WHY PLANS FAIL? Thursday, Dec 11 2008 

A study by K.A. Ringbakk determined that plans fail when:

  1. Corporate Planning is not integrated into the total management system.                                                                                                                     
  2. There is a lack of understanding of the different steps of the planning process.                                                                                                    
  3. Management at different levels in the organization has not properly engaged in or contributed to planning activities.               
  4. Responsibility for planning is wrongly vested solely in the planning department.                                                                                              
  5. Management expects that plans developed will be realized with little effort.                                                                                                              
  6. In starting formal planning, too much is attempted at once.          
  7. Management fails to operate by the plan.                                                      
  8. Financial projections are confused with planning.                                    
  9. Inadequate inputs are used in planning.                                                   
  10. Management fails to grasp the overall planning process.

 

For support in planning and converting your plans in to reality, you may contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com;

919375970812

TYPES OF DECISIONS & DECISION MAKING PROCESS Monday, Dec 8 2008 

A decision is a choice made between 2 or more available alternatives.

Decision Making is the process of choosing the best alternative for reaching objectives.

Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.

Some decisions affect a large number of organization members, cost a great deal of  money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.

Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.

TYPES OF DECISIONS:

PROGRAMMED DECISIONS

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.

NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.

5 ELEMENTS  OF THE DECISION SITUATION:

  1. The Decision Makers
  2. Goals to be served
  3. Relevant Alternatives
  4. Ordering of Alternatives
  5. Choice of Alternatives

DECISION MAKING PROCESS:

Decision making steps this model depicts are as follows:

  1. Identify an existing problem                                                                      
  2. List possible alternatives for solving the problem                       
  3. Select the most beneficial of these alternatives.                           
  4. Implement the selected alternative.                                                        
  5. Gather feedback to find out if the implemented alternative is solving the identified problem.

THE PLANNER: Qualification and Evaluation Monday, Dec 8 2008 

The planner is probably the most important input in the planning subsystem. This individual combines all other inputs and influences the subsystem process so that its output is effective organizational plans.

The planner is responsible not only for developing plans but also for advising management on what actions should be taken to implement those plans.

Regardless of who actually does the planning or what organization the planning is being done in, the qualification, duties, and evaluations of the planner are all very important considerations for an effective planning subsystem.

QUALIFICATIONS OF PLANNERS:

Planners should have four primary qualifications:

  1. They should have considerable practical experience within their organization. Preferably, they should have been executives in one or more of the organization’s major departments.This experience will help them develop plans that are both practical and tailor made for the organization.                   
  2. Planners should be capable of replacing  any narrow view of the organization they may have acquired while holding other organizational positions with an understanding of the organization as a whole. They must know how all parts of the organization function and interrelate. They must have an abundance of conceptual skills.                                                                     
  3. Planners should have some knowledge of and interest in the social,political, technical and economic trends that could affect the future of the organization. They must be skillful in defining those trends and possess the expertise to determine how the organization should react to the trends to maximize its success. This qualification can be overemphasized.                                             
  4. They should be able to work well with others. Their position will inevitably require them to work closely with several key members of the organization, so its is essential that they possess the personal characteristics necessary to collaborate and advise effectively. The ability to communicate clearly, both orally and in writing, is one of the most important of these characteristics.

EVALUATION CRITERIA FOR PLANNERS:

  1. Organizational Plan is in writing.
  2. Plan is the result of all elements of the management team working together.
  3. Plan defines present and possible future business of the organization.
  4. Plan specifically mentions organizational objectives.
  5. Plan identifies future opportunities and suggests how to take advantage of them.
  6. Plan emphasizes both internal and external environments.
  7. Plan describes the attainment of objectives in operational terms whenever possible.
  8. Plan includes both long and short term recommendations.

Over and above all these, the subjective considerations include how well planners get along with key members of the organization, the amount of organizational loyalty they display and their perceived potential.

GUIDELINES FOR ESTABLISHING OBJECTIVES Monday, Dec 8 2008 

In general an organization should have 3 types of Objectives:

  1. Short Term Objectives : Targets to be achieved in 1 year or less.
  2. Intermediate Term Objectives: Targets to be achieved in 1 to 5 years.
  3. Long Term Objectives: Targets to be achieved in 5 to 7 years.

The necessity of predetermining appropriate organizational objectives has led to the  development of a management guidelines called the PRINCIPLE OF OBJECTIVE.

This principle states that  before managers take any action, they should clearly determine, understand and state organizational objectives.

SUB OPTIMIZATION:

Sub optimization is a condition where sub objectives are conflicting ro not directly aimed at accomplishing the overall organizational objective.

GUIDELINES FOR ESTABLISHING OBJECTIVES:

  1. Let the people responsible for attaining the objectives have a voice in setting them.
  2. State Objective as specifically as possible.
  3. Relate objectives to specific actions whenever necessary.
  4. Pinpoint expected results.
  5. Set goals high enough that employees have to strive to meet them, but not so high that employees give up trying to meet them.
  6. Specify when goals are expected to be achieved
  7. Set objectives only in relation to other organizational objectives.
  8. State Objectives clearly and simply.

THE SYSTEM APPROACH Saturday, Dec 6 2008 

The system approach to management is based on general system theory founded by Scientist Ludwig Von Betalanffy.

The main context of this theory is that to be able to fully understand the operations of an entity, the entity must be viewed as a system.

A system is a number of interdependent parts functioning as a whole for some purpose.

The concept of WHOLENESS is very important in general system analysis. The system must be viewed as a whole and modified only through changes in its parts.

L. Thomas Hopkins suggested 6 guidelines for system analysis:

  1. The whole should be the main focus of the analysis. Parts to receive secondary attention.
  2. Integration is the key variable in wholeness analysis. It is defined as the interrelatedness of the many parts within the whole.
  3. Possible modifications in each part should be weighed in relation to possible effects on every other part.
  4. Each part has some role to play so that the whole cam accomplish its purpose.
  5. The nature of the part and its function is determined by its position in the whole.
  6. All analysis starts with the existence of the whole. The parts and their interrelationships should then evolve to best suit the purpose of the whole.

 

THE MANAGEMENT SYSTEM:

The main parts of the management system  are:

  • Organizational Input
  • Organizational Process
  • Organizational Output

The management system is an open system, which interacts with its environment.

The factors which the management system interact with are:

  • Government
  • Suppliers
  • Customers
  • Competitors

Each of these factors represents a potential environment influence that significantly change the future of the organization and thus the management system.

UNIVERSALITY OF MANAGEMENT & MANAGEMENT SKILL Thursday, Dec 4 2008 

Management principle are universal; that is why, the apply to all types of organizations including but not limited to FOR PROFIT AND NOT FOR PROFIT ones like businesses, churches,sororities, athletic teams, hospitals and so on.

Manager’s jobs vary somewhat from one type of organization to another because each organizational type requires the use of specialized knowledge, exists in a unique working and political environment, and uses different technology. However, there are job similarities across organizations because the  basic management activities – planning, organizing, influencing, and controlling are common to all organizations.

The basic ingredients of successful management are applicable to all organizations.

MANAGEMENT SKILL:

Management skill is the ability to carry out the process of reaching organization goals by working with and through people and other organizational resources.

Learning about management skill and focusing on developing it are of critical importance since possessing such skill is generally considered to be the prerequisite for management success.

Katz indicates that 3 types of skills are important for successful management performance: technical, human and conceptual skills.

* TECHNICAL SKILLS:

Technical skills are skills involving the ability to apply specialized knowledge and expertise to work related techniques and procedures.

Examples of these skills are engineering, computer programming, and accounting. Technical skills are mostly related to working with “things” – processes or physical objects.

HUMAN SKILLS:

Human skills are skill that build cooperation with the team being led. They involve working with attitudes and communication, individual and group interests – in short, working with people.

CONCEPTUAL SKILLS:

Conceptual Skills involve the ability to see the organization as a whole. A manager with conceptual skills is able to understand how various functions of the organization complement one another, how the organization relates to its environment, and how changes in one part of the organization affect the rest of the organization.

As a manager grows, the need for conceptual skills increases.

Human skills are required at all levels.

 

MANAGEMENT SKILL: A contemporary View:

The major activities that the modern managers typically perform are of 3 basic types:

  1. Task Related Activities:                                                                                                Task related activities are management efforts aimed at carrying out critical management related duties in organizations. Such activities include short term planning, clarifying objectives of jobs in organizations, and monitoring operations and performance.                                                                       
  2. People Related Activities:                                                                                                    People related activities are management efforts aimed at managing people in organizations. Such activities include providing support and encouragement to others, providing recognition for achievements and contributions,developing skill and confidence or organization members,consulting when making decisions, and empowering others to solve problem.                                                                                         
  3. Change Related Activities:                                                                                                    Change related activities are management efforts aimed at modifying organizational components. Such activities include monitoring organization’s external environment, proposing new strategies and vision, encouraging innovative thinking, and taking risks to promote needed change.

To increase the probability of being successful, managers should have competence in :

  • Clarifying Roles
  • Monitoring Operations
  • Short term Planning
  • Consulting
  • Supporting
  • Recognizing
  • Dveloping
  • Empowering
  • Envisioning Change
  • Taking risks for Change
  • Encourge Innovative Thinking
  • External Monitoring

 

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

DEFINE MANAGEMENT & ITS FUNCTIONS Wednesday, Dec 3 2008 

Management is the process of reaching organizational goals by working with and through people and other organizational resources. 

Management has the following 3 characteristics:

  1. It is a process or series of continuing and related activities.
  2. It involves and concentrates on reaching organizational goals.
  3. It reaches these goals by working with and through people and other organizational resources.

 

MANAGEMENT FUNCTIONS:

The 4 basic management functions that make up the management process are described in the following sections:

  1. PLANNING
  2. ORGANIZING
  3. INFLUENCING
  4. CONTROLLING.

PLANNING: Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to be successful. Planning is concerned with the success of the organization in the short term as well as in the long term.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning stages, to various individuals or groups within the organization. Organizing is to create a mechanism to put plans into action.

People within the organization are given work assignments that contribute to the company’s goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization.

INFLUENCING:

Influencing is also referred to as motivating,leading or directing.Influencing can be defined as guiding the activities of organization members in he direction that helps the organization move towards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

  1. Gather information that measures performance
  2. Compare present performance to pre established performance norms.
  3. Determine the next action plan and modifications for meeting the desired performance parameters.

Controlling is an ongoing process.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

ROLE & IMPORTANCE OF MANAGEMENT Wednesday, Dec 3 2008 

IMPORTANCE OF MANAGEMENT:

Managers influence all the phases of modern organizations. Sales Managers maintain a sales force that markets goods. Personnel managers provide organizations with a competent and productive workforce. Plant managers run manufacturing operations that produce the clothes we wear, the food we eat, and the automobiles we drive.

Our society could never exist as we know it today nor improve without a steady stream of managers to guide its organizations. The well known management author Peter Drucker highlighted this point when he said that Effective Management is probably the main resource of developed countries and the most needed resource of developing ones.

In short, all societies, whether developed or developing, need a huge lot of good managers.

THE ROLE OF MANAGEMENT:

Essentially, the role of managers is to guide the organizations toward goal accomplishment. All organizations exist for certain purposes or goals,and managers are responsible for combining and using organizational resources to ensure that their organizations achieve their purposes.

The role of the Management is to move an organization towards its purposes or goals by assigning activities that organization members perform.

If Management ensures that all the activities are designed effectively, the production of each individual worker will contribute to the attainment of the organizational goals.

Management strives to encourage individual activity that will lead to reaching organizational goals and to discourage individual activity that will hinder the accomplishment of the organization objectives. 

There is no idea more important than managing the fulfillment of the organizational goals and objectives. The meaning of the Management is given by its goals and objectives.

All managers, must have a single minded focus on the fulfillment of the organizational goals.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

ETHICS OF CONSUMER PRODUCTION AND MARKETING – Theories and Definitions Tuesday, Dec 2 2008 

How far must manufacturers and their representatives go to make their products and services completely safe?

WHAT Is the relationship between a business and its customers? a contract, or is there more to it than that?

Hos does the fact that companies usually know more about their products than their customers IMPACT their duty to protect customers from injury or harm?

What responsibility do businesses have for customer injuries no one could reasonably have foreseen or prevented?

What about customer’s privacy – what obligations do companies have?

 

MARKET APPROACH TO CONSUMER PROTECTION:

Consumer safely is seen as a good that is most efficiently provided through the mechanism of the free market whereby sellers must respond to consumer demands.

PROBLEMS WITH THE ASSUMPTION OF FULL INFORMATION:

 

  • Many products are too complex for consumers to understand
  • Markets cannot provide consumers with product information.

 

FREE RIDERS:

individuals who enjoy the benefits of a good without paying their share of its costs.

RATIONAL UTILITY MAXIMIZER:

A person who has a well defined and consistent set of preferences, and who knows how personal choices will affect those preferences.

PROBLEMS WITH THE ASSUMPTION OF RATIONAL UTILITY MAXIMIZATION:

 

  • Few people are good at estimating probabilities.
  • People are irrational and inconsistent when weighing choices.
  • Many consumer markets are monopolies or oligopolies.

 

CONTRACT VIEW OF THE FIRM’S DUTIES TO ITS CUSTOMERS:

The view that the relationship between a business firm and its customers is relationship, and the firm’s moral duties to the customer are those created by this contractual relationships.

RELIABILITY:

The probability that a product will function as the consumer is led to expect that it will function.

SERVICE LIFE:

The period of time during which the product will function as effectively as the consumer is to led to expect it to function.

MAINTAINABILITY:

The ease with which the product can be repaired and kept in operating condition.

PRODUCT SAFETY:

The degree of risk associated with using a product.

MORAL DUTIES TO CONSUMERS UNDER CONTRACTUAL THEORY:

 

  • Duty to comply with express and implied claims of reliability, service life, maintainability, and safety.
  • Duty of disclosure
  • Duty not to misrepresent
  • Duty not to coerce

 

DUE CARE THEORY OF THE MANUFACTURER’S DUTIES TO CONSUMERS:

The view that because manufacturers are in more advantaged position, they have a duty to take special care to ensure that consumers’ interests are not harmed by the products that they offer them.

CAVEAT EMPTOR:

Let the buyer take care.

CAVEAT VENDOR:

Let the seller take care.

 

AREAS OF PRODUCER RESPONSIBILITY ACCORDING TO DUE CARE THEORY:

 

  • Design
  • Production
  • Information

 

SOCIAL COSTS VIEW OF THE MANUFACTURER’S DUTIES TO CONSUMERS:

The view that a manufacturer should pay the costs of any injuries sustained through any defects in the product, even when the manufacturer exercised all due care in the design and manufacture of the product and has taken all reasonable precautions to warn users of every foreseen danger.

 

  • Manufacturer should pay the costs of all injuries caused by defect in a product even if exercised due care.
  • Argues that injuries are external costs that should be internalized.

 

STRICT LIABILITY:

A legal doctrine that holds that manufacturers must bear the costs of injuries resulting from product defects regardless of fault.

CRITICISMS OF THE SOCIAL COST VIEW:

 

  • Unfair to manufacturers since it forces them to compensate unforeseeable injuries.
  • Assumption that adherence to the social cost view will prevent accidents is false.
  • Leads to successful consumer lawsuits in cases where manufacturers took all due care.

 

COMMERCIAL ADVERTISING:

Communication between a seller and potential buyers that is publicly addressed to a mass audience and is intended to induce members of this audience to buy the seller’s products.

 

  • Public communication aimed at mass audience
  • Intended to induce members of its audience to buy the Sellers’s products
  • Succeeds by creating a desire for the seller’s product or a belief that a product will satisfy a pre existing desire.

 

PRODUCTION COSTS:

The costs of the resources consumed in producing or improving a product.

SELLING COSTS:

The additional costs of resources that do not go into changing the product, but are invested instead in getting people to buy the product.

DECEPTIVE ADVERTISING:

 

  • Is a function of the author’s intent to make the audience believe what is known to be false.
  • OR a function of The media’s communication of the false message.
  • OR a function of The audience’s vulnerability to deception.

 

RIGHT TO PRIVACY:

The right of persons to determine what, to whom, and how much information about themselves will be disclosed to other parties.

PSYCHOLOGICAL PRIVACY:

Privacy with respect to a person’s inner life.

PHYSICAL PRIVACY:

Privacy with respect to a person’s physical activities.

IMPORTANCE OF PRIVACY:

 

  • Protects individuals from interference, shame, embarrassment, hurting loved ones, self-incrimination
  • Enables the development of personal relationships,professional relationships, distinct social roles and self determination.

ETHICS IN THE MARKET – Theories and Definitions Tuesday, Dec 2 2008 

PERFECT COMPETITION:

A free market in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged.

PURE MONOPOLY:

A market in which a single firm is the only seller in the market and which new sellers are barred from entering.

OLIGOPOLY:

A market shared by a relatively small number of large firms that together can exercise some influence on process.

MARKET:

Any forum in which people come together for the purpose of exchanging ownership of goods or money.

EQUILIBRIUM POINT:

The point at which the amount of goods buyers want to buy exactly equals the amount of goods sellers want to sell, and at which the highest price buyers are willing to pay exactly equals the lowest prices sellers are willing to take.

DEMAND CURVE:

A line on a graph indicating the most that customers would be willing to pay for a unit of some product when they buy different quantities of those products.

SUPPLY CURVE:

A line on a graph indicating the prices producers must charge to cover the average costs to supplying a given amount of a commodity.

PRINCIPLE OF DIMINISHING MARGINAL UTILITY:

Each additional item a person consumes is less satisfying than each of the earlier items the person consumed.

PRINCIPLE OF INCREASING MARGINAL COSTS:

After a certain point, each additional item a seller produces costs more to produce than earlier items.

POINT OF EQUILIBRIUM:

The point at which the supply and demand curves meet, so amount buyers want to buy equals amount suppliers want to sell and price buyers are willing to pay equals price sellers are willing to take.

Perfectly Competitive Free Markets are characterized by the following 7 features:

  1. There are numerous buyers and sellers, none of whom has a substantial share of the market.
  2. All buyers and sellers can freely and immediately enter or leave the market.
  3. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of prices, quantities, and quality of all goods being bought and sold.
  4. The goods being sold in the market are so similar to each other that no one cares from which each buys or sells.
  5. The costs and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties.
  6. All buyers and sellers are utility maximizers. Each tries to get as much as possible for as little as possible.
  7. No external parties(such as government) regulate the price, quantity, or quality of any of the goods being bought and sold in the market.

MORAL OUTCOMES OF PERFECTLY COMPETITIVE MARKETS:

  • Achieve a certain kind of justice.
  • Satisfy a certain version of utilitarianism.
  • Respect certain kinds of moral rights.

MONOPOLY MARKET CHARACTERISTICS:

  • One Seller
  • High Entry Barriers
  • Quantity below Equilibrium
  • Prices above equilibrium and Supply Curve
  • Can extract monopoly profit.

OLIGOPOLISTIC COMPETITION:

IMPERFECTLY COMPETITIVE MARKETS:

Markets that lie somewhere between the two extremes of the perfectly competitive market with innumerable sellers and the pure monopoly market with only one seller.

HIGHLY CONCENTRATED MARKETS:

Oligopoly markets that are determined by a few large firms.

HORIZONTAL MERGER:

The unification of two or more companies that were formerly competing in the same line of Business.

PRICE FIXING:

An agreement between firms to set their prices at artificially high levels.

MANIPULATION OF SUPPLY:

When firms in an oligopoly industry agree to limit their production so that prices rise to levels higher than those that would result from free competition.

EXCLUSIVE DEALING ARRANGEMENTS:

When a firm sells to a retailer on condition that the retailer will not purchase any products from other companies and/or will not sell outside of a certain geographical area.

TYING ARRANGEMENTS:

When a firm sells a buyer a certain good only on condition that the buyer agrees to purchase certain other goods from the firm.

RETAIL PRICE MAINTENANCE AGREEMENTS:

A manufacturer sells to retailers only on condition that they agree to charge the same set retail prices for its goods.

PRICE DISCRIMINATION:

To charge different prices to different buyers for identical goods or services.

UNETHICAL PRACTICES IN OLIGOPOLY INDUSTRIES:

  • Price – Fixing
  • Manipulation of supply
  • Exclusive dealing arrangements
  • Tying Arrangements
  • Retail Price Maintenance Agreements
  • Price Discrimination

PRICE LEADER:

  • The firm recognized as the industry leader in oligopoly industries for the purpose of setting prices based on levels announced by that.

TRUST:

An alliance of previously competitive oligopolists formed to take advantages of monopoly powers.

MAIN VIEWS OF OLIGOPOLY POWER:

  • Do-Nothing View
  • Anti trust View
  • Regulation View

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