MGT 4479 Mid term guide

1. Peter Drucker and his management concepts/terms, management

by objective

 Peter Drucker is considered the leading management thinker of the last

century. He wrote 40 books on management, including several when he was
in his 90s. He coined or developed many fundamental management concepts
(or their precursor ideas) that we take for granted today—the knowledge
worker, management by objectives, outsourcing, and many others. The
management guru Peter Drucker framed his consulting advice around five
critical questions. With the answers to these five questions, you could run
and grow your business.
 Briefly describe Drucker’s five questions, define and apply each of the five
questions to a real organizational situation, and reflect on insight gained.
 Drucker’s 5 most important questions:
1. What is our purpose?
2. Who are our customers?
3. What do our customers value?
4. What are our results?
5. What is our plan?

 Deming’s quality management, deadly diseases, 14 steps, and his

“red bead experiment”
 The concept and purpose of Deming's Beads experiment is to highlight the
need for improving the processes for better results and lesser defects in the
operations. The concept and purpose is to show that only rewards, penalties
or inspection cannot bring a change for reducing defects and error. The role
of management is important to take steps for overall improvement of system
by listening to willing workers, encouraging them to participate in
management practices, focus on quality and not only quantity, continuous
improvement and openness for changes. The management can bring
transformation in the system by breaking down the jobs and activities and
improving the various steps involved for minimizing the total cost than
targeting for lowest costs.
 The three points I would like to practice for management transformation are
creating constancy of purpose, Instituting leadership and supervision on the
job and focusing on lowest costs for contracts or procurement.
  I will practice these principles by helping the team to understand the ways in
which the processes and results can be improved through innovation and
focusing on customers. By evaluating different approaches and focus on
improvement and consistency of purpose .
 Instituting leadership and innovation is important as it helps the workers to
train and perform better by guiding them and able to monitor their
performances and results.
 The focus on lowest costs for contracts may not help the quality of system
and products. The focus while selecting the suppliers should be on the
required product standards and demand of customer services for improved
business performance and customer satisfaction.

 Michael Porter’s value chain

The possibility of the value chain depends on the procedure perspective on

associations, seeing an assembling (or administration) association as a framework,
comprised of subsystems each with inputs, change procedures and yields. Sources
of info, change procedures, and yields include the obtaining and utilization of
assets - cash, work, materials, gear, structures, land, organization and the
executives. How value chain exercises are done decides expenses and influences
profits.Most associations take part in hundreds, even thousands, of exercises during
the time spent changing over contributions to yields. These exercises can be
grouped for the most part as either essential or bolster exercises that all
organizations must attempt in some structure.

1-According to Porter (1985), the essential exercises are:

- Inbound Logistics - include associations with providers and incorporate all the
exercises required to get, store, and spread information sources.

- Operations - are on the whole the exercises required to change contributions to

yields (items and administrations).

- Outbound Logistics - incorporate all the exercises required to gather, store, and
circulate the yield.

- Marketing and Sales - exercises educate purchasers about items and

administrations, actuate purchasers to buy them, and encourage their buy.
- Service - incorporates all the exercises required to keep the item or administration
working adequately for the purchaser after it is sold and conveyed.

2-For every essential action, figure out which explicit sub-exercises make value.
There are three unique kinds of sub-exercises:

- Direct exercises make value without anyone else. For instance, in a book
distributor's promoting and deals movement, direct sub-exercises incorporate
creation deals calls to book shops, publicizing, and selling on the web.

- Indirect exercises permit direct exercises to run easily. For the book distributor's
deals and promoting movement, circuitous sub-exercises incorporate dealing with
the business power and keeping client records.

- Quality confirmation exercises guarantee that immediate and backhanded

exercises fulfill the essential guidelines. For the book distributor's deals and
showcasing action, this may incorporate editing and altering notices.

3-Secondary exercises are:

- Procurement - is the securing of data sources, or assets, for the firm.

- Human Resource the board - comprises of all exercises engaged with enrolling,
recruiting, preparing, creating, redressing and (if fundamental) excusing or laying
off work force.

- Technological Development - relates to the gear, equipment, programming,

methodology and specialized information brought to tolerate in the company's
change of contributions to yields.

- Infrastructure - serves the organization's needs and ties its different parts together,
it comprises of capacities or divisions, for example, bookkeeping, legitimate,
account, arranging, open issues, government relations, quality affirmation and
general administration.

4-For every one of the Human Resource Management, Technology Development

and Procurement bolster exercises, decide the sub-exercises that make value inside
every essential movement. For instance, consider how human asset the executives
increases the value of inbound coordination's, activities, outbound coordination's,
etc.Search for immediate, aberrant, and quality affirmation sub-activities.Then
recognize the different value-making sub-exercises in your organization's
foundation. These will by and large be cross-practical in nature, instead of explicit
to every essential action. Once more, search for immediate, roundabout, and
quality affirmation exercises.

 Theory X and Theory Y

Theory X
This theory believes that employees are naturally unmotivated and dislike working,
and this encourages an authoritarian style of management. According to this
theory, management must firmly intervene to get things done. This style of
management concludes that workers −

 Disfavor working.

 Abstain responsibility and the need to be directed.

 Need to be controlled, forced, and warned to deliver what's needed.

 Demand to be supervised at each and every step, with controls put in

place.

 Require to be attracted to produce results, else they have no ambition

or incentive to work.

McGregor observed that X-type workers are in fact mostly in minority, and yet in
mass organizations, such as large scale production environment, X Theory
management may be needed and can be unavoidable.

Examples of theory x
Theory X presumes all employees are lazy and will shirk working if given a
chance. Most managers subscribeto this idea. An example is the time clock. You
have to clock in partly because the management   thinks you'll arrive late and leave
early if you don't

Theory Y
This theory explains a participative style of management, that is, distributive in
nature. It concludes that employees are happy to work, are self-motivated and
creative, and enjoy working with greater responsibility. It estimates that workers −
  Take responsibility willingly and are encouraged to fulfill the goals
they are given.

 Explore and accept responsibility and do not need much guidance.

 Assume work as a natural part of life and solve work issues

imaginatively.

In Y-type organizations, people at lower levels are engaged in decision making and
have more responsibility.

Examples of theory y
Theory Y presumes that workers want to do a good job and will do a good job if
you let them. • An example is an artist on contract to produce art. You tell the artist
what you want done but you leave it to him/her when and how to do it as long as
they produce what you want within your timeline. She can paint at 2AM for all you
care - as long as you get art by the deadline.

 Level 5 Leadership
 Level 5 leader is the top most level in leadership and inorder to become a
level 5 leader one should take away the responsibility and hold it, promote a
sense of self discipline and discipline to others, try getting the right people
and generate a sense of humiliation.
 Being an authentic leader, it will help one to understand who they are and
what they need to do and this thinking will help them to change the life of
those people who follows them. Authentic leaders have a knowledge relating
to strength and weakness and also know how to manage them.
 Inorder to become an authentic leader, try to understand oneself by
understanding the strength and weaknessess, self analyzing the personal
values, conveying the knowledge to the team members, motivate an inspire
the team, promote a chance for the team to speak.
 Self awareness is important as it helps to understand one's own character, his
strength , weakness which will help to analyze himself and can help to
improve his working in the current situation and also in future.
Understanding self also help to understand and analyse other people as well
as their qualities. Staying grounded is important in an authentic leadership as
it will help one to stand under his own position and stand with his own
words and decisions at a time what ever things are happening around him.
 An authentic leader should be able to stand with his own decisions and
words and should stand as a centre in the organization.

 High-ambition leaders

 One-minute manager: one-minute goals, one-minute praising, one-

minute reprimand and the techniques

The Benefits of one minute manager is lies upon three main points, they are as
follows:
one - minute goals

one - minute Praisings

one - minute raprimands

Benefits of "one minute manager"

[1] One Minute goals:
It provides immediate feedback to the worker, this feedback turns into motivation.
The one minute manager communicates with his people their goals and describes
what good behavior looks like He takes a minutes every once in a while to monitor
performance and see how their behaviors match the goals, in order to give proper
feedback.

-> Take only one minute to be able to read it.

-> Recorded on a single sheet of paper.

[2] One minute praisings:

One Minute management is to catch people doing something right. This is when
the one minutes praisings are given. The one minute manager take a minute to let
the people " feel" how good he feels about it. He also encourages other people to
do more of the same.
-> Praisings the people immediately, telling them what they did right.

[3] One Minute Raprimands:

One Minutes raprimands are given as soon as an employee does something wrong.
It has two parts:

1. Telling the people that what they did wrong, how we feel about it and
then let it sink in with a few couples of uncomfortable silence.
2. Tell the people how much we think they are capable of and how much
we value them.
-> One important aspect of this is, that it criticizes the work not the doer.

-> The employee is not blamed as a person, only his work is accused of not being
up to the desired level.

The Benefits of one minute manager is lies upon three main points, they are as
follows:
one - minute goals

one - minute Praisings

one - minute raprimands

Benefits of "one minute manager"

[1] One Minute goals:
It provides immediate feedback to the worker, this feedback turns into motivation.
The one minute manager communicates with his people their goals and describes
what good behavior looks like He takes a minutes every once in a while to monitor
performance and see how their behaviors match the goals, in order to give proper
feedback.

-> Take only one minute to be able to read it.

-> Recorded on a single sheet of paper.

[2] One minute praisings:

One Minute management is to catch people doing something right. This is when
the one minutes praisings are given. The one minute manager take a minute to let
the people " feel" how good he feels about it. He also encourages other people to
do more of the same.

-> Praisings the people immediately, telling them what they did right.

[3] One Minute Raprimands:

One Minutes raprimands are given as soon as an employee does something wrong.
It has two parts:

1. Telling the people that what they did wrong, how we feel about it and
then let it sink in with a few couples of uncomfortable silence.
2. Tell the people how much we think they are capable of and how much
we value them.
-> One important aspect of this is, that it criticizes the work not the doer.

-> The employee is not blamed as a person, only his work is accused of not being
up to the desired level.

 The traits in Big Winners and Big Losers

 Four elements in The Seven Habits of Highly Effective People

 Seven habits of highly effective people are as follows -
 1) Be Proactive
 2) Begin With the End in Mind
 3) Put First Things First
 4) Think Win-Win
 5) Seek First to Understand, Then to Be Understood
 6) Synergize
 7) Sharpen the Saw
 One of these habits I would like to explain is "Be Proactive." Being
proactive means analyzing a situation and its outcomes before it happens. It
indicates us to react to the things and don't want for something to happen.
Do things in your way, not like it is supposed to happen.
  Five stages in How the Mighty Fall
 Five Stages of Decline is a concept developed in the book How the Mighty
Fall. Every institution is vulnerable to decline, no matter how great. We
found that great companies often fall in five stages:
 1) Hubris Born of Success,
 2) Undisciplined Pursuit of More,
 3) Denial of Risk and Peril,
 4) Grasping for Salvation, and
 5) Capitulation to Irrelevance or Death.
Institutions can be sick on the inside and yet still look strong on the outside;
decline can sneak up on you, and then—seemingly all of a sudden—you're
in big trouble.

 Good and bad of charisma in leadership

 Advantages of charisma in leadership
 Increased Employee Loyalty – Because charismatic leaders are adept at
motivating and inspiring employees, it is likely that leaders can encourage
an increase employee loyalty and commitment. Their goal is to make
employees feel that their work and talents matter. Therefore, it is likely that
employee engagement will increase and turnover could decrease.
 Leader Creation – Charismatic leaders and managers have an infectious
personality that can spur up-and-coming employees to become leaders
eventually. The qualities of these leaders can take on a trickle-down effect
and become a part of an employee’s eventual management style.
 Higher Productivity – These leaders are exceptionally skilled at gaining
the trust and respect of those who they manage. As a result, employees are
more likely to adhere to the high expectations of charismatic leaders. The
effects of this have a high probability of spurring increased productivity and
better-quality work.
 A Move Toward Innovation – Charismatic leaders are driven toward
change and innovation that makes sense. Therefore, these individuals will
always look for opportunities to better the organization and improve
processes. This means the company can always stay up-to-date on the latest
trends and organizational practices.
 Establish a Learning Culture – Major qualities of charismatic leadership
are humility, effective communication, and improvement. Because these
leaders have focused more on growth then punishment, mistakes are treated
as learning opportunities. Employees are encouraged to find another
solution to problems when the original plan did not work. This could create
a setting where employees feel more comfortable taking a risk and finding
better solutions.

 Disadvantages of the charisma in leadership

 Wrong Focus – The main difference between charismatic

and transformational leadership is the focus on ethics. Charismatic
leadership can become more so about the personality and belief system of
the individual. Their power to influence others could drive them to become
arrogant and shun humility or compassion.
 The Creation of “yes-men” – Because the personality of these leaders can
turn admirers into followers, it is easy for their big personalities to create
“yes-men.” As a result, the ideas of a charismatic leader could go
unchallenged leading to the implementation of plans that are less than
favorable.
 The Company Suffers if They Leave – To no fault of their own, a good
and effective charismatic leader may have been the backbone of the
business. Their tenacity, drive, and leadership could have caused many to
depend on their ability without developing their own. As a result, their
departure could leave a hole that no one has been trained to fill.
 A Lack of Clarity – If a leader has delivered more successes than failures
then they can start to rest on their charismatic abilities and forget to employ
tactics that are also responsible for success: consulting the team, looking at
previous performance data, and remembering the mission and vision of the
company.

 Psychological capital and the four elements of positive organizational

behavior
  Psychological Capital is defined as “an individual’s positive psychological
state of development” (Fred Luthans, et al., 2007) which is characterized by
having high levels of HERO; the four elements of Hope, (Self-)Efficacy,
Resilience, and Optimism.

 The concept of PsyCap has become even more relevant with recent findings
in the area of neuroplasticity. Since our brain is malleable, PsyCap can be
developed and strengthened. Further, PsyCap can be managed and assessed.

Originally developed in an organizational context, the concept of Psychological

Capital with its four pillars of Hope, Efficacy, Resilience, and Optimism
(HERO) has been linked to job- as well as life satisfaction.

- Hope and optimism are both personality traits that have been linked to
physiological and psychological well-being (Du, Bernardo, & Yeung, 2015).
According to Rick Snyer et al. (1991 p. 257),

Hence, hope is a cognitive process that motivates to find willpower (goal-directed

determination) and waypower (planning of ways to meet goals) which leads to
positive emotions (the expectation of meeting desired goals).

How to Develop Hope

Enriching the following three components have found to be successful in

developing hope:

1. Goal setting and perceived ability (pathway thoughts)

The concept of hope is strongly based on the belief that individuals want to achieve
goals. Generally, approach-oriented goals (moving towards something) are
emphasized over avoidance-oriented (moving away from something) goals.

In a work context, ideally, goals are specific, measurable, attainable, relevant and
time-based as well as clearly communicated. Leaders can support employees by
breaking down complex, difficult goals into bite-size portions. What is more,
appreciating or even celebrating small milestones can be a key motivation for
employees. They become more confident they can reach the goals (Fred Luthans &
Youssef, 2004).
2. Motivation (agency thoughts)

Autonomy and meaning have found to be key factors to create intrinsic motivation
with employees.

Although clients generally decide for themselves what they would like to achieve
through coaching, their goal needs to be validated as their own. Often, coachees
confuse their goals with what they believe others would want them to achieve. As a
result, coachees may lack a sense of motivation towards a goal they do not “own”.

- Efficacy

Whether we have the confidence to take on and put in the necessary effort to
succeed at challenging tasks determines how we feel, think and motivate
ourselves.

The belief that we can produce the desired effect is a major incentive to act
in the first place. The higher our efficacy expectancy, the harder we will
work to achieve our goals, leading to a higher probability of success.

There are two key ingredients to self-efficacy:

1. Outcome expectancy (examination of what needs to be done)

2. Efficacy expectancy (examination of our own capability to do what needs

to be done)

How to Develop Self-efficacy

Bandura (1994) found that our level of self-efficacy is affected by the following
processes:

 Cognitive (thoughts shape reality)

 Motivational (expected outcomes based on our beliefs shape our motivation)
 Affective (perceived coping self-efficacy regulates avoidance behavior)
 Selection (we only expose ourselves to situations we believe we can master)

Resilience
Resilience is the capacity to bounce back from adversity and grow stronger from
overcoming negative events (Fred Luthans, 2002; Reivich & Shatté, 2002).

We all experience hardship and rejection in life. But what makes us successful and
striving is not defined by how often we get rejected but how often we bounce back
and give it one more go. In essence, resilience is about learning to fall.

How to Develop Resilience

According to Senior Editor Diane Coutu (2002), resilience is a combination of the

following three capacities:

1. Face Reality

2. Search for Meaning

3. Improvise

Optimism

Optimism has been defined as making a positive attribution about succeeding now
and in the future.

People with a low external locus of control tend to internalize positive events and

take the credit.

They believe that in order for something good to happen, they need to work for it.
Optimists, however, believe that good things will happen to them in the future, no
matter what.

How to Develop Optimism

Developing optimism is all about changing focus. It can be developed by exercises

of accepting the past, appreciating the moment and viewing the future as a source
of opportunity. The way we assess past events has a major impact on how we
predict the future.

Reframing is a great technique with coaches as well as employees to achieve a

change in vision and it can be used by leaders in the context of organizations as
well as in coaching and therapy sessions.
  Transparency and candor
 Budget transparency refers to the full disclosure of all relevant fiscal information in a timely
and systematic manner
 Transparency allows citizens to provide inputs into the budget process and to assess whether
a government executed the development plans in accordance
with budgetary allocations. transparency is particularly important because it makes it
possible for the citizens, government creditors and participants in the financial markets to
precisely measure the financial position of the country and determine the actual costs and
benefits from government activities and measures.


 Strategies of positive leadership

 Potential downside of optimism

 Vital ingredients of Mojo and professional Mojo quality

 Institutional pride and self-serving pride

 Organizational culture and given group

 How to master team learning

 Downsizing myths and facts

 Maslow’s hierarchy

 Human motivation factor in The Enthusiastic Employees

 Obstacles to building power

 How to build your own influence (suggestion from Jefferey Pfeffer)

 Bad leadership and the types

 Five disciplines of a learning organization

 Three circles of thought

- Drive system : Function: Achieve goals, consume, accomplish tasks
- Smoothing system: slow down, soothe, rest and digest, safeness, kindness,
care
- Threat system: Manage threats, protection, survive, seek safety.