Management Theories Management TheoriesThe Management Science School At the beginning of World War Il Great Britain desperately needed to solve a number of new, complex problems in warfare. Expertise of mathematicians, physicists and other scientists were pooled together in what was called as “OR teams” — Operations Research team. These teams achieved significant technological and tactical breakthroughs. Post World War Il, the applicability of OR to problems in industry became apparent. st, The Management Science School Operations Research — Mathematical techniques for the modeling, analysis, and solution of management problems; also called management science. Management Science School — Approaching management problems through the use of mathematical techniques for their modeling, analysis and solutions.The Management Science School Linear Programming Problems — LPP, Transportation Model, Assignment Model, PERT, CPM, etc. The criticism is that management science promotes an emphasis on only those aspects of the organization that can be captured in numbers, missing the importance of people and relationships. Optimization Need to produce maximum number of units to generate maximum profit, but: * Manpower limited * Raw material limited * Machines limited * Finance limited * Time limited * Demand limited * Product mix predefined Therefore, we come up with optimal solutionsTransportation Model * FedEx Express, formerly Federal Express, is a cargo airline based in Memphis, Tennessee, United States. * It is the world's largest airline in terms of freight tons flown. * It delivers packages and freight to more than 375 destinations in nearly every country each day. * FedEx Express operates the world's largest cargo air fleet with over 660 aircraft.Assignment Model * Bangalore Metropolitan Transport Corporation (BMTC) is a government agency that operates the public transport bus service in Bengaluru, India. * It has the highest number of Volvo buses operated by a public transport company in India. * The following are the special services apart from ordinary services run by BMTC: Suvarna, Pushpak, BIG 10, BIG Circle, Vajra, Vayu Vajra, Marcopolo AC and Corona AC, Metro Feeder and Hop On Hop Off. India’s Longest Queues * Ration shops * Banks * McDonald's * Flash sales * College admissions * Big Bazaar Bill Counter * Talent Show AuditionsExercise You are the manager in a NGO that funds several charitable works in rural India. Recently a village head along with several representatives from his village have approached you with a proposal. The village is willing to handover one acre of clear land for some social project that would best benefit the village folk. However, the village people are divided between three opinions; whereas one third believe it would be best to build a school that would help educate the village children, another one third believe that a hospital would be better that would deliver health services for the sick and suffering folk, yet another one third believe that a temple would be the best option. You as a manger are required to evaluate the three options scientifically, using facts and figures and prepare a report that helps draw a conclusion as to which project would be most beneficial to the village. List out all the facts and figures that you would need in order to prepare the report. Exercise The population of the village: Less than 10 years - 200 Between 11 and 30 — 500 Between 31 and 50 — 1000 Between 51 and 75 — 500 Above 75 — 300 Total — 2500 The closest school or hospital or temple is in a village that is 2 hours away from this village.Exercise a eee Benefit Cost Benefit Cost Benefit CostManagement Theories Management TheoriesThe Systems Approach Systems theory calls attention to the dynamic and interrelated nature of organizations and the management task. Systems theory tells us that the activity of any segment of an organization affects, in varying degrees, the activity of every other segment of the organization. With a systems perspective, general managers can more easily maintain a balance between the needs of the various parts of the enterprise and the needs and goals of the whole firm. Human System * Reason for feeling sleepy after a heavy meal * Sensors in the brain that trigger sensation of hunger and satiation * Coordination between the five fingers * Athorn pricks the leg and tears flow from the eyesThe Systems Approach = Padma Bhushan Rustomji Hormusji Mody Russi Mody — Chairman and Managing Director of Tata Steel (1918 — 2014) 1! ie He loved saying "What is man management? That one must behave naturally with any human being. He was humane, he could keep the workers happy. He created a great work culture. While keeping focus on the company's business growth, Mody widened its development initiatives for local communities and to address larger national needs. Entities like the Tata Steel Rural Development Society came up in 1979 and the Tata Football Academy in 1987 - the company's ad jingle "We also make steel" brought out this philosophy.The Contingency Approach Pera Possibility Pee tis ct a Cee st ‘(ee The Contingency Approach The contingency approach (situational approach) was developed by managers, consultants and researchers who tried to apply the concepts of the major schools to real- life situations. Results differ because situations differ; a technique that works in one case will not necessarily work in all cases.The Contingency Approach Contingency Approach — The view that the management technique that best contributes to the attainment of organizational goals might vary in different types of situations or circumstances. According to the contingency approach, the manager’s task is to identify which technique will, in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goals. The Contingency Approach For example, where workers need to be encouraged to increase productivity, the classical theorist may prescribe anew work-simplification scheme. However, a behavioural scientist may instead seek to create a psychologically motivating climate and recommend some approach like job enrichment — the combination of tasks that are different in scope and responsibility and allow the worker greater autonomy in making decisions.The Contingency Approach But, the manager trained in the contingency approach will ask, “Which method will work best here?” If the workers are unskilled and training opportunities and resources are limited, work simplification would be the best solution. However, with skilled workers driven by pride in their abilities, a job-enrichment program might be more effective. Contingency Approach “Sa * How will you handle an employee who reports late almost everyday to the workplace? * How will you take a decision regarding when to launch your new product? * How will you address the issue of high turnover in your company? * How will you improve efficiency on the shop floor? * What type of incentives would you provide for your employees?Contingency Approach Case Study After a long wait of time you have finally got a call from a top MNC for a job interview for the position of Assistant Manager — Finance. This is going to be a wonderful breakthrough for you, if you get selected. As you are hurriedly travelling in a taxi to the venue of the interview, as luck would have it, the taxi comes to a screeching halt. A “hit-and-go” accident has just occurred on the road ahead and a man thrown away from his bike is lying in a pool of blood, but is conscious. Your taxi driver stops the car and asks your help to assist the accident victim to a nearby hospital. As much as you would like to help the victim, you also have your responsibility towards your much awaited job interview. Some other passerby or passing vehicle could help the victim, but no one could replace you at the interview. And anyway the victim was not so serious as to lose his life. The driver is sincerely appealing to you while the victim is crying out for help. What would you do? te, ¥ ‘ Contingency Approach is Case Study You’re driving down the road in your car on a wild and stormy night. The weather is like a hurricane, with heavy rains, high winds, and lightning flashing constantly. While driving, you come across a partially-covered bus stop, and you can see three people waiting for a bus: * An old woman who looks as if she is about to die. + Anold friend who once saved your life. * The perfect partner you have been dreaming about (your “soulmate”). Knowing that you only have room for one passenger in your car (it’s a really small car), which one would you choose to offer a ride to? And why?Learning Organizations — Peter Senge Learning is the organizational capability to recognize the development of skills, abilities and knowledge base. It is exemplified by: * Company-wide training * Foundational knowledge * Process knowledge * Educational development * Continuous self-improvement A learning organization is one that can create, acquire and transfer knowledge and also modify their behaviours to reflect new knowledge and insight. stor, Learning Organizations — Peter Senge * People should put aside their old ways of thinking (mental models) * Learn to be open with others (mental mastery) * Understand how the company really works (systems thinking) * Forma plan everyone can agree on (shared vision) * Work together to achieve that vision (team learning) Peter Senge (1947 - ) Sloan School of Management, MIT, USASustainable Innovation Theory Sustainable innovation involves making intentional changes to a company's products, services, or processes to generate long-term social and environmental benefits while creating economic profits for the firm. Sustainable business model innovation (SBMI) is a change in the way a firm operates in order to create positive impacts or to reduce negative consequences for the environment and the society. * Eco-friendly Biofuel * Fairly-sourced Smartphones * Edible Cutlery * Green Buildings * Solar Glass stor Disruptive Innovation Theory In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. In Christensen's theory, disruptive innovation is described as a process through which a new or small enterprise (typically with limited resources) challenges a well-established company (usually known as an 'incumbent’). This can be either a direct or an indirect competitor of the small firm. Clayton ChristensenDisruption Innovation Theory Disruptive Innovation describes a process by which a product or service initially takes root in simple applications at the bottom of a market—typically by being less expensive and more accessible— and then relentlessly moves upmarket, eventually displacing established competitors. * Netflix—owns no cinemas * Uber — owns no taxis * Airbnb — owns no real estate * Facebook — owns no content * Zomato — owns no restaurant TQM A management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. TQM is a way of work, it is organization culture, it is a philosophy and a continuous journey. TQM is unity of thought, word and deed - Bhagawan BabaTOM - Eight Elements Customer-focused - customer ultimately determines the level of quality. Total employee involvement - All employees participate in working toward common goals. Process-centered - processes are defined, and performance measures are continuously monitored. Integrated system - horizontal processes interconnecting functions across various verticals. Strategic and systematic approach - a strategic plan that integrates quality as a core component. TOM - Eight Elements Continual improvement - A continuous journey of improving at every step. Fact-based decision making - continually collect and analyze data in order to improve decision making accuracy. Communications - effective communications plays a large part in maintaining morale and in motivating employees at all levels.Six Sigma Six Sigma is a highly disciplined process that helps in developing and delivering near-perfect products and services. It targets three main areas: * Improving customer satisfaction * Reducing cycle time * Reducing defects It strives that 99.99966% of products are defect free. Six Sigma = 3.4 DPMO Supply Chain Management Supply Chain Management is an integrated process wherein suppliers, users, manufacturers, distributors work together in an effort to acquire raw materials, convert them into specified final products and deliver the final products. A supply chain is the network of organizations that are involved through upstream and downstream linkages in the different processes and activities that produce value in the form of products and services delivered to the ultimate consumers. ChristopherVision, Mission and Goals A Vision Statement defines the optimal desired future state, the mental picture, of what an organization wants to achieve over time. It provides guidance and inspiration as to what an organization is focused on achieving in five, ten, or more years. It is intended to guide its internal decision-making. Vision, Mission and Goals A Mission statement defines what an organization is, why it exists (also refers to the Purpose of an organization), its reason for being. It is a short written statement of the business goals, values and philosophies. In short, it proposes how the organization or business vision can be realized.Vision, Mission and Goals Business Goals describe what a company expects to accomplish over a specific period of time. Goal has a timeframe which is generally long term. So, it’s nothing but a long term plan. Goals are further broken down into objectives and targets, which have much shorter time frame. Objectives are more specific than goals, and targets are even measurable. Vision, Mission and Goals Vision — Where should the organization be in the long run? Purpose — Why should the organization be there? Mission — How can we take the organization to where it ought to be? Objectives, Goals and Targets — Driven by the Vision and MissionVision, Mission and Goals Vision IVES Ifela} Goal Objectives BEd Vision and Mission - Difference Vision Statement Mission Statement {A Vision statement outlines WHERE you want to be. ’A Mission statement talks about HOW you will get to where you want to be. Defines the purpose and primary 8 “ us different?” ping: going ‘the benefit? In other words, Why we do what we do? What, For Whom and Why? Features of an effective statement Clarity and lack of ambiguity: Describing a bright future (hope); Memorable and engaging expression; realistic aspirations, achievable; alignment with organizational values and culture, Purpose and values ofthe organization: Who are the organization's primary “clients (stakeholders)? What are the responsibilities ofthe organization towards the clients?Goals and Objectives - Difference mee ae: The words, objective and goal seem to be one and the same, as they express that a person wants to achieve something and as such both reveal the desired outcome. However, what differentiates between them basically is the time frame. Goal is long term, while objectives and targets are short term. And the objectives, being specific, support in the attainment of a goal. Goal: To pursue a Ph.D. story, Goals and Objectives - Difference Se Goal: To pursue a Ph.D. Objectives: * Prepare a research proposal * Review the literature and identify gaps * Identify research methodology * Present a comprehensive viva-voce * Collect data and analyze * Present the findings and publish in papers * Prepare the thesis * Present defense viva-voceObjectives and Targets - Difference Targets for presenting the comprehensive viva-voce: + Review the literature and identify gaps - 4 months + Identify research methodology — 2 months + Prepare the draft research proposal ~ 1 month * Get the proposal vetted by the supervisor — 1 month + Incorporate feedback and make corrections — 1 month * Prepare the final research proposal - 2 months + Submit the research proposal for scrutiny — 1 month + Register for comprehensive viva-voce — within one year Walt Disney — Vision and Mission Vision: To make people happy. Mission: To be one of the world’s leading producers and providers of entertainment and information.BEL — Vision and Mission Vision: To be a world-class enterprise in professional electronics. Mission: To be a customer focused, globally competitive company in defence electronics and in other chosen areas of professional electronics, through quality, technology and innovation. st, Amazon - Vision and Mission Vision: To be earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online. Mission: Serve consumers through online and physical stores and focus on selection, price and convenience.Flipkart — Vision and Mission Vision: To become Amazon of India. Mission: Ab har wish hogi poori! Nike — Vision and Mission To help Nike, Incorporated and our consumers thrive in a sustainable economy where people, profit, and planet are in balance. Mission: To bring inspiration and innovation to every athlete in the world and if you have a body you are an athlete. Goals: Believing in the partnerships formed valuing the opportunity to work together with all stakeholders in the apparel industry and to share best practices.Uber — Vision and Mission Vision: Make transportation as reliable as running water, everywhere, for everyone. Mission: To bring better transit opportunity to masses. Urban Company — Vision and Mission Vision: Urban Company's vision is to empower millions of professionals world- wide to deliver services at home like never experienced before. Mission: To empower 1 million+ service professionals to become micro service entrepreneurs by helping them with training, credit, product procurement, insurance, technology etc.Marriott — Vision and Mission Vision: To become the premiere provider and facilitator of leisure & vacation experiences in the world. Mission: To enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure experiences. Yulu — Vision and Mission Vision: To reduce traffic congestion by providing a scalable, affordable, efficient and clean solution for the first mile, last mile, and short distance commute. Mission: Every day is a mission and success is exciting when it's attained with fun and as a team.Swiggy — Vision and Mission Vision: To elevate the quality of life of urban consumers by providing unparalleled convenience. Mission: Our mission is to change the way India eats. Spotify — Vision and Mission Vision: We envision a cultural platform where professional creators can break free of their medium’s constraints and where everyone can enjoy an immersive artistic experience that enables us to empathize with each other and to feel part of a greater whole. Mission: To unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by these creators.Netflix — Vision and Mission Vision: Becoming the best global entertainment distribution service. Mission: We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact. Lenskart — Vision and Mission Vision: Provide high quality eyewear to millions of Indians at affordable prices, giving free eye check ups at home and extending our services to the remote corners of India. Mission: Wow customers by doing something that has never been done before in the eyewear industry. To provide every Indian access to high-quality designer glasses without shelling out their pocket.Vision: To develop good human beings; men and women of character. Mission: To nurture all aspects of students’ personality and mould them into academically competent, socially sensitive and spiritually aware citizens through the values-based integral education model. Top Indian Unicorn Start-ups aca ~~ Ltemier | vor | tan Vijay Shekhar Paytm Rebar 2010 $16bn BYIU's Byju Ravindran, 2011 $11bn Bengaluru Ritesh Agarwal, Go Odisha / Gurgaon or) $8bn Bhavish Aggarwal & OLA Ankit Bhati, 2010 $7bn BengaluruUnacademy Nykaa Zerodha Razorpay I Mamaearth CarDekho Lenskart BigBasket } Top Indian Unicorn Start-ups a J seen | tame | te | tn Gaurav Munjal, Roman Saini, Hemeshisinghiand or) Sachin Gupta Falguni Nayar 2012 Nithin Kamath, Nikhil Kamath 2010 Shashank Kumar & o013 Harshil Mathur Varun and Ghazal Alagh 2016 Amit Jain, Anurag 2007 Jain Peyush Bansal, Amit Chaudhary, 2010 ‘Sumeet Kapahi Hari Menon, VS. Sudhakar, Vipul Parekh, Abhinay 2011 Choudhari and V.S. Ramesh $2bn $1.2bn $1bn $1bn $2.5 billion $1.85 billionPassion to serve better. Raising the bar of excellence. To establish, maintain and continue leadership in the hospitality sector by providing high quality food at the most competitive prices to suit diverse consumer groups.Saravana Bhavan — Vision and Mission Objectives: * To offer high quality vegetarian food without compromising on taste. * To increase the operational efficiency by periodic monitoring of Quality Management System. * To achieve cost reduction by minimising wastage and better operational techniques. * To increase our market share through better public relations and expanding the network. * To introduce new products in keeping with the customers’ changing preferences. * To ensure highest degree of cleanliness and hygiene in preparation, preservation and serving of food. * To motivate our work force by encouraging them to achieve our goals.