Articles on Management Subjects for Knowledge Revision and Updating by Management Executives ---by Dr. Narayana Rao, Professor (Retd.), NITIE - IIM Mumbai --- 4 MILLION Page Views---
Global Top Blog for Management Theory---Management for Effectiveness, Efficiency and Excellence.
Test driving the new Toyota hydrogen powered Mirai with Pierre Masai
I first met Pierre Masai, CIO of Toyota Motors Europe (TME), a few years ago at the annual Lean IT conference in Paris. Pierre is an agile advocate committed to driving Scrum across the IT infrastructure. At his invitation I recently spent most of two days in Brussels meeting with managers and developers and presenting some of what we have learned about Scrum. I decided to begin by asking how Toyota addresses the three mega challenges we identify in our Scrum trainings and Scrum@Scale workshops:
Does the company have a clear product backlog for every team every sprint?
Can the company get to Done with useful features by the end of every sprint and does Done mean deployable?
Can the company easily refactor its organization to take advantage of market conditions and optimize delivery of valuable product to customers? Small, cross functional teams supported by management are essential.
Firms have to strategize for growth and simultaneously focus on productivity.
Scaling more productive business models or technologies.
Shifting regional and product portfolios toward the most productive businesses or adjacencies.
Reshaping customer value propositions to grow revenue and value added.
Building scale and network effects. Examples of firms offering more for less include Amazon scaling its fulfillment capabilities to make them available to more shoppers and partner retailers;
Transforming operations to raise labor efficiency and reduce external cost at scale.
One of the best tests of effectiveness of a social system is the number of ideas generated lower down and accepted higher up. - Bill Reddin
September 2018
7 daily habits of the best managers August 9, 2018 Kristin Tyndall, editor https://www.eab.com/daily-briefing/2018/08/09/7-daily-habits-of-the-best-managers
March 2018
Managing Greatest people - Steve Jobs
The greatest people are self-managing -- they don't need to be managed. Once they know what to do, they'll go figure out how to do it. What they need is a common vision. And that's what leadership is: having a vision; being able to articulate that so the people around you can understand it; and getting a consensus on a common vision.
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Among Planning, Organizing, Resourcing and Staffing, Directing and Controlling, directing activity can be minimized when you have greatest people in your team. Recruiting them is important. Once you have such people Managing can be planning, organizing and controlling the main events. The processes can be left to the people to figure out and execute. You don't have to micro manage things.
Jobs terms people with highest maturity of business processes and tasks as greatest people.
Why Companies Can’t Perceive Customer Insights and Can't Turn the limited Customer Insight into Growth
BCG Perspectives 16 August 2016
Many companies spend more time looking inward. Check in your next internal meeting, record on one sdie each mention of an internal topic, such as financial or operational performance, plans, metrics, organization, employees, or culture. On the other side, record each discussion of an external topic, related to competition such as technology, innovation, purpose, testing, social media conversations, or topics related to customer, customers’ behaviors, needs, and wants. You will be surprised to see that internal topics dominate the external topics. Hence people spend more time in preparing for answering internal issues related questions and spend less time customers and competition. This is not a good way of allocating top management and middle management resources. At each meeting, the priority area is to be decided and adequate time is to be given to that area. There has to be balance in various activities of the organisation. This principle was given by Henri Fayol way back in 1920s. https://www.bcgperspectives.com/content/articles/center-customer-insight-marketing-sales-why-companies-cant-turn-customer-insights-growth/
It takes fortitude and perseverance, as well as imagination, to solve big problems. These qualities are most abundant when a problem is not only important but also inspiring. Frederick Winslow Taylor, one of the important management innovators of the twentieth century, and also a pioneer, is usually portrayed as an engineer, intent on mechanizing work and pushing employees to work at the maximum speed humanly possible and healthy. But Taylor’s single-minded devotion to efficiency stemmed from his conviction that it was iniquitous to waste an hour of human labor when a task could be redesigned to be performed in less time with less effort.
This passion for multiplying the impact of human endeavor shines through in Taylor’s introduction to his 1911 treatise, The Principles of Scientific Management: “We can see and feel the waste of material things. Awkward, inefficient, or ill-directed movements of men, however, leave nothing visible or tangible behind them. Their appreciation calls for an act of memory, an effort of the imagination. And for this reason, even though our daily loss from this source is greater than from our waste of material things, the one has stirred us deeply, while the other has moved us but little.”
In Taylor's time, the contribution os human labor is much more than the contribution of machines to output of the societies. Hence Taylor said, the waste of material things is less, waste of human effort and time is more.
To maximize the chances of a management breakthrough, you need to start with a problem that is both consequential and soul stirring.
Here are three leading questions that will stimulate your imagination to find important problems.
First, what are the tough trade-offs that your company never seems to get right? Management innovation is often driven by the desire to transcend such trade-offs, which can appear to be irreconcilable. Open source development, for example, encompasses two antithetical ideas: radical decentralization and disciplined, large-scale project management.
Perhaps you feel that the obsessive pursuit of short-term earnings undermines your company’s willingness to invest in new ideas. Maybe you believe that your organization has become less and less agile as it has pursued the advantages of size and scale. Your challenge is to find an opportunity to turn an “either/or” into an “and.”
Second, what are big organizations bad at? This question should produce a long list of incompetencies. Big companies aren’t very good at changing before they have to or responding to nimble upstarts. Most fail miserably when it comes to unleashing the imagination of first-line employees, creating an inspiring work environment, or ensuring that the blanket of bureaucracy doesn’t smother the flames of innovation. Push yourself to imagine a company can’t-do that you and your colleagues could turn into a can-do.
Third, what are the emerging challenges the future has in store for your company? Try to imagine them: An ever-accelerating pace of change. Rapidly escalating customer power. Near instant commoditization of products and services. Ultra-low-cost competitors. A new generation of consumers that is hype resistant and deeply cynical about big business. These discontinuities will demand management innovation as well as business model innovation. If you scan the horizon, you’re sure to see a tomorrow problem that your company should start tackling today.
Search for new principles.
Any problem that is pervasive, persistent, or unprecedented is unlikely to be solved with hand-me-down principles. The pursuit of human liberty required America’s founders to embrace a new principle: representational democracy. More recently, scientists eager to understand the subatomic world have been forced to abandon the certainties of Newtonian physics for the more ambiguous principles of quantum mechanics. It’s no different with management innovation: Novel problems demand novel principles.
By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering. It is a very popular online article on industrial engineering.
Basic and Detailed Principles of Industrial Engineering
Planning, Organizing, Staffing, Leading and Controlling - Functions of Management. Harold Koontz and Cyril O’Donnell, in their book, Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management.
___________________ ___________________ Harold Koontz and Cyril O’Donnell, in their book, Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management.
Managers have to set in a procedure to revise these principles periodically so that they can recollect the relevant principles when performing the managerial tasks and explicitly consider the relevance and application of these principles in their practice.
Many of us use them implicitly. But a professionally educated and trained manager must use them explicitly. He has to ensure that these principles are applied and if any exceptional situation is there, managers should ignore the principles consciously and be clear in their mind they chose not to use them due to the exceptional nature of the situation.
The need for Principles of Management
To Increase Efficiency To Crystallize the Nature of Management To Improve Research To Attain Social Goals
Video - Principles of Management - Koontz and O'Donnell - Quick Review
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Principles of Planning
Related toPurpose and nature
Principle of contribution to objectives Every plan has to contribute positively toward the accomplishment of enterprise objectives.
Principle of efficiency of plans Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan.
Principle of primacy of planning Planning is the primary prerequisite for all other functions of management. Every action of the manager follows a planning step.
Principles Applicable toStructure of plans
Principle of planning premises If more people in an organization use common and consistent planning premises, the enterprise planning will be more coordinated.
Principle of policy framework If more policies, appropriate to the organization, are expressed in clear terms and form and if managers understand them, the plans of the enterprise will be more consistent.
Principle of timing
If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives.
Principles Applicable toProcess of Planning Principle of alternatives
Select the plan which is the most effective and the most efficient to the attainment of a desired goal.
Principle of limiting factor
Consider limiting factor in generating alternatives and selection from alternatives.
The commitment Principle
Planning can cover a period over which commitment of resources can be clearly visualized.
The flexibility Principle
Building flexibility in planning is beneficial, but cost of building flexibility needs to be evaluated against the benefits.
The Principle of navigational change
Manager needs to periodically check events of the plan and redraw plans to maintain the move toward a desired goal.
Principle of competitive strategies
In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing.
Principles of Organizing
Principles in Relation to Purpose
Principle of unity of objectives
An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives.
Principle of efficiency
An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.
Principles Related to theCause of Organizing
Span of management Principle
There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.
Principles in Developing the Structure of Organization
The scalar Principle
The more clear the line of authority from the ultimate authority for management in an enterprise (CEO) to every subordinate position, the more effective will be decision making and organization communication at various levels in the organization.
Principle of delegation
Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him.
Principle of responsibility
The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority.
Principle of parity of authority and responsibility
The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less.
Principle of unity of command
The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility.
The authority level Principle
Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization.
Principles in Departmentizing Activities
Principle of division of work
The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be.
Principle of functional definition
The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives.
Principle of separation
If an activity is designed to be a check on the activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department who activity he is expected to evaluate.
Principles in the Process of organizing
Principle of balance
the application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives.
Principle of flexibility
The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.
Principle of leadership facilitation
The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers.
Staffing Principles
Related to the Purpose of Staffing
Principle of staffing objectives
The positions provided by the organization structure must be staffed with personnel able and willing to carry out the assigned functions.
Principle of staffing
The quality of management personnel can be ensured through proper definition of the job and its appraisal in terms of human requirements, evaluation of candidates and incumbents, and appropriate training.
The process of staffing
Principle of job definition
Specifications for the job rest on organization requirements and on provision for incentives to induce effective and efficient performance of the tasks involved.
Principle of managerial appraisal
Performance must be appraised against the management action required by superiors and against the standard of adherence in practice to managerial principles.
Principle of open competition in promotion
Managers should be selected from among the best available candidates for the job, whether they are inside or outside the enterprise.
Principle of management development
The objective of management development is to strengthen existing managers. The most effective means of developing managers is to have the task performed primarily by a manager's superior.
Principle of universal development
The enterprise can tolerate only those managers who are interested in their continuous development.
Principles of Directing
Related to the Purpose of Directing
Principle of harmony of objectives
Effective directing depends on the extent to which individual objectives in cooperative activity are harmonized with group objectives.
Principles Applicable toProcess of directing
Principle of unity of command
The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility for results.
Principle of direct supervision
Effective direction requires that management supplement objective methods of supervision with direct personal contact.
Principle of supervisory techniques
Since people, tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied.
Principles of Delegation
Principle of functional delegation
The more a position or department has clear definitions of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individuals responsible can contribute toward accomplishing enterprise objectives.
Principle of delegation by results expected
The authority delegated to an individual managers should be adequate to assure his ability to accomplish the results expected of him.
Principle of absoluteness of responsibility
No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who delegated authority and assigned duties.
Principle of parity of authority and responsibility
The authority delegated has to be consistent with the responsibility assigned to a subordinate.
Principles of Control
Related to the purpose of control
Principle of assurance of objective
The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective corrective action.
Principle of efficiency of controls
The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be.
Principle of control responsibility
The primary responsibility for the exercise of control rests in the manager charged with the execution of plans.
Principle of direct control
The higher the quality of managers and their subordinates, the less will be the need for indirect controls.
(The principle may termed as principle of reduced controls. A superior can spend less time in control activities if he has more higher quality managers and their subordinates in his department.)
Principles related to Structure of control
Principle of reflection of plans
The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effective they will serve the interests of the enterprises and its managers.
Principle of organizational suitability
The more controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitate correction of deviation of events from plans.
Principle of individuality of controls
Controls have to be consistent with the position, operational responsibility, competence, and needs of the individuals who have to interpret the control measures and exercise control.
Process of control
Principle of standards
Effective control requires objective, accurate, and suitable controls.
Principle of critical-point control
Effective control requires attention to those factors critical to appraising performance against an individual plan.
The exception Principle
The more a manager concentrates his control on exceptions, the more efficient will be the results of this control.
Principle of flexibility of controls
If controls are to remain effective despite failure or unforeseen changes in plans, flexibility is required in the design of controls.
Principle of action
Principle of Action
Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing.
References
Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 4th Ed., McGraw-Hill, New York, 1968
Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 2nd Ed., McGraw-Hill, New York, 1959
Fayol included both material organization and people organization in organizing function. But he developed in his book only people organization. Koontz also elaborated people organization only. There is need for principles of material organization and also as a follow up principles of resourcing. Principles of Material Organization Resourcing - A Function of Management Lean Leadership Principles - Lean Management according to Narayana Rao K.V.S.S. - Lean management gives importance to both effectiveness and efficiency. Lean Managers simultaneously take care of customer satisfaction and productivity/ cost reduction responsibilities. Hence in a theoretical sense, no new principles are required. Koontz and O'Donnell stressed efficiency in number of principles. Principle of efficiency of plans Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan. Principle of efficiency of organization An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.
Principle of efficiency of controls
The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be. But still in management practice, efficiency was neglected by managers in trying to achieve sales, markets share or higher production quantity or meeting deadlines. Toyota became a glorious example of a company which has given efficiency due importance in management. It involved line managers in efficiency improvement through process improvement for cost reduction and it has taken the necessary staff help as recommended by F.W. Taylor and Harrington Emerson at their time. Hence, lean leadership principles are necessary now to explicitly state some more principles that force managers to focus on efficiency issues also adequately.
Basic Principles of Industrial Engineering (Productivity Management in Engineering Organizations) - Narayana Rao
1. Develop science for each element of a man - machine system's work related to efficiency and productivity.
2. Engineer methods, processes and operations to use the laws related to the work of machines, man, materials and other resources.
3. Select or assign workmen based on predefined aptitudes for various types of man - machine work.
4. Train workmen, supervisors, and engineers in the new methods, install various modifications related to the machines that include productivity improvement devices and ensure that the expected productivity is realized.
5. Incorporate suggestions of operators, supervisors and engineers in the methods redesign on a continuous basis.
6. Plan and manage productivity at system level.
(The principles were developed on 4 June 2016 (During Birthday break of 2016 - 30 June 2016 to 7 July 2016).
The principles were developed by Narayana Rao based on principles of scientific management by F.W. Taylor)
Principles of Industrial Engineering (Productivity Management in Engineering Organizations) - Narayana Rao - Detailed List
The principles were presented at the Annual Conference of IISE 2017 at Pittsburgh, USA. The paper is in the proceedings of the conference. The presentation made at the conference is given below.
2018 - 25 January, 8 April 2017, 12 March 2015 7.3.2014, 25.12.2013 Last updated 12.12.2011 (First posted to the blog from Knol) Revision of chapters of principles of management is in January Revision Plan
