manner so that she is physically and mentally ready to meet the interviewers and give a good account of herself. Constraints: 1. 2. Reach the interview location within 10 AM, in a spic and span condition. She has got Rs.50/- only in pocket. She can not borrow from anyone else. Also, on a typical working day, getting a lift from anyone else (Except from her would be in-laws / husband) is not feasible. Ms. Disha is not married. Ms. Disha is not very clear regarding the alternatives and available modes of transport from her Airport - residence upto the place of interview. In other words, she has to find out about how to reach her destination within her limitations.

3.

Feasible alternatives: Identify achievable and feasible alternatives (Brainstorming session) Use CBA technique: See chart below

A typical format (Only examples): Sr Nos Few probable alternatives Costs (-) To the firm* i) To the person Benefits (+) To the firm* To the person Decision

ii)

iii)

iv)

v)

vi)

vii)

viii)

* Whenever and wherever relevant. Note: Every alternative will have advantages as well as disadvantages both to the interviewee as well as to the interviewers. The analyst is expected to go into depth and check/re-check every aspect of both costs and benefits. It should be noted clearly that cost does not only mean monetary aspect. Energy, time, comfort level, cleanliness / hygiene aspects all have to be considered.

In other words, detailed thinking is necessary before any practical and creative solution, which is optimal in nature, can be arrived at, AFTER all alternatives have been analysed in-depth. FOR ALL STUDENTS:

WORK IN GROUPS:

First identify feasible and achievable alternatives.

For each alternative, analyse in-depth ALL cost and benefit aspects.

For each alternative, weigh the costs and benefits and then only, alternative-wise, come to a decision.

Separately for each alternative, come to a logical decision.

Then only, as a whole, decide on an optimal solution [Define optimization vs. maximization].

As a group, through audio-visual means, rationally and logically, defend your decision.

Then only, go to the next step ie. plan for implementation (P.F.I.),

NOTE-2 PROBLEM SOLVING APPROACH: CASE METHOD OF STUDY

Stage-A:

Diagnosis

A.1: Background to the study via SWOT analysis: Identify/list Symptoms (Example: Sales is falling: a Symptom).

A.2: Both theoretical inputs (concepts), as well as using common sense, hunch, gut feeling, besides experience, arrive at ALL PROBABLE CAUSATIVE FACTORS, which,singly or cumulatively, may be causing the Symptoms (Stage of detailed Problem Formulation).

A.3: Based on the above, on project specific basis, arrive at SPECIFIC causative factors, which, singly or cumulatively, are causing each of the Symptoms (Stage of Problem Identification). Prognosis Objective Setting

Stage-B:

Based on the above, organize the following:

B.1: Set specific, time based, quantitative and achievable targets (Example: Firm XYZ will have to achieve a sales turnover of Rs. 100 crores in India, for their existing products and services, during the period 2011-2012).

B.2: To achieve the above, identify / list clearly, functionally and strategically, the RELEVANT limitations / Constraints.

B.3: Using Cost Benefit Analysis (CBA) technique, based on clearly identified alternatives, arrive at optimal decisions.

Implementation Stage-C: Go through detailed Activity Analysis. This will serve as Plan For Implementation (PFI). For large projects, if called for, PERT and CPM techniques can be used.

Stage-D:

After all the above-mentioned steps have been organized, step by step, the following Steps will have to be organized.

D.1: Organisation building / development

D.2: Conflict Management within the organization via the technique of motivation control guidance (M-C-G).

D.3: Small scale Test Launch: Assess market reactions.

D.4: Full scale commercialization.

D.5: Follow-up, feedback and replan: Management Information System.

Balance part of Problem Solving Approach (PSA)

Stage-E:

Strategy Formulation

Optimum match between available resources and relevant, known market opportunities and threats [To achieve the above, the well-known concept propagated by Prof.Igor Ansoffs Product market mix can be used]. Stage-F: Tactical issues (Functional)

Then only, the following need to be organized at the functional levels: P1:Product: P2: Price: P3: Place: Product mix optimization: Width, depth and consistency (Production, planning and control). Pricing and fixation of commercial terms, based on costing principles (Finance). Design optimal distribution strategy (Logistics),

P4: Promotion: Design needed promotional strategy based on: Advertising Publicity Sales Promotion Personal selling. Sales & Marketing

The above had been conceptualized by Prof. Jerome McCarthy in his world famous Marketing Mix Parameters. (1974).

About 15 years earlier, Prof. Robert Lauterborn suggested the following also: P5: Process: P6: People: Intra and inter-departmental coordination, cohesion and communication M-C-G (Internal synergy) Recruitment and selection, training, development and optimal deployment of needed manpower (H.R.M.).

To sum-up: Step by step, the above-mentioned Steps have to be conceptualized, designed and implemented for solving pre-identified problems and arrive at optimal managerial decisions, prior to planned implementation WITHIN available resources.

A TYPICAL FORMAT: CONTINUOUS EVALUATON MARKS: DATE:

Section-: Group average ( For example, out of 5 marks) Sr.Nos. Group Names of the Remarks individual marks Students 1 2 3 4 5 6 7 8 9 10 11 12

NOTE: Using the Continuous Evaluation System (CES), every student will be evaluated, for example, over 5 marks, on a daily basis. Short but specific answers, which are logical, backed by concepts, will be looked forward to. Students, who are laggards, non-participative and non-performers may be given negative mark upto, for example, minus five, once again on a daily basis. Similar will be the case for all absentees. Kindly note.