Management skills and high performance Dr.V.Thanikachalam
Decision making skills and high performance Simple structure Promotes decision making in the lowest level in the hierarchy Use of line managers ( chairs/heads of departments) rather than staff ( administrative officers) office as decision makers Encourage entrepreneurial behaviour at every organizational level
A Simple Structure A few levels in the hierarchy Approve decisions from the shop flower levels Encourage decision making at the point of action Simplify communication in the organization Keep the groups in the organizations as small as possible Maintain group cohesiveness and improve cooperation
Complex structure Performance rigidity Slow decision making Lack of decision making Immobilizes dynamism
Examples for simple structure 3 M Corporation 80000 employees 40 divisions 10 subsidiaries Create new division whenever an old one has become too large Allow for increased contribution, interaction and sense of belonging on the part of every employee
A lean management team Management overhead-- Less number of staff managers who perform peripheral work More line managers who are responsible for attaining the organization’s key goals Decision making is to be in the hands of line managers Decentralize decision making Staff managers should help to solve special problems that are beyond the scope of current management experience or expertise
Staff functions 1. Solving special problems Coordination of line managers
Lean and mean Lean – low management overhead Mean– managers make decisions (take actions) and take responsibility for decision consequences
Entrepreneurial behaviour Encourage entrepreneurial behaviour at every level of the organization Autonomy is given to the managers to initiate ideas and take actions on their own. They are responsible for their actions. Entrepreneurs are high achievers They design high performance units They take moderate risks.
Intrepreneurs Intreperuneurs take personal risks and responsibility for the decisions They often rebel when forced They like immediate feedback
Facilitation to intrepreneurs Encourage autonomy and decisionmaking responsibility Offer specific feedback on their performance Encourage risk taking Never impose severe penalties when risk taking leads to failure
Intreprenuerial behaviour Does not happen automatically Result of planned actions that encourage risk taking ,independence and sound decision making
Goal-setting skills and high performance High-performance characteristics result from – effective goal setting both emphasize and draw upon the organization’s strengths Accomplishing critical success factors Providing value through technology Focusing on ends versus focusing on means to achieve them
Typical goals Earning per share Return on investment Market share New product success
Critical success factors (CSFs) Identify and concentrate on the C S F s automotive industry’s C S F s—styling, fuel efficiency, interior comforts , maintenance, quality dealership, cost control, meeting energy standards, meeting pollution norms, withstanding road conditions, safety norms
High performance Identification of C S F s Communication of C S F s Use of C S F s
Value through technology Produce products and services that provide value to the customer through improvement in technology Invest in research and technology Detach managing from an ivory tower Stress hands on experience in products Know the positive features Identify the changes that could be made to positively affect its performance.
Focusing on ends versus means A kind of control system Tightly controls critical success factors The goals or ends the organization wants to achieve but loosely controls the means used to achieve these goals. The control system allows for autonomy and entrepreneurial behavior or the part of employees. It gives employees freedom to make decision as means while holding them responsible for some important organization goals or ends.
Control … On the one hand, managers are not constantly “breathing down the necks of employees” On the other hand, employees do not have complete freedom to go off in any direction they choose or freedom to avoid performing altogether.
Internal control used by employee Through attitudes, Goals, and Motivation
External control imposed by management Through reporting procedures Rules, and Regulations High performing firms de-emphasize paperwork (reporting) External control mechanism that detracts from overall performance
Attitude Encourages some risk-taking Creativity, innovation in terms of means, but holds employees responsible for achieving some concrete ends over the long run.
Goals Should be based on the company’s unique strengths Basis for competitive advantage Don’t set goals beyond the company’s strengths
Interpersonal relation skills To gain high performance through people, managers must instill an action Working orientation in everyone Must encourage productivity improvement Design a communication system that communicates a basic business value
An Action, working orientation Instill an action orientation in employees Strong orientation toward doing things that contribute to performance. Work is to be exciting and leading to valued rewards – including high performance. Results in higher productivity and in higher employee morale and productivity.
Working orientation Result of enthusiasm on the part of top-level managers for what the organization is doing Enthusiasm is conveyed to everyone through leadership, through motivation Celebration as means of recognizing hard work on an impromptu basis Climate conducive to contribute to an overall
An attitude of productivity improvement Encouraging everyone to develop a strong attitude toward improving productivity Investment through training , development and general upgrading of employee skills
Basic business values Develop and communicate a basic business value Comes from customer / technology strategies Also from the insights of entrepreneurial chief executive officers. Also affect intangible areas, such as culture and ethics in the organization Formulate and communicate basic business values
Selected business values I B M MEANS SERVICE Mc DONALD- “Quality, Service, Cleanliness and Value” 3M Corporation- “Never Kill a New Product Idea”
High performance and management satisfaction Contributes to employees’ senses of self-worth and to the personal satisfaction. Produces less turnover Reduces absenteeism Minimizes job stress
Key to long-term success Invest Innovate Lead Create value where none existed before Never lose sight of performance goals Continuously communicate management goals
Plan for high performance Achieve Receive rewards !