Managerial Problems and Analysis PDF

**MANAGERIAL PROBLEMS AND ANALYSIS** **4 basic economic activities** 1. 2. 3. 4. **BASIC UNITS** 1. 2. 3. 4. **MANAGEMENT AND MANAGERIAL WORK** - Management is the art of getting thinngs done through people **- Mary Parker Follet** **5 M's** 1. 2. 3. 4. 5. **NATURE OF MA...

**MANAGERIAL PROBLEMS AND ANALYSIS** **4 basic economic activities** 1. 2. 3. 4. **BASIC UNITS** 1. 2. 3. 4. **MANAGEMENT AND MANAGERIAL WORK** - Management is the art of getting thinngs done through people **- Mary Parker Follet** **5 M's** 1. 2. 3. 4. 5. **NATURE OF MANAGERIAL WORK** - - **WHERE ARE MANAGERS?** They might be: - - - - **Managers** exist in all organizations **Management** is about persuading people to do things they do not want to do, while leadership is about inspiring people to do things they never thought they could - **Steve Jobs** **Good Management** consist in showing average people how to fo work of supeior people - **John D. Rockefeller** **Do you think their roles and activities are different in different organizations?** **Do all managers achieve their goals?** - They may not achieve their goals - Managerial incompetence - Lack of managerial experience - Little experience managing employees and other resources before going into business - Unbalanced experience - Insufficient experience in key functional, purchasing and production. - In experience of the product or service **IMPORTANCE OF MANAGEMENT** - Horizon - Production **FINANCIAL STABILITY (FS)** - **Management** is necessary to direct a business towards its goals - A balance must be maintained between the goals of the business, the resoures, the employees objectives. **THE NATURE OF MANAGERIAL WORK** **HENRY MINTZBERG** - A canadian academic and author on business management - He is currently the **Cleghorn Professor of Management Studies** at the **Desautels Faculty of Management of McGill University in Montreal, Quebec, Canada,** where he has been teaching since **1968.** - Henry Mintzberg completed his **first undergraduate degree** in** mechanical engineering at McGill University in 1961**. During his time at McGill University he was in **two honor societies**, was a **student council representative, a McGill Daily sports editor, a student athletic council chairman, and more.** - - He then completes his **[Master\'s degree in Management](https://en.wikipedia.org/wiki/MIT_Sloan_School_of_Management#History) at MIT Sloan School of Management in 1965.** During his studies he was a **part of the student government and won the Quebec Fellowship award as well as the M.I.T. Fellowship award.** - **8 SCHOOLS OF THOUGHTS ON A MANAGER'S JOB** 1. 2. 3. 4. 5. 6. 7. 8. **WHAT IS MANAGEMENT?** **MANAGEMENT** - Effective management is discipline, and carrying it out - **Stephen Covey** - The practice of enabling groups of people with different knowledge, skills, and backgrounds to work together towards a common goal. This goal is often the company's mission that either you or a higher up is responsible for creating - **Peter Drucker** - Management is an art of gettings things done through and with the people in formally organized groups - **Harold Koontz** - It is someone's ability to healthy seek out people and things that would satisfy their needs - **Abraham Maslow** **THE CLASSIC SCHOOL** - A manager deos us **POSDCORB**, which is an acronym developed by **Luther Gulick**, which stands for: - - - - - - - **HENRY FAYOL (July 29, 1841 - November 19, 1925)** - Father of this school of thought who introduced these 5 basic managerial functions: **planning, organizing, coordinating, commanding, and controlling.** - - - Fayol called managerial skills **"administrative functions"**. - In his 1916 book, **"Administration Industrielle et Generale,"** he shared his experiences of managing a workforce. **MASLOW'S HIERARCHY OF NEEDS** **HENRY FAYOL (July 29, 1841 - November 19, 1925)** - - - **HENRY FAYOL\'S PRINCIPLES OF MANAGEMENT** - - **WHAT ARE FAYOL\'S 14 PRINCIPLES OF MANAGEMENT?** - 1. **Division of Work** - Assign each employee a task that they can become proficient at. - Productivity increases as employees become more skilled, assured and efficient. - Today, experts still warn against multi-tasking. 2. **Authority** - Managers must possess the authority to give orders, and recognize that with authority comes responsibility. - As well as rank, Fayol argues that a manager\'s intelligence, experience and values should command respect. 3. **Discipline**.  - Everyone should **[follow the rules]**. - To help, you can make agreements between the organization and employees clear for all to see. 4. **Unity of Command** - Fayol wrote that **\"an employee should receive orders from one supervisor only.\"** Otherwise, **authority, discipline, order, and stability are threatened.** 5. **Unity of Direction** - Teams with the same objective should be working under the direction of one manager, using one plan. - That, Fayol wrote, **\"is the condition essential to unity of action, coordination of strength and focusing of effort.\"** 6. **Collective Interest Over Individual Interest** - Individuals should pursue team interests over personal ones -- including managers. 7. **Remuneration** - Employee satisfaction depends on fair remuneration for everyone -- financial and non-financial. - Fayol said pay should be fair and reward **\"well-directed effort.\"** 8. **Centralization** - - 9. **Scalar Chain** - - 10. **Order** - - - 11. **Equity** - - 12. **Stability of Tenure of Personnel** - - 13. **Initiative**  - Employees should be encouraged to develop and carry out plans for improvement. - As Fayol wrote, **\"At all levels of the organizational ladder, zeal and energy on the part of employees are augmented by initiative.\"** 14. **Esprit de Corps** - **THE GREAT MAN SCHOOL**  **WHAT IS THE GREAT MAN THEORY?** Throughout this presentation, we will review: 1. 2. 3. 4. 5. 6. 7. 8. **DESCRIPTION OF LEADERSHIP THEORY** - Great leaders are born with inherent traits that make them great leaders - - - - Time will reveal the Great Man when it is necessary - Great leaders are \'heroes\' for their nation, society, culture or organization - When you \'Zoom Out\' in history, you are left with larger than life characters - Theory does not delve into extensive detail or backstory - Inherent belief that those in power deserve to be in power due to the traits and position they were born with or were born into **MAIN PROPONENTS OF THE GREAT MAN THEORY** - - - - - - **GREAT MAN THEORY BY THOMAS CARLYLE SUMMARIZED** 1. Leaders are gifts of God to mankid. A measure of divinity is attributed to leaders and their actions. 2. Everyone cannot aspire to become a leader and to attain greatness. We are not all born with the same 'stuff'. 3. The inborn leadership qualities alone are necessary and sufficient for a leader to exercise influence over his followers and to become successful. 4. Leadership qualities and effectiveness are independent variables. Situational factors like the nature and needs of followes, the demands of task and the general socioeconomic environment have little or no influence on a leader's emergence effectiveness. 5. The theory discounts the belief that individuals can be trained for assuming leadership positions and roles. Leadership qualities cannot be transmitted education and exposure. 6. Ability to capture the imagination of the masses. 7. Assumes that all leaders in history would be good leaders for all situations. **DIFFERENT HISTORICAL ARCHETYPES OF GREAT MAN THEORY** 1. 2. 3. 4. 5. 6. **GREAT MAN THEORY LED TO RECOGNIZABLE TRAITS** - - - - **BIG FIVE PERSONALITY TRAITS THEORY** - - - **Big Five Personality Traits** 1. 2. 3. 4. 5. Both theories focus on inherited traits at birth, rather than any coachable or developable skill sets in leaders. **ANY UNDERLYING BELIEFS OR ASSUMPTIONS ABOUT HUMAN NATURE** - People are static in their development - Leaders are born fully developed and prepared - You are born with the traits that you will have for life. No one else can be leaders - As our understanding of leadership grew, so did the science researching it - There are consistent ruling classes and subservient classes throughout history. - History is the story of constant class struggle. - How human beings are motivated, inspired or develop themselves - Is leadership a situational trait or an overall human trait? - Discounts the concept of \'history from below\', where there are small waves of events that create their own leaders **PROS OF THE GREAT MAN THEORY** - - - **CONS OF THE GREAT MAN THEORY** - - - - - - - - - - **OUTCOME OF GREAT MAN LEADERSHIP THEORY** - - - - - - - - - - **THE ENTREPRENEURSHIP SCHOOL** - **Entrepreneurs** use **innovation to exploit or create change** and opportunity for the purpose of making profit. - They do this by shifting economic resources from an area of lower to an area of higher productivity, accepting a high degree of risk and uncertainty in doing so. **Lead, Labor, Capital, Entrepreneur (LLCE)** **Television, Radio, Internet, Mobile, Print Media (TRIMP)** **ENTREPRENEURS** Defined by their actions Not the size of organization they work in **What Is Corporate Entrepreneurship?** - - **Corporate -** subsidiary - - **SCHOOLS OF THOUGHT** **Corporate venturing** Concerned with: - - - - **Corporate Venturing** - Refers to corporate entrepreneurial efforts that **lead to the creation of new business organizations within the corporate organization.** - They may follow from or lead to innovations that exploit new markets, or new product offerings, or both. - These venturing efforts may or may not lead to the formation of new organizational units that are distinct from existing organizational units in a structural sense (e. g., a new division). **Intrapreneurship** Concerned with: - - - **WHAT IS INTRAPRENEURSHIP** **Pinchot (1985)**: - **Knight (1987):** - **Bring the market inside** Concerned with: - - - **Entrepreneurial transformation** Concerned with: - - - **Wrap up** - - **THE LEADER EFFECTIVENESS SCHOOL** IMG\_256  **THE LEADER EFFECTIVENESS SCHOOL** - - - **THE LEADER EFFECTIVENESS SCHOOL** - - - - - - - - - **THE LEADER POWER SCHOOL** IMG\_256  **POWER IN LEADERSHIP** - - **TYPES OF POWER IN LEADERSHIP** 1. - - 2. - - 3. - - 4. - - 5. - - 6. - - 7. - - **THE LEADERSHIP BEHAVIOR SCHOOL** **LEADERSHIP BEHAVIOR** - - - **WHY ARE EFFECTIVE LEADERSHIP BEHAVIORS IMPORTANT?** 1. 2. 3. **HOW TO DEMONSTRATE EFFECTIVE LEADERSHIP BEHAVIORS?** 1. 2. 3. 4. 5. 6. 7. 8. 9. **THE DECISION-THEORY SCHOOL** - **MANAGERIAL WORK ROLES (BY MINTZBERG)** - 1. - - - a. - - - b. - - - c. - In the liaison role, you create and maintain internal and external relationships. You serve as a connection between different groups of people to ensure work runs smoothly. - As a liaison, you can transfer knowledge or information to members across your organization\'s chain of command or communicate between stakeholders and employees to ensure projects remain on task. - In some situations, you may bring members of your external network into the company to help achieve organizational goals more efficiently. 2. - - a. - - - - b. - - - c. **SPOKESPERSON** - - - 3. - - a. - - - b. - - - c. - - - d. - - - - **IMPORTANT MANAGEMENT SKILLS** 1. - 2. - 3. - **VALUE MANAGEMENT** **MANAGEMENT as an ART or as a SCIENCE** IMG\_256 **MANAGEMENT is an ART** - **Art** refers to personal and skillful application of existing knowledge to achieve desired results. - It can be acquired through continuous practice, creativity, personal observation and experience. **Who said management is an art of knowing what to do?** **FREDERICK WINSLOW TAYLOR** - According to F.W. Taylor, management is the art of knowing what you want to do, and then seeing that it is done in the best and cheapest way. **Why Management as an Art?** - It is called an **art** because managing requires certain skills which are personal possessions of managers. **Science** provides knowledge, & art deals with the application of knowledge and skills. **MANAGEMENT AS A SCIENCE** - **Management is a science** because of several reasons it has universally accepted principles, it has cause and effect relationships etc. **What is the difference between science and management?** +-----------------------------------+-----------------------------------+ | - **Management** focuses on | - **Science** is driven by | | practical concepts and models | intellectual curiosity and | | for decision-making in the | the pursuit of truth. | | workplace. | | +-----------------------------------+-----------------------------------+ **Why is management called a science?** - **What are the characteristics of management as a science?** - - **MANAGEMENT VS. ADMINISTRATION** **What\'s the difference between MANAGEMENT and ADMINISTRATION?**  +-----------------------------------+-----------------------------------+ | **MANAGEMENT** | **ADMINISTRATION** | | | | | - refers to a broader | - - | | terminology that indicates | | | several functions. These | | | including planning, staffing, | | | organizing, monitoring, | | | supervising and leading. | | | | | | - involves strategic | | | decision-making and long-term | | | planning. | | +-----------------------------------+-----------------------------------+ - Both management and administration work towards achieving the goals and objectives of the organization. - They are concerned with the functioning and success of the organization as a whole. **ENVIRONMENT FACTORS OF MANAGERS** - **MANAGEMENT OBJECTIVES and MANAGEMENT SKILLS** **What is Management by Objectives (MBO)?** - - **Management By Objectives** - - - **OTHER AUTHORS WHO DEFINE MBO** **HEINZ WEIHRICH & HAROLD KOONTZ**  IMG\_256 - **GEORGE ODIORNE** - **Features of Management by Objectives (MBO)** 1. 2. 3. 4. 5. 6. 7. **Objectives of Management by Objectives (MBO)** - **To aid employees in realizing their responsibilities at work.** Each employee has key result areas customized to their interest, areas of expertise, and academic background. The staff members are aware of what is required of them because of MBO. - **To make employees feel valuable in the organization.** Every employee plays a unique role in helping the company achieve its goals and objectives. Each employee plays a different role at work. Each person eventually begins to feel devoted to the group and feels valuable in the organization. They typically stay with the company for a longer period and provide significant contributions. - **To guarantee the effectiveness among employees.** It fosters an encouraging atmosphere at work, allowing people to appreciate their jobs rather than viewing them as an obligation. Employees who use the MBO process are extremely enthusiastic and dedicated. - - - - **ADVANTAGES OF MANAGEMENT BY OBJECTIVES (MBO)**  IMG\_256 **MANAGEMENT SKILL** - - - - **PROBLEM SOLVING AND DECISION MAKING** You can\'t solve problems with the same thinking that created them.- Albert Einstein \"In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.\" (attributed to Theodore Roosevelt) Do not put a band aid - Solve the root of the problem **Problem Solving& Decision Making** The relationship between them  Problem solving and Decision making go hand in hand. Practicing them effectively will increase your potential to advance **Problem Solving** 1. What is Problem Solving? 2. Barriers to Effective Problem Solving 3. Problem Solving Process 4. Problem Solving Tools **WHAT IS A PROBLEM?** - - - **What is a Problem?** - - - - - - **Barriers to Problem Solving** - - - - - - - - - - **Avoiding Pitfalls** a. Giving up too early b. Jumping straight to conclusions about the cause c. Not getting the right people involved d. Not collecting all the relevant data - **Attitudes that kills creative ideas** - - - - - - - - - - - - - - - - - - **Problem Solving Action Flow (PAID)** ** Set a Problem Statement** - Describe the problem - Develop a one sentence problem statement ** Analyze the problem in detail** - Analyze what is wrong - Analyze what is right ** Identify likely causes** - What\'s different? - What has changed? - What are the most likely explanations? ** Define actual cause/s** - What is the most likely explanation? - Can I prove it? Gather Information Most crucial step in problem solving and should always be the initial step: First determine what type of information it is: - **Facts**: Small pieces of known data, based on objective details and experience. - **Opinions** also based on observation and experience, but are subjective and can be self-serving. - **Opinionated fact** when a fact and opinion are presented together, usually used to sway others. - **Concepts** are general ideas or categories of items or ideas that share common features, important to develop theories. - **Assumptions** Concept/suggestion taken for granted. - **Procedures** info on how to do something with specific steps. - **Processes** are continuous actions or operations to explain how something works or operates. - **Principles** accepted rules, laws or doctrines, often describing actions or conduct. **Problem Solving Process** Accepting** **the Problem Step 1: What is the Problem? Step 2: Setting the Problem Statement Step 3: Analyze the Problem in details Step 4: Identify Likely causes Step 5: Define actual causes **What is the Problem?** **Accepting the Problem** (Define Present & Desired State) - Need first** **to accept the problem by acknowledging that the problem exists and committing yourself to trying to solve it. - Strategies to find the motivation to enter the process: 1. List you benefits from solving the problem. 2. Formalize your acceptance- Commit to solve the problem 3. Accept responsibility for your life 4. Create a "worst-case" scenario. 5. Identify what's holding you back.- what is preventing you from solving the problem? It could be your fear of change **Define the a problem** 1. Where did the problem start? Where it exists or not? 2. What Do I know about the problem? What is the current state and desired state- What can you see is causing the problem? What results I seek? 3. How is it happening? 4. When is it happening? 5. Whom is it happening to? No Blaming 6. Why is it happening? 7. Which part causes it? - Stating and restating the problem - Analyze the problem - List everything you know about the problem - List what you want the solution to achieve Define The Problem Hotel Elevator **Where Did the Problem Start?** Interview /** **question anyone who might know something useful about the problem. Ask questions to: 1. Clarify the situation 2. Challenge assumptions about the problem 3. Determine possible reasons and evidence 4. Explore different perspectives concerning the problem 5. Ask more about the original question If you can not identify the problem find out who did before, challenge their assumptions **Define Present & Desired State** 1. **Write a **statement of the situation as it currently exists. 2. Then you write a statement of where what you would like the situation to look like. 3. The desired state should include concrete details and should not contain any information about possible causes or solutions. 4. Refine the descriptions for each state until the concerns and needs identified in the present state are addressed in the desired state. Stating & Re-Stating the Problem - **Write a **statement of the problem, no matter how vague. Then - Try different triggers: Different words and ask questions about each one. - Replace one word with a substitute that explicitly defines the word to reframe the problem. - Rephrase the statement with positives instead of negatives and VV to obtain an opposite problem. - Add or change words that indicate quantity or time - Identify any persuasive or opinionated words in the statement. Replace or eliminate them. - Try drawing a picture of the problem or writing the problem as an equation. **Write Problem Statement** - Describe the problem as a general view; to lay a solid foundation for further work. - **The problem statement should:** 1. Include specific details about the problem, including who, what, when, where, and how 2. Address the scope of the problem to identify boundaries of what you can reasonably solve - **The problem statement should not include:** 3. Any mention of possible causes 4. Any potential solutions - Should be precise and clear so anyone can comprehend it. A detailed, and concise problem statement will provide clear-cut goals for focus and direction for coming up with solutions **Write Problem Statement** Choose what you would do first from this list: A. Write down a list of possible causes B. Undertake a detailed analysis to produce a structured picture of the problem C. Write down everything you know about the problem D. Interview the people involved   **Why Setting the Problem Statement is Important?[Several potential ](https://www.slideshare.net/slideshow/problem-solving-decision-making-25431795/25431795#26)**reasons are given below: 1. Wrong problem statement wrong = Search in the wrong areas for the problem\'s cause = loss of time, money and resources. 2. Decide what work must be completed to find the cause and in what order. 3. Keeping the problem statement visible during the search for the cause keeps effort focused in the right area. - The problem statement provides the context within which all further work takes place. Why Setting the Problem Statement is Important ? **Analyze the Problem in detail** (Analyze what is wrong Analyze what is right) Analyze the Problem in Detail 1. Avoid the trap of focusing on what is wrong, ignoring what is right; Use: 2. What? question: is right or wrong 3. Where? To locate the problem, where the problem exists and where it does not. 4. When? To discover the timing of the problem, when it occurs and when it does not, when first and last seen. 5. Who: Is involved and who is not 6. How? To explore extent: - How far, how many, how much affected Looking at the distinctions between the answers to these questions on right and wrong will lead to helpful insights about the problem. Sharpen the statements as the problem becomes clearer. **How do you decide which questions to ask?** - Asking questions is the key to analyzing problems. The best questions nearly always start with: What? Why? When? Who? Where? How much? Because such questions cannot be answered with a single word, but require some form of comment - Your problem statement and description are the best grounds for generating the right questions. - Hold creative thinking session to generate questions. - Brainstorming, bug listing and reversals can all be used in this context. **Analyzing what is wrong**? - Aim to develop a detailed specification of the problem. - Measure its scale and scope, determining what the detailed symptoms are and the negative consequences they cause. - It also needs to determine who is involved and when and how often the problem occurs. **Analyzing what is right**? - The purpose of this is to determine what the problem is not. - If things are going well, then they can\'t be part of the problem. 1. What am I satisfied with? 2. When are things correct? 3. How much is correct? 4. Where are things correct? 5. Who is not involved? **Analyzing the Problem** 1. Here are some what questions you might find handy when attempting to solve a problem. **Questioning Tool Box** - What is wrong? - What did you do about it? - What was the result? - What happened next? - What was their reaction? - What are the symptoms? - What are their effects? - What did you notice first? The list isn\'t complete but should enough to get your thinking going on finding clues, and how to go about using them. **Creative Problem Solving** - Creativity means uniqueness and innovation - The creative problem solving process is at work anytime you identify solutions that have value or that somehow improve a situation for someone  **Six major steps to implement solutions to almost any kind of problem. The steps are:** 1. Information Gathering to understand before proceeding. Determine what type of information it is. 2. Problem Definition, Identify the proper questions: What, Why, Who, How, When, Which, Where\... In some cases, taking action to address a problem before adequately identifying the problem is worse than doing nothing as it will waste time, money and human resources. Happens when you only treat symptoms 3. Generating Possible Solutions using various tools 4. Analyzing Possible Solutions, or determining the effectiveness of possible solutions before proceeding. 5. Selecting the Best Solution(s) 6. Planning the Next Course of Action (Next Steps), or implementing the solution(s) **Decision Making** - - - - The **ICES** decision making process stands for **I**nitiate, **C**riteria, **E**valuate, **S**elect **The ICES Process** - - - - **6 C's of Decision Making** 1. 2. 3. 4. 5. 6. **Steps for Decision Making** 1. 2. 3. 4. 5. 6. 7. 8. To make sure that you are making the best choice **Ethics & Decision Making** - - - - - - - - - **Risks in Decision Making** **Some points:** - - - - - - - - - - - - **Common Decision-Making Errors & Biases** IMG\_256 - **-** Believing too much in our own ability to make good decisions. - **-** Looking back, once the outcome has occure, and believing that you accurately predicted that outcome of an event (Driver/ noises in car) - **-** Using early, first received information as the basis for making subsequent judgments. (Coroner/ Burned airplane) - **-** Using only the facts that support our decision. - **-** Using information that is most readily at hand. - - - **-** "Mixing apples with oranges" **-** Assessing the likelihood of an occurrence by trying to match it with a pre-existing category using only the facts that support our decision. - **-** Decision makers are influenced by the way infromation is presented **-** Example 85% leam meat versus 15% fat - **-** Continue of failing often of action even after information have been revealed **-** Continuation is often based on the idea that one has already invested in the course of action. May not want to admit they are wrong OR may be investing more time and energy will make things work.