AMITY

We nurture talent
 The Goals of All Managers and
Organizations
• The aim of all managers should be to
create a surplus. Thus, managers must
establish an environment in which
people can accomplish group goals
with the least amount of time, money,
materials, and personal dissatisfaction
 Characteristics of Excellent Companies
(Peters & Waterman)
These firms
* Were oriented toward action
* Learned about the needs of their customers
* Promoted managerial autonomy and entrepreneurship
* Achieved productivity by paying close attention to the needs of their people
* Were driven by a company philosophy often based on the values of their leaders
* Focused on the business they knew best
* Had a simple organization structure with a lean staff
* Were centralized as well as decentralized, depending on appropriateness
 Definition of Productivity
• Productivity is the output-input ratio within a
time period with due consideration for quality
 Definitions of Effectiveness and
Efficiency
• Productivity implies effectiveness and
efficiency in individual and organizational
performance
• Effectiveness is the achievement of objectives
• Efficiency is the achievement of the ends with
the least amount of resources (time, money,
etc.)
 The Social Responsibility of
Managers
• Corporate social responsibility is “seriously considering the
impact of the company's actions on society”
• Social responsiveness is "the ability of a corporation to
relate its operations and policies to the social environment in
ways that are mutually beneficial to the company and to
society”
• Social audit is defined as “a commitment to systematic
assessment of and reporting on some meaningful, definable
domain of the company’s activities that have social impact.”
 Evolving Concepts in MBO
• Management by objectives is a
comprehensive managerial system that
integrates many key managerial activities in
a systematic manner and that is consciously
directed toward the effective and efficient
achievement of organizational and
individual objectives
Systems Approach to MBO
 Benefits of Management by
Objectives
Clear goals:
• Motivate
• Improve managing through results- oriented
planning
• Clarify organizational roles, structures and
the delegation of authority
• Encourage personal commitment to their
own and organizational goals.
• Facilitate effective controlling, measuring
results, and leading to corrective actions
 Failures of Management by
Objectives
• List some failures and limitations of MBO
• What would you do to overcome the failures?
 Definition of Strategy and Policies
• Strategy is the determination of the mission (or the
fundamental purpose) and the basic long-term
objectives of an enterprise, and the adoption of
courses of action and allocation of resources
necessary to achieve these aims
• Policies are general statements or understandings that
guide managers' thinking in decision making
The Strategic Planning Process
 The Strategic Planning Process

• Inputs to the organization

• Industry Analysis
• Enterprise Profile
• Orientation, Values, and Vision
• Mission (Purpose), Major Objectives, and Strategic
Intent
• Present and Future External Environment
• Internal Environment
 The Strategic Planning Process - continued

• Development of Alternative Strategies

• Evaluation and Choice of Strategies
• Medium- and Short-Range Planning
• Implementation through Reengineering,
Staffing, Leadership, and Control
• Consistency Testing and Contingency
Planning
 Mission, Objectives, and Strategic Intent

• Mission relates to the kind of business

• Objectives are the end points for activities
• Strategic intent is the commitment to win in
the competitive environment
 Definition of the TOWS Matrix
• The TOWS Matrix is a conceptual framework
for a systematic analysis that facilitates
matching the external threats and opportunities
with the internal weaknesses and strengths of
the organization
TOWS Matrix
 TOWS Matrix: 4 Alternative Strategies

• SO strategy: Maxi – Maxi

• WO strategy: Mini – Maxi
• ST strategy: Maxi – Mini
• WT strategy: Mini - Mini
Business Portfolio Matrix
 Business Portfolio Matrix
• Two dimensions
– Relative competitive position (market share)
– Business growth rate
• Four positions
– Question marks
– Stars
– Cash cows
– Dogs
 Major Kinds of Strategies and Policies

• Products or Services
– What are some of the key questions to ask?
• Marketing
– What are some of the key questions to ask?
 HIERARCHY OF COMPANY STRATEGIES

• The corporate-level strategy. Executives

craft the overall strategy for a diversified
company
• Business strategies are developed usually
by the general manager of a business unit
• Functional strategies. The aim is to support
the business and corporate strategies.
 Five Forces in Industry Analysis (Porter)

• The competition among companies

• The threat of new companies entering the
market
• The possibility of using substitute products or
services
• The bargaining power of suppliers
• The bargaining power of the buyers or
customers
 Porter’s Generic Strategies
• Overall Cost Leadership Strategy
• Differentiation Strategy
• Focused Strategy (low cost or differentiation)
 Premising and Forecasting
• Planning premises are the anticipated environments
in which plans are expected to operate
• Environmental Forecasting
– Values and areas of forecasting
– Forecasting with the Delphi technique
• What are the typical steps of the technique?
 Decision Making
• Decision making is defined as the selection of
a course of action from among alternatives
 Decision Making Process
1. Premising,
2. Identifying alternatives,
3. Evaluating alternatives in terms of the goal
sought, and
4. Choosing an alternative, that is, making a
decision
 Limited, or "Bounded," Rationality
• Limitations of information, time, and certainty
limit rationality, even though a manager tries
earnestly to be completely rational
• Satisficing is picking a course of action that is
satisfactory or good enough under the
circumstances
 Development of Alternatives and the Limiting
Factor
• A limiting factor is something that stands in
the way of accomplishing a desired objective
• The principle of the limiting factor: By
recognizing and overcoming those factors that
stand critically in the way of a goal, the best
alternative course of action can be selected
 Quantitative and Qualitative Factors

• Quantitative factors are factors that can be

measured in numerical terms
• Qualitative, or intangible, factors are those
that are difficult to measure numerically
 Marginal Analysis
• Marginal analysis is to compare additional
revenues and the additional cost arising from
increasing output
 Cost Effectiveness Analysis
• Cost effectiveness analysis seeks the best
ratio of benefit and cost
Selecting an Alternative: Three Approaches

When selecting from among alternatives,

managers can use:
1. Experience,
2. Experimentation, and
3. Research and analysis.
 Programmed And Nonprogrammed Decisions

• Programmed decisions are used for

structured or routine work
• Nonprogrammed decisions are used for
unstructured, novel, and ill‑defined situations
of a nonrecurring nature
 Creativity and Innovation
• Creativity refers to the ability and power to
develop new ideas
• Innovation means the use of new ideas
 The Creative Process
• The creative process is seldom simple and linear
• It generally consists of four overlapping and
interacting phases:
1. Unconscious scanning
2. Intuition
3. Insight
4. Logical formulation or verification
 Rules for Brainstorming
1. No ideas are criticized
2. The more radical the ideas are, the better
3. The quantity of idea production is stressed
4. The improvement of ideas by others is
encouraged