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Managerial Roles

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					                                                                      Principles of Mgt


          Basic Managerial Roles and Skills
Managers must wear many different hats in formulating and implementing task
activities related to their positions. In an attempt to understand the diversity of
hats managers must wear, Henry Mintzberg examined managerial activities on
a daily basis. His study enabled him to identify ten different but, coordinated sets
of behavior, or roles, that managers assume. These ten roles can be separated
into three general groupings: interpersonal roles, informational roles, and
decisional                                                                     roles.

INTERPERSONALRole

Three of the manager's roles come into play when the manager must engage in
interpersonal relationships. The three roles of figurehead, leader, and liaison are
each necessary under differing circumstances. Adopting one or another of the
three interpersonal roles is made easier by the formal authority the manager
obtains                   from                   the                  organization.

The figurehead role is enacted when activity of a ceremonial nature is required
within the organization. A baseball manager attending a minor league all-star
game, the head chef of a prominent restaurant greeting customers at the door,
and the president of a bank congratulating a new group of trainees are all
examples of the figurehead role. While the figurehead role is routine, with little
serious communication and no important decision making, its importance should
not be overlooked. At the interpersonal level, it provides members and non-
members alike with a sense of what the organization is about and the type of
people                  the               organization                  recruits.

The second interpersonal role, the leader role, involves the coordination and
control of the work of the manager's subordinates. The leader role may be
exercised in a direct or an indirect manner. Hiring, training, and motivating may
all require direct contact with subordinates. However, establishing expectations
regarding work quality, decision-making responsibility, or time commitments to
the job are all outcomes of the leader role that are indirectly related to
subordinates.

Quite often, managers are required to obtain information or resources outside
their authority. The liaison role(Coordinating) is enacted when managers make
contact with other individuals, who may or may not reside in the organization, in
order to complete the work performed by their departments or work units. An
auto assembly plant supervisor may telephone a tire supplier to determine the
amount of inventory available for next week; a prosecuting attorney may meet
with the presiding judge and defense attorney to discuss the use of motions and
evidence in a libel trial; or a college professor may meet with professors in a
separate department on campus to obtain information on a prospective doctoral
student. Ultimately, the liaison role enables a manager to develop a network for
obtaining external information which can be useful for completing current and
future                             work                             activities.

INFORMATIONALROLES

Monitor, disseminator, and spokesperson are the three informational roles
that a manager may assume. These informational roles are created as a result of
enacting the set of interpersonal roles already described. A network of
interpersonal contacts with both subordinates and individuals outside the work
unit serves to establish the manager as an informational nerve center of the unit,
responsible for gathering, receiving, and transmitting information that concerns
members                  of             the               work               unit.

A manager assumes the monitor role by continually scanning the environment
for information or activities and events that may identify opportunities or threats
to the functioning of the work unit. Much of the manager's gathering of
information is achieved through the network of contacts that has been
established through the interpersonal roles. Hearing small talk at a banquet
about a competitor's planned marketing program, learning through casual
conversation at a ball game about the negative medical evaluation of an
unsigned ball player, or daily reading of a business periodical are all examples of
the kinds of information gathering involved in the monitor role.




The information a manager gathers as a monitor must be evaluated and
transmitted as appropriate to members of the organization. The transmittal of
information by a manager activates the disseminator role. Privileged
information may be disseminated to subordinates, peers, or superiors in the
organization. The manager may inform the marketing vice-president about the
specific marketing strategy a competitor is planning to implement. A baseball
manager may inform the team owner that an impending trade should be
canceled because of the unfavorable medical report on one of the players. Or
reading The Wall Street Journal may inform the manager that a shipping strike is
looming and thus enable her to inform subordinates that temporary layoffs may
occur                               next                                month.

Occasionally, a manager must assume the spokesperson role by speaking on
behalf of the work unit to people inside or outside the organization. This might
involve lobbying for critical resources or appealing to individuals who have
influence on activities that affect the work unit. A top manager asking the board
of directors to keep the work unit together during a reorganization period or a
corporate president speaking to a college audience on the role the company
plays in education would both constitute engaging in the spokesperson role.
DECISIONALROLES

Both interpersonal and informational roles are really preludes to what are often
considered to be a manager's most important set of roles: the decisional roles of
entrepreneur, disturbance handler, resource allocator, and negotiator.

The entrepreneur role comes into action when the manager seeks to improve
the work unit. This can be accomplished by adapting new techniques to fit a
particular situation or modifying old techniques to improve individual or group
activity. Managers usually learn of new or innovative methods through
information gathered in the monitor role. As a result, a supervisor purchases a
new kiln which will shorten the drying process for ceramic tiles; a director of a
youth club trains staff in the use of personal computers to increase file access; or
a president establishes a new pension plan to improve employee morale.

Whereas the entrepreneur role establishes the manager as the initiator of
change, the disturbance handler role establishes the manager as a responder to
change. Organizations, unfortunately, do not run so smoothly that managers are
never called upon to respond to unwelcome pressures. In these cases, the
manager is required to act quickly to bring stability back to the organization. A
law partner must settle a disagreement among associates in the firm on who will
present a case before a judge; a personnel director must negotiate with striking
employees dissatisfied with the procedures for laying off employees; or a
cannery first-line manager must respond to a sudden shortage of cans used to
package perishable fruit because the supplier has reneged on a contract.

When a manager is placed in the position of having to decide to whom and in
what quantity resources will be dispensed, the resource allocator role is
assumed. Resources may include money, time, power, equipment, or people.
During periods of resource abundance, this role can be easily performed by a
manager. In most cases, however, organizations operate under conditions of
resource scarcity; thus, decisions on the allocation of resources can be critical for
the success of the work unit, division, or organization. As a decision maker, the
manager must strive not only to appropriately match resources with subordinates
but also to ensure that the distribution of resources is coordinated to effectively
complete the task to be performed. An office manager must provide secretaries
with appropriate equipment to generate and duplicate documents. A manager of
a fast-food restaurant must coordinate work shifts to have the maximum number
of employees working during the lunch hour. Corporate presidents may provide
their administrative assistants with decision-making responsibility for day-to-day
matters.

In addition to decisions concerning organizational changes, disturbances, and
resources, the manager must enact a negotiator role. The process of negotiation
is possible only when an individual has the authority to commit organizational
resources. Hence, as managers move up the managerial hierarchy and obtain
control over more resources, they become more involved in the negotiator role.
For example, the president of a record company may be called in to discuss
 terms of a possible contract with a major rock group; a production manager must
 negotiate with the personnel department to obtain employees with specialized
 skills; or a college dean must negotiate with department heads over course
 offerings     and     the      number       of    faculty    to     be    hired.

 The relative emphasis a manager places on these ten roles is highly dependent
 on the manager's authority and status in the organization. Length of time on the
 job, position in the management hierarchy, goals of the subunit to be achieved,
 and skills the manager possesses all play a part in determining which roles are
 more prominent than others at any given time. For instance, a marketing
 manager is more likely to emphasize the interpersonal roles because of the
 importance of personal contact in the marketing process. A financial manager,
 charged with responsibility for the economic efficiency of the organization, will
 probably focus on the decisional roles. A staff manager, or a manager who
 performs in an advisory capacity, is likely to be more heavily involved in the
 informational roles. Regardless of the differences that may occur, however, all
 managers enact interpersonal, informational, and decisional roles while
 performing                              their                             tasks.

 Effectively managing an organization is a demanding task. Managers not only
 must develop skills related to the functional areas of management but also must
 learn how to integrate these activities. What makes this process demanding is
 that events and activities external and internal to an organization can radically
 change the techniques and methods managers must use in order to arrive at
 successful outcomes. Managers cannot afford to be limited in their view of
 management, nor can they simply rely on how things were done in the past.

 Even the most seasoned and successful managers are prone to mistakes.
 However, a more complete knowledge of the managerial process can reduce the
 chances of mistakes that will have dire consequences for an organization. Such
 knowledge may help managers to better plan, organize and staff, direct, and
 control organization activities within the context of their organization.


 Managerial Skills
               What makes a good manager? Innate traits or acquired skills? Assuming that a
               manager is one who directs the activities of other persons and undertakes the
               responsibility for achievement of objectives through such efforts, successful
               management seems to rest on three basic developable skills: technical, human and
               conceptual. The relative importance of these three skills varies with the level of
               managerial responsibility. (See diagram, below.)

Technical Skill The technical skill implies an understanding of and proficiency in a specific
kind of activity, particularly one involving methods, processes, procedures, or techniques; it
involves specialized knowledge, analytical ability within that specialty, and facility in the use of
the tools and techniques of the specific discipline. Vocational and on-the-job training programmes
largely do a good job in developing this skill.

Human Skill This refers to the ability to work with, understand and motivate other people; the
way the individual perceives (and recognizes the perceptions of) his superiors, equals, and
subordinates, and the way he behaves subsequently. The person with highly developed human
skills is aware of his own attitudes, assumptions, and beliefs about other individuals and groups;
he is able to see the usefulness and limitations of these feelings. He is sufficiently sensitive to the
needs and motivations of others in his organization so that he can judge the possible reactions to,
and outcomes of, the various courses of action he may undertake.

Human skills could be usefully divided into (a) leadership ability within the manager's own unit
and (b) skill in intergroup relationships. Experience shows that outstanding capability in one of
these roles is frequently accompanied by mediocre performance in the other. Intragroup skills are
essential in lower and middle management roles and intergroup skills become increasingly
important in successively higher levels of management.

To acquire the Human Skill, the executive must develop his own personal point of view toward
human activity so that he will (a) recognize the feelings and sentiments which he brings to a
situation, (b) have an attitude about his own experiences which will enable him to re-evaluate and
learn from them, (c) develop ability in understanding what others by their actions and words are
trying to communicate to him and (d) develop ability in successfully communicating his ideas and
attitudes to others.

The process of acquiring this ability can be effectively aided by a skilled instructor through use of
case problems coupled with impromptu role playing. It is important that the trainee self-examines
his own concepts and values, which may enable him to develop more useful attitudes about
himself and about others.

Conceptual Skill This skill involves the ability to see the enterprise as a whole; it includes
recognising how the various functions of the organization depend on one another, and how
changes in any one part affect all the others; and it extends to visualizing the relationship of the
individual business to the industry, the community, and the political, social and economic forces
of the nation as a whole.

The conceptual skill involves thinking in terms of the following: relative emphasis and priorities
among conflicting objectives and criteria; relative tendencies and probabilities (rather than
certainties); rough correlations and patterns among elements (rather than clear-cut cause-and-
effect relationships).

Training can enhance previously developed conceptual abilities. In developing the conceptual
skill, some of the best results have been achieved through "coaching" of subordinates by superiors.
One way a superior can help "coach" his subordinate is by assigning a particular responsibility,
and then responding with searching questions or opinions, rather than giving answers.

Another excellent way to develop this skill is through trading jobs: by moving promising young
men and women through different functions of the business but at the same level of responsibility.
Special assignments, particularly the kind which involve inter-departmental problems, can also
help develop this skill.
Relative Significance of Managerial Skills



            Conceptual          Conceptual

                                                      Conceptual
            Human
                                Human


                                                      Human
            Technical
                                Technical
                                                      Technical *


          Supervisory level     Middle mgmt level      Top mgmt level
                     * Technical skills are not so important for the chief executives in
                     large organizations where such executives have extensive staff
                     assistance and highly competent, experienced technical operators
                     are available. In smaller organizations, however, where technical
                     expertise is not as pervasive and seasoned staff assistance is not
                     available, the chief executive has a much greater need for personal
                     experience in the industry.




A Realistic Description of Managerial Work
Minzberg concluded that

   1> Senior management jobs are open-ended, managers feel compelled to
      tackle a large workload at demanding pace. there is little free time.
      Breaks are rare. Escaping from work after hours is physically/mentally
      difficult.
   2> The work is fragmented, full of brevity & variety with a lack of pattern.
      Managers confront the law of the trivial many and the important few
      (80/20 principle). Behaviors must change quickly and frequently;
      interruptions are common.
   3> Managers seem to prefer this and become conditioned by workload.
      Opportunity-costs of time (urgencies) are keenly felt and superficiality in
      relationships is a hazard.
   4> There is an activity-trap - managers tend towards current, specific, well-
      defined, non-routine activities.

              Processing mail is a pain; 'non-active' mail gets little attention.
              Current information (chat, speculation) is preferred - routine
             reports are not. Use of time reflects close, immediate pressures
             rather than future, broader issues. Fire-fighting (reacting to
             immediate stimulus) is a problem. Live action pushes the manager
             away from thinking and planning.

             Verbal contacts and media are preferred over written. written.
             Written communications get cursory treatment, but must be
             processed regularly. Less goes out than comes in. It moves slowly.
             There are long feedback delays. (How does E-Mail fit in?)
             Subordinates outside spoken lines of contact may feel uninformed.

             Informal media (telephone and unscheduled meetings) are used for
             brief contacts if people know each other well and when quick
             information exchange is called for.

                  a. Scheduled meetings eat up managerial time - long formal
                     duration, large groups and often away from the
                     organization. The agendas cover ceremonials, strategy-
                     making and negotiation. Chatting at start/end of meetings
                     contributes significantly to information flow.
                  b. Managers seldom 'tour' yet WTJ (walking the job)
                     enhances 'visibility' & understanding of the actuality of
                     work and production/service methods, standards and
                     problems.
                  c. Managers as boundary managers, link his/her own
                     organization with outside networks. External contacts
                     (clients, suppliers, associates, peers, informer networks)
                     can consume 30-50% of a senior manager's time. Non-
                     line relationships are also important.




THE NEW WORKPLACE (changing culture of organization )
For any organization to dedicate the time and effort it takes when changing
workplace culture there must be a strong business case to drive the momentum.
The business case will come from either the business under-performing or
wishing      to      excel      beyond       its     current      performance.

Once a business case is established it is much easier to entice the senior
leadership to become the champions for change. Without their full and
unswerving support your success at changing workplace culture is severly
threatened.

Set Up Team Charters and Expectations
When you are changing workplace culture there are four teams that have quite
distinct roles. These teams are:
         The Steering Team:- Responsible for establishing boundaries and
     guidelines for the Design Team. Approving the recommendations of the Design
     Team. It should consist of a cross section of key leaders, decision-makers and
     stakeholders.
         The Design Team:- Responsible for completing the analysis of the
     current situation, making recommendations. Should have representatives from
     both leadership and front-line team members
          The Implementation Team:- Responsible for implementing the
     recommendations and transforming it from it's current state to the ideal state.
     Wide-spread involvement is critical to ensure that the plan is effective and all
     team members embrace it. (It is critical that the leadership teams are very
     much included throughout the entire process to ensure their buy-in, which is all
     important, because of the influence they bring to bear on the entire
     organization. If a leader is unable to support the change, then s/he should be
     willing to leave of his/her own accord)
         The Renewal Team:- Responsible for assessing the degree to which the
     implemented recommendations have achieved what they were designed to
     achieve. Make recommendations for further change efforts as required. Often
     members of the Renewal Team include members from the Design Team and
     the Implementation Team.
         The Consultant:- Responsible for educating the teams in the models,
     analysis tools and methodologies that are available to assist cultural change.
     Provide guidance to ensure the change effort stays on course. Provides
     expertise regarding sources of information and alternative choices.

    Describe The Vision
    Once the Steering and Design Team has been brought together and given their
    charter it is time for the Vision for the Future is described. At the end of this body
    of work, clearly defined will be the Behaviors, Values, Principles and Mindsets
    that        the      organization        will      adopt      in       the      future.

    It is important that the members of these teams stay open to this being modified
    as the Design Team delves further into the re-design process.

    Review Current State
    At this point time is spent analyzing the external environment, social and
    technical systems and identifying the Symbols, Rituals and Legends that create
    the culture of the organization. To attempt changing a workplace culture without
    also considering the organizational design, is to commit yourself to much activity,
    but              achieving             little          real             progress.

    The systems that you use perpetuate beliefs about 'how we work around here'.
    The interactions of the various systems and organization design choices you
have made will either facilitate or impede the cultural changes you are attempting
to implement.

Educate and Energize

This is a critical step in changing workplace culture that many organizations don't
do, or do poorly. Education of every single member within the organization on
the need for cultural change, the 'how' you are going to go about changing the
workplace culture and the benefits to be gained by changing workplace culture
must be done: over and over and over.

To energize people the education needs to step far beyond the mere logic of "this
is why we need to change and this is how we need to change". The education
needs to engage people's hearts. It needs to begin to influence people's values,
mindsets and beliefs and ultimately enable them to change their behaviors.

Many organizations shy away from this 'warm and fuzzy' stuff. However, leaders
in high performance organizations realize that 'this stuff' is the framework upon
which greatness is built



                                                       By: Khalid Ilyas Siddiqui
                                                                     MS (mgt Sci)
Traditional and contemporary issues
and challenges
we discusses historical perspectives on management thinking and seeks to explain
why these are important to today’s managers. Integrating the best from both experience
and theory and learning from the mistakes of the past are key elements of success in any
human endeavor. Management is no different and, as students of management, it is
important to be aware of the historical views on management. This provides a basis from
which to understand current management thinking, and to critically evaluate, challenge
and advance management theory.
The text introduces the key perspectives of traditional managerial thought and then
discusses modern management approaches, seeking to integrate the most appropriate of
each approach to individual situations. The ruling managerial paradigm is to select from
all of the tools and theories available to managers those that best suit the complex
combination of variables in any one situation.

The role of theory and history in management
The text goes to some trouble to explain why theory and history are relevant to
contemporary managers. Theory is a conceptual framework for organizing
knowledge and providing a clean print for action. Given this, any manager must
develop some theory of management to be able to operate. It is therefore
counterproductive to dismiss theory as irrelevant. A manager needs to seek to
understand various theories and adapt and utilize those components that he or she
believes are of value to a particular situation. The same logic applies to the value
of studying the historical developments in management. Ignoring the insights
available from the rich source of historical management thinking and experience
may cause managers to spend time solving problems to which solutions already
exist.
 Management thinking is directly related to the social norms, economic conditions
and political forces of the time and place. It follows, therefore, that in
understanding management theories of the past and present it is useful to gain an
appreciation of the social, economic and political context in which they were
developed. All past human civilizations that left evidence of their existence —
from ancient Egyptians to the Hebrews in the time of Moses — demonstrated
management practices, and many left detailed descriptions of their management
practices. It would appear that management is a natural outcome of human beings
interacting to achieve a common goal. Management as a recognized discipline of
commerce emerged fully in the late 1800s and the early 1900s with the
development of large corporations. The scientific study of management developed
in the 1800s, through the thinking and activities of pioneers such as Robert Owen,
Charles Babbage and Andrew Urea. This era was characterized by a focus on the
technical aspects of managing organizations by management practitioners.
Frederick Taylor was the first to shift the focus to include a theoretical approach.
The classical management perspective
Historical perspectives on management are discussed under the three areas of classical,
behavioral and quantitative perspectives.

The classical management perspective was the first well-developed framework for
understanding management and consists of the two distinct branches of scientific
management and administrative management.
Scientific management was aimed at improving the productivity of individual workers.
Scientific management was pioneered by Frederick Taylor who analyzed the time taken
for each task and introduced payment based on the level of productivity of each worker.
Using his scientific methods of measurement and management, many American
companies made huge efficiency gains by adopting and optimizing mass production
techniques. While his approach was later criticized because it led to boring, repetitive
jobs and tended to ignore the individual, it was a cornerstone of the new discipline of
management. Later practitioners spread the scientific management doctrine and built on
Taylor’s work. Administrative management is the other branch of classical
management thinking. Unlike scientific management that concentrates on the jobs
performed by individuals, administrative management focuses on managing the whole
organization. Henri Fayol, a French industrialist, became the best known of the
administrative management school. Fayol was the first to identify the managerial
functions of planning, leading, organizing and controlling that are still regarded as the
fundamental activities of management. The framework of classical management was the
basis of later theory and many of its elements hold today. However, organizations and the
market were relatively simple ands table compared to modern organizations and markets.
The classical approach therefore provides a good basis for many elements of management
but does not sufficiently address aloof the issues relevant to the organization of the 21st
century.

The behavioral management perspective
Behavioral management shifted attention from the largely mechanistic view of employees
and work held in classical management to the psychology, attitudes and behaviors of
individuals. A leading figure of behavioral management was Hugo Munsterberg, whose
focus on psychological testing for selection and motivation in management are
commonplace today. The Hawthorne Studies lent credence to the behavioral approach by
studying a group of workers. The workers’ levels of illumination were increased,
resulting in increased output. When the light was decreased, however, output continued
to increase. It was discovered that employees were working harder because of the
attention they were receiving. Thus, psychological factors were seen to be an important
factor in worker output. The human relations movement was an evolution of the
behavioral approach that concentrated on the social context of the workplace. Much of
the work in the area of motivation theory comes from this movement, including the work
of Maslow (Maslow’s hierarchy of needs) and McGregor (Theory X/Theory Y).
Organizational behavior emerged from human relations by integrating elements of other
disciplines such as psychology, sociology and medicine. This recognizes the complexity
of human behavior and takes a holistic view of individual, group and organizational
processes. The behavioral management approach provides important insights into the
importance of motivation, group dynamics and interpersonal processes in organizations,
as well as the need for management to focus on these. However, the complexity of
individual and group Study Guide to accompany behaviors makes prediction of that
behavior, and management decision-making to influence that behavior, very difficult.

The quantitative management perspective
The quantitative management perspective, a more recent development than the other two
major perspectives, uses applied mathematics to address logistical problems of
organisations.The focus is on analytical processes of decision-making, economic
effectiveness, mathematical modeling and the use of information technology.
Management science uses mathematical modeling to represent and analyze systems,
processes and relationships. Operations management is concerned with the efficient
production of goods and services of the organization, The quantitative management
approach provides very powerful tools for understanding and managing organizations. It
does not fully explain or predict the behaviors of individuals or groups of people within
an organization.

Integrating perspectives for managers
It is obvious that classical, behavioral and quantitative approaches have all made valuable
contributions to the theory and practice of management. Contemporary management
seeks to integrate these approaches in ways that suit the particular organization at a
particular time. A thorough understanding of management requires an appreciation of all
three perspectives Systems theory and contingency theory take this integration approach.
The systems approach describes the organization as a system that transforms inputs
(material, human, financial and information resources) into outputs (e.g.
products/services, profits/losses, employee behavior and information) by use of
managerial and technological processes. The overall system can be broken into sub-
systems, such as production and finance. The objectives are effective and efficient
operation of each of the sub-systems, to maximize the synergy between the sub-systems
and to avoid entropy (the natural tendency for systems to decline over time).
The contingency approach essentially argues that the traditional perspectives on
management are too narrow in defining how to manage organizations. It suggests that the
best managerial approach to each particular situation is dependent on a large number of
elements and therefore managers should seek the approach that best suits the specific
situation they are facing. The text suggests that the broader approaches to management
taken by the systems and contingency approach have most relevance to the manager of
the 21st century who faces complex and rapidly changing environments.

Contemporary issues and challenges
It is interesting to note that no totally new conceptualization of management has emerged
to completely replace the traditional perspectives on management. Regardless, managers
continue to seek new insights into how to better lead, motivate, organize and control their
organizations. It is interesting to speculate on whether the majority of contemporary
management thinking and writing is advancing management thinking or simply educating

the next generation of managers. In other words, are we really becoming better at
management or simply struggling with the same issues managers have always faced and
simply defining new terms and descriptions of the solutions? Most likely there is a
mixture of both. the text identifies a number of best-selling books published in the past
two decades that are considered essential reading for students of management. Reading a
selection of these provides a breadth of understanding of issues relevant to today’s
managers. Two common themes in this contemporary management literature are speed of
responsiveness and individuality in orientation. The challenges faced by managers today
include downsizing, managing diversity, the speed and nature of change faced by
individuals and organizations, and new technology. The globalization of the economy, a
complex array of approaches to organizational design, the shift to a services orientation in
the economy and the re-emergence of ethics and social responsibility as a prime concern
of businesses all present significant challenges, and opportunities, for managers at all
levels in all organizations It is important for managers to see their education in
management as a lifelong process. Most readers of this text and Study Guide will be
managers in several different companies and/or in several different industries throughout
their career. The broader an individual’s understanding of the external environment, and
the greater their depth of managerial experience and knowledge, the more value they can
add to any one organization and the more transportable their skills are across industries.




                                                             By: Khalid Ilyas Siddiqui
                                                                              MS (mgt Sci)
       The Environmental Context of Management
Key Forces in the External Environment
Introduction
No organization can exist in a vacuum; each is set in a particular country and region to
which it is inextricably linked. This setting provides multiple contexts that influence how
the organization operates and how and what it produces. Thus, the concept of "external
environment" is an important consideration for organization as it attempts to understand
the research it supports. An analysis of the external environment is an attempt to
understand the forces outside organizational boundaries that are helping to shape the
organization.

Forces outside the institution's walls clearly have considerable bearing on that which
transpires within. The external environment can provide both facilitating and inhibiting
influences on organizational performance. Multiple influences in the immediate or
proximal environment form the boundaries within which an organization is able to
function; these influences likewise shape how the organization defines itself and how it
articulates what is good and appropriate to achieve.

Key dimensions of the environment that bear on the institution include the
administrative/legal, technological, political, economic, and social and cultural contexts,
the demands and needs of external clients and stakeholders, and relations with other
pertinent institutions..

Administrative/Legal Environment
The administrative and legal environment in a country provides a framework within
which an organization operates. In some countries this environment is very restrictive and
has significant impact on all aspects of the organization; in other countries the
administrative/legal context is more permissive. Understanding the administrative/legal
environment is essential to determining if organizational change can take place. The
administrative context within which the organization operates may be shaped by a unique
combination of forces, including international, governmental, nongovernmental policy,
legislative, regulatory, and legal frameworks. An organization is affected by the policy or
regulatory context that gave rise to it. This includes specific laws and regulations that
support or inhibit the institution's development.

Several specific dimensions of the administrative environment should be examined:

      Whether there are constitutional restrictions on the organization: An
       assessment should first determine whether the organization is part of a
       government ministry or department, and whether it is under federal or provincial
       jurisdiction.
      Whether specific regulations govern the goals and structures of the
       organization: It is important for organization to know if the organization has a
       specific mandate and/or a specific structure that has been imposed.
      Whether there is a legislative mandate that restricts leadership of the
       organization: It is helpful to understand any parameters that have been set around
       who can lead an organization. This includes identifying the governing body of the
       organization, and understanding how its members are selected, and further
       understanding who has the mandate or authority to set goals for the organization
       and develop curriculum.

Technology Environment
Both the types and the level of technology in the society give insight into understanding
an institution. Institutions dealing with Western paradigms are dependent on the state of
national infrastructure, e.g. power, water, transport; those which concentrate on
indigenous research paradigms may have totally different dependencies. Thus, it is
important to understand the level of relevant technology in the institutional context and
whether such technology is defined by computer literacy or by highly developed
indigenous methods of verbal and nonverbal communication. It might also be helpful for
an assessment to include a consideration of the process by which new technology comes
into use, both to understand how difficult it is to acquire needed research technologies
and to develop an appreciation for the society's willingness to embrace both new
knowledge and change.

Political Environment
At a general level, organization needs to understand the relationship between
governmental strategy or development plans and the institution. Several specific
dimensions of the political context should be scrutinized:

      The extent to which government and its bureaucracy supports and
       contributes resources to the institution: It is imperative that an organization and
       other agencies know whether significant governmental inputs are anticipated to
       support increased staffing, maintenance, or other recurring costs typical in
       research projects. The political context usually entails resource trade-off decisions
       at the government level.
      The extent to which the political system is stable or poised to undergo
       significant change: This factor is vital; the foreign policy context and its effect
       on organization should also be considered.
      Whether the political context of the institution directly involves the legal
       context: Some institutions require specific legal status to operate, to receive
       external funding, and to import equipment in support of research.

Economic Environment
In the economic environment, the organizational analysis should centre on those aspects
of the economic system that directly impact the type of project being considered. For
example, inflation, labour laws, and opportunity costs for researchers in public
institutions directly impact organizational activities. Clearly, a country under a structural
adjustment regime or one that is expecting to undergo restructuring presents an
investment context that an organization needs to understand. Countries with foreign
currency restrictions represent different environments for institutions than countries
without them, for such restrictions have ramifications for research,
Social and Cultural Environments
Social and cultural forces at local, national, and often regional levels have profound
influence on the way organizations conduct their work and on what they value in terms of
outcomes and effects. For example, the mores of an indigenous culture have a bearing on
the work ethic and on the way in which people relate to one another. Undoubtedly, the
most profound cultural dimension is language. The extent to which organizational
members can participate in the discourse of the major scientific language will determine
the extent to which research efforts focus inwardly or contribute to regional and global
research agendas. Understanding the national/regional/local values toward learning and
research provides insight into the type and nature of research that is valued. For example,
what is the relative priority placed on contract research in partnership with local clients,
e.g. testing products and procedures with indigenous populations, as opposed to sharing
information with academic peers internationally, or generating biostatistical data that will
shape national or regional policy? Arriving at these priorities involves culture-based
decisions.

Stakeholder Environment
Although research institutions tend to be driven by the research mission and the process
of achieving it, all institutions are dependent for their survival on various groups of
stakeholders. The stakeholder environment consists of those people and organizations
external to the research institution who are directly concerned with the organization and
its performance. Examples of stakeholders are suppliers, clients, sponsors, donors,
potential target groups, and other institutions doing similar or complementary work. An
organizational analysis seeks to learn the identity of these groups in order to assess their
potential impact on the organization. Because of its international interdependent
dimension, contemporary research relies on institutional relationships, and these need to
be understood. Thus formal and de facto relationships with universities, government
departments and agencies and other research institutions both within and outside the
country need to be understood. Influences from these multiple environmental contexts
can become major facilitating or constricting forces on the institution as it works to
accomplish its mission. In the extreme, these forces can keep an institution alive
artificially; conversely, they can thwart organizational survival
           Internal environment of Organization
Organizational Resources

These are all the inputs physical or human used in the organization to create outputs in
the firm of product or services through a transformation process.
Some other resources of organizations are money, facilities, systems, knowledge,
materials and manpower. The cost and availability of these resources are important
factors that determine the success of an organizations policy and strategy.

Organizational Behavior

These behaviors an organization demonstrates as a result of influences and forces
operating in the internal environment of determine the ability or constraints in the usage
of resources is termed organizational behavior.
Synergistic Advantage

This is a situation where the whole is greater than the sum of its parts within an
organization. 1 + 1 = 3. it is a situation where attributes do not add up mathematically but
combine to yield an enhanced or reduced impact i.e. (synergistic effect).Two or more
department could combine to support each other, in order to realize higher output or to
share an impact within the organization. For instance, marketing, distribution and
promotion may support each other for higher level of marketing strategy. Conversely,
marketing inefficiency on the other hand, reduces production efficiency (dysentery) i.e.
negative synergy occurs.

Strengths and Weaknesses

The strength of an organization are the attributes the organization has over another
organization. The strength gave the organization the competitive edge over another in the
same industry, while weaknesses are areas within the organization where the competitors
in the same industry can take advantage of as their competitive edge.

Distinctive Competence

This is a comparative quality of one organization over the other.
A distinctive competence of an organization is the ability of that firm to do what its
competitors cannot do or do better whet they can do. This concept is useful for strategy
formulation. Use of trained and qualified manpower could be an organization distinct.
Competence over the other who may resolve o use the unskilled and low paid workers.



Functional Strategies

This strategy is relatively a restricted plan which spells out the specific function, for the
allocation of resources among different competing operations within the functional areas.
This is necessary because it fosters easy co-ordination for optimal contribution to the
achievement       of      the      business      and      corporate      level    objectives.
Functional strategies are obtained from the business and corporate strategy which are
implemented          through          functional        or        operational        strategy.
A very important task of strategy implementation is to align or fit the activities and
capabilities       of         and        organization         with        its      strategies.
Strategies are operated at different levels and there has to be congruence and coordination
among these strategies. Such a congruence is the VERTICAL FIT. The congruence and
coordination among the different activities taking place at the same level is the
HORIZONTALFIT.
Vertical Fit: Discussions on vertical fit will make it necessary to define functional
strategies in terms of the capability of the functional strategies to contribute to the
strategic advantage of the organization from which it is derived.
Below are some of the functional strategies.
      i. Strategic marketing management which implies the focusing on the alignment
       of marketing management within the organization alongside its corporate and
       business strategies to gain a strategic advantage.
      ii. Strategic financial management focusing on alignment of financial
       management within an organization with its corporate and business strategies to
       gain a strategic advantage.
      iii. Strategic operations management – This implies focusing on the alignment of
       operations management within an organization with its corporate and business
       strategies to gain a strategic advantage.
      iv. Strategic human resources management means focusing on the alignment of
       human resource management within an organization with its corporate and
       business strategies to gain a strategic advantage.
      v. Strategic information management means focusing on the alignment of
       information management within an organization with its corporate and business
       strategies to gain a strategic advantage.

Horizontal Fit: This means that there has to be integration of the operational activities
undertaken to provide a product or service to a customer. This can only take place in the
course of operational implementation.

Operational Implementation: It is the approach adopted by an organization to achieve
operational effectiveness. When an organization engaged in (value creating activities)
optimally and in a way which is better than its competitors. It results in operational
effectiveness. Ability of organization to achieve operational effectiveness has a lot to do
with       its      effective       coordination       of       its      (value       chain).
Value chain is a set of interlinked value creating activities performed by organization.
These activities may begin with the activity of procurement of basic raw materials and
include the act of processing in its successive stages right up to actual end of the product
which may be marketed to the ultimate consumer.

The value chain of a manufacturing organization is divided into primary and support
activities. Primary activities are directly related to the flow of products to the customer
and include (5) sub-activities.

      (i) Inbound logistics (receiving and storing, etc)
      (ii) Operations – transformation of raw materials into finished products
      (iii) Outbound logistics (order-processing, physical distribution etc)
      (iv) Marketing and sales (pricing, promotion etc)
      (v) Service – (installation, repairs etc)

Support activities are provided to sustain the primary activities. These consist of the
infrastructure (including, finance, accounting, general management etc) human resource
management,            technology           development       and         procurement.
The consideration of vertical fit and horizontal fit help to explain why integration is
necessary for the different subsets of functional strategies.
Functional Plans and Policies

The beauty of business strategy or corporate strategy is the extent to which it can serve as
direction to functional managers regarding the plans and policies to be adopted. Infact,
the effectives of strategic management depends critically on the manner in which
strategies are implemented.



Need For Functional Plans and Policies

Among so many reasons for functional plans and policies, Gluck has suggested five
reasons to  show     why    functional    plans and policies are needed.
These are:

   1. To ensure that strategic decisions are implemented by all the parts of an
      organization
   2. There is a basis for controlling activities in the different functional areas of a
      business
   3. The time spent by functional managers on decision making may be reduced as the
      plans lay down clearly what has to be done and the policies provide the
      discretionary framework within which decisions need to be taken
   4. Similar situations occurring in different functional areas are landed by the
      functional managers in a consisted manner.
   5. Coordination across the different functions takes place where necessary.

Functional Strategic Planning/(Check List) Financial Plans and
Policies

The financial plans and policies of an organization are related to the availability, usage
and management of funds. Strategists need to formulate plans and policies in these areas
so       that       strategies        may        be         implemented       effectively.
Some of these checklists in the financial resources of an organization are:

      Sources of funds
      Usage of funds
      Management of funds

Sources of Funds

This refers to sources of financing or capital-mix decisions. Plan and policies have to be
directed at major factors as: capital structure, capital procurement and working capital
borrowings; reserves and surplus as sources of funds. These plans and policies are
important for determining the financial strengths or weakness of an organisation.
Usage of Funds

Plans and policies for the usage of funds deals with investment or asset-mix decisions.
The major considerations that are relevant here are:

      Capital investment
      Fixed asset acquisition
      Current assets
      Loans and advances
      Dividends decisions and the relationship with shareholders




The management of funds is an important area of financial plans and policies it basically
deals with decision related to the systematic aspects of financial management.
The major areas related to the management of funds are:

      i) System of finance
      ii) Accounting and budgeting
      iii) Management control system
      iv) Cash
      v) Credit
      vi) Risk management
      vii) Cost control and reduction
      viii) Tax-planning and advantages

Marketing Plans and Policies

Plans and policies related to marketing have to be formulated and implemented on the
basis of 4ps of marketing mix, that is, product, pricing, place (distribution) and
promotion. The major issues and decisions related to these marketing mix factors are
question such as:

      (i) What types of product to offer?
      (ii) At what prices?
      (iii) Through which distribution channels? (iv) By which of the promotional tool?

Product: Product denotes the goods and services that an organization offers to its target
markets. Plans and policies related to product and markets need to be formulated and
implemented on the basis of characteristics such as quality, features, choice of models,
brand names, packaging and so on.

Pricing: Pricing denotes the money customers pay for exchange of goods and services. It
is important to the seller because it is the reward for his efforts. To a buyer, price is the
value that is assigned to the satisfaction of its needs and wants. Several price
characteristics, such as, discount, mode of payment, allowances, payment period, credit
terms, and so on, affect pricing plans and policies.

Place: Place (or distribution) is the process by which goods or services are made
available to the customers. Distribution plans and policies address themselves to issue,
such as the channels to be used; transportation, logistics and storage inventory
management, coverage of market and so on.

Promotion: This deals with the marketing communication intended to convey the
company’s and its product’s or service’s image to prospective buyers.
A promotional mix consists of four activities advertising, personal selling, sales
promotion and publicity.

Production System: The production system is concerned with the capacity, location,
layout, product or service design, work systems, degree of automation, extent of vertical
integration and other factors.

Operations Planning and Control: Plans and policies related to operations planning:
materials supply, inventory, cost and quality management: maintenance of plant and
equipment.

The aim of strategy implementation is to see how efficiently resources are utilized and in
what manner the day-to-day operations can be managed in the light of long term
objectives.

Research and Development

Plans and policies for research and development deal with product development,
personnel and facilities, level of technology used, technology transfer and absorption.
Technological collaboration and support, and so on.Research and development is sued in
strategy implementation as a foundation for implementing strategies like product
development and diversification.

Personnel Plans and Policies

Personnel plans and policies relate to the personnel system, organizational and employee
characteristics, and industrial relations. Personnel System: Plans and policies related to
the personnel system deal with factors like manpower planning, selection, development,
compensation, communication and appraisal.

Information Management Plans and Policies

Information capability factors relate to the design and management of the flow of
information      from      within      and       outside     into      an     organization.
The value of information as a tangible resource and as a source of strategic advantage has
been recognized by organizations.Other area of information management are acquisition
and retention of information which regards the processing and synthesis of information
with factors such as the sources, quantity, quality and timeliness of information retention
capacity and the security of information. Having examined not serious analysis on the
functional areas earlier mentioned it would be necessary to evaluate the organizational
strengths and weakness for decision making on the basis of the following:

      Evaluating an organization’s strengths
      Common ORGANISATIONAL STRENGTH

A common strength is an organizational capability possessed by numerous competing
firms. For example all the major strong wood film studios possess common strength in
lighting sound recording, set and costume design and make up. Competitive parity exists
when large numbers of competing firms can implement the same strategy. Thus a firm
company that exploit sonly its common strengths in choosing and implementing
strategies is not likely to go beyond average performance.




Distinctive Competences

A distinctive competency is a strength possessed by only a small number of competing
firms. Distinctive competencies are rare among a set of competitors.
Organizations that exploit their distinctive competencies often obtain competitive
advantage and attain above-normal economic performance.

Distinctive competencies are competencies that could be found in the functional areas in
the organization. For example in finance, personnel, research and development;
marketing and information management organization weakness can be evaluated in forms
of skills and capabilities that do not enable an organization to choose and implement
strategies that support its mission.Organisations have essentially two ways of addressing
weakness. First, it may need to make investments to obtain the strength required to
implement strategies that support its mission, secondly, it may need to modify its mission
so that it can be accomplished with the skills and capabilities that the organization
already possesses.

REFERENCES
Ricky     W.       Griffin      –       Management       7th        Edition         2002
Micheal      Aluko         Business        policy     and        strategy,          2004
Azhar Kazmi – Business policy and strategic management 2nd edition, 2004



                                                            By: Khalid Ilyas Siddiqui
                                                                             MS (mgt Sci)

				
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