Monday, 7 February y

Management in SEBI

Management is managing human, financial, physical and information resources.

Five functions of management

1) Planing

2) Organising

3) Staffing

4) Directing

5) Controlling

Luther Guelick coined the word POSDCORB which is

Planning, organising, staffing, Directing ,Co ordinating , Reporting and budgeting

Management skills by Robert L Katz

Technical skills- First line Management

Middle Management- Human skills

Top Management- Conceptual skills

Father of management : Peter F Drucker

Father of general management: Henri Fayol

Managerial roles in Henry Mintzbergs

1)Interpersonal: Figurehead, leader, liaison

2) Informational: Monitor, Disseminator, Spokesperson

3) Decisional: Entrepreneur, Disturbance Handler, Resource allocator, Negotiator

1
There three classical theorist

1) F.W.Taylor - Scientific management father

2) Max weber- Administrative management

3) Henry Fayol- Ideal Bureaucracy

F.W. Taylor

Science not rule of thumb: Science for each element of Man’s Work

Harmony not Discord:

Equal division of work between management and workmen

Mental revolution

Cooperation not individualism

Development of each and every person to his or her greatest efficiency and prosperity.

Functional foremanship: one worker should have 8 foreman

Henry Fayol:

Division of labour: it brings specialisation

Authority and responsibility: there should be a balance

Discipline

Unity of direction

Unity of command: every subordinate should have only one boss.

Subordination of individual interest to general interest.

Remuneration

Centralisation and decentralisation: there should be a right balance

Scalar chain- Formal lines of authority

Order-

Equity

Stability of personnel: minimising employee turnover

Initiative: employee should be given a necessary level of freedom

2
Espirit de corps: union is strength

Weber- Ideal Bureaucracy

1) Division of work

2) Hierarchy of authority

3) Rules and regulations

4) Impersonal conduct

5) Technical Competence

3
Process of decision making

1) Identify the problem

2) Establish decision criteria

3) Weigh Decision criteria

4) Generate alternatives

5) Evaluate the alternatives

6) Choose the best alternatives

7) Implement the decision

8) Evaluate the decision

Errors in decision making

Availability Heuristic: immediate Shortcuts that come to a persons mind when evaluating a
specific topic, concept, method or decision.

Representative Heuristic: Tendency to make judgments on things with which people are
familiar

Escalation of commitment: Increased commitment to previous decision despite negative

information. Due to overconfidence.

Quantitative techniques in decision making

Decision Tree

Break Even Analysis

Financial Control

Economic order Quantity

Linear Programming

4
Groups

By SAYLES

Apathetic groups- Consists of low skilled assembly line workers who lack unity and power
and hardly use any pressure tactics.

Erratic groups: erratic or lack consistency

Strategic groups: clear strategy

Conservative groups: professionals and highly skilled employees

CLIQUE: is a group containing people who have frequent interactions and observe certain
norms and standards

Vertical Clique : same department and different levels

Horizontal clique: different department, same level

Mixed clique: different levels different departments

GROUP NORMs

Rate buster: a group

Stages of group / Team Development

Forming

Storming

Norming

Performing

Adjournment

Punctuated Equilibrium Model

Group think

Groupshift/Polarization

Risky or conservative

5
Brainstorming

Nominal Group Technique

Delphi Technique

Change

Kurt Lewin- Model of Planned change

Unfreezing

Moving to the new level

Refreezing at the new level

Organisational Development Techniques

Behavioural techniques- Sensitivity training, management by objective, grid training and

development.

Non behavioural techniques- Change in organisation structure, work design, Job enrichment

Miscellaneous Techniques- Survey feedback, Team building.

CHANGE MANAGEMENT models

McKinsey/ 7S model

Kotter’s 8 step model of change

Contingency model of change management

Mint berg and Quinn’s Model

McKinsey 7S Model

Strategy : Hard Blueprint or road map

6
Structure: Hard Organisational structure

Systems: Hard Day to day activities

Shares values: soft The Superordinate goals or core values reflected in the organisational
structure

Style: This lays emphasis on the leadership style

Staff : The general staff or capabilities of the employees

Skills : key skills of the employee play a vital role in defining the organisational success.

Kotter’s 8 step Model of change

Create Urgency

Form a powerful coalition

Create a vision for change

Communicate the vision

Empower action

Create quick wins

Build on the change

Make it stick

Contingency model of Change Management by Dunphy and stace

9) Scale of change - Incremental Change, Transformational Change, Collaborative mode of

change, Coercive mode of change.

10) Style of change leadership: Collaborative Style, Consultative Style, Directive Style,
Coercive Style

7
5 types of Change by Dunphy and stace

Taylorism: change is usually avoided and small adjustments are made

Developmental Transition: This kind of change is facilitated in nature as it focuses on

employee development.

Task Focused Transition: This focuses on new techniques and new procedures, new products
and services.

Charismatic Transitions: As a charismatic or popular leader.

Turnarounds: this kind of change is path breaking in nature using authority or even coercion
at times.

Mintzberg and Quinn’s Model

Organisation age and size:

Technical system

Environment

Nature of control/power

Five basic components of an organisation

Operating core: employees who perform the basic activities

Strategic Apex: the group of people who implement strategic decisions

Middle line Managers: They are intermediary between the operations core and strategic Apex

Techno structure: the analysts who plan and execute

Support Staff: the support staff are specialised units.

Anderson & Anderson’s Change Model

Change is considered as a cyclical process

There are three perspectives.

Content: it analyses the technical as well as the organisational factors.

People: Changes in behavioural patterns of people as well as the cultural change

8
Process: This stage is related with possible action plans

Prepare to lead the change

Create organisational, Vision, commitment, and capability

Assess the situation to determine design requirements

Design the desired state

Analyse the impact

Plan and organise for implementation

Implement the change

Celebrate and integrate the new state

Learn and course correct

ADKAR Model of change

A: Awareness

D: Desire

K: Knowledge

A: Ability

R: Reinforcement

Bridges Transition model by William Bridge

Endings

Neutral Zone

New Beginnings

Kubler- Ross Five Stage Model (The Kubler Ross Change Curve)

1) Denial

2) Anger

3) Depression

4) Bargaining

9
5) Acceptance

Scott and Jaffe Change Model by Cynthia Scott and Dennis jaffe

Deny

Resist

Explore

Commit

Satir Change Model

6) late status Quo

7) Resistance

8) Chaos

9) Integration

10) New Status Quo

Learning

Classical conditioning:

Stimulus is followed by response and behaviour is learned through repetitive association.

10
Operant conditioning:

Behaviour is not a result of stimulus but a result of perception of reward or punishment.

Cognitive learning theory

Learning is achieved by thinking about the relationship between events and individual goals.

Social learning:

It is a combination of behave and cognitive concepts.

Learning under social theory is a combination of environmental response and individual

learning.

Modifying behaviour of individuals

Positive reinforcement:

Use of rewards

Money, promotion, recognition etc

Negative reinforcement:

It is also called avoidance learning. Use of unpleasant consequences to condition individuals

to avoid behaving in undesirable ways.

Extinction:

Withdrawal of all forms of reinforcements to removing undesirable behaviour.

Punishment:

Punishment is followed when an undesirable behaviour needs to be eliminated.

Stress Management

11
Work stress:

R.S Shuler said that it’s a dynamic condition in which an individual is confronted with an
opportunity, demand or resource related to what the individual desires and for which the
outcome is perceived to be both uncertain and important.

Eustress: is positive stress where there is optimum stress.

Distress: where the stress is either to low or to high.

Categories of stressors

Extra organisational Stressors- economic uncertainty, political uncertainty, technological

stressors

Organisational Stressors- Task demand, Role demand, interpersonal demands, organisational

structure, leadership, life stage.

Group Stressors:

Individual Stressors: family problems, economic problems, personality, Individual

differences

Symptoms of stress:

Cognitive Symtoms: memory problems, inability to concentrate, poor judgment, seeing only
negative, anxious or racing thoughts, constant worrying.

Physical Symptoms :

Aches and pains

Diarrhoea or constipation

Nausea, dizziness

Chest pain, rapid heartbeat

Loss of sex drive

Frequent colds

12
Emotional Symptoms:

Moodiness

Irritability or short temper

Agitation, inability to relax

Feeling overwhelmed

Sense of loneliness and isolation

Depressed or general happiness

Behavioural Symptoms:

Eating more or less

Sleeping too much or too less

Isolating yourself from others

Procrastinating or neglecting

Using alcohol, cigarettes

Nervous habits

Burnout:

Fatalism

Boredom

Discontent

Cynicism

Inadequacy

Failure

Overwork

13
Nastiness

Dissatisfaction

Escape

Authority, Power, Stress, Learning, OBMOD

Authority: is the right to give orders and exact obedience.

Kind of authority:

Rational legal authority: legally recognised

Traditional authority: traditionally recognised.

Charismatic authority: Generated due to charismatic or exceptional power.

Sources of authority:

1) formal authority

2) Acceptance authority

3) Competence Authority

Power:

Sources of power:

Coercive power

Legitimate power

Expert power

Referent power: admiration toward the influencers provides him referent power.

Tactics to gain power-

14
Bargaining or trade off.

Competition

Co-optation

Coalition

Conflict

Types of conflict

Task Conflict: differences on how to complete a task

Relationship Conflict: Conflict due to personality clash, emotional and social interactions

Value Conflict: conflict due to disagreements on politics, religion, values, ethics, norms and
belief systems.

Negotiations

RADPAC

Rapport

Analysis

Debate

Propose

Agreement

Close

15
Organisation Culture

Edgar Schein model of organisation Culture

Organisations adopt a culture over the period of time.

Artifacts > Values > Assumed Values

Artifacts: we get a view of the organisation culture weather it is strong or weak

Values: The values of the individuals working in the organisation play an important role.

Assumed values: Assumed values of the employees like females leaving the work place early.

16
Cooke, proposed three types of organizational culture

Constructive Culture: focus on one self

Passive Culture: the employees behave in a way contrary to the way they feel is correct and
should be the ideal way.

Aggressive Culture: focus on others and compete with each other.

Hofstede Culture Dimensions

According to Hofstede there are majorly 5 factors which influence the culture of the
workplace.

Power Distance

Individualism vs Collectivism

Uncertainty Avoidance Index

Masculinity Vs Feminity

Long term Orientation vs Short term Orientation

OCTAPACE

Openess

Confrontation

Trust

Authenticity

Pro action

Autonomy

Collaboration

Experimentation

HRM approaches

17
Best practice approach: universalist if approach,prescriptive list of HRM practices, high
performance work practices like incentive compensation, training, employee participation,
flexible work arrangements.

Does not consider national culture and business life cycle and is applicable only in large
businesses and it is hard to have a universal best practice.

Best fit approach: contingency or contextual approach

High performance and HR practices relationship is not linear, Strategic fit and alignment
between HR practices and contextual factors.pick and mix various best practices ingredients

Difficulty in adjusting HR system frequently, disproportionate focus on top down approach

Emergence of Human Resource Development happened during 1960s and 1970s

Relationship between HRM and HRD,

HRM function is largely maintenance oriented and a function of management. HRD is an

ongoing process and it is development oriented, aiming to enhance both personal and
professional growth.

Functions of HRD

4) Training and development

5) Career development

6) Organisation development

HRD is the process in which the employees of an organs are continually helped in a planned
way

to acquire or sharpen capabilities.

Develop their general capabilities to discover their own potential

To develop an organisational culture where superior- subordinate relationships, teamwork

and collaboration among different subunits are strong.

Goals of HRD

Equity

18
Employability

Adaptability

Evolution of HRD

The commodity concept

The Factor of production concept

The paternalistic Concept

The Humanitarian Concept

Human Resource Management Concept

Human Resource Development Concept

Emerging dimensions in HRM

7) Empowerment: process that provides greater authority through the sharing of relevant
information and provision of control

Personal Control: Sense of personal control over one’s immediate work situation

Self sufficient or competence : feeling that one is capable of successful performing a

particular task

Meaningfulness: it means the feeling that the task is valuable both to the organisation and to
oneself

Impact: it refers to the belief that one has an influence on decisions of the organisations.

Difference between HRM and HRD

Point of distinction HRM HRD

Status It is an independent function with It is an integrated system

independent sub functions consisting of interdependent
subsystems

19
 Point of distinction HRM HRD
Orientation It is a service and reactive function It is a proactive function

Aims It seeks to improve the efficiency It seeks to develop the total

of people and administration. organisation and its culture

Incentives used It focuses on salary, economic It focuses on autonomous work

rewards, job specialisation for groups, job challenges and
motivating people. creativity for motivating people
Responsibility It is considered to be the It is the responsibility of all
responsibility of Human Resource managers
manager
Morale productivity relationship It considers improved satisfaction It considers improved performance
and morale as the cause of as the cause of improved
improved performance satisfaction and morale

HRM models

8) The Fombrun Model

9) The Harward

10) The Guest

11) The Warwick

The Fombrun Model

Being the first model dates back 1984 focuses on selection, appraisal,development and
reward but ignores all environmental and contingency factors that impact HR functions

The Harward Model

Stakeholders interest, Situational factors, HRM policy Choices, HR Outcomes, Long term
consequences.

The Guest Model:

HR strategy

HR Practices

20
HR Outcomes

Behavioural outcomes

Performance results

Financial Consequences

The Warwick Model

Outer context: macro environmental forces

Inner context ( Firm specific or micro environmental forces

Business Strategy content

HRM context

HRM content

Human Resource planning

Right number

Right kind

Right place

Right Time

Process of HRP

Objectives of Human Resource Planning

Inventory Human Resource Skills

Demand and supply Forecasting

Determine Net Manpower Requirements

Appraisal of Human Resource Planning

Training and development Program

Employment Program

Redeployment and Redundancy plan

21
Career planning

Succession Planning

Work load Analysis

Selection

Receiving Application

Screening of Applications

Employment Tests

Interview

Reference Checking

Medical Examinations

Final Selections

Career Development

On the Job:

Apprenticeship

Job instruction training

Planned Progression

Job rotation

Creation of assistant- to positions

Temporary Promotions

Committees and junior boards

Coaching

Off the job training

Lectures

Straight lectures

Discussion method

Demonstrations

22
Seminars and conferences

Reading, television and video instructions

Business

Kirkpatrick Model:

Reaction: evaluates how individuals react to the training model. Eq online assessments, post
training questionnaires, interviews, smile sheets

Learning: evaluation is done on the basis of change in the ASK( Attitudes, Skills and
Knowledge) of the trainees. Ex Exams, interviews or assessments.

Behaviour: differences in the participants behaviour at work after completing the program.
Observation, interviews and 360 degree feedback.

Results: : evaluation towards the bottom line of the organisation. Ex observation and
interviews, 360 degree feedback.

Approaches to HR Audits

Comparative Approach

Outside Authority Approach

Statistical Approach

Compliance Approach

MBO Approach

23