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PT
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PRINCIPLEs OF MANAGEMENT
DR. S. SRINIVASAN
VGSOM, IIT KHARAGPUR
Module 04:
Lecture 01 : Concept, Importance and Steps of Management by Objectives
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PRINCIPLEs OF MANAGEMENT

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Main Topics to be discussed are

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Concept, Importance and Steps of Management by Objectives
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Concept, Importance of Management by Objectives

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Concept of Management by Objectives (MBO)

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Management by objectives is a strategic model of management that aims to
improve the performance of an organisation by clearly defining the objectives

P
to both the management and the employees.
It is, from the above, we find a model-

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Ø having a say in goal setting and action plans
Ø encourages participation and commitment among employees
Ø aligning objectives across the organisation
In other way, it is the personnel management technique where managers and
employees work together to set, record and monitor goals for a specific period
of time.
It is also known as management by results (MBR).
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The objectives of the management by objectives

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Drucker, P. has termed the objectives of management by objectives, as SMART

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objectives which include the followings-
Ø Specific: It sets a specific area of target for a special thrust of improvement.

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Ø Measurable: It suggest or quantifies the indicators for measuring the progress
of actions taken to achieve the target.

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Ø Assignable: It specifies the allotment of duties, responsibilities and resources
to the employees who will do for it.
Ø Realistic: It states about the results that can realistically be achieved as per
available resources and feasibilities.
Ø Time-bound: Specifies the stipulated timeframe when the results can be
achieved from each plan of action being undertaken by the employees.
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Importance of MBO

E
There are certain importance of MBO, which may be discussed as
follows-

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Ø Increases employees’ job satisfaction: Inviting employees into the

P
whole process of goal setting, MBO helps employees to be more
empowered and committed towards job responsibilities. This increases
their job satisfaction.

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Ø Clarity of goals: Employees encouraged to take part into the process of
goal setting through which employees themselves set their individual
goals in tune with organisational goals.
Ø Maintaining harmonious relationship: MBO helps to have frequent
interaction and review with their seniors and subordinates which
enhances the harmonious relationship with in the organisation.
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Importance of MBO

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Ø Ensuring the objectives setting of subordinates: Managers help

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subordinates to set their objectives having closely linked with the
objectives of the organisation

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Ø Increase higher commitment among employees: MBO encourages
subordinates tend to have higher commitment to objectives as they

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set for themselves than those imposed on them by another
person/manager.
Ø Unifies the principle of management: It encourages to work on the
common goals for the organisation which unifies the directive principle
of management.
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Characteristics of MBO

E
MBO has important characteristics. Such as-

T
Ø It is a particular form of the organisation or its unit plan in which
objectives are laid down.

P
Ø There are time bound and measurable objectives for each managerial
position.
Ø In this process, objectives are set by the employees and the

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management together.
Ø It facilitates the mutually agreed job improvement plans to accomplish
as per objectives.
Ø It ensure periodic review and updating whenever necessary by the
management and subordinates together.
Ø It provides appropriate guidelines for appropriate system and
procedures.
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Basic principle of MBO

T E
The principles which are kept in mind for stepping down the management
by objectives may be noted below-

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Ø Principle of purposeful participation of employees in setting
meaningful work and accountable results.

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Ø Principle of time bound exercise focuses largely on the expected results
and greater likelihood of achieving them
Ø Principle of unity of management action is more likely to happen as
there is common objective to pursue.
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Conditions that influence MBO

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Drucker, P. has set a number of conditions influencing on the MBO. Those
may be put down with a brief discussion as follows-

T
Ø Objectives are determined with the employees.
Ø Objectives are formulated at both quantitative and qualitative levels.

P
Ø Objectives must be challenging and motivating.
Ø Daily feedback on the state of affairs at the level of coaching and

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development in stead of static management reports.
Ø Rewards for achieving the intended objectives is necessary in the form of
recognition, appreciation and performance related pay.
Ø Basic principle is for growth and development not for punishments.
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Steps of MBO

E
For better practice of management by objectives, Drucker has developed its

T
five steps which are being put down as follows-

Ø Step-1, Determining the organisational objective: Organisational

P
objectives are the entry point of management by objectives.
Ø Step-2, Translating the organisational objectives to employees: In order

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to make the organisational objectives as organisation wide, it is important
to translate these to employee level.
Ø Step-3, Stimulating for employees’ participation: It is considered when
the objectives of the organisation are discussed and shared throughout all
levels of the organisation and everyone understand why certain things are
expected from them.
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Steps of MBO

T E
Ø Step-4, Monitoring of progress: As there is SMART goals, it is then
measurable otherwise, a system will have to be developed through which

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monitoring function is activated to keep the process in track.
Ø Step-5, Evaluation and rewards for achievement: MBO is designed to
improve performance at all levels of the organisation. An evaluation

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system is necessary in order to understand the progress as well as to
reward for the achievement.
In addition to above, the process of MBO is included some more steps which
are related to- goal setting of each section, fixing key results areas or action
points, matching resources with objectives, appraisals of activities, etc.
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Advantages of MBO

E
Management by objectives is a result oriented process as a result of which it

T
has certain advantages, such as-

Ø It encourages managers to do detailed planning as it focuses on setting

P
and controlling goals.
Ø There is no role ambiguity and confusion as the managers and
subordinates of an organisation know the expectation from them.

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Ø The responsibilities and authority of the employees and managers are
clearly established for which managers can set measurable target and
standard of work done.
Ø It makes the employees more aware of the organisational goals as they
take part into the process.
Ø It highlights the need and area of further training and career
development for the employees.
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Advantages of MBO

T E
Ø The system of periodic evaluation helps employees know how well they
are performing as it puts emphasis on measurable and quantifiable

P
objectives.
Ø It helps to improve better communication between management and
subordinates as objectives are set together.

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Ø It encourages better team work in order to achieve the goals of the
organisation.
Ø It strengthens the organisational structure and operational strategies as a
whole.
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Disadvantages of limitations of MBO

E
In spite of having certain advantages as discussed earlier, it has certain
disadvantages or limitations, such as-

T
Ø The success of the MBO is largely depending upon the top of management.
Ø The subordinates may be under pressure in case objectives and goals are set

P
without realistic view.
Ø The process involves too many meeting and too many reports which lead more
paper works and may take and waste times of the management.

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Ø Group goals achievement is a difficult task.
Ø The integration with other system like, forecasting and budgeting is very poor.
Ø Most of the managers may not be skilled enough to do all the exercises.
Ø Frequently changed socio-economic and technological environment affect the
stability of long term organisational goal.
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REFERENCES

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Ø Aswathappa, K.(2014). Organisational Behaviour, Text, Cases Games. Himalaya Publishing

P
House, Mumbai
Ø Bhattacharyya, D.K. (2012). Principle of Management, Text and Cases, Pearson, New Delhi

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Ø Charles, W.L. Hill. and Steven, L. McShane. (2008). Principles of Management, Published
by McGraw-Hill/Irwin
Ø Stoner, A.F. Principle of Management, Pearson, New Delhi.
Ø Ellen, A. Benowitz. (2001). Clifford Quick Review Principle of Management, Hungry Minds,
New York, NY 10022
Ø www.managementstudyhq.com/advantages-and-disadvantage-of-mbo/
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CONCLUSION

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This lecture session has covered basic concepts, objectives, importance,

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steps, advantages and characteristics of management by objectives which
will be helpful to all Learners to have knowledge and capabilities on all these
issues of management by objectives since they would have careful

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observation and attendance of the lecture session.
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PRINCIPLEs OF MANAGEMENT
DR. S. SRINIVASAN
VGSOM, IIT KHARAGPUR
Module 04:
Lecture 02 : Concept, importance and steps of management by exception
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PRINCIPLES OF MANAGEMENT

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This lecture session will be held to discuss on the concept,
importance and steps of management by exception
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Concept of management by exception (MBE)

E
Generally, we find by its name that anything exception from norms is an
important considerable issue in management.

T
Management by exception is a strategy in which management steps in at the

P
stage when there is significant deviations from planned outcomes.

For example, if a unit of a company fails to attain its goals, however, headquarter
managers are likely to ask questions. If they don’t get satisfactory answers, they

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are likely to intervene in a unit, perhaps actions taken, like- by replacing managers
and looking for ways to improve efficiency.
MBE is a style of organization management which focuses on identifying, handling
and resolving the situations that deviate from the norms, process and rules by
skilled management and upgrade software tools.
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Importance of MBE

E
There are significant role of management by exceptions. In modern
management, MBE is given due importance for many reason which may be

T
laid down as follows-
Ø Effective utilisation of time by bringing management to focused issues for

P
which their attention are required rather than searching for whole of the
organisation.

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Ø Ensures effective and timely decision making with appropriate alternative
course of action for employees and management.
Ø Helps to identify the state of affairs of deviation and discrepancy taken
place.
Ø Helps the customer of business organisations as it helps to easier growth
and development of the organisation.
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Conceptual difference between MBO and MBE

E
Both the concepts have significant roles in management practice. In spite of
having similarity in some aspects, there are some differences between

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them. Such as-

P
Areas MBO MBE
Problem specific drive
Employee Employees and management
by management, it is
participation jointly work, it is essential

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minimum
Role ambiguity Clarity on role is better Clarity on role is lacking
Dependency of one unit with Dependency of one
Dependency
other is less unit with others is high
Whole organisation is involved Only a certain group
Efficiency so it delays and reduces involved so there is
efficiency better efficiency
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Steps in MBE

E
The practice of MBE has made the work of management more easier by leading

T
them to a focused area of intervention where the deviation has been occurred. It
is done through certain stages which may be discussed as follows-

P
Ø Step-1, setting objectives or norms: Setting norms and objectives for each task
and procedure as the first step means to outline the deviations or exceptions
that require attention of the managers.

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Ø Step-2, performance assessment in comparison to norm: It is most relevant
step as all future course of actions are depending upon the proper use and
collection of data, assessment of database to compare with the norms and
then to move on dealing with them. Careful attention is required on monitoring
and data collection system are based on real time
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Steps in MBE

E
Ø Step-3, analysing the deviation: It is done to analyse how far the deviation is

T
significant and whether it is acute as it might seem. Analysing is also, done to
see the deviation occurred because of the changes in specific procedure. In

P
that case, management can decide whether deviation is necessarily required
correction or not.

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Ø Solving the exceptions to the norms: After analysing the deviation, it is clear
on where lies the deviation or exceptions or the state of performance which
were not met as per setting objectives. Rectified actions needs to be decided
keeping in mind about its impacts on other issues/targets.
These are the steps through which exceptions are taken care of and modified in
light of objectives and goals set to achieve from it.
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Principles of MBE

E
The practice of MBE is influenced largely by the guiding principles, which have
been laid down as follows-

T
Ø Following up the policy of the organisation: It is common that top level
management frame out the norms and policies and other levels are to

P
implement which are considered as per hierarchical norms.
Ø Systematic approach: It is considered that all organisations need to maintain

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standard, analyse data and make decision as per requirement of the
organisation in order to achieve its predetermined objectives and goals.
Ø Self control: It is the management who exercises full freedom to take decision
as per requirement to solve as many problems as possible at that level.
Ø Knowledge of exceptions: It is assumed by this principle that the top level
management is capable to understand and judge the exceptional problems and
suggest for possible solutions.
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Principles of MBE

E
Ø Differentiate between routine and exceptional activities: It is in this principle

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considered that the top level management will take care of exceptional
activities while routine works are taken care of by the middle or subordinate

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levels.
Ø Delegation of authority: It is important principle that allows management and
subordinates to exercise adequate power and authorities to perform necessary

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duties at their level best.
Ø Hard labour and discipline: It is to point out that all level managements and
subordinates should perform their duties in the organisation as per disciplined
manner.
Ø Continuous supervision: It is observed for better work and understanding of
given directions.
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Principles of MBE

E
Ø Invite co-partnership: It is followed better achievement of objectives and goals

T
by inviting partnership and cooperation from the employees by the top level
management

P
Ø Development of subordinates: It is observed for providing enough scope to
employees for having necessary training, motivation and facilities for their

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development.
Considering all the principles may help to yield better result for an organisation
towards achieving its goals with wholehearted support and efforts of the
employees and management.
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Advantages of MBE

E
The advantages of MBE may be put down as follows-

T
Ø Time effective: the exceptions are identified and its time effective to

P
managers as they are to give special attention only on focused
issue/problems identified by the particular units/branches.
Ø Enables for quick decision: It helps managers to make prompt

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decision as early as possible only because the problems and crisis
points are already identified in the organisation.
Ø Alarming on the ‘pros and cons’: It helps to understand the prospects
and concern of each action being taken by the managers for making
out suitable way of solving the specified problems.
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Advantages of MBE

T E
Ø Use of suitable scales: As per database and fact finding study,
managers may use statistical tools to draw the significance for judging
the progress qualitatively and quantitatively.

P
Ø Helps to use span of control: It is the manager who can decide as per
strategy set at the top of the organisation in order to increase the

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volume of activities to the management as well to the employees.
Ø Prevents from over managing: As this approach involves use of
statistical tools and techniques, it is therefore, very helpful to control
over managing the resources, money and manpower.
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REFERENCES

PT
Ø Bhattacharyya DK. (2012). Principle of Management, Text and Cases, Pearson, New Delhi
Ø Charles WL Hill and Steven L McShane. (2008). Principles of Management, Published by

N
McGraw-Hill/Irwin
Ø Stoner AF. Principle of Management, Pearson, New Delhi.
Ø Simon, H. A. (1982). Models of Bounded Rationality. MIT Press, Cambridge, MA
Ø www.cio-wiki.org/management-by-exceptions/
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CONCLUSION

PT
In this lecture session, concept of management by exception, its

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importance, process and advantages have been been discussed in
details. The learners will be able to have knowledge about various
issues of management by exceptions and replicate the concept
during their management practice
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PRINCIPLEs OF MANAGEMENT
DR. S. SRINIVASAN
VGSOM, IIT KHARAGPUR
Module 04:
Lecture 03 : Style of Management (American, Japanese and Indian)
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PRINCIPLES OF MANAGEMENT

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In this lecture session different styles of management will

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be discussed with special reference to American, Japanese
and Indian
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An overview of America, Japan and India in global context

E
A team from Harvard Business School, London School of Economics, McKinsey &

T
Company, and Stanford has systematically surveyed global management over
10,000 firms in 20 countries special reference to America, found that:

P
§ The organizations with better management massively outperform their
disorganized competitors. They make more money, grow faster, have far higher
stock market values, and survive for longer.

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§ American firms outperform all others. This U.S. dominance occurs in the
manufacturing, retail, and healthcare sectors but not in high school education.
§ Japanese, German, and Swedish firms follow closely behind America.
§ Developing countries like Brazil, China, and India lag at the bottom of the
management charts
§ Middle stand countries like the UK, France, Italy, and Australia, which have
reasonable but not brilliant management practices.
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An Introduction about American Management

T E
America is considered as the leader in modern management practice. The
country has open and free economy and people of this country enjoy full

P
freedom to lead their lives without hard and fast social rules and barriers.
It is most advanced country in the world.

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Being a capitalist country, the economic and commercial organizations of
this nation are mostly run with profit making ideology and accustomed to
the 'hire and fire' style of management.
The country pioneered its employment of manpower on contractual basis
which has been adopted in most of the countries in the world.
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The characteristics of American Management Style

E
Ø 1. Process of decision making is quite fast and it is undertaken on individual

T
basis. Decisions are taken at different levels of management by the people
or superiors operating at these levels.

P
Ø 2. The system adheres to bureaucratic and formal organizational structure
with the specific line of individual responsibility and accountability.

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Ø 3. American companies meet their manpower requirements usually by
conducting campus interviews and inviting people working in other
companies. It is helpful in developing a culture of frequent hopping.
Ø 4. People are more career conscious and are honest towards their
profession rather than the company in which they are working. In-fact,
they use the present company as a stepping stone for the advancement of
their career.
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The characteristics of American Management Style

T E
Ø 5. Promotions in American companies are based on individual

P
performances. Annual performance evaluation is undertaken
select the most efficient workers.
Ø 6. Training and development programmes are part and parcel of

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every type of organisation in the United States of America.
Ø 7. Leadership style is autocratic or directive in nature and main
decisions are undertaken by the leaders.
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The success in American Style of Management

E
Ø One of the biggest drivers of the success is the variation in people

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management. American firms are ruthless at rapidly rewarding and
promoting good employees and retraining or firing bad employees. The
reasons are manifold.

P
Ø There is tougher levels of competition where U.S. open markets generate
the rapid management evolution that allows only the best-managed
firms to survive.

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Ø Human capital is important in context that America traditionally gets far
more of its population into college than other nations.
Ø There is more flexible labor markets in this country which is much easier
to hire and fire employees at any point of time.
Ø Organisations or business houses of many developing countries ignore
the fact that labor is different from other inputs, even while trying to
implement new techniques like Lean Management.
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An Introduction about Japanese Management

E
Japanese management is characterized by lifetime employment, a seniority

T
wage system, vague job classifications (which means an unspecified range of
responsibilities and power) and groupism.

P
It is generally true that workers select their employers, not their occupations.
In all these forms of decision making, human motivation plays important role

N
to make a specific choice and is guided more by a desire to be more right and
rational to make decisions.

Because the system and individual jobs in one enterprise are incompatible
with those of others, there is a tendency created among employees to settle
in one company, which justifies the immense educational investment made
by the enterprises.
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Characteristics of Japanese Management style

E
Eleven most important features of Japanese management are:

T
§ Life time employment
§ Discrimination

P
§ Recruitment
§ Seniority wage principle

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§ Training
§ Enterprise unionism
§ Single status
§ Employee involvement
§ Core and peripheral workers
§ Employee welfare and
§ Internal labour market.
 L
Characteristics of Japanese Management style

E
Eleven most important features of Japanese management are:

T
§ Life time employment : Organisations in Japan provide permanent and

P
life time employment to workers until they decide to retire.

§ Discrimination: Japanese ideology does not reflect a tendency towards

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discrimination at the work place in the sense that male workers have
higher chances of a job for life, as opposed to women.

§ Recruitment: The recruitment procedures for new employees are more

rigorous to ensure the cream of the crop are identified, utilized and
cultivated.
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Characteristics of Japanese Management style

T E
§ Seniority wage principle: This is based on the wages of employees being
linked to the number of years he has worked. It is used on the premise of

P
securing long term loyalty from the employees for the firm.

§ Training : Japanese system involves the continuous training of core staff

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to ensure their training needs match with those which benefits the
achievement of organisational goal.

§ Enterprise unionism: Japanese trade unions aim for shared prosperity,

with security of employment and the stability of the business being the
main prerogatives. Corporations in Japan are encouraged to extinguish
independent trade unionism and replace it with the system of enterprise
unionism
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Characteristics of Japanese Management style

T E
§ Single status: Management is often trained for some period on the shop
floor, wearing the same uniforms and sharing the same dining areas to
become more familiar with the shop floor workers.

P
§ Employee involvement : From making suggestions on the shop floor to
improve efficiency and productivity through the involvement in the

N
business decision making process. Decision flows from bottom to top.
§ Core and peripheral workers: In the Japanese management system,
large organisations often recruit a core work force which is considered
to be the long term permanent staff. There is procedure for slow
evaluation of work and employees promotion.
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Characteristics of Japanese Management style

T E
§ Employee welfare: Japanese manufacturers provide a complete
welfare packages for the employees such as reduced priced goods,

P
health care measures, low rent housing and low rate loans etc.
There is holistic concern for the employee as a person.

§ Internal labour market: The Japanese system favours the

N
employers promoting people from within the organisation as
against the external recruitment, thereby thrust on utilizing skills
and experience from a wide range of workers within the
organisation. There is non specialised career path.
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Comparison between American and Japanese Management style

E
Academicians have identified certain features which make differential styles
of management between America and Japan. Such as-

T
American Style Japanese

P
Employees work at individual Employees work as group
responsibility responsibilities
Competitive mind Team work mind

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Minimum respect to employer
Loyal to self and work to live
Directive style
Monitoring by managers
Prompt decision making
Substantial respect to employer
Loyal to company and work with
collective responsibilities
Paternity style
Monitoring by employees
Delayed decision making
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Comparison between American and Japanese Management style

T E
American Style Japanese

P
Short term employment Lifetime employment
Rapid evaluation and promotion Slow evaluation and promotion

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Explicit formalised control Implicit informal control
Specialised career path Non specialised career path
Segmented concern Holistic concern
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Introduction about Indian Management style
Indian is having an enormous societal hierarchy which has influenced on the

E
management style of functioning. Managing people of India requires some
segmentation and micro level management practice which other countries

T
like western may feel uncomfortable, but it gives the best output in
organisational behaviour.

P
It is the tradition that India has inherent practice of lordship, better to say a
bossism style of management is predominantly existing. Managers behave

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like a boss and employees are habituated to abide by that.

The human relation is a key to success in management practice but the

technology, research and development of professionals have enough scope
to achieve success.

Money is not the motivator for work of manager aggressively, so that India
has ample scope of enjoying leisure with family, health and insurance.
 L
Characteristics of Indian Management style

E
The characteristics of Indian Management styles can be discussed

T
herewith as follows-

P
§ Hierarchical status: Because of the hierarchical structure of Indian
society managers are treated differently. They are often trained to lead
the organisation as boss and ultimate respect is grated for them.

N
§ Maturity of management : Strong management skills and continuous
effort to invest for initiatives to strengthen the organisation are always
practiced as Indian management style.
§ Structural empowerment: Some Indian companies are exercising cross
functional analysis of individual performances for gainful empowerment
through research, training and development.
 L
Characteristics of Indian Management style

T E
§ Accelerated resource development: There is very lower strategic
support by Indian companies to persuade for identification of potential

P
employees as future human capital.
§ Emphasis on employee welfare: Indian companies have adopted the
policy to provide enough scope to employees for enjoying with family,

N
health and insurance rather than that of giving money as the motivating
instrument.
§ Socio-cultural practice: Indian workers are unlikely to question a
superior even if, they are absolutely wrong because of the existing socio-
cultural practice.
 L
Characteristics of Indian Management style

T E
§ Human resource development: Indian management practice is

P
emphasizing more on investing for human resource development
through training, recruitment, service related benefits and quality of life
accommodations rather than motivating with only cash.

N
§ Less innovation: It is basic trend of Indian management style to have
more workload on employees with poor execution as a result of that
employees’ motivation for innovation and skill upgradation is not taken
care of.
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REFERENCES

PT
Ø Bhattacharyya DK. (2012). Principle of Management, Text and Cases, Pearson, New Delhi
Ø Charles WL Hill and Steven L McShane. (2008). Principles of Management, Published by

N
McGraw-Hill/Irwin
Ø Stoner AF. Principle of Management, Pearson, New Delhi.
Ø Ellen A. Benowitz. Clifford Quick Review Principle of Management, Hungry Minds, New
York, NY 10022
Ø https://hbr.org/2011/06/why-american-management-rules
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CONCLUSION

PT
This lecture session on different styles of management in

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special reference to America, Japan and India is very
important in management education in order to have
knowledge about different aspects of management styles in
the global context and learners will be able to enhance their
mind set in comparison with Japanese and American Style of
management while they are learning from this lecture
session.
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PRINCIPLEs OF MANAGEMENT
DR. S. SRINIVASAN
VGSOM, IIT KHARAGPUR
Module 04:
Lecture 04 : Approaches of management including McKinsey’s 7’s approach
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PRINCIPLES OF MANAGEMENT

PT
This lecture session will be held on approaches of

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management including McKinsey’s 7’s approach.
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Introduction

E
The contemporary school of management thought provides a framework of
management practices based on more recent trends like globalization,

T
theory Z concepts, McKinsey’s 7-S approach, excellence models, and
productivity and quality issues.

P
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom

N
Peters, Robert Waterman and Julien Philips with a help from Richard
Pascale and Anthony G. Athos.

McKinsey 7s model is a tool that analyzes firm’s organizational design by

looking at 7 key internal elements, in order to identify if they are effectively
aligned and allow organization to achieve its objectives.
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McKinsey’s 7-s Framework

E
McKinsey’s 7-S framework developed by T. J. Peters and R. H. Waterman

T
(1982) identified seven independent organizational factors that need to be
managed by today’s managers.

P
1. Strategy: To determine allocation of scarce resources and commit the
organization to a specific course of action
2. Structure: To determine number of levels (in hierarchy) and authority
centers

N
3. Systems: To determine organizational process, procedures, reports, and
routines and it should be the main focus for managers during organizational
change.
4. Staff: To determine key human resource groups in the organization and
describe them demographically
5. Style: To determine the manner in which managers should behave in
achieving organizational goals
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McKinsey’s 7-s Framework

E
6. Shared value: The norms and standards that guide employee behavior and

T
company actions and thus, are the foundation of every organization to
determine the guiding concepts that an organization has to instill in its

P
members
7. Skill: To determine the abilities of people in the organization. The 7-S
framework suggests that any change in any S factor may lead to

N
adjustment of other S factors. During organizational change, the question
often arises of what skills the company will really need to reinforce its
new strategy or new structure
Meanwhile, the concept of 8S has been introduced with the addition of one
more S, namely, streaming. Streaming includes those areas that either
indirectly or directly influence or shape the other S factors.
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PT
N
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Steps to implement the 7s model

E
The implementation of 7s approach generally varies from the organization to

T
organization. According to the need and objectives of the organization it can
be implemented step by step. Here are such step wise implementation:

P
Step 1. Identify the areas that are not effectively aligned:
During the first step, attempt is taken to look at the 7S elements and identify if
they are effectively aligned with each other. Normally, every manager should

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be aware of how 7 elements are aligned in his/her company.
Step 2. Determine the optimal organization design:
With the help from top management, the second step is to find out what
effective organizational design managers want to achieve. By knowing the
desired alignment, managers can set their goals and make the action plans
much easier.
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Steps to implement the 7s model

T E
Step 3. Decide where and what changes should be made:
This is basically organisation’s action plan, which will detail the areas it wants
to realign and how would it like to do that. If it is found that the organisation’s

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structure and management style are not aligned with company’s values, then ,
manager should decide how to reorganize the reporting.

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Step 4. Make the necessary changes:
The implementation is the most important stage in any process, change or
analysis and only the well-implemented changes have positive effects.
Therefore, manager should find the people in the company or hire consultants
that are the best suited to implement the changes.
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Steps to implement the 7s model

T E
Step 5. Continuously review the 7s approach-
The seven elements: strategy, structure, systems, skills, staff, style

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and values are dynamic and change constantly. A change in one
element always has effects on the other elements and requires
implementing new organizational design. Depending upon the

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review and effectiveness of elements may be rescheduled.

As per identified need and changing shape of organizational

structure this approach may time to time be reviewed and
elements may be rearranged
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Advantages of 7s approach

T E
This model has been successfully applied by many known business entities
to bring efficiency in their operations. It has certain advantages, such as-

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Ø Organisational effectiveness: When the essential components of the firm
are aligned with its vision, the organization can achieve the desired
objectives in a better way.

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Ø Aligning organisational process: It helps in bringing the various
departments and processes in sync with each other, especially when
mergers or acquisition takes place.
Ø Implementation of strategy: It also facilitates the systematic application of
the policies, regulations and strategies framed by the top management.
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Advantages of 7s approach

T E
Ø Analysing impact of future change: The management can analyze the
effects of changing corporate culture, policies, strategies, structure,

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technology over the organization with the change of time.
Ø Setting comprehensive framework: It is a broad approach since it

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inspects each of the seven elements and their correlation with each other
for making a comprehensive framework.
Ø Linking with academic research with management: This model is not
only theoretically developed but have been practically tested and applied
for managing business organizations through academic research.
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Limitations of 7s Approach

E
Despite having its different advantages, this approach has few limitations,

T
such as--

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Ø Lack of practical support: The conclusion of the analysis sometimes does
not have a proper factual back up.
Ø Loopholes in strategy formulation: There are possibilities that the

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management may overlook some of the minute facts while framing or
implementing the strategies.
Ø Lacking proper explanation of strategy: When it comes to the
accomplishment of strategies, the analyst fails to explain such application
clearly.
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Limitations of 7s Approach

T E
Ø Static model: It is a stagnant framework, especially in the short-term, since
its result cannot be analyzed so soon.

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Ø Difficult to assess validity: It is difficult to evaluate the degree of suitability
of this model in a business organization.

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Ø Ignores external environment: This framework emphasizes on the analysis
of the organization’s internal factors, neglecting the external factors which
substantially affect the business operations.

Despite the limitations, the 7s tool strongly believes that the organizational
values hold significance in nurturing a business where all the other aspects
are framed in alignment with this factor.
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REFERENCES

PT
Ø Bhattacharyya, D.K. (2012). Principle of Management, Text and Cases, Pearson, New Delhi
Ø Charles, W.L. Hill and Steven, L. McShane. (2008). Principles of Management, Published by

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McGraw-Hill/Irwin
Ø Stoner AF. Principle of Management, Pearson, New Delhi.
Ø Ellen A. Benowitz. Clifford Quick Review Principle of Management, Hungry Minds, New
York, NY 10022
Ø https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html
Ø https://theinvestorsbook.com/mckinsey-7s-model.html
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CONCLUSION

PT
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This lection session has given clear picture on the background,
elements, steps of implementation, advantage and limitaions of
McKinsey’s 7S Approach with an aim to make aware all learners
about it and enhance their level of thinking and perception on all
these aspects of 7s approach.
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PRINCIPLEs OF MANAGEMENT
DR. S. SRINIVASAN
VGSOM, IIT KHARAGPUR
Module 04:
Lecture 05 : Introduction, strategies, techniques, benefits and rules of Self
Management
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PRINCIPLES OF MANAGEMENT

PT
This lecture session included the introduction, strategies,

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techniques, benefit and rules of self management
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Introduction about Self Management

T E
Self management sounds like I am being my own boss, but it doesn’t mean
setting up my own organisation or business. In fact it means taking
responsibility for my own actions and doing things as well as I can. It shows I

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am able to organize myself and offer my own ideas to any project. It’s about
being the boss of mine, not the boss of a team or company.

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Self-management is the very important thing which will help individual during
all life. It helps to achieve the goals, manage time, and organize life.

Effective self-management will help individual avoid stress, give him/her more
opportunities to get involved in any interesting activities, and will show the
world.
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Strategies of Self Management

E
Several strategies exist to improve self management. Which have been

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discussed below-
Ø Try not to stop, and should not leave situations as like they are, keeping

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involved continuously, watch and then working on the strategy.
Ø Keeping close observation on the things that surrounds us, evaluate
everything, and think through risks.

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Ø Always making reinforce and aggravating thoughts, words, actions with
more facts.
Ø Keeping own self, stop of making excuses – instead of that work on new
challenges learning from previous mistakes.
Ø Focusing on effort, not focusing on results.
Ø Using positive thoughts and phrases for a better cooperation.
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Techniques of Self Management

E
In their professional practices, managers have to adopt some techniques of
self management, which may be briefly discussed as-

T
Ø New initiative may be taken by starting a project or activity depending on
the own idea. For example, if someone always wants to start own blog,

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then may think to go for it.
Ø Sometimes one can volunteer for charity events and come up with great

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ideas to make them even more successful, offering unique skills or services
Ø In case a group or a team work based project, as well as building a new
teamwork skills, someone can learn from someone else and contribute
their own ideas so that both can grow with self respect.
Ø Volunteering at a charity shop or reading with colleague every week shows
initiative and also helps to understand the value of service to others.
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Techniques of Self Management

T E
Ø Getting planned work out of the way will leave anybody as stress-free
and with more free time on hands – that can be enjoyed without the

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shadow of workload or stress hanging over.
Ø As an organised person, manager will keep the timetable secure so he/
she can attend meeting, workshop and lectures on time.

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Ø Making lists and preparatory notes in advance can help managers keep
to a revision schedule and have enough time to revise trickier subjects.
Ø Being able to break big chunks of revision into smaller bite-sized pieces
will help to revise in a more productive way and feel like he/she is in
charge of the destiny during evaluation or assessment.
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Benefit of Self Management at workplace

E
Good self management skills will give managers more chances to move
forward in their practice and career development. There are other benefits,

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too. Such as-

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Ø Taking pride in the work and getting recognised as someone who really
tries and cares of their work, responsibilities and subordinates.
Ø Managers think their tasks better because they prepare in advance when

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they need seeking opportunities for work experience.
Ø Employees can see manager as someone who can handle responsibility
and puts extra care into what they do, going above and beyond what’s
required.
Ø An attitude like this can help to get more opportunities, responsibility,
training and promotions over time.
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Skills for Self Management

E
Ø Stress management: Every job has stress. From time to time we face
situations where we need to be very resistible. There should have an

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exercise to leave the work at work, and think only about things that
surround while at home. In such a situation, manager won’t have bad

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appearance and nerves, which aren’t good friends in self-management.
Ø Time management: Every person knows that time is a very precious thing.
The manager knows it even more. If someone trains own self to be

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effective, time management will become inherent. To train successfully
always prioritize the things it require to do, remove waste and
redundancy, communicate with team and share information.
Ø Staff management: Allocation of tasks, resources and authority to
subordinates are the key functions to managers which can be
professionally handled through application of self management skills
based on acceptance, avoidance, suppression and appreciation.
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Skills for Self Management

T E
Ø Organizing skills: Managers are to arrange meeting, workshop, training,
orientation and other events; lay things in proper places that way they could

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be within reach all the time.
Ø Problem-solving: As a manager, he/she has need to be simply fearless in the
face of any difficult situation. He / she will have to be able to patch up the

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dispute and see who is correct and wrong with fair judgmental attitude.
Ø Decision making skill: People are different, that’s why a lot of thoughts exist
– managers need to be ready to find the best clue and make the decision
which will work for the whole team.
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Skills for Self Management

E
Ø Confidence: Confidence is a part of believe in own self, team, work

T
and ideas. And people will get it enhanced when managers will be
seen achieving that exciting result by the way of better

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management of time. That the only thing they should do is to rely
on managers.

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Ø Self-protection: Its simply love own self, because no one else will
do that instead of himself/herself. Regular exercises, practice,
eating healthy food, and of course sleeping well are the ways of
self protection. If someone lives in harmony with
managers/colleagues, all bad things will seem like a trifle.
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Importance of Self Management

E
Ø Important in workplace: Self-management skills are important in the

T
workplace because they help to contribute for a better work environment
for the managers and coworkers.

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Ø Important for better productivity: Self-management skills are those which
help an employee to feel and be more productive in the work place by
utilizing time, staff and working schedule. Such skills as problem solving,
resisting stress, communicating clearly, managing time, strengthening

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memory, and exercising often are all key to get work done and enhance
productivity.
Ø Important for better coordination: Managers are to look after multiple
units in a single timeframe with target bound work and output for which
he/she has to apply self management skills for making coordination with
each and other units effectively.
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Rules of Self Management

E
There are certain rules for Self-Management, generally found in organisation

T
and individual life where everyone lives and works by self-managing
destined for greatness. These are-

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1. Living with the values, whatever they are. People in close touch may be
confused if we do not have it. It is beyond their prediction how we can
behave with them.

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2. Speaking up to make hear people thinking of me willing to stand up for it.
Mind-reading is something most people can’t do.
3. Honoring own good word, and keeping the promises made. If it is not,
people eventually stop believing most of what we say, will no longer work
for you.
4. Responsibility, expect to be held fully accountable. This is what seizing
ownership of something is all about.
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Rules of Self Management

E
5. Expecting people to trust in case we have willing to be trustworthy for

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them first and foremost. Trust is an outcome of fulfilled expectations.
6. Creating good habits and rejecting bad ones for making corral all the

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energies into a momentum-building rhythm for better productivity.
7. Having a good work ethic as it seems to be getting rare today and valuing

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dependability, timeliness, professionalism and diligence are prized more
than ever before. Need to be action-oriented to make things work and
willing to do what it takes.
8. Should have interest and keen to read voraciously, and listening to learn,
then teach and share everything we know. No one owes their attention
which we have to earn it and keep attracting it.
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Rules of Self Management

E
9. Becoming a courteous, polite and respectful human being is important for

T
considering and exploring manners that still count for an awful lot in life, and
thanking goodness they do.

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10. Becoming self disciplined what adults are supposed to grow up and like to
be.

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11. Should not be a victim of wrong judgement. we always have a choice, so
we should not be shy and silent from it, choosing without regret and looking
forward with more enthusiastic.
12. Keeping healthy and taking care of own self through exercise of mind,
body and spirit so that we can be someone people count on.
These are generally guiding rules for the managers as well as for the
individuals by way of their self management in regular life.
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REFERENCES

PT
Ø Bhattacharyya, D.K. (2012). Principle of Management, Text and Cases, Pearson, New Delhi
Ø Taylor, F.W. (1919). Principle of Scientific Management, Harper & Brothers Publishers, New

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York and London
Ø Charles, W.L. Hill and Steven, L. McShane. (2008). Principles of Management, Published by
McGraw-Hill/Irwin
Ø Stoner AF. Principle of Management, Pearson, New Delhi.
Ø https://www.lifehack.org/articles/featured/12-rules-for-self-management.html
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CONCLUSION

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This lecture session is mainly held to make understand what is self
management, its strategies, techniques, benefits and rules of self
management. Learning on all these may be helpful to learners to gain
necessary ideas, knowledge and capabilities about all the aforesaid
issues relating to self management so as to build up defense
mechanism in management practice.
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