February 15, 2018

Developing Lean Leaders and Managers



DEVELOPING LEADER SKILLS
Published on February 7, 2018 on Linkedin
George Trachilis, P.Eng.
CEO and co-Founder (with Jeff Liker) at Lean Leadership Institute
https://www.linkedin.com/pulse/developing-leader-skills-george-trachilis-p-eng-/


Leadership Skills at Different Levels within a Lean Organization
https://pomsmeetings.org/ConfPapers/011/011-0035.pdf


Developing Lean Leaders at All Levels - Chapter 1 - Jeff Liker
LeanGurus
Published on 14 Jul 2016

_____________________


______________________

Videos on other chapters also available

February 9, 2018

Popular Posts of the Blog Management Theory Review





_________________



Business Ethics – Introduction

Moral Standards and Moral Judgments – Approaches




Financial, Cost and Management Accounting - Review Notes List

Kaizen Costing and Kaizen Cost Management

Role of Costing and Cost Accounting in the Organization

Variance Analysis, Flexible Budget and Management Control




Economic Theory of Production and Production Cost



Principles of Efficiency - Harrington Emerson



Engineering Economy or Engineering Economics: Economic Decision Making by Engineers



The Role of Accounting in Organizations

Accounting: The Language of Business - Review Notes



Valuation of Bonds and Equity Shares - Basic Principles and Models



Human Resource Management - Review Articles

Human Resource Management - Introduction - A Revision Article

The Role of Globalization in HR Policy and Practice - Review Notes

The Legal Environment of HRM - Review Notes

Work Analysis and Design -Bernardin HRM Chapter - Review Notes

Human Resource Planning and Recruitment - Review Notes of Bernardin's Chapter

Performance Management and Appraisal - Bernardin - Review Notes


Training and Development - Bernardin - Review Notes

Direct and Indirect Compensation - Review Notes

Managing the Employee Relationship - Review Notes

Employee Health and Safety - Review Notes



Value Engineering - Introduction

Plant Layout - Efficiency

Organizing for Industrial Engineering Department and Function

System Improvement Process

Total Industrial Engineering - H. Yamashina

Inspection Methods Efficiency Engineering

Operations Research - An Efficiency Improvement Tool for Industrial Engineers

Industrial Engineering - Introduction

Principles of Motion Economy

Motion Study - Human Effort Engineering

Ergonomics - Introduction

Predetermined Motion Time Systems (PMTS)

Statistical Quality Control – Industrial Engineering

Shigeo Shingo - The Japanese Industrial Engineer

Peter Drucker on Scientific Management - Industrial Engineering



Theories of Leadership

The concepts of Leadership and Management

Leadership Styles, Roles, Activities, Skills and Development - Review Notes

Political Strategies in Use for Acquiring and Using Power in Organizations

Lean Thinking - James Womack and Daniel Jones - Book Summary



Budget, Budgeting and Budgetary Control

Value Chain Analysis - IMA Guideline



Managerial Economics of Profit - Economics for CEO - Review Notes

Economics of Capital Budgeting - Joel Dean - Managerial Economics - Review Notes



Selling Process - 10 Steps

Selling Process – Prospecting

Sales Process – Call Planning

Interacting with the Prospect – Customer

Trial Close

Sales Closing Techniques

Service to Customer: Follow Up After The Sale


The Marketing Concept - Kotler

Marketing Strategy - Marketing Process - Kotler's Description

Marketing Strategy - Differentiating and Positioning the Market Offering

Marketing and New Product Development - Kotler and Keller's Book Chapter Summary

Philip Kotler - Keller Definition and Explanation of Marketing Management for 21st Century - 14th Edition

Marketing Channel Management – Important Issues

Sales Promotion

Organizational Buying Processes and Buying Behavior
Analyzing Competitors
Market Segmentation and Selection of Target Segments

Marketing Public Relations

Scanning of Environment for Marketing Ideas and Decisions



Operations Strategy and Competitiveness - Review Notes

Process Analysis

Optimizing the Use of Resources with Linear Programming - Review Notes

Forecasting - Operations Management Review Notes

Job Design and Work Measurement - Review Notes

Product Design and Process Selection—Services - Review Notes

Total Quality Management: Focus on Six Sigma - Review Notes

Strategic Capacity Management - Operations Management Review Notes



Organizational Behavior


Organizational Behavior Book by Fred Luthans - Review Notes

Introduction to Organizational Behavior

Organization Behavior – History of Development of The Discipline

Organizational Behavior – Theoretical Frameworks

Globalization and Technology - Impact on Organizational Behavior - Review Notes

Reward Systems and Organizational Behavior - Review Notes

Perception and Attribution - Review Notes

Personality and Attitudes

Communication: Importance and Definition

Stress, Conflict and Negotiation Skills

Motivation

Power - The Concept and Theory in Organizational Behavior


Principles of Management


Principles of Management Revision/Review Articles - List

Management - Definition and Process

Evolution of Management Thought and Theory - Review Notes

Principles of Management – Koontz and O’Donnell

Planning - A Management Process

The Nature and Purpose of Planning - Review Notes

Leadership - Koontz and O'Donnell - Review Notes

Human Factors and Motivation - Koontz and O'Donnell

Managerial Skills


Supply Chain Management


Tailoring Strategy to Fit Specific Company - Industry Situation - Review Notes

Building Resource Strengths and Organizational Capabilities - Review Notes

Corporate Culture and Leadership - Keys to Effective Strategy Execution - Review Notes


Supply Chain Management: Review Notes Based on Chopra and Meindl's Book

Understanding the Supply Chain - Review Notes

Supply Chain Drivers and Obstacles - Review Notes

Supply Chain Performance: Achieving Strategic Fit and Scope - Review Notes
Facility Decisions: Network Design in the Supply Chain - Review Notes

Supply Chain Management - Coordination

Demand Forecasting in a Supply Chain - Review Notes

Determining Optimal Level of Product Availability - Review Notes

Aggregate Planning in the Supply Chain - Review Notes

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in the Supply Chain: Safety Inventory - Review Notes

Network Design in an Uncertain Environment

Designing the Distribution Network in a Supply Chain

____________________

Updated 10 February 2018,  2 April 2016

February 7, 2018

Leadership - Subject Update




2018


Be selfless - Be compassionate

Become Better Leader – Human Relations First Perspective

https://www.youtube.com/watch?v=6qZL-eQLqP8
_________________

_________________

Servant Leadership for 21st Century

________________

________________




Leadership is not wielding authority; it's empowering others.

6 Mantras That Will Set You Apart as a Genuine Leader
https://www.inc.com/lolly-daskal/6-smart-mantras-that-will-set-you-apart-as-a-leader.html

To create the right climate, you need leadership, not GREEDership.

http://www.noelaferguson.com/blog-single-170606.php

2017


December 2017

If You Aspire to Be a Great Leader, Be Present
Rasmus Hougaard and Jacqueline Carter
HBR, DECEMBER 13, 2017
https://hbr.org/2017/12/if-you-aspire-to-be-a-great-leader-be-present?

Nov 11, 2016 Accenture Veterans Day Keynote
________________


________________

________________

________________


RASMUS HOUGAARD AT MINDFUL LEADERSHIP SUMMIT – WASHINGTON DC

________________

________________

The Potential Project Upload

August 2017

 Leadership Instincts: Listen, Amplify, Include
General Martin E. Dempsey
August 25, 2017
https://www.linkedin.com/pulse/leadership-instincts-listen-amplify-include-general-martin-e-dempsey

22 Qualities That Make a Great Leader
https://www.entrepreneur.com/article/270486

June 2017

The 10 (and a Half) Commandments of Leadership

10 Questions Great Bosses ask periodically
https://leadingwithtrust.com/2017/04/30/10-questions-great-bosses-regularly-ask-their-people/

The Dynamics of 8 Different Styles of Leadership
April 11, 2017 - by  Paul E. Fein
https://www.td.org/Publications/Blogs/Management-Blog/2017/04/The-Dynamics-of-8-Different-Styles-of-Leadership

Four Behaviors That Define Successful Leaders
Elena Lytkina Botelho

May 2017

45 Questions Every Leader Should Answer

By Frank Sonnenberg
http://www.franksonnenbergonline.com/blog/45-questions-every-leader-should-answer/

Good Bosses Switch Between Two Leadership Styles

Jon Maner
Jon Maner is a professor of management and organizations at Kellogg School of Management, Northwestern University.
DECEMBER 05, 2016, HBR Article

The two styles are termed Dominance and Prestige. They could have been termed Single Person Dominance (Lone Boxer) and Team Decision Making (Foot Ball Team).
https://hbr.org/2016/12/good-bosses-switch-between-two-leadership-styles

Related
http://jon-maner-dev.squarespace.com/publications-case/the-essential-tension-between-leadership-and-power

https://www.psychologytoday.com/blog/sex-murder-and-the-meaning-life/201606/what-kind-leader-are-you

http://www.cnbc.com/2016/11/01/bossy-vs-buddy-two-leadership-styles-each-with-its-place.html



2016

http://www.leadershipissues.com/

Leadership Freak - A popular blog on leadership      https://leadershipfreak.blog/

What Great Managers Do Daily

Ryan Fuller & Nina Shikaloff
HBR
DECEMBER 14, 2016
https://hbr.org/2016/12/what-great-managers-do-daily

Decoding Leadership: What really matters


Our most recent research, however, suggests that a small subset of leadership skills closely correlates with leadership success, particularly among frontline leaders. Using our own practical experience and searching the relevant academic literature, we came up with a comprehensive list of 20 distinct leadership traits. We did a survey and  found  that leaders in organizations with high-quality leadership teams typically displayed 4 of the 20 possible types of behavior; these 4, indeed, explained 89 percent of the variance between strong and weak organizations in terms of leadership effectiveness .

• Solving problems effectively: The process that precedes decision making is problem solving, when information is gathered, analyzed, and considered.

• Operating with a strong results orientation: Leadership is about not only developing and communicating a vision and setting objectives but also following through to achieve results. Leaders with a strong results orientation tend to emphasize the importance of efficiency and productivity and to prioritize the highest-value work.

• Seeking different perspectives: This trait is conspicuous in managers who monitor trends affecting organizations, grasp changes in the environment, encourage employees to contribute ideas that could improve performance, accurately differentiate between important and unimportant issues, and give the appropriate weight to stakeholder concerns. Leaders who do well on this dimension typically base their decisions on sound analysis and avoid the many biases to which decisions are prone.


2015





The Art of Giving and Receiving Advice.


Periodical
By: Garvin, David A.; Margolis, Joshua D. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p60-71.


Seeking and giving advice are central to effective leadership and decision making, and they require emotional intelligence, self-awareness, restraint, diplomacy, and patience on both sides. In this article, the authors argue that they are practical skills one  can learn and apply to great effect. The most common obstacles to effectively seeking and giving advice are  thinking one already has the answers, defining the problem poorly, and overstepping boundaries.  They  offer practical guidelines for getting past them.


Five stages of advising are identified: (1) finding the right fit; (2) developing a shared understanding; (3) crafting alternatives; (4) converging on a decision; and (5) putting advice into action. Each stage includes suggestions for seekers and for advisers.



The Authenticity Paradox. 

By: Ibarra, Herminia. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p52-59.

INSEAD professor Herminia Ibarra argues, a simplistic understanding of what authenticity means can limit leaders' growth and impact.  In this article, Ibarra explains how leaders can develop an "adaptively authentic" style.  It's OK to change tactics from one day to the next, she says by figuring  out what's right for the challenges and circumstances we face.




2014

July

The Skills Leaders Need at Every Level

by Jack Zenger and Joseph Folkman
HBR Blog Post
16 Skills are listed in order of importance. Top 7 are said to be important.

1. Inspires and motivates others.
2. Displays high integrity and honesty
3. Solves problems and analyzes issues
4. Drives for results
5. Communicates powerfully and prolifically
6. Collaborates and promotes teamwork
7. Builds relationships
http://blogs.hbr.org/2014/07/the-skills-leaders-need-at-every-level/

Leadership Development Beyond Competencies: Moving to a Holistic Approach
Marian N. Ruderman, Cathleen Klerkin, and Carol Connelly
Center for Creative Leadership - White Paper
http://www.ccl.org/leadership/pdf/research/LeadershipDevelopmentCompetencies.pdf

Book review of Jane Dutton and Gretchen Spreitzer, How to Be a Positive Leader: Small Actions, Big Impact.
http://positivepsychologynews.com/news/kathryn-britton/2014073029174





2013

December

How to be a better boss?

Ask a person whether he wants to recommend his boss to his friends as the ideal boss to work under.
http://sloanreview.mit.edu/article/how-to-be-a-better-boss/

May
Knowledge@Wharton article
Social Technology and the Changing Context of Leadership
Social technology is changing the way leaders do conversations with their group members especially in large organizations. The article presents ideas on this issue
http://wlp.wharton.upenn.edu/LeadershipDigest/social-technology.cfm

2012
Sloan Management Review Article Spring, March 2012

How to Become a Better Leader

The article describes Big 5 Personality factors and use of them in developing oneself as a better leader.
http://sloanreview.mit.edu/article/how-to-become-a-better-leader/


Leadership Basic Articles

Organizational Behavior Articles

Theories of Leadership 
Cognitive Resources Theory of Leadership
Leadership Styles, Roles, Activities, Skills and Development

Principles of Management Articles


Updated  2018 - 8 February,  28 January

22 December 2017,  22 August 2017,  24 June 2017,  6 June 2017,  29 May 2017,  22 February 2017, 6 December 2016, 12 October 2016, 10 December 2015

February 6, 2018

Leadership - Koontz and O'Donnell - Review Notes




4th Edition of Koontz and O'Donnell

Along with motivation and communication activities, leadership is a means of directing.

Carter identifies five approaches to leadership definition:
(1) polarization of members of a group around some central person.
(2) the person able to direct a group toward its goals
(3) the person selected by group members to lead them
(4) the person able to move a group along a specific dimension, such as sociability or integration and
(5) the person possessing certain behavior.

Groups require a common sense of authority. According to Bronislaw Malinowski, authority means the privilege and the duty of making decisions, of pronouncing in cases of dispute or disagreement, and also the power of enforcing such decisions. Authority is the very essence of social organization.

A leader is given authority by his group. They accept him voluntarily as the common center of authority.

People also seem to require frequent reminders of group goals to overcome forgetfulness and indifference. The leaders have long view and foresight to overcome boredom and limited vision.

Leadership is the ability of a manager or in general a person to induce subordinates (followers) to work with confidence and zeal. Zeal reflects ardor, earnestness, and intensity in the execution of assignments; confidence reflects experience and technical ability.

No doubt subordinates of a manager are driven by the need for a job and income. If they are guided only by rules and requirements enforced by the organization structure through managerial authority, they tend to work at abut 60 or 65 per cent of capacity. To raise output toward total capacity, the manager must induce zealous response on the part of subordinates by exercising leadership. He does this based on the needs of subordinates, especially their ego and self-development needs.


The sociological view of leadership:

Selznick is an important contributor.
The leader has the task of building goals and policies into the social structure of the enterprise.


Confidence Building

The confidence exhibited by a subordinate manager rests upon the quality of his knowledge and his sense of security.

Orientation of a subordinate comes first. Second is follow up supervision. Third is providing job security to the subordinate.

Zeal Building

Koontz and O'Donnell write that zeal building escapes scientific analysis. They provide two idea for this activity.

1. Inspiration

2. Stregthening personal qualities






------------------------------------




From a different edition



The essence of leadership is followship.

A person has to attract followers to become a leader and practice leadership.

Koontz and O'Donnell defined leadership as influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals.

--------------------------------------

Presentation Based on Recent HBR Article

Be selfless - Be compassionate
Become Better Leader – Human Relations First Perspective
https://www.youtube.com/watch?v=6qZL-eQLqP8

___________________________


___________________________




Updated 2018 - 8 February 
10 Feb 2015, 11 Dec 2011

February 3, 2018

Coaching to CEOs




2018

Fast Track Your Career to CEO

Presentation of two recent Harvard Business Review Papers
https://www.youtube.com/watch?v=0eqV9dHn5Y8


______________________


______________________

19 qualities of a great CEO

http://www.patrickbetdavid.com/great-ceo-qualities/


Why Executive Coaching Is a Critical Part of the CEO Journey?

Not all CEOs come to the table with the full set of skills they need to build their companies to last for the next decade.

PriceWaterhouseCoopers and the Association Resource Center concluded that companies investing in coaching get back seven times of the initial investment.
https://www.entrepreneur.com/article/292655

Lessons from 25 Years of CEO Coaching

By Bob Rogers
https://www.ddiworld.com/blog/tmi/may-2017/lessons-from-25-years-of-ceo-coaching

The New Approach in CEO Coaching

The new prescription for ill-behaved leaders.
Personal Development Coach (PDC) for CEOs.

PDCs help clients learn how to better work with people by better understanding oneself and the corporate and sociological culture one works within every day. This new approach aims to helps CEOs develop themselves, no matter how problematic they might be, to become more valuable to themselves, their teams, their industry, and their world.
https://www.inc.com/lauren-delisa-coleman/why-this-new-approach-in-ceo-coaching-is-the-next-.html



Leadership tips from the world's No. 1 executive coach. Part 1 of 3
Dr. Marshall Goldsmith's lessons for the office and the home
http://business.financialpost.com/executive/leadership-tips-from-the-worlds-no-1-executive-coach-part-1-of-3

Words of wisdom from the world's top executive coach, Marshall Goldsmith. Part 2 of 3
Beyond global critical thinking skills, the leader of the future must understand their subordinates know more than they do
http://business.financialpost.com/executive/words-of-wisdom-from-the-worlds-top-executive-coach-marshall-goldsmith-part-2-of-3

Nilesh Arora - Business coaching in India


Nilesh Arora, founded ADDVALUE in 1999 and pioneered business coaching in India. Since then he has been assisting Business Owners and CEOs. He has been scaling up organizations in across manufacturing, service, logistics and distribution retail and projects.
http://www.avci-lean.com/coaching/

The 2018 CEO Coaching Summit will be returning to the Balboa Bay Club and take place April 26 – 28 in Newport Beach, CA.
http://ceocoachinginternational.com/2018-Summit-dates/



The Benefits Of Working With A Business Coach As A First-Time CEO
https://www.forbes.com/sites/theyec/2017/08/01/the-benefits-of-working-with-a-business-coach-as-a-first-time-ceo/



2015



Coaching for Behavioral Change

Marshal Goldsmith
_______________________


_______________________

2013


Blog post on HBR
http://blogs.hbr.org/2013/08/research-ceos-and-the-coaching/


Survey

34.3% CEOs are receiving coaching
65.7% CEOs are not receiving coaching

CEO coaching priorities - In descending order

Sharing leadership/delegation skills
Conflict management
Team building
Mentoring
Listening
Communication
Planning
Interpersonal
Decision making
Persuasion
Motivating skills

Jack Wesch used to have Ram Charan as advisor for many years.


2007

Leading @ Google
The First Talk in the Series by Marshall Goldsmith

____________________

____________________
Talks@Google

Updated 2018 - 4 February,
25 December 2013

February 2, 2018

Digital Transformation of Business and Industrial Organizations - Subject Update


What is Management? A New Look:

Management Definition – Narayana Rao


Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the organization structure, and maintaining an environment in which individuals, working together in groups, accomplish their aims and objectives and goals of the organization effectively and efficiently. (3rd December 2008)

Implications of the  Definition:

(i) Management is a process.
(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.
(iii) It applies to managers at all levels in the organization.
(iv) Management is concerned with effectiveness and efficiency.

Video Explanation of  the  Definition

___________________


___________________


2018

January

Digital Transformation - Principles, Strategies and Rules


Advice and Suggestion from Jeff Immelt -
Leaders must act as Systems Thinkers in Digital Transformation.


Leaders have to understand how cyber - physical systems in combination deliver value to customers.

Marketing chain and Supply Chain are to be integrated and cyber - physical systems exist in both the chains. Digital and Physical systems and people have to work in combination and deliver value to customers. Leaders and managers have to first visualize and design the work system.


https://www.linkedin.com/pulse/leaders-must-act-systems-thinkers-digital-jeff-immelt

Transform Your Business to Compete in the Digital Age

Columbia Business School
uploaded 19 January 2018
________________


________________




#207: Digital Transformation and disruption in the Insurance Industry, with UNIQA Insurance Group



2017

KPMG declared leader in digital transformation consulting
Jul 12, 2017

KPMG was recently named a leader in the IDC MarketScape awards titled “Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment”. The award process noted that under times of turbulent change and economic challenges many firms around the world were calling upon KPMG to help them through the process challenges. KPMG have been identified for their strength in aiding organizations to begin the transformation process, and the disruptions this can bring, while maintaining their place within a competitive market.
http://www.digitaljournal.com/business/kpmg-declared-as-a-leader-in-digital-transformation-consulting/article/497459


Evolve Or Die: Why Digital Transformation Is More Important Than Ever
Four areas of focus for Digital transformation
http://www.brandquarterly.com/evolve-die-digital-transformation-important-ever

Davos 2017 - Preparing for the Fourth Industrial Revolution

World Economic Forum
__________________

__________________

Published on 19 Jan 2017
http://www.weforum.org/
What is needed from the public and private sectors to ensure that the Fourth Industrial Revolution benefits all of humanity?

- Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries, India
- Mary Barra, Chairman and Chief Executive Officer, General Motors Company, USA
- Marc R. Benioff, Chairman and Chief Executive Officer, Salesforce, USA; Young Global Leader Alumnus
- Shu Yinbiao, Chairman, State Grid Corporation of China, People's Republic of China
- Vishal Sikka, Chief Executive Officer, Infosys, USA

Chaired by
- Ngaire Woods, Dean, Blavatnik School of Government, University of Oxford, United Kingdom



Davos 2017 - Press Conference: The Digital Transformation of Industries

__________________

__________________
World Economic Forum,  Published on 19 Jan 2017
http://www.weforum.org/

The World Economic Forum launched the multi-year Digital Transformation of Industries Project in 2015 in partnership with Accenture. The project looks at how digital technologies like machine learning, cloud computing, and the internet of things are changing existing industries and creating entirely new ones. It makes recommendations to incumbents on how they can thrive in the new digital environment.

There are now hundreds of startups attacking traditional markets as a result of the democratization of technology, increased access to funds and a rising entrepreneurial culture. Start-ups are achieving scale far quicker than analogue companies ever did. Average Fortune 500 companies took 20 years to reach a market cap of $1 billion, Google managed it in eight years, and the likes of Uber, Snapchat and Xiaomi in three years or less. 88% of Fortune 500 companies from 1955 – 2015 no longer exist. Digital disruption has been a major driver of this, consequently Fortune 500 companies must use their considerable resources to fight off the attacks of leaner challengers and remain relevant in a digital age.

- Bruce Weinelt, Head of Digital Transformation, World Economic Forum
- Peter Lacy, Global Managing Director, Strategy and Sustainability, Accenture
- Stephanie Linnartz, Global Chief Commercial Officer, Marriott International Inc.
- Jean Philbert Nsengimana, Minister of Youth and Information Communication Technology,        Ministry of Youth and Information and Communication Technology of Rwanda

Moderated by
- Alem Tedeneke, Media Specialist, World Economic Forum LLC

2016


3 Industries That Will Be Transformed By AI, Machine Learning And Big Data In The Next Decade
Bernard Marr
SEP 27, 2016
Healthcare - Finance - Insurance

https://www.forbes.com/sites/bernardmarr/2016/09/27/3-industries-that-will-be-transformed-by-ai-machine-learning-and-big-data-in-the-next-decade/#2104a850183e


Acting on the Digital Imperative - BCG

SEPTEMBER 12, 2016
By Ralf Dreischmeier , Karalee Close , Thomas Gumsheimer , Peter Hildebrandt , and Adal Zamudio
https://www.bcg.com/publications/2016/technology-digital-strategy-acting-on-digital-imperative.aspx

Digital Transformation Playbook

Prof. David Rogers, Columbia Business School
_________________

_________________
June 2016, Columbia Business School

https://cup.columbia.edu/book/the-digital-transformation-playbook/9780231175449



The Digital Imperative  - Article by BCG

By Ralf Dreischmeier , Karalee Close , and Philippe Trichet
MARCH 2, 2015
https://www.bcg.com/publications/2015/digital-imperative.aspx



Updated on 2018 - 3 February 2018,   25 January,  19 January


 25 November 2017,  26 August 2017,   22 August 2017, 7 June 2017, 14 April 2017

February 1, 2018

The Nature of Organizing - Review Notes


Shortcoming of Management Theory in the Area of Organization


I would like to mention right at the start that Henri Fayol clearly wrote that material organization and people organization are to be be set up by managers after the planning function is completed for a project or a period. But in his brief note, Fayol discussed only people organization. Authors subsequent to Fayol have not progressed further. The development of material organization was not attempted by authors of books on management and principles of management. It is a big shortcoming in the theory of management and somebody has to fill it.

In this connection I appreciate the following definitions/explanations of public administration.

Felix A. Nigro - “Administration is the organisation and use of men and materials to accomplish a purpose”.

J.M. Pfiffner and R. Presthus - “Administration is the organisation and direction of human and material resources to achieve desired ends”.

We need to study the full descriptions of administration by Nigro and Pfiffner-Presthus to understand organization of material resources.


The Nature of Organizing - Explanation by Koontz and O'Donnel 

Koontz and O'Donnel explain organizing as (1) the identification and classification of required activities. (2) the grouping of activities necessary to attain objectives, (3) the assignment of each grouping to a manager with the authority (delegation) necessary to supervise it, and (4) the provision of coordination horizontally (on the same organizational level) and vertically( departments with headquarters etc.)

The first step identification and classification of required activities is based on the technology or techniques employed. One has to first create one person equivalent jobs from the total activities needed to be done by the organization. This one person equivalent jobs are to be created so that each person is effective and efficient (that is he able to produce the required product feature or service feature to the specification and he is able to have high productivity). Only when this stage is done that the second stage of grouping of the activities or people into units to be put under managers can be attempted.  A single person cannot do all the managing activities for all the activities to be done in an organization. So middle managers are necessary between a CEO (chief manager in more general terms) and actual operators who are predominantly technical people. Managers have business skills, people skills and training skills in the technical activities that they manage. As it has been stated at the starting management texts ignored the process involved in the first step totally.

Organization implies a formalized intentional structure of roles or positions.  Intentional structure means each person in the structure has a certain specified role designed to ensure that required activities to fulfill the objectives of the organization are carried out effectively and efficiently in groups.


While organization implies a formalized intentional structure of roles which is the formal organization built by managers, an informal organization comes into existence certain people help each other in their employment related work as well as personal work.

Formal organization

Formal organization must be flexible. There should be room for discretion, for advantageous utilization of creative talents, and also for adjusting roles based on individual likes and dislikes. Yet efforts of all individuals must be channeled toward group and organization goals.

Informal organization

Chester Barnard recognized informational organization.

Span of control or management

Span of control refers to the number of subordinates a person can supervise. This number is usually four to eight at top levels and eight to fifteen at lower levels.

Delegation

Logic of organizing



13th Edition by Heinz Weirich, Mark V. Cannice and Harold Koontz

They explain the process or logic or organizing in the following steps:

1. Establishing enterprise objectives.
2.Formulating supporting objectives, policies, and plans.
3. Identifying, analyzing, and classifying the activities necessary to accomplish these objectives. (Technology adopted is a major determinant of activities and then the capital equipment and raw materials also play a role in the activities necessary. Human resource requirement is arrived at on the basis of technology, capital equipment and raw material inputs)
4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.
5. Delegating to the head of each group the authority necessary to perform the activities.
6. Tying the groups together horizontally and vertically, through authority relationships and information flows.


The steps three and four are important steps but have not received attention and have not been developed in basic management theory.

3. Identifying, analyzing, and classifying the activities necessary to accomplish these objectives.
4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.

In the step 3 activities required to accomplish the objectives have to be identified. This requires identification various technologies, required equipment,  energy sources and materials. Even the feasibility of training personnel in the technology and use of materials has to be considered. An optimal combination that provides return on investment has to be identified. It is a complex and iterative process that needs to be developed and described for proper management practice.

4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.

Note that step 4 brings the material resources into picture to group activities. Hence organization process assumes that material resource decisions are taken before hand. But where and when in the management process. This aspect was not specified. This is the drawback that I am referred in the current theory of management.


Basic Questions for Effective Organizing of Human Resources


1. What determines the span of management and hence, levels of organization?
2. What determines the basic framework of departmentation, and what are the strengths and weaknesses of the basic forms?
3. What kinds of authority relationships exist in organizations?
4. How should authority be dispersed throughout the organization structure, and what determines this dispersion?
5. How should the manager make organization theory work in practice?


Please give your comments and suggestions on issues to be added to this short revision notes. Also please inform the recent research in this area.

Updated 2018 - 1 February,

  1 Feb 2016,   2 Feb 2015,  5 Jan 2015, 28 July 2014, 12 Dec 2011


MBA Core Management Knowledge - One Year Revision Schedule


Related topics

Related topics

The Nature and Purpose of Planning
The Nature of Organizing
Resourcing - A Function of Management
Leading - Introduction
Planning and Execution - Theory and Practice
The System and Process of Controlling