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Management Strategies in Educational Institutions (8615) B.Ed (2/5, 1/5 Years)

Spring, 2017
Q.1 Elaborate significance of management in Education. Also discuss different functions of
management. (20)

Educational management courses often cover instructional leadership techniques, socioeconomic and
cultural diversity, educational technology, conflict resolution and educational politics. Read on to learn
more about some of the training involved in the educational management field.

Essential Information

Educational management courses prepare individuals for leadership positions in schools and
universities. These courses are usually offered in advanced academic programs that lead to graduate

certificates or master's degrees in educational management or educational administration. Courses

may also prepare students for state certification as principals.

Here are some of the core concepts you'll learn while studying educational management:

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 Leadership skills
 Teacher training
 American public school policy
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 Conflict resolution techniques
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 Ethics in education
 Technology and instruction
 List of Typical Courses
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Education Management and Leadership Course

Participants review and discuss leadership theories and management approaches. This course
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examines school oversight, effective teacher training and the overall dynamics of administering an
educational institution. Topics include best practices in management, motivation, vision and
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performance. Students also examine strategic planning techniques and the development of school

Managing Diversity in Schools Course


This course reviews the increasing diversity in American public schools from historical and
contemporary perspectives. Individuals explore the roles of socioeconomic status and race, and how

they affect the educational outcomes and experiences of students of all ages. Participants learn about
the problems faced by students from disadvantaged communities and discuss ways to create positive
conditions for academic success.

Curricular and Instructional Management Course

Individuals learn to guide and create policies related to classroom instruction and curriculum. This
course examines the process of the educational experience. Students learn how teachers and school
administrators can shape the learning process through effective strategies and leadership practices.
Models of current and past curriculum designs are discussed, along with various methods of delivery.

Conflict Management in Education

This course teaches effective skills to manage conflicts in educational settings to get the top
performance out of students, staff and faculty. Participants discuss the theories of conflict resolution
and practice the techniques to resolve them. Students learn how to conduct dispositions needed to
begin negotiation and mediation.

Educational Management and Politics Course

Students examine the competing political and social forces at play which shape educational strategy
and policy at the local, state and national level. This course reviews the role of the local school district,
teachers unions, parents and local elected officials. Individuals gain skills to effectively deal with the
political pressure exerted in education management. Also discussed are the ethics that guide these
political decisions.

Educational Management and Technology Course

This course surveys the technology available to education administrators and the benefits gained by
such advances in the field. Students discuss leadership issues relating to communication and
information technology. Participants investigate ways to enhance instruction through technology and
how it can be used to better management schools. Topics include instructional management,
budgeting, record keeping, productivity, teacher and student assessment, and school operations.

Different functions of management

A person who holds a management position inside an organization is required to think strategically and
conceptually in order to achieve organizational goals. This lesson will describe the four functions of

management and how they relate to organizational success.

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The Four Functions of Managers

Management involves far more than just telling others what to do. Before any of you decide that you
think you can do your boss's job, let's take a look into more of what a manager does.
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The major functions that a manager completes can be categorized into four different functions known
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as planning, organizing, leading, and controlling. For some of us, we only see the final two - leading
and controlling - but you should know that for every managerial behavior you do see, there is an equal
amount that you do not. Behind the manager's closed door, he or she spends a good deal of his or her
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time planning and organizing, so that he or she can effectively carry out the functions of leading and
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Now, before you think your boss is different, you should also know that the four functions of
management are standard across industries, whether that be in a manufacturing plant, a home office,
a grocery store, a retail store, a restaurant, a hotel, or even an amusement park. Effective managers
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understand how planning, organizing, leading, and controlling are used to achieve organizational
success. Unfortunately, I do not have a rebuttal for those of you who have ineffective managers, but

perhaps learning a little more about the four functions of management will help to identify what steps
your ineffective manager needs to take to become an effective one.

Try to think about the four functions as a process where each step builds on the others. Managers
must first plan, then organize according to that plan, lead others to work towards the plan, and finally

evaluate the effectiveness of the plan. These four functions must be performed properly and, when
done well, become the reason for organizational success.


The first of the managerial functions is planning. In this step, the manager will create a detailed action
plan aimed at some organizational goal.

For example, let's say Melissa the marketing manager has a goal of increasing sales during the month
of February. Melissa needs to first spend time mapping out the necessary steps she and her team of
sales representatives must take so that they can increase sales numbers. These steps might include
things like increasing advertisements in a particular region, placing some items on sale, increasing the
amount of required customer-to-sales rep contact, or contacting prior customers to see if they are
interested in purchasing additional products. The steps are then organized into a logical pattern so that
Melissa and her team can follow them.

Planning is an ongoing step, and can be highly specialized based on organizational goals, division
goals, departmental goals, and team goals. It is up to the manager to recognize which goals need to
be planned within his or her individual area.


The second of the managerial functions is organizing. This step requires Melissa to determine how she
will distribute resources and organize her employees according to the plan. Melissa will need to identify
different roles and ensure that she assigns the right amount of employees to carry out her plan. She
will also need to delegate authority, assign work, and provide direction so that her team of sales
representatives can work towards higher sales numbers without having barriers in their way.


The third function of management is leading. In this step, Melissa spends time connecting with her
employees on an interpersonal level. This goes beyond simply managing tasks; rather, it involves
communicating, motivating, inspiring, and encouraging employees towards a higher level of


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Controlling is the fourth step in the management process. Let's review the process as a whole to better

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understand how controlling fits.

The first step, planning, involves developing short- and long-term goals for the organization. This
includes setting goals and planning for the necessary resources needed to attain the set goals. Goals
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can be short-term, like a sales blitz, or long-term, like developing a new marketing plan. Either way,
managers begin by first planning for the goals.
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The next step, organizing, involves performing all of the tasks needed to get the job done. This means
gathering all of the resources, like people, capital and information, so that everything is ready when
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The next step, directing, involves actually executing the plan - putting all of the resources to work to
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achieve the short- and long-term goals set forth in the planning stage.

The final step, and the main focus of our lesson, is controlling. It involves comparing actual
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performance to expected performance.


Controlling as a Process

 The controlling process involves:

 Establishing standards to measure performance
 Measuring actual performance

 Comparing performance with the standard

 Taking corrective action

Controlling Process Explained

The controlling process is simply a set of steps a manager uses to determine whether organizational
goals have been met. Let's explore each step of the process and apply examples to demonstrate its
function for management. Let's use the example of TQM Auto Repair Shop to understand the
controlling process.

Establishing Standards to Measure Performance

This involves making decisions about the goals an organization wants to focus on during a period of
time. These can be financial, customer satisfaction, production or employee performance-related goals.

Measuring Actual Performance

This involves creating measuring tools to collect data. The tool should be able to report on performance
as it relates to the standards set, or 'measures,' developed in the first step of the controlling process.
These tools can be a balance sheet, a sales report, data collected from a customer satisfaction survey
or even an employee performance appraisal.

Comparing Performance with the Standard

This involves comparing 'actual' performance to performance standards based on data collected in the
second step of the controlling process. Using the measuring tools created in the second step, managers
are able to compare current performance and productivity to the standards set. A manager may want
to compare sales performance from last year to this year by comparing the actual sales from the
previous year to the sales of the current year. This comparison tells a manager whether the sales team
is below, meeting or exceeding goals. These are called variances, or differences between what was
expected and what actually occurred.

Taking Corrective Action

This involves determining whether changes need to be made, what changes need to be made and

devising a plan for making changes. Managers will use comparisons to determine what needs to be

investigated. If sales are lower than expected, managers will look at various things.

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Perhaps the salespeople are not making as many client calls as they did last year. In this case,
corrective action may be taken against the employees for non-performance. A manager may look at
the work itself. Maybe there are too many clients and not enough staff. In this case, a manager may
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have to hire more staff. The price of the product or service may be too high, and it may affect demand.
In this case, a manager may have to look at ways to add value to a product or service or lower prices.
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Q.2 Explain Gantt Chart and Program Evaluation Review Technique (PERT) as tools of
management. Give relevant examples.(20)
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A PERT chart is a project management tool used to schedule, organize, and coordinate tasks within a
project. PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S.
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Navy in the 1950s to manage the Polaris submarine missile program. A similar methodology, the
Critical Path Method (CPM) was developed for project management in the private sector at about the
same time.
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A PERT chart presents a graphic illustration of a project as a network diagram consisting of numbered
nodes (either circles or rectangles) representing events, or milestones in the project linked by labelled

vectors (directional lines) representing tasks in the project. The direction of the arrows on the lines
indicates the sequence of tasks. In the diagram, for example, the tasks between nodes 1, 2, 4, 8, and
10 must be completed in sequence. These are called dependent or serial tasks. The tasks between

nodes 1 and 2, and nodes 1 and 3 are not dependent on the completion of one to start the other and
can be undertaken simultaneously. These tasks are called parallel or concurrent tasks. Tasks that
must be completed in sequence but that don't require resources or completion time are considered to
have event dependency. These are represented by dotted lines with arrows and are called dummy
activities. For example, the dashed arrow linking nodes 6 and 9 indicates that the system files must be
converted before the user test can take place, but that the resources and time required to prepare for
the user test (writing the user manual and user training) are on another path. Numbers on the
opposite sides of the vectors indicate the time allotted for the task.

The PERT chart is sometimes preferred over the Gantt chart, another popular project management

charting method, because it clearly illustrates task dependencies. On the other hand, the PERT chart

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can be much more difficult to interpret, especially on complex projects. Frequently, project managers
use both techniques.

PERT is a planning and controlling tool for the management that provides the complete roadmap of
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activities involved in the completion of a project, along with the estimated time required for the
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completion of each task and the minimum time needed for the whole project to get completed.

PERT is used majorly for analyzing the project scheduling problems, wherein the time needed for the
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completion of each task and the whole project as a whole is uncertain. Thus, PERT lays emphasis on
the uncertainty of completion time of the activities involved in the project. It is probabilistic in
nature and hence is much used in the research and development projects.
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A PERT Chart is created to represent a set of activities along with the estimated time (generally, in
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weeks) for its completion on a graph. It shows that for a completion of activities in the series the
predecessor activities must be completed before beginning a new activity.

The activity is a task, and the event is the milestone. In the chart, the activity and task are

represented by arcs and nodes as shown in the figure below:


In the graph, the milestones are numbered so that it is easily identifiable that the last node has a
higher number than the beginning node. The activities are shown by the letters along with the

expected time required for the completion of each activity. In this way, the management plots a graph
and plan about the activities involved in a project and estimate the time needed for its completion.

An activity is represented by a line or arrow. This line or arrow connects two events. Each event is a
specific point in time, marking the beginning and/or end of an activity. Artificial dummy events may be
included to ensure that all activities have a unique pair of event numbers. Also network dummy
activities, (shown by dashed line) which take no time but indicate dependence. Dummies are
particularly necessary in computerised CPMs. The network may also include time/calendar information
(including boundaries) and hence deadline data.

PERT was developed during the 1950s through the efforts of the U.S. Navy and some of its contractors
working on the Polaris missile project. Concerned about the growing nuclear arsenal of the Soviet
Union, the U.S. government wanted to complete the Polaris project as quickly as possible. The Navy
used PERT to coordinate the efforts of some 3,000 contractors involved with the project. Experts
credited PERT with shortening the project duration by two years. Since then, all government
contractors have been required to use PERT or a similar project analysis technique for all major
government contracts.


The chief feature of PERT analysis is a network diagram that provides a visual depiction of the major

project activities and the sequence in which they must be completed. Activities are defined as distinct

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steps toward completion of the project that consume either time or resources. The network diagram
consists of arrows and nodes and can be organized using one of two different conventions. The arrows
represent activities in the activity-on-arrow convention, while the nodes represent activities in the
activity-on-node convention. For each activity, managers provide an estimate of the time required to
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complete it.
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The sequence of activities leading from the starting point of the diagram to the finishing point of the
diagram is called a path. The amount of time required to complete the work involved in any path can
be figured by adding up the estimated times of all activities along that path. The path with the longest
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total time is then called the "critical path," hence the term CPM. The critical path is the most important
part of the diagram for managers: it determines the completion date of the project. Delays in
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completing activities along the critical path necessitate an extension of the final deadline for the
project. If a manager hopes to shorten the time required to complete the project, he or she must focus
on finding ways to reduce the time involved in activities along the critical path.
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The time estimates managers provide for the various activities comprising a project involve different
degrees of certainty. When time estimates can be made with a high degree of certainty, they are called

deterministic estimates. When they are subject to variation, they are called probabilistic estimates. In
using the probabilistic approach, managers provide three estimates for each activity: an optimistic or

best case estimate; a pessimistic or worst case estimate; and the most likely estimate. Statistical
methods can be used to describe the extent of variability in these estimates, and thus the degree of

uncertainty in the time provided for each activity. Computing the standard deviation of each path
provides a probabilistic estimate of the time required to complete the overall project.


Managers can obtain a great deal of information by analyzing network diagrams of projects. For
example, network diagrams show the sequence of activities involved in a project. From this sequence,
managers can determine which activities must take place before others can begin, and which can occur
independently of one another. Managers can also gain valuable insight by examining paths other than
the critical path. Since these paths require less time to complete, they can often accommodate
slippage without affecting the project completion time. The difference between the length of a given
path and the length of the critical path is known as slack. Knowing where slack is located helps
managers to allocate scarce resources and direct their efforts to control activities.

For complex problems involving hundreds of activities, computers are used to create and analyze the
project networks. The project information input into the computer includes the earliest start time for
each activity, earliest finish time for each activity, latest start time for each activity, and latest finish
time for each activity without delaying the project completion. From these values, a computer

algorithm can determine the expected project duration and the activities located on the critical path.
Managers can use this information to determine where project time can be shortened by injecting
additional resources, like workers or equipment. Needless to say, the solution of the algorithm is easy
for the computer, but the resulting information will only be as good as the estimates originally made.
Thus PERT depends on good estimates and sometimes inspired guesses.

PERT offers a number of advantages to managers. For example, it forces them to organize and
quantify project information and provides them with a graphic display of the project. It also helps them
to identify which activities are critical to the project completion time and should be watched closely,
and which activities involve slack time and can be delayed without affecting the project completion
time. The chief disadvantages of PERT lie in the nature of reality. Complex systems and plans, with
many suppliers and channels of supply involved, sometimes make it difficult to predict precisely what
will happen. The technique works best in well-understood engineering projects where sufficient
experience exists to predict tasks accurately in advance.

Q.3 Differentiate between Monitoring and Evaluation. Describe key Performance

Indicators (KPIs) of educational personnel. (20)

Between monitoring and evaluation of projects, one can find a variety of differences. Monitoring and

Evaluation are two states of analysis in terms of the progress made in relation to the goals of an
enterprise or a firm. These two states of analysis differ in their manner of approach. Monitoring is the

systematic analysis occasionally made of information to identify changes over a period. On the other

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hand, evaluation is the analysis of the effectiveness of an activity that would finally prompt a judgment
regarding the progress made in relation to the goals of a firm. This is the major difference between
monitoring and evaluation. This article attempts to clarify this difference in detail.

What is Monitoring?
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Monitoring is the systematic analysis occasionally made of information to identify changes over a
period of time. Monitoring keeps the track of the process of implementation. It consists in examining
the progress made in a project against time by taking into account performance too.
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Monitoring consists in periodical checking of progress made in the conduct of the projects against the
targets and goals laid down. It has to be understood that monitoring is done with a view to ensure the
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completion of the project in time. This, in fact, is the very purpose of monitoring.
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The purpose of monitoring also lies in providing constructive suggestions. These suggestions can be
regarding the rescheduling of the project if required, allotment of separate budget to the project and
even reassigning the staff for the conduct of a particular project.

What is Evaluation?

Evaluation is the analysis of the effectiveness of an activity that would finally prompt a judgment

regarding the progress made in relation to the goals of a firm. Evaluation consists in estimating the
value of something. It involves the process of finding the facts.

Evaluation can also be explained as the study of past experience when it comes to the performance
and implementation of the project. Unlike Evaluation, Monitoring does not take into account the past
experience involved in the performance of a project. In short it can be said that evaluation aims at the
submission of the valid information on the conduct and impact of the project.

Differences between monitoring and evaluation

The common ground for monitoring and evaluation is that they are both management tools. For
monitoring, data and information collection for tracking progress according to the terms of reference is
gathered periodically which is not the case in evaluations for which the data and information collection
is happening during or in view of the evaluation. The monitoring is a short term assessment and does
not take into consideration the outcomes and impact unlike the evaluation process which also assesses
the outcomes and sometime longer term impact. This impact assessment occurs sometimes after the

end of a project, even though it is rare because of its cost and of the difficulty to determine whether
the project is responsible of the observed results.

Importance of monitoring and evaluation

Although evaluations are often a retrospective, their purpose is essentially forward looking. Evaluation
applies the lessons and recommendations to decisions about current and future programmes.
Evaluations can also be used to promote new projects, get support from governments, raise funds
from public or private institutions and inform the general public on the different activities.

It is also very important as monitoring team give the recommendation to the school visited. (E.g K.H.S
and G.S.G )

The Paris Declaration on Aid Effectiveness in February 2005 and the follow-up meeting in Accra
underlined the importance of the evaluation process and of the ownership of its conduct by the
projects' hosting countries. Many developing countries now have M&E systems and the tendency is

Performance measurement

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The credibility of findings and assessments depends to a large extent on the manner in which

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monitoring and evaluation is conducted. To assess performance, it is necessary to select, before the
implementation of the project, indicators which will permit to rate the targeted outputs and outcomes.
According to the United Nations Development Programme (UNDP), an outcome indicator has two
components: the baseline which is the situation before the programme or project begins, and the
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target which is the expected situation at the end of the project. An output indicator that does not have
any baseline as the purpose of the output is to introduce something that does not exist yet.[
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Evaluation consists in making a study about the effectiveness of the projects. The purpose of
evaluation lies in bringing about the process of accounting close to perfection. It also consists in
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making the best possible use of the available funds, methods to stop the probability of mistakes,
testing the efficacy of the new techniques employed in the completion of the projects, verifying the real
benefits of the projects and understanding the participation of the people in the project by means
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of surveys, interviews and the like. It is true that evaluation aims for the future.
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This emphasizes that in conducting projects both monitoring and evaluation have a specific role to
play. The difference between the two roles in project management can be summarized as follows.

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What is the Difference Between Monitoring and Evaluation?


Definitions of Monitoring and Evaluation:


Monitoring: Monitoring is the systematic analysis made occasionally of information to identify changes
over a period of time.

Evaluation: Evaluation is the analysis of the effectiveness of an activity that would finally prompt a
judgment regarding the progress made in relation to the goals of a firm.

Characteristics of Monitoring and Evaluation:


Monitoring: Monitoring keeps the track of the process of implementation.

Evaluation: Evaluation consists in estimating the value of something. It involves the process of finding
the facts.


Monitoring: Monitoring aims at periodical checking of progress made in the conduct of the projects
against the targets and goals laid down.

Evaluation: Evaluation aims at making a study about the effectiveness of the projects.


Monitoring: The purpose of monitoring lies in providing constructive suggestions.

Evaluation: The purpose of evaluation lies in bringing about the process of accounting close to

Key Performance Indicators (KPIs) of educational personnel

A key performance indicator (KPI) is a type of performance measurement that helps you understand
how your organization, department, or institution is performing and allows you to understand if you’re

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headed in the right direction with your strategy. But if you’re looking for key performance indicators for
schools or higher education, you know that there are hundreds to select from. That’s why we’ve
narrowed down a list of 28 critical education KPIs—divided between nine categories specific to
education management—that you can begin tracking today.

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Graduation Rate: This KPI determines the number of students who completed their schooling
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or received a particular certificate or degree within the normal time frame. (You’ll want to ensure you
have a policy for tracking transfers in and out of your grades.)
2. Awards: This metric looks at the number of awards granted to students and/or faculty and
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staff during each academic calendar year.

3. Research Grants: This metric examines the percentage of the grants students and/or faculty
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received versus those that were applied for. You may also want to track total grant dollars.
4. Student Attendance Rate: Determining the number of students that have achieved, say, 90%
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attendance during a given semester or academic year is vital to track. (You can set your target and
measure accordingly.)

5. Percentage Of Students On Aid: This metric calculates the number of students receiving

some kind of financial assistance, like scholarship money or government aid. In a secondary school you
may also track those on meal assistance.

6. Grant Money: It’s important to track the dollars fundraised for an institution through
endowments, donations, or partnerships.
7. Tuition Costs: This metric examines the cost to each student in a given scholastic timeline (i.e.
a quarter or semester) to attend the institution.

8. Student To Faculty Ratio: Schools may want to examine this metric to ensure students are
receiving the proper attention. In most cases, the lower your student to faculty ratio is, the better.
9. Cost Per Student: This metric calculates every cost a school incurs to educate each student.
This might include campus and building maintenance, teacher and staff salaries, some books costs,
some food costs, and much more.
10. Faculty To Administration Ratio: If this ratio is too low—say, you have only two
administrators for 50 faculty members—there may be issues with scheduling, organization, and

11. Number Of Students Enrolled Per Number Of Applications: This metric is particularly
important for private schools who wish to remain academically competitive. Additionally, it can help
you keep tabs on statistics with the student body so you are able to offer the right amount of student
resources. This can also be called the acceptance rate.

11. Percentage Students In Focus Areas: This metric allows you to examine the percentage of
students taking, say, a foreign language, STEM courses, or AP courses. (Which focus areas you hone in
on will depend entirely on your strategy.)
12. Proficiency Rates For Each Subject: This allows you to see not just how your curriculum
breaks down, but how each area of a curriculum is performing.

13. Percentage Of Faculty With Advanced Certifications Or Degrees: In higher education,
this metric may be important for recognition, grant money, or simply the reputation of the school.
14. Number Of Training Sessions Per Year: Ensuring faculty members are in touch with the

latest teaching methods or technologies helps ensure that students receive the best educational

15. Faculty & Staff Attendance Rates: If your institution has a low attendance rate from faculty

and staff members, this can have a negative effect on the organization as a whole. Timelines can be

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thrown off, and time and money is spent finding substitutes or temps.
16. Faculty & Staff Retention Rate: Not only does a high retention rate help students and
professors build better rapport, but education management also doesn’t have to retrain new employees
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as regularly.
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17. Average Age Of Buildings: Renovating older buildings effectively lowers the building’s age.
Thus tracking the age of your buildings on campus helps ensure that adequate maintenance is being
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provided and that they are fully functional.

18. Percentage Of Buildings Passing Inspection: Of course, this metric should ideally come out
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at 100%—but if it’s lower, you’ll know to pay immediate attention to the buildings that did not pass.
You could also have an internal inspection for something like the availability of technology. For
example, what percent of your buildings have adequate WiFi?
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19. Classroom Utilization Rate: This metric examines whether you’re making the best use of
your campus space and keeping classes as full as possible.


20. Percentage Of Classes Using Technology: You’ll want a high percentage of classes in your
school using the technologies or online platforms that have been provided to them.

21. Percentage Of Administrators Using Technology: Both teachers and administrators should
be using the online- or classroom-based technologies they’ve been provided for lessons, projects, or
activities—and this metric should make you aware of whether that is happening or not.
22. Social Media Engagement: The analytics you’ll need for this metric are often available
through the social media platforms your school chooses to employ (like Facebook, for example), and
can show how well your social media department is performing.
23. Calls To Tech Department Per Month: This may act as a productivity metric for your IT
department, showing them how many calls they’re fielded and how many (if any) went unanswered.

24. Percentage Of Students That Take Public Transit: Whether at a junior high or a large
university, schools will want to track whether students are using the transportation options that have
been provided to them by the institution, municipality, or state.

25. Percentage Of Students That Commute: Month-to-month or year-to-year, the admissions
office will likely want to track what percentage of students commute—as this is directly tied to how
much parking and on-campus housing may be needed.
26. Cost Of Transit: Tracking your cost per student of busses will allow you to analyze if you have
an appropriate bus route or if you need to get creative about getting your students to class. You have
the same challenge at a university, when looking at the availability of transit options. Having a school
transit option might be a good way to encourage attendance.

27. Percentage Of Students Living On Campus: Tracking this rate allows administrators to
ensure that there is enough room (or too much room) for students on campus and that this stays in
line with the long-term strategy of the institution.
28. Percentage Of Students That Say On-Campus Housing Is Above Average: Survey results
are always important to keep in consideration. You’ll want to ensure that students feel their tuition and
fees are being utilized appropriately and that administrators are responding to their feedback
accordingly. The quality of housing options certainly affects where students choose to live during

Q.4 What is meant by strategic management? Discuss strategic management process in

detail. (20)

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Strategic management is the set of decisions and actions that result in the formulation and
implementation of plans designed to achieve a company’s objectives. Because it involves long-term,
future-oriented, complex decision making and requires considerable resources, top-management
participation is essential. Strategic management is a three-tier process involving corporate-, business-,
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and functional-level planners, and support personnel. At each progressively lower level, strategic
activities were shown to be more specific, narrow, short term, and action oriented, with lower risks but
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fewer opportunities for dramatic impact. The strategic management model presented in this chapter
will serve as the structure for understanding and integrating all the major phases of strategy
formulation and implementation. The chapter provided a summary account of these phases, each of
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which is given extensive individual attention in subsequent chapters.

The chapter stressed that the strategic management process centers on the belief that a firm’s mission
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can be best achieved through a systematic and comprehensive assessment of both its internal
capabilities and its external environment. Subsequent evaluation of the firm’s opportunities leads, in
turn, to the choice of long-term objectives and grand strategies and, ultimately, to annual objectives
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and operating strategies, which must be implemented, monitored, and controlled.


The strategic management process is more than just a set of rules to follow. It is a philosophical
approach to business. Upper management must think strategically first, then apply that thought to a

process. The strategic management process is best implemented when everyone within the business
understands the strategy. The five stages of the process are goal-setting, analysis, strategy formation,
strategy implementation and strategy monitoring.


The purpose of goal-setting is to clarify the vision for your business. This stage consists of identifying
three key facets: First, define both short- and long-term objectives. Second, identify the process of
how to accomplish your objective. Finally, customize the process for your staff, give each person a task
with which he can succeed. Keep in mind during this process your goals to be detailed, realistic and
match the values of your vision. Typically, the final step in this stage is to write a mission statement
that succinctly communicates your goals to both your shareholders and your staff.


Analysis is a key stage because the information gained in this stage will shape the next two stages. In
this stage, gather as much information and data relevant to accomplishing your vision. The focus of the
analysis should be on understanding the needs of the business as a sustainable entity, its strategic
direction and identifying initiatives that will help your business grow. Examine any external or internal
issues that can affect your goals and objectives. Make sure to identify both the strengths and

weaknesses of your organization as well as any threats and opportunities that may arise along the

Strategy Formulation

The first step in forming a strategy is to review the information gleaned from completing the analysis.
Determine what resources the business currently has that can help reach the defined goals and
objectives. Identify any areas of which the business must seek external resources. The issues facing
the company should be prioritized by their importance to your success. Once prioritized, begin
formulating the strategy. Because business and economic situations are fluid, it is critical in this stage
to develop alternative approaches that target each step of the plan.

Strategy Implementation

Successful strategy implementation is critical to the success of the business venture. This is the action
stage of the strategic management process. If the overall strategy does not work with the business'
current structure, a new structure should be installed at the beginning of this stage. Everyone within
the organization must be made clear of their responsibilities and duties, and how that fits in with the

overall goal. Additionally, any resources or funding for the venture must be secured at this point. Once
the funding is in place and the employees are ready, execute the plan.

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Evaluation and Control

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Strategy evaluation and control actions include performance measurements, consistent review of
internal and external issues and making corrective actions when necessary. Any successful evaluation
of the strategy begins with defining the parameters to be measured. These parameters should mirror
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the goals set in Stage 1. Determine your progress by measuring the actual results versus the plan.
Monitoring internal and external issues will also enable you to react to any substantial change in your
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business environment. If you determine that the strategy is not moving the company toward its goal,
take corrective actions. If those actions are not successful, then repeat the strategic management
process. Because internal and external issues are constantly evolving, any data gained in this stage
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should be retained to help with any future strategies.

Strategic Analysis
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Strategic analysis is an idea used within the broader field of strategic management to help businesses
understand where their companies fit into the broader marketplace. This starts by looking inward --
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evaluating the work environment, the availability of resources and the relationships between various
levels of stakeholders. The aim of strategic analysis is to get you, the business owner or manager, to

think about the key influences on the company's present position and to begin thinking about how
those influences can be manipulated to get the company where it wants or needs to go.

Strategic Choice

Once a strategic analysis of the company's environment has been carried out, you can move onto
listing the strategic choices your company can take to meet its objectives. If you need to increase
revenue by 25 percent, for instance, over the next 12 months, listing your strategic choices will help
you come up with ways to scale up resources, change company policy and reinvent business processes
so as to reach the increased revenue goal. The key to this process is open communication. Discussing
your options with your stakeholders -- employees, customers, board members and concerned
community members -- will give you a 360-degree view of where the company can tweak or modify its
policies and processes to better position itself for success.

Strategy Implementation

Implementing the choices outlined in the strategic plan is likely to be a time-consuming and, at times,
frustrating endeavor. There are two things to keep in mind -- allocation of resources and the
organizational structure. If the organization and its management are rigid and not very open to
change, it will be much harder to implement your strategic plan. You also have to think about access to
resources, such as manpower, money and tools. Implementing change within the business will require
a balance between pouring money into a problem and effectively using resources to change business
policies and processes.
SWOT Analysis

One of the main tools that can be used in bringing together a strategic management plan is called a
SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. The idea behind
this tool is to list each of your organization's attributes in each section. If you have strengths in
customer service, list that here, but also don't be shy about listing areas for improvement. If your
facilities need to be revamped, list that as an opportunity to better your company. If there's a
competitor you can't do much to control, list that as a weakness. Seeing all of your business's pros and
cons in one place can you help decide a strategic plan for accomplishing financial, operations and
resource-based goals.

Q.5 How communication effects the management of organizational behavior? Explain in

detail. (20)

For a group of people to be an organization rather than just a random collection of individuals, they
need to communicate with each other and coordinate their activities. The more effective the
communication, the more efficient and productive the activities will be. A well-organized workplace
features transparency through hierarchies so that everyone is clear about his role and purpose at work.


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In a hierarchical organization, communication runs up and down chains of command between

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management and labor. The larger a company is, the more complex the hierarchy is likely to be, with a
CEO, CFO, board of directors, vice presidents and regional managers. All of these people need to know
who they report to and who they manage. When these roles and channels of communication aren't
clear, the result is inefficient operations and lost profits. Good leadership is responsive to the needs of
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employees but also unambiguous about its own role at the top.
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The smooth functioning of a workplace is dependent on cooperation between coworkers. In order to

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cooperate well, coworkers need to be able to communicate effectively. In a cooperative team that is
pursuing a particular project, tasks are delegated to different individuals to get everything done with
maximum efficiency. Good communication prevents people from duplicating their efforts, and allows all
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of the different delegated tasks to be fitted together into a completed project. Good communication
must also exist between the team as a whole and the rest of the company.
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Experienced managers understand that their jobs are made easier when they have access to a
constant stream of information from their employees. Managers who neglect feedback from workers

are losing their best source of information about the health and functionality of their company. Both
positive and negative feedback should be sought out from the people on the front lines of production to
constantly improve efficiency and productivity. Soliciting feedback from workers also improves staff

morale by showing that management takes their opinions seriously and wants to include them in the
ongoing improvement of the organization.


Waste is the enemy of a profitable company. Waste exists not only in the material realm but in the
realm of function and labor as well. Clear communication throughout an organization helps to
efficiently organize labor and tasks to eliminate wasted effort and time. This improves the profitability
of the company and the returns that can be enjoyed by everyone. Good communication also improves
efficiency by providing a channel of information which lets everyone know about initiatives being
undertaken by the company.

Individual Attitudes and Behaviors

Attitudes can positively or negatively affect a person's behavior. A person may not always be aware of
his or her attitude or the effect it is having on behavior. A person who has positive attitudes towards
work and co-workers (such as contentment, friendliness, etc.) can positively influence those around

them. These positive attitudes are usually manifested in a person's behavior; people with a good
attitude are active and productive and do what they can to improve the mood of those around them.

In much the same way, a person who displays negative attitudes (such as discontentment, boredom,
etc.), will behave accordingly. People with these types of attitudes towards work may likewise affect
those around them and behave in a manner that reduces efficiency and effectiveness.

Attitudinal Categories

Attitude and behavior interact differently based upon the attitude in question. Understanding different
types of attitudes and their likely implications is useful in predicting how individuals' attitudes may
govern their behavior. Daniel Katz uses four attitude classifications:

Utilitarian: Utilitarian refers to an individual's attitude as derived from self or community interest. An
example could be getting a raise. As a raise means more disposable income, employees will have a
positive attitude about getting a raise, which may positively affect their behavior in some

Knowledge: Logic, or rationalizing, is another means by which people form attitudes. When an
organization appeals to people's logic and explains why it is assigning tasks or pursuing a strategy, it

can generate a more positive disposition towards that task or strategy (and vice versa, if the employee

does not recognize why a task is logical).

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Ego-defensive: People have a tendency to use attitudes to protect their ego, resulting in a common
negative attitude. If a manager criticizes employees' work without offering suggestions for
improvement, employees may form a negative attitude and subsequently dismiss the manager as
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foolish in an effort to defend their work. Managers must therefore carefully manage criticism and offer
solutions, not simply identify problems.
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Value-expressive: People develop central values over time. These values are not always explicit or
simple. Managers should always be aware of what is important to their employees from a values
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perspective (that is, what do they stand for? why do they do what they do?). Having such an
awareness can management to align organizational vision with individual values, thereby generating
passion among the workforce.
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Organizational Attitudes and Behaviors

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Attitudes can be infectious and can influence the behavior of those around them. Organizations must
therefore recognize that it is possible to influence a person's attitude and, in turn, his or her behavior.

A positive work environment, job satisfaction, a reward system, and a code of conduct can all help
reinforce specific behaviors.

One key to altering an individual's behavior is consistency. Fostering initiatives that influence behavior
is not enough; everyone in the organization needs to be committed to the success of these initiatives.

It is also important to remember that certain activities will be more effective with some people than
with others. Management may want to outline a few different behavior-change strategies to have the
biggest effect across the organization and take into consideration the diversity inherent in any group.

The real change after giving such a feedback in an organisation is barely visible, letting the employees
feel useless. There are some companies with disruptive new structures such as google in which the
hierarchy is maintained as flat as possible. I am well aware that this company form is not applicable for
every Industry and company but at least some extent of employee co-determination should be
possible. It will make the company feel more at home and should motivate everyone to work harder.

Concluding I want to motivate managers to show their employees that they care about them and that
they are not just workforce which might as well be replaced by machines. This attitude should be
beneficial for all parties and self-reinforcing.