1 PepNotes PDF

AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS
Participants in flexible learning programs have limitations on the nature of the

time they can spend on learning. Typically they are employed fully or partially,
pursuing higher studies or have other social and familial responsibilities.
Availability of time is a great constraint to these students.
To aid the participants, we have developed four unique learning tools as below:
 Bullet Notes : Helps in introducing the important concepts in each unit
of curriculum, equip the student during preparation of examinations and
placement interviews
 Case Studies : Illustrate the concepts through real life experiences
 Workbook : Helps absorption of learning through questions based on real life nuggets
 PEP Notes : Sharing notes of practices and experiences in the Industry will help the student
to rightly perceive and get inspired to learn concepts at the cutting edge
application level.
 Adults learn differently from B. School or college going

Why are these needed?
students who spend long hours at campus.

 Enhancing analytical skills through application related learning
kits trigger experiential learning
 Availability of time is a challenge.
 Career success increasingly depends on continuous learning
and success
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What makes it relevant?
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experience.
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participants.
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Where does this lead to?
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 Will facilitate the student to complete the program earlier than
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When is it useful?
Spending more time is your choice.

 You can use the time in travel, waiting for meetings, lunch time, small breaks or at home
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PEP Notes
 
Principles of Management
1
PEP Notes: Principles of Management
© The ICFAI Foundation for Higher Education (IFHE), Hyderabad,

April, 2015. All rights reserved
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i
INTRODUCTION
Participants in ICFAI University Programs are eager to apply theory to practice. They realize that
application orientation can enhance their learning and subsequent usage of management precepts and
practices. Picking out the principle behind real world events is critical to this learning. Towards this end
the institution has introduced the PEP Notes.
The PEP Notes (Practice, Experience and Perspective Notes) is a collection of annotative notes on
practices, experiences and perspectives from industry as appearing in articles from reputed sources such as
Harvard Business Review, Economist, Mckinsey Quarterly, Accenture, Bain Consulting etc.
 Practice : Organizations follow practices based on their past learning
 Experience: Based on changing context, they face fresh experiences
 Perspective: Organization learns from the experience and the practice to gain fresh perspective
These notes connect the three dimensions of the real world to key concepts in the subject. Each note is
brief – about one to two pages and is adapted from the article referred to in the note. The concept
underlying the note is highlighted in a box. The concept is also connected to the article through an
introductory abstract in a box at the beginning.
The learning outcomes expected are:
1. Real world Application based approach significantly enhances absorption and retention.
2. Exposure to the current trends, practices with illustrations connect back to theory.
3. Thoughts from leading sources.
The PEP Notes may be used for Assessment.
ii
CONTENTS
Block I: Introduction to Management

1. The Role of Management in Manufacturing Industry 6
2. Management Functions Require Different Skill set in Managers 7
3. Engaging Middle-Level Managers 8
4. Management Skills for Effective Indian Managers 10
5. Operational Excellence Model as Management Approach 11
6. Charles Dupin‘s Work: An Origin to Social Sciences 12
7. The Human Factor in Classical Approach of Scientific Management 13
8. Are there any Deviations in Maslow‘s Hierarchy of needs in Current Days? 14
9. Quantitative Approaches in Operations Management 15
10. Applications of Systems Theory Integral to Modern Approaches to Management 16
11 Social Responsibility of Corporates 17
12. Different Perspectives on Corporate Social Responsibility 19
13. Social Stakeholders as Drivers of Long Term Business Value 20
14. Quality of Work Life as a Measure of Social Responsiveness 21
15. Personal and Organizational Factors impacting Managerial Ethics 25
Block II: Planning

16. Strategic Planning for Better Organizational Business Value 27
17. Technology and Innovation Strategies of an Organization 29
18. HR alignment for Effective Implementation of Strategy 31
19. Decision-Making Process in Automotive Industry 32
20. Risk Culture for Decision Making in an Organization 33
21. Data Analytics as Systems Approach to Decision Making 36
Block III: Organizing

22. Reaching High Performance in an Effective Organization 39
23. Prioritizing Management Issues to Avoid Organizational Inflexibility 41
24. Factors impacting Organizational Culture 43
25. Factors impacting Intrapreneurship in Organizations 45
Block IV: Staffing

26. Innovative HRM Policies and Practices 47
27. Key Success Factors of Training and Development 48
28. Different Sources of Recruitment in Current Days 51
iii
29. The Role of Selection Science in Selection Process 52
30. Benefits of Effective Socialization Process of New Employees 53
31. Factors Impacting Organizational Change 55
32. Achieving Planned Organizational Change through Focus 56
33. Team Building as an Organizational Development Process 58

34. Management Development Approaches of Leaders and Managers for International NGOs 60
35. Handling Organizational Conflicts 61
Block V: Leading
36. Nature of People: Abraham Lincoln 64
37. Douglas McGregor‘s Theory X and Theory Y Revisited 65
38. Meaningful Work Motivates Employees 66
39. Herzberg New Theory of Motivation 68
40. Self-Determination Theory: A New Motivational Theory 70
41. Meaning Quotient as a Motivational Technique 71
42. Effective Leader‘s Systems and Contingency Approach to Motivation 73
43. The Internals in Meaning of Leadership 74
44. Organizational Conversation as Key Element of Leadership 76
45. Leadership Traits for Crisis Situation 78
46. Insights from Transformational Leadership Theory 80
Block VI: Controlling

47. Factors impacting Production in Indian Manufacturing Sector 83
48. Productivity Problems in Italian Manufacturing Industry 85
49. Importance of Operations Management in Global Manufacturing 87
50. Corporate Website: A type of Information System 89
51. Advantages of Management Information Systems 91
iv

1. The Role of Management in Manufacturing Industry
2. Management Functions Require Different Skill set in Managers
3. Engaging Middle-Level Managers
4. Management Skills for Effective Indian Managers
5. Operational Excellence Model as Management Approach
6. Charles Dupin‘s Work: An Origin to Social Sciences
7. The Human Factor in Classical Approach of Scientific Management
8. Are there any deviations in Maslow‘s hierarchy of needs in Current Days?
9. Quantitative Approaches in Operations Management
10. Applications of Systems Theory as Modern Approaches to Management
11. Social Responsibility of Corporates
12. Different Perspectives on Corporate Social Responsibility
13. Social Stakeholders as Drivers of Long Term Business Value
14. Quality of Work Life as a Measure of Social Responsiveness
15. Personal and Organizational Factors impacting Managerial Ethics
5
1. The Role of Management in Manufacturing Industry

The role of management is strongly associated with organizational productivity and organizational success in
manufacturing industry.
Organizations having best management practices perform better. This is the outcome of the research carried
out by McKinsey and Center for Economic Performance at the London School of Economics with regard to
the manufacturing industry. The survey includes interviewing more than 800 middle and senior plant
managers working in 700 manufacturing organizations in US, UK, Germany and France. These
organizations have 100 to 10,000 employees. It is found that organizational performance is related to the
quality of management practices employed and the competition that stimulates the best management
practices. The findings include:
 There is a positive correlation between management practices and productivity and return on capital

employed.
There is a positive correlation between management practices and sales growth, sales per employee,

capital market evaluation and market share growth
Employees in better managed companies have better work-life balance.
The research model they followed is as shown in following figure.
Organizational Productivity
Management Practices
Organizational Success
Return on Capital Employed (ROCE)
The survey considered the impact of manufacturing practices such as shop floor operations, organizational
practices such as target setting and performance management and talent management practices such as
hiring and retaining the people on organizational productivity and organizational performance/organizational
success. It was found that best companies excel at either shop-floor operations or at people management. The
best management practices followed with increasing order of scores is in countries such as UK, France, and
Germany and topped by US. US firms are particularly good at people management practices such as talent
management and target setting. France and Germany firms are good at shop-floor operations. Industry sub-
sector impacted the management practices that were followed more than the geography. It is also observed
that younger companies deploy better management practices.
Role of Management is vital to any organization. Without management, an organization is like a boat
without a sail. Management provides the direction, vision, mission and strategy to the organization. They
prepare the blue print of the organization. They design the organizational processes, businesses, product
lines, marketing channels and supply chain networks. They are the people who bring visibility to the
organization and brands in the industry, market and community. They delegate, motivate and track the
progress of the tasks in an organization.
Discussion Questions
1. Discuss the relationship between organizational performance and quality of management practice.
(Hints: Better work-life balance in well managed firms- Positive correlation between management
practices & productivity)
2. Discuss the best management practices followed in countries like the US and France.
(Hints: Talent management-Target setting-Shop-floor operations)
Source: Dowdy, J., Dorgan, S., Rippin, T., Reenen, J.V., and Bloom, N., “Management Matters”, McKinsey & LSE
Topic Course
Unit-1: Management: An Overview;
Section-4: Role of Management
6
2. Management Functions Require Different Skill set in Managers

Different management functions require different skill set in managers at all levels in an organization.
Managing involves coordinating individual efforts. As organized groups are growing in organizations, the
responsibility of management is also growing to be able to manage them. Management involves the creating
and maintaining of the environment for individuals to perform as part of groups in order to achieve the
organizational goals. Managers at all levels in the organization perform management functions such as
planning, organizing, staffing, leading and controlling. The time they spend in each of the function may vary
based on their position in the organization. Top level managers spend more time in planning and organizing.
First level and middle level managers spend more time in leading. All the managers spend considerable time
in controlling; however this time may vary from manager to manager. The skills required by the managers at
different levels of the organization vary based on their position in the organizational hierarchy.
 Managers must operate both external and internal environments of the organization.
 In order to carry out the organizational tasks, managers must understand the socio, technological,
legal, political and ethical environments.
 Management applies to both small and large organizations, commercial and non-commercial, profit
and non-for-profit organizations, services and manufacturing sectors as well.
 Managers should have a global mind set and cross cultural intelligence
 Should have critical and analytical thinking and be technologically savvy.
 The aim of management is to achieve organizational and group goals with least resources, time,
money, material and personal dissatisfaction.
 Another aim of managers is to be productive, effective and efficient. (Example: USA is the most
productive after World War-II)
 Productivity can be defined as output units divided by input units of time with an acceptable
quality.
 Effectiveness can be the achieved performance and efficiency corresponds to the least amount of
resources used in achieving the set objectives.
 Hence, managers should achieve productivity, effectiveness and efficiency using their skills in the
organization.
Functions of managers include planning, organizing, directing, staffing, controlling, motivating and
leading. Every manager in the organization whether he is lower, middle or top level manager performs the
tasks pertaining to these functions. Even CEO also performs these management functions. All functional
managers such as marketing managers, engineering managers, HR managers, Finance managers, IT
managers, operations managers and functional heads perform these functions in an organization.
1. Discuss the various functions of managers.
(Hints: Planning-Organizing-Directing-Staffing-Controlling)
2. What skills should managers possess to carry out the various managerial functions?
(Hints: Global mind set-Cross-cultural intelligence-Analytical thinking)
Source: Weihrich, H., “Management: Science, Theory and Practice”, Weihrich, H. and Koontz, H.(eds), Management:
A Global Perspective, McGraw-Hill, NY
Topic Course
Section-5: Functions of Managers;
7
3. Engaging Middle-Level Managers

Middle level managers provided with right levers and authority can improve the employee engagement in the
organization.
Middle level managers play crucial role in organizational engagement and organizational performance.
Middle level managers see the vision of their top management and also pain at times, the problems faced by
their teams. Middle level managers sometimes do not have the senior management support or the required
levers to carry out their tasks. In leading the organization to future, they play a crucial role in bringing the
engagement back. Boston Consulting Group and World Federations of People Management Associations
(WFPMA) have conducted a survey of 5,500 executives from more than 100 countries to find out the
opportunities and challenges ahead for middle managers. They have found the impact of 18 factors which
come into 4 components such as objectives and aspirations, accountabilities and collaboration, performance
management and recognition, and people manager capabilities and interactions on employee engagement. It
is found that the employees are dissatisfied with their organizational performance in areas such as
performance management, recognition and people manager capabilities.
What Middle Managers Do?
Middle managers transform the strategy set by the top management into concrete business plans,
communicate with employees and manage the businesses. Team members execute those devised business
plans and strategies.
Setting Right Environment for Middle Managers to Perform
BCG and WFPMA proposed a DEAL (Delayer, Empower, Accelerate and Leverage) for middle managers to
improve engagement of middle managers in the organization.
1. Delayer the organization and create exciting roles for middle managers.
Example: Qantas Airways, An Australian Airliner, reduced the number of layers in top
management by 15% to 20% and increased span of control to improve employee engagement.
2. Empower the middle managers by providing levers and authority to manage performance, make
organizational changes, recognize and compensate the team, and provide development opportunities
to team members.
Example: An European retail bank realized that the reason for lack of middle managers
engagement is that middle managers do not have a proper reward and recognition process in place
for their efforts.
3. Accelerate leadership skills of middle managers by providing training and tools.
Example: Allianz, a German Insurance company, provides training to their lower level managers at
least once every year. They invest most on these managers.
4. Leverage the middle managers to utilize new skills, roles and responsibilities leading to
organizational transformation.
Example: BMW, a German Car maker, to build trust and confidence brought together 350 senior
executives and 5,500 middle managers to a workshop for discussions on innovation, leadership,
profitability, customers, product development and growth.
Middle level managers act as interface between workers, lower level supervisors and the senior
management. Their interaction with their subordinates is more when compared with their interaction
with senior management. The low level employees in an organization look for direction, vision and
clarifications from middle level managers. They mediate difficult interactions, escalating them when
warranted. Middle level managers have to consolidate information and provide status to senior
management. They maintain working knowledge of metrics, data collection, facts, figures and
analysis.
8
1. Discuss the role of a middle level manager in an organization.
(Hints: Strategy to concrete plans-Employee engagement-Interface between workers and supervisors)
2. What measures can be taken to improve the engagement of middle level managers?
(Hints: Accelerate leadership skills-Delayering the organization)
Source: Caye, J., Strack, R., Orlander, P., Kilmann, J., Espinosa, E.G., Francoeur, F., Haen, P. (2012), “Creating a
New Deal for Middle Managers”, Boston Consulting Group &WFPMA,
Topic Course
Section-6: Levels of Management-Middle Level Managers
9
4. Management Skills for Effective Indian Managers

Effective managers require high degrees of managerial skills such as technical, human and conceptual skills.
Kaifi, B.A. and Mujtaba, B.G. (2010) have done a survey of 200 technologically savvy Eastern Indians in
the bay area of California, USA to find out there were any differences in technical, human and conceptual
skills of Indians over gender. This study is relevant because by 2025, 25% of the world‘s workforce would
be Indians. India provides educated competitive workforce to the world. Indian men and women can be
found in different managerial capacities in different industries across the globe. The study considered the
management skills such as technical, human and conceptual skills of Indian men and women to find out
whether these skills vary according to gender. It was found in the survey that Indian women possessed
comparatively higher technical and human skills and that Indian men possessed comparatively higher
conceptual skills.
This kind of survey is relevant in current socio-economic conditions because problem solving skills vary
based on economic, social and public policy situations. Effective managers and leaders require technical,
human and conceptual skills according to their position in the organizational hierarchy. The proportion of
these skills varies from organization to organization based on the position of the respective manager in the
organizational hierarchy.
 Technical skills are more of job specific knowledge and techniques. The requirement for technical
 Human skills express the ability to communicate, coordinate and motive the employees in getting
skills varies based on the position of the manager in the organization.
 Conceptual skills allow managers to distinguish between cause and effect and allow them to
the work done.
analyze the situation.

It was also observed in the study that Indian women lag behind in the decision making bodies in Indian
organizations. Overall the group consisting of Indian men and women scored more on technical skills when
compared to conceptual skills. This is because Indian youth are well exposed to Internet, technology, and
social networking sites. It was also expressed that the most effective managers possess high degrees of
technical, human and conceptual skills in organizations.
Managerial skills should comprise of technical, conceptual and human skills. As a manager grows up the
ladder, the need for technical skills reduces. The need for more conceptual skills arises. The human or
people skills are required at all levels in the management irrespective of lower, middle or top
management. The technical skills required are knowledge and usage of hardware, software, machinery
and tools. Human skills include communication, team dynamics, recruitment and selection skills,
motivating, conflict management, leadership, presentation, influencing, and negotiating skills. Other
managerial skills include decision making under uncertainty, problem solving, risk taking and taking
initiative.
1. What skills do effective managers require?
(Hints: Technical-Human-Conceptual)
2. Discuss the findings of the survey conducted by Kaifi, B.A. and Mujtaba, B.G.
(Hints: Indian women have higher technical skills-Indian men had relatively higher conceptual
skills)
Source: Kaifi, B.A. and Mujtaba, B.G. (2010), “A study of management skills with Indian Respondents: Comparing their
technical, human, and conceptual scores based on gender”, Journal of Applied Business and Economics,
Vol. 11, Issue 2.
Topic Course
Section-7: Management Skills and Organizational Hierarchy
10
5. Operational Excellence Model as Management Approach

Operational Excellence Management System (OEMS) is an approach to management for achieving organizational
objectives.
“Excellence is an art won by training and habituation. ……………..We are what

we repeatedly do. Excellence, then, is not an act but a habit.” ------
- Aristotle (2300 years ago).
Organizations are under pressure to improve their financial, safety and environmental performance amid
competition, increasing costs and tough circumstances. Operational Excellence Management System
(OEMS) creates repeatable and optimized behaviour in employees in reaching their goals. Organizational
executives need their businesses to run effectively and safely by achieving operational excellence. Large and
complex organizations require an operational excellence management system. For example, Exxon, an oil
company, deployed operational excellence management system in their organization in order to address the
Valdez oil spill. National and International oil companies have operational excellence management systems
consisting of components such as:
 
 
Strategy and Leadership Organization and Capabilities
 
Performance Management Planning and Optimization
 
Change Management Asset Integrity and Reliability
 
Operational Risk Capital Projects
 
Contractor Management Compliance management
 
Supply Chain Management Incidents and Emergencies

External Stakeholders Responsibility Health and Safety
Security and Environment
What is Operational Excellence Management System?

It is a system with defined global expectations, defines common language, considers accountability, shares
behaviours and practices and encourages continuous improvement. +*
 Operational Excellence Management System should be simple, focused, and designed for wide

applications.
The pitfalls in implementation of OEMS include unclear definitions, unclear accountability, lack of
understanding to front-line workers, lack of executive support and implementation which runs as a

parallel organization.
Implementation of operational excellence management system in an organization is a 3 to 5 years
process with stages such as design, deployment, compliance and continuous improvement.
Approaches to Management include systems approach, empirical approach, case study based approach,
group behaviour approach, interpersonal behaviour approach, decision theory approach, cooperative
social systems approach, socio-technical systems approach, mathematical approach, statistical approach,
management science approach, contingency approach, situational approach, managerial roles approach
and McKinsey‘s 7-S approach. McKinsey 7-S approach consists of structure, strategy, systems, style,
staff, skills and shared values.
1. What are the key elements of an effective Operational Excellence Management System (OEMS)?
(Hints: Simple-Focused-Designed for wide applications)
2. Discuss the components of OEMS adopted by National and International oil companies.
(Hints: Strategy and leadership-Capital Projects)
Source: Caruso, P., Cigala, F. and Gay, J.C. (2013), “What „good‟ looks like: Creating an operational excellence
management system”, Bain & Company
Topic Course
Section-8: Approaches to Management
11
6. Charles Dupin’s Work: An Origin to Social Sciences

Charles Dupin‟s early approach to management served to develop19th century social, scientific and economic
knowledge in France.
Charles Dupin (1784-1873) was a French engineer and mathematician who lived in the late 18th and early
19th centuries who worked in various areas like Mathematics, Statistics, Geometry, Algebra and Economics.
He made many interventions related to child labour and female labour during French revolution of 1848. He
highlighted the need for child guidance and discipline instead of making them join the workforce. He has
interests ranging from science and politics to tax policies and social reforms in France. His activities and
accomplishments have lot of impact. He has worked for the development of social, scientific and economic
knowledge in July Monarchy, Second Republic and Second Empire in France.
He worked as a marine engineer and has memberships in Académie Royale des Sciences and Académie des
sciences morales et politiques. He taught courses on applied mechanics at Conservatoire des arts et métiers
to workers. He undertook brief stints in government offices and worked for child labor reforms and
protection of sugar industries. He had a wide range of activities and interests. He used his wide knowledge in
improvement of France. His work examined the relationships between science and politics and became the
origin for 19th century social sciences.
His work on political economy and politics influenced Britain greatly. He continued working on social
reforms with his membership in Académie des sciences morales et politiques. He formulated an inventive
and imaginative approach to Mathematics. He was also an innovator in Statistics. His inventions included
early Choropleth maps that were used to take public opinion which represented variations in quantitative
data using shared blocks. He was the first person who linked numbers and partisan politics. He was also
popular as an economist and a social reformer. He held contradictory positions related to free labour, free
trade and political economy. He insisted on using facts and statistical data in the parameters of liberalism.
He insisted on workers having bank accounts. His liberalization acts included opposition to child labour in
1840, supporting limited work hours in 1848 and opposition for legalizing unions in 1864. He favoured
small industries rather than large, supported the poor and developing working class to meet the challenges.
He was a philanthropist who argued for women as saviours and savers of working class. He had a different
productive public life. His works were inputs for statisticians, economists, political scientists, sociologists
and science historians.
Early Approaches to Management included the work of Robert Owen (1771-1858) on human resource
management, the work of Charles Babbage (1792-1871) on computing, management science and
inventions, the works of Andrew Ure (1778-1857), a British academician, and Charles Dupin (1784-
1873), a French engineer on principles of manufacturing and the work of Henry Robinson Towne (1844-
1924) on manufacturing. Towne‘s presentation was responsible to have influenced Frederick W. Taylor
to develop scientific management theory.
1. Discuss the contributions of Robert Owen, Charles Babbage, etc. to the early approaches of
management.
(Hints: Contributed to human resource management-Worked on computing and management
science)
2. How did Charles Dupin contribute to the early approach of management?
(Hints: Interventions in child and female labour-Developed scientific and economic knowledge in
France)
Source:
i. DeGroat, J. (2012), Book review of Charles Dupin (1784-1873), Ingénieur, savant, économiste, pédagogue et
parlementaire du Premier au Second Empire,
ii. Sous la direction de Carole Christen et François Vatin, préface de Robert Fox, Presses universitaires de
Rennes, 2009, H-France Review, Vol. 12, No. 26, pp. 1-5
Topic Course
Unit-2:Evolution of Management Thought
Section-3: Early Approaches to Management
12
7. The Human Factor in Classical Approach of Scientific Management

Classical approach of scientific management concentrated on the scientific methods and techniques such as time and
motion studies and work balancing.
Frederick W. Taylor (1911), the father of scientific management reinitiated the division of labour concept,
which was first coined by Adam Smith (1776). Taylor did extensive work in 19 th and 20th centuries. In 1879,
Taylor joined Midvale Steel Company at the age of 23, where he applied his principles, designed models,
and ideologies that changed the way production took place in the industries in the century that followed. He
was an aristocratic engineer and a technocrat who was also rational, dogmatic, curious, famous and genial.
He was a key player in building the American greatness.
He recognized the human factor as part of scientific management, which has political, social, economic and
ethical implications. It became the fundamental factor related to labour inthe19 th century. Taylor‘s scientific
management model ensures the equilibrium of workers with products, machines, processes and tools. He
combined common sense and folk psychology with trade practices. They gave theoretical path to many
disciplines such as organizational behaviour, applied psychology, management and sociology. The highlights
of scientific management include logical thinking and problem solving in novel situations. These lead to the
great changes, innovation and capital accumulation in the 19 th and 20th centuries.
Taylor studied production factors such as efficiency, worker well-being and wealth creation. In his book
(1911) The Principles of Scientific Management, he also discussed about reducing poverty and increasing
prosperity not only with his men but also with the entire community. Taylor‘s work in scientific
 Worker selection and evaluation, which lead to the development of applied psychology.
management related to human factors includes:
 Naming the worker as Schmidt after worker selection process.

 Selection of inspectors for bicycle balls, where he counted speed and processing times. He also
observed the perception and reaction times of workers. He observed the relationship between
 Evaluation of individual worker efficiency as part of performance measurement

perception and reaction time of the workers. He laid off the workers whose reaction time was low.
 Evaluation of foremen, that is, supervisors to find out what qualities and skills they should possess.
 Studied characteristics that lead to optimized performance

(Foreman used to lead the group of workers).
 For worker selection, he reviewed applications, verified background history of workers such as
 Postulated that good manners, training, education, neat appearance are not as important for
character, ambition and habits.
executive position as determination, grit, bulldog endurance, and tenacity are.
Classical approach of management includes Frederick W. Taylor‘s scientific management, time and
motion studies and Henry Gantt‘s work on Gantt charts. Scientific management replaced the traditional
approaches with scientific methods and techniques, used tools to improve productivity, and ensured
equal work between supervisors and workers. The time and motion studies concentrated on executing
the tasks in few numbers of motions on the line. Henry Gantt‘s Gantt chart is widely used in project
planning and scheduling.
1. What were the implications of the ‗human factor‘ as a part of scientific management?
(Hints: Political-Social-Economic-Ethical)
2. Discuss Fredrick Taylor‘s contribution to scientific management.
(Hints: Time and Motion Study-Worker selection and evaluation)
Source: Zuffo, R.G. (2011), “Taylor is dead, hurry Taylor! The “Human Factor” in Scientific Management: Between
Ethics, Scientific Psychology and Common Sense”, Journal of Business and Management, Vol. 17, No.1
Topic Course
Section-4: Classical Approach
13
8. Are there any Deviations in Maslow’s Hierarchy of needs in Current Days?

Everyone does not have the same Maslow‟s hierarchy of needs and in the same order.
The answer is ‗Yes‘ as found in an interesting contrasting study carried out in Nigeria. Ifedili, C.J. and
Ifedili, C.I. (2012) made a study of 900 Nigerian university workers (450 male and 450 female) from 3
Nigerian federal universities to find out whether Maslow‘s hierarchy of needs is still applicable today and to
find out if there were any deviations in the needs of university workers. The intention was also to find out
what motivated the university workers and to make a study of the factors that impacted their hierarchy of
needs. To study this, they used a questionnaire known as Maslow‟s Hierarchy of Needs Inventory (MHNI).
In the study it was observed that Maslow‘s hierarchy of needs is not applicable to the current day workers.
The needs hierarchy had an impact on the culture and personal attributes of the workers. The Maslow‘s
hierarchy of needs is as shown in following figure.
Self-
Actualization Needs
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
According to Maslow‘s hierarchy of needs, the lower needs are to be fulfilled before moving onto higher
needs. At any point of time, there is an active need for a human being that needs to be satisfied. According to
Maslow, satisfied needs do not motive further. He did not consider the factors such as bravery and charitable
acts in designing the needs hierarchy. For example, in a Country like Nigeria, belonging to one group and
gaining recognition are more important than fulfilment of their basic needs. High insecurity and culture have
impact on the hierarchy of needs among workers. Hence, he felt that it was better to ask the workers on what
motivated them.
85% of the surveyed respondents expressed that Maslow‘s hierarchy of needs may not come in the same
order of priority for them. 87% of the respondents expressed that satisfied needs reoccur. 85% of the
respondents expressed that it motivates them to satisfy the reoccurred needs. 93% of the respondents
expressed that everyone do not have the same hierarchy of needs. It was found that there are no significant
differences in the hierarchy of needs of male and female workers. It was also found that an individual‘s
educational status, social status, values, personal attributes and environment are impacting the hierarchy of
needs in Nigeria.
Maslow’s hierarchy of needs is one among the early theories of human motivation. It was published in
his paper titled ―The Theory of Human Motivation‖ in a Journal known as Psychological Review in
1943. According to this theory the basic needs of an individual are the physiological needs. If they are
fulfilled, his next needs are safety needs. If they are also fulfilled, his next requirement is social needs.
If these needs are also fulfilled, an individual needs esteem followed by self-actualization.
1. What were the guiding principles of Maslow‘s hierarchy of needs theory?
(Hints: Lower needs fulfilled first-Active needs to be satisfied-Satisfied needs do not motivate)
Discuss the findings of the Nigerian study.
Source: Ifedili, C.J. and Ifedili, C.I. (2012), “Perception of Maslow‟s Hierarchy of Needs Theory By Nigerian
University Workers – A challenge to University Administrators”, Interdisciplinary Journal of Contemporary Research in
Business, Vol. 4, No. 1
Topic Course
Unit-2:Evolution of Management Thought;
Section-5: Behavioural Approach-Abraham Maslow;
14
9. Quantitative Approaches in Operations Management

Quantitative approaches such as transportation problem, assignment problem, network analysis, dynamic
optimization models, waiting line models and linear programming can be used in operations management.
Quantitative approaches play a major role in operations management. Organizations use quantitative tools
and techniques for competitive advantage. Organizational work involves planning, scheduling, monitoring
and staffing the tasks with limited resources such as human resources, machinery, time, money and material.
Network analysis, transportation problem, assignment problem, linear programming, integer programming,
inventory management and waiting line problem help the managers in their decision making for executing
operations. Let us see the objectives of transportation problem and assignment problem.
Transportation Problem: This involves solving problems related to transport of goods and services from
multiple supply locations to multiple demand locations. The amount of goods produced at a specific supply
location varies from those produced at other supply locations. Similarly the need at one demand location
may vary from the need at another demand location. The cost for transfer of one unit of goods from one
supply location to one demand location varies from place to place. The main objective is to find out how
many units of goods from one supply location to one demand location are to be transferred so that the cost of
transfer of goods would be minimal. That is, the total transportation costs should be minimal. The quantities
required at the demand locations are to be satisfied. The problems involved in the application areas of
transportation include network flow problems, inventory scheduling, cash management and multi-period
production.
Example: Foster Generators, a generator manufacturer, has plants in 3 places in the US such as in
Cleveland, Ohio; York, Pennsylvania and Bedford, Indiana. It has 4 regional distribution centers in Chicago,
Boston, Lexington and St. Louis. The production cost is same at all three manufacturing plants. Hence, the
organization would like to transport the goods from plants to distribution centers with minimal transportation
cost fulfilling the demands of all distribution centers. Thus, the problem becomes a transportation problem of
operations management.
Assignment Problem: Operations management decision making involves solving many assignment
problems such as assigning human resources to tasks, assigning jobs to machines, assigning contracts to
bidders, assigning sales men to sales territories, etc. One agent can be assigned to one task. The objective of
assignment problem is to assign the agents to tasks or tasks to agents so that the costs and time are minimal
and the profits are maximal.
Example: Fowle Marketing Research has three project leaders to be assigned to three research studies.
Their objective is to complete all the three studies at the earliest. The completion of each research study is
based on the project leader‘s skills and competencies. They generally assign a research study to each project
leader so that all the three research studies are completed sooner. Thus, the problem becomes an assignment
problem in operations management.
Quantitative Approaches use mathematical and statistical techniques in solving problems of operations
management. They include techniques such as probability, linear programming, integer programming,
decision theory, correlation, regression and association techniques. They also use permutations and
combinations, functions and calculus, logarithms and complex algorithms. The logistics, transportation
problems and travelling sales person problems can be solved using these techniques.
1. Discuss the role of quantitative approaches in operations management.
(Hints: Competitive advantage-Help in decision-making)
2. Discuss the transportation and assignment problems that an organization encounters.
(Hints: Cost of transfer-Assigning jobs to machines)
Source: Raman, V.V.R. and Manikanta, B.V. (2011), “Impact of quantitative methods in Operations Management”,
ICOQM-10, June 28-30, 2011
Topic Course
Section-6: Quantitative Approach
15
10. Applications of Systems Theory Integral to Modern Approaches to Management

Modern approaches to management include applying systems theory to organization, organizational sociology and
organizational modelling.
When asked ―what is an organization?‖ many managers correspond it to structures, roles and reporting
relationships. Taking the organizations through change requires more than knowing the formal
organizational structures. Systems theory is applicable to organizations, organizational sociology and
organizational modelling. The origin of systems theory is natural science, which identified the objects,
relationships between the objects and their relationship with the environment. Examples of Systems include
 Organizations: Systems theory is widely applicable to organizations. An organizational system has

human body and solar system. The applications of systems theory are as follows:
the processes such as:

a. Productive Processes: these are the processes used in transforming the input into output
in the form of products and services. It follows input-process-output cycle.
b. Energizing Processes: these are the processes that can effect or be affected by the
organization involving organizational boundaries such as psychological, social, physical
and work dimensions.
c. Enabling Processes: these processes enable and control the interactions between
individuals, groups, departments and profit centers.
d. Developing Processes: these processes help in the development and growth of individuals
and groups with differentiation.
 Organizational Sociology: Systems theory suggests viewing an organization through four different
The applications of systems theory in organizations will be around these processes.
lenses.
a. Rational Lens: managers concentrate on organizational structure, roles, hierarchies, rules
and efficiency.
b. Human Resource Lens: managers pay attention to take care of people, their wellbeing
and in fitting them into the organizational structure.
c. Symbolic Lens: managers concentrate on interaction, mutual growth, organizational
culture, and individual and organizational learning.
d. Political Lens: managers look at the organization as a battlefield with conflicts,
 Open System Diagnostic Model: Systems theory can be applied to designing the organization. The
negotiations, power struggles and messy ideas.
organizational design components include systems, structure, culture, behaviors, direction and
work.
Modern approaches to management include organizational sociology, organizational modelling and
systems thinking. Organizational sociology deals with demographics of CEO, top management and
individuals in the organization, their childhood, social relationships, and formal and informal groups in
the organization. Organizational modelling deals with organizational structures, reporting relationships,
communication and authority. Systems thinking approaches involve systems planning, systems design,
systems implementation and system evaluation. It includes systems and subsystem‘s behavior and
communication.
1. In what fields can the systems theory be applied?
(Hints: Organizations-Organizational sociology-Organizational modelling)
2. What areas do the modern approaches to management deal with?
(Hints: Demographics within an organization-Organizational structure)
Source: John Corlett, “Systems Theory Applied to Organizations”,
http://warrington.ufl.edu/centers/purc/purcdocs/papers/0018_corlett_systems_theory_applied.pdf
Topic Course
Section-7: Modern Approaches to Management
16
11 Social Responsibility of Corporates

Corporate social responsibility is no more a philanthropic activity; it is social responsibility of organizational
management
The important objectives of business are: maximization of profits, sales and revenue; increasing market
share and growth rate; avoiding risk for long time survival; and image building. Companies today have
realized that they will be successful in realizing these objectives only when they meet to societal needs. They
consider this as their corporate social responsibility. Existing social problems hinder business operations
and opportunities for growth. Most of the companies have switched to ‗shared value concept‘. Michael
Porter and Mark Kramer in their article ‗creating shared value‘ point out that business is at its best when
companies innovate to meet society‘s needs while building profitable enterprises.
Based on their research, Marc Pfitzer and others in their recent article in HBR ‗Innovating for Shared Value‘
give several examples of companies that derived business value through the embedding of social values:
Company Social value Business value

Dow Chemical Removed 600 million tons of trans fats Nexera sunflower and canola seeds-best
and saturated fats from US diet selling products
Nestle Helped millions of malnourished families Turned to be a profitable business
by providing inexpensive spices
Novartis Provided essential medicines to 42 Became profitable after 31 months
million people in 33000 rural villages
Mars Transformed farms and communities Avoided cocoa shortages
to Ivory coast
Intel Trained 10 million teachers in the use of Became profitable business in education
technology
Becton Protected millions of health workers by Resulted in $2 billion business, accounting
Dickinson creating needleless injections for 25% of company revenue
Vodafone Extended mobile banking services to 14 One of the company‘s best offerings.
million people in East Africa
According to them, companies rely on five reinforcing elements in creating shared value:
 Embedding a social purpose: Many companies build large scale business on social issues. While
companies like Nestle, Unilever, Dan one have made profitable business on health and nutrition
aspects, technology and telecommunication firms like IBM, Intel, Verizon have made education and
health care their mission. Many companies make profitable business on issues related to
Millennium Development Goals.
 Defining the social need: Many firms conduct extensive research on existing social problems like
malnutrition, anaemia, poverty and the like to understand the underlying social conditions and on
finding ways on how best to improve them along with good business.
 Measuring social value: To derive social and business benefits, they need to be monitored closely
through standard procedures. For instance, Coca-Cola measures its initiatives for increasing
employability of low-income youths and young adults and for increasing sales through company‘s
distribution channels and brand awareness.
 Creating the optimal innovation structure: Avoiding risk is an important business objective.
Care needs to be taken for initiating business of social value in issues of financing, governance,
managing systems and location.
 Co-creating with external stake holders: Co-creation is involving the stakeholders in all the
dimensions of the problem and designing and implementing solutions. Companies involve
stakeholders to understand the social needs and execute strategies for implementation.
Many companies are making profitable businesses by incorporating social values in their business,
combining their corporate social responsibility with business expansion.
17
Social responsibility of organizational management includes employment generation, improving life

style of individuals, economic development, social empowerment (including women empowerment),
education, health and family care, sustainable livelihood and involvement in community. This social
responsibility is in addition to their business responsibility. Social responsibility, if not legal it is a
moral responsibility to any organization. It indicates their commitment to the society and the country
they operate in. It improves the organizational citizenship behavior. There are incidents in the business
history that socially responsible organizations were rescued by governments in turbulent times.
1. What are the important objectives of businesses?
(Hints: Profit maximization-Increasing market share-Image building)
2. What five reinforcing elements do companies rely on to create shared value?
(Hints: Embedding social purpose-Defining social need-Measuring social value-Innovation
structure-Co-creation with external stake holders)
Sources:
i. Pfitzer, M., Bockstette, V. and Stamp, M. (2013), “Innovating for Shared Value”, Harvard Business Review,
September 2013
ii. Porter, M.E. and Kramer, M.R. (2011), “Creating Shared Value”, Harvard Business Review, Jan-Feb 2011
Topic Course
Unit-3: Social and Ethical Responsibilities of Management; Principles of Management
Section-3: Social Responsibilities of Management;
18
12. Different Perspectives on Corporate Social Responsibility

Organizations are looking at community as a whole instead of their own benefits while being socially responsible.
Devin Thorpe (2013) interviewed dozens of executives from small and large organizations in US in order to
know their corporate social responsibility activities and the benefits thereof to the organization. Overall,
organizations look at the community as a whole instead of looking at their own benefits. Different CSR
activities and its benefits as expressed by the respondents are as follows:
 Organization: Verdigris Group, A real estate company
CSR Practices: They developed sustainable practices based on their triple bottom-line approach,
which included planet, people and profit to operate their business; they focused on daily operations
with environmental consciousness.
Benefits: Clients want to work with them for their healthier and productive practices. Clients come
to them for their environmental, energy efficient, health and safety practices. Social goodwill is the
benefit of their CSR activities.
 Organization: West Monroe Partners, a consulting firm
CSR Practices: They launched ―1+1+1‖ program. They contribute 1% of their talent, 1% of their
treasure and 1% of their time to the community.
Benefits: It gave deeper sense of purpose and motivation in employees. They brought loyalty and
compassion in the organization.
 Organization: Entre Quest, a consulting firm
CSR Practices: They have ―Give Back Days‖ in which employees serve meals at Our Daily Bread,
work with Habitat for Humanity for ‗home‘ building, mentor children at b4Stduents and work with
Big Brothers and Big Sisters.
Benefits: Organization is recognized as the best place to work for two continuous years; CEO is
recognized as the most admired CEO by The Daily Record.
 Organization: Gaia Development, a CA based sustainable development company
CSR Practices: They launched a non-profit company called Collective Solution, to work on
poverty and climate change. Employees went to Nicaragua to build solar ovens to the families.
Benefits: Improved creativity and versatility in employees. Employees came to know simplest
solutions to day-to-day problems.
Socially responsible organizations play a major role in community building and economic
development of the country. These organizations exist not only for their benefits but also to serve the
needs of the society or they contribute to the development of the society. Indian Organizations such as
Infosys, InfoTech, TCS and Wipro have shown their socially responsible contributions in times of
tsunami in India. Microsoft in India is educating rural population through their Shiksha program.
Corporate social responsibility gives long term benefits for the organization such as reputation, good
will, new customers, brand building, loyalty of existing customers, increase in sales, and increased
employee and stakeholder satisfaction.
1. What are the contributions of socially responsible organizations?
(Hints: Community building-Serve society‟s needs)
2. Discuss some of the CSR activities undertaken by organizations. What benefits did these activities
offer?
(Hints: ‘1+1+1‟ program-Employee motivation-Loyalty and compassion)
Source: Devin Thorpe (2013), “Why CSR? The Benefits of Corporate Social Responsibility Will Move You to Act”,
Forbes
Topic Course
Unit-3: Social and Ethical Responsibilities of Management;
Section-4: Arguments for and against Social Responsibilities of Business;
19
13. Social Stakeholders as Drivers of Long Term Business Value

Social stakeholders including shareholders create long-term value to business.
Stakeholders are the group which can impact or are impacted by the organizational objectives. Stakeholders
including shareholders matter most to the organizations. The identification of stakeholders involves
examining the industry, product portfolio, business model and competitive playing field. How do
stakeholders understand the company? How do stakeholders view the company? How do stakeholders view
the impact of organization on society and environment? These matter most to the organizational business
value. Environmental, Social and Governmental (ESG) factors and their impact on sustainability and
 It is important to understand what value means to stakeholders as the value organization is going to
organizational performance are becoming important to the stakeholders.
 Stakeholders may have economic impact on the organization further impacting the organizational
gain from stakeholders through its actions.
 Organizations require Environmental, Social and Governmental (ESG) performance in order to

value.
 The objective of business is to create shareholder value and be socially responsible.

create long term value. ESG risks can impact 5% of the organizational revenues.
 The organization has to create value to investors, suppliers, customers, employees and community
 Organization can create value to employees through better HR practices, to suppliers through
in order to create business value.
efficient resource management, to community through investments in community, and to
 Stakeholders can impact organizational operations, enforce regulatory requirements, can influence
environment through eco-system protection and enhancement.
consumer boycott and impact supply-chain network.

Example: In the 1990s, ABN AMRO was targeted by the activists for its investments in paper and mining
companies to show commitment to protect the forests and ecosystems. In 2003, ABN AMRO partnered with
other banks to invest in forests, mining and energy sectors. Thus stakeholders can drive the organizational
long term business value.
Social Stakeholders are the stakeholders in the society which are external to the organization. These
stakeholders can impact the organization positively or negatively. Similarly, the organizational projects
can impact social stakeholders positively or negatively. For example, in projects such as heavy
construction, nuclear power, social transformation and environmental projects, the involvement of social
stakeholders can help in making the project successful. In projects such as HIV eradication, polio
vaccination, and flu epidemic without social stakeholders support, these projects cannot be successful.
Current day auto manufacturers and drug discoverers are involving social stakeholders in product design.
1. How do social stakeholders affect an organization?
(Hints: Affect project‟s success or failure-Projects like HIV eradication cannot succeed without them)
2. Discuss the reasons for the growing importance of ESG factors.
(Hints: To create long-term value-Value to investors, suppliers, etc.)
Source: Hespenheide, E.J. and Koehler, D.A. (2012), “Drivers of long-term business value: Stakeholders, stats and
strategy”, Deloitte
Topic Course
Unit-3: Social and Ethical Responsibilities of
Management; Section-5: Social Stakeholders;
20
14. Quality of Work Life as a Measure of Social Responsiveness

Quality of work life as a measure of social responsiveness can be achieved through workplace flexibility in the
organizations.
Introduction:
Several rewards and recognitions are being given by organizations to improve the performance of the
employees, notable of them are recognizing and rewarding employees through incentives, gain-sharing,
profit sharing, offering benefits, perks and adopting flexibility at workplaces. Workplace flexibility improves
quality of work life. It is an important measure for balancing work/family demands. Studies show
work/family programs decrease family conflict, job dissatisfaction and stress related problems. What follows
now is the summary of National Study of Employers 2012 which deals essentially with workplace flexibility.
Summary of National Study of Employers 2012 (NSE):
Families and Work Institute‘s 2012 National Study of Employers (NSE) is the most comprehensive and far-
reaching study of the practices, policies, programs and benefits provided by U.S. Employers to address the
changing needs of today‘s workforce and workplaces. It is based on the Institute‘s 1998 Business Work-Life
Study and has been conducted three additional times that is in 2005, 2008 and 2012. It is the only study of
employers in the U.S. designed to address the changing needs of employees among a nationally
representative group of employers.
NSE sample includes 1,126 employers with 50 or more employees—75% are for-profit employers and 25%
are non-profit organizations; 18% operate at only one location, while 82% per cent have operations at more
than one location. The Report mainly analyses the differences in workplace flexibility between profit and
non-profit organizations and large and small organizations.
Definition of flexibility:
Definition of flexibility is much broader and includes the following types of flexibility:
 Flex Time and Place includes various forms of flexibility that affect when and/or where employees
do their job, such as flex time, telecommuting and compressed workweeks.
 Choices in Managing Time reflects the degree to which employees can exercise some choice about
when they work—from scheduling hours and overtime to deciding when to take breaks— and about
how their time at work is spent.
 Reduced Time includes options such as access to part-time or part-year schedules.
 Care giving Leaves looks at whether the organization offers leaves for birth, adoption or care giving
to ill family members and whether any of this leave is paid.
 Time Off includes policies and practices that apply when employees take time away from work,
including scheduled absences (such as vacations and time for training) as well as formal policies for
taking sick days and planned sabbaticals. It also includes informal access to time off for
unanticipated or unplanned events.
 Flex Careers refers to flexibility over the course of an employee‘s career or working life, including
provisions that enable employees to enter, exit and re-enter the workforce and to increase and
decrease their workload or pace.
 Culture of Flexibility reflects whether supervisors are knowledgeable about flexible practices and
promote and communicate them effectively.
It is found in the study that employees in more effective and flexible workplaces are more likely than other
employees to have:
 greater engagement in their jobs;

 reduced absenteeism
 higher productivity
 improved working relations between employees and supervisors
21


higher levels of job satisfaction;

stronger intentions to remain with their employers;

less negative and stressful spill over from job to home;

less negative spill over from home to job; and
Better mental health.
The 2012 Report addressed the following questions related to quality of work life and rewards and
recognitions:
 What practices, policies, programs and benefits do employers provide to address the personal and

family needs of employees?
To what extent have employers changed over the past seven years (between 2005 and 2012) in the
provision of select practices, policies, programs and benefits?
Examined Predictors and Measured Outcomes
 Workplace flexibility;
Predictors: Outcomes:
 The demographics of the workplace—industry, profit/non-profit
 Care giving leaves;
 Child and elder care
status, employer size, number of years in business and number of
 The demographics of the workforce—percentage, women, of

operating locations;
 Health
assistance; and
racial and ethnic minorities, unionized employees, hourly care and
employees, part-time employees, women and racial and ethnic economic security
minorities in top positions or reporting to people in top benefits.
 The financial health of the employer—how well the organization

positions;
is doing in comparison with competitors, downsized or upsized;
 Human resource issues—difficulty or ease of filling high-skilled

and
job vacancies; filling entry level/ hourly positions;
Broad Trends:
Two broad trends are noticed in the provision of flexible work options from 2005 to 2012. First, employers
have increased their provision of options that allow employees to better manage the times and places in
which they work. These include flex time (from 66% to 77%); flex place (from 34% to 63%); choices in
managing time (from 78% to 93%); and daily time off when important needs arise (from 77% to 87%).
Second, employers have reduced their provision of options that involve employees spending significant
amounts of time away from full-time work. These include moving from part-time to full-time and back again
(from 54% to 41%); and flex career options such as career breaks for personal or family responsibilities
(from 73% to 52%).
Motivational Factors and Obstacles for Implementing Work/Life Initiatives:
 Retention (37%)  Cost (25%)

Motivational Factors: Obstacles:
 Recruitment (11%)  Job requirements and work load do not allow these
 Desire to help employees
 Manage work and family life (16%)  Lack of staff to implement these programs (11%)
programs (12%)
 Improve morale of employees (12%)  Loss of productivity and difficulty supervising staff
(10%).
22
Predicting Programs, Policies and Benefits

Predicting Flexibility: Predicting Care giving Leaves:
Those most likely to be moderately to highly flexible are
 are non-profit‘s;
employers that: Those most likely to offer
generous care giving leave
 are larger; benefits are employers that:
 have more women in their workforces;

 have fewer racial or ethnic minorities in their workforces;
are larger;

 have fewer union members;
have more hourly
 have fewer hourly employees; employees; and
 have more part-timers; and  Have experienced
 have more women and racial or ethnic minorities in downsizing in the past
top/senior positions 12 months.
Predicting Child and Elder Care Assistance: Predicting Health Care and Economic
Those most likely to provide child and elder Security Benefits
 are larger;
care assistance are employers that: Those employers most likely to provide
 are non-profit‘s;  are larger;

health care and economic security benefits:
 are in more than one location;  are non-profits;

 have been in business longer;  have been in business longer;
 have more women in their workforces; and  have more women and racial or ethnic
 Have more women and racial or ethnic
 are doing better than their competitors; and
minorities in top/senior positions;
 have experienced upsizing or downsizing

minorities in top/senior positions.
In sum, non-profits offer more programs, policies and benefits than profits do. Furthermore, employers with
more diversity in top/senior positions provide more support. When these initiatives cost money, employers
that are larger also are more likely to provide a higher level of support.
Small versus Large Employers:
In 2012, there are four statistically significant differences between small and large employers. Small
employers are more likely to allow employees to change starting and quitting times within some range of
hours have control over when to take breaks, return to work gradually after childbirth or adoption and take
time off during the workday to attend to important family or personal needs without loss of pay.
Some Significant Findings of the Study:
 Organizations where women make up less than 25% of the employees are more likely to have a low
level of flexibility than organizations where women represent a larger share of the workforce.
 Organizations, where racial and ethnic minorities make up more than 50% of the employees, are
more likely to have a low level of flexibility (33%) than organizations where racial and ethnic
minorities represent a smaller share (0%-50%) of the workforce.
 Organizations where hourly employees make up 50% or more of the workforce are more likely to
have a low level of flexibility (30%) to be in the low quartile.
 Organizations with no union representation are more likely (26%) to provide a high level of
flexibility, compared with 9% to 14% of those with unionized employers
 Larger organizations are more likely (44%) to offer generous care giving leaves (high level) than
smaller organizations (34%).
 Employers that have experienced downsizing in the past 12 months (44%) are more likely to offer
generous care giving leaves than employers who have not experienced such events (37%).
 Large employers are more likely (56%) to provide a high level of child and elder care assistance
than small employers (25%).
23
 Non-profit organizations (46%) are more likely to offer a high level of child and elder care
assistance than for-profit organizations (29%).
 Organizations that report doing better than their competitors are more likely to offer a high level of
health care and economic security benefits (27%) than those that report doing worse than their
competitors (19%).
Conclusion:
In the seven years between 2005 and 2012, the economy has been quite volatile, and common wisdom would
have it that employers would cut back on the work life assistance they offer to employees. In fact, there are
serious reductions in how much employers pay toward benefits that cost money (e.g., their contribution to
health care and pension plans and leave options). On the other hand, we have found greater investment in
options that allow employees flexibility in when and where they work, such as flex time; flex place and time
off during the day to attend to important family and personal needs. Interestingly, employers with more
diverse leadership at the top and employers that are non-profits turn out to provide the best support for
making work ―work‖ for both the employer and the employees.
It is clear from the Report that the rewards and recognitions for employees would increase by implementing
flexi times rather than reduced times. However care needs to be taken so that these benefits do not adversely
affect the performance of employees and productivity of organizations. The flexi work places should be
effective to enhance the quality of work life of the organizations.
Quality of Work Life is possible through flexibility in the organization, self-management and discipline.
There are many factors such as organizational pressures, stress, and daily commute, personal
relationships such as marriage and divorce, child care, disability care and old age care that are impacting
the balance between work life and personal life in current days. Proper organizational skills, self-
discipline, flexible work hours and benefits can help in quality of work life.
1. What elements do workplace flexibility include?

(Hints: Flex time and place-Care giving leaves-Flex careers)
2. Discuss the motivators and obstacles in implementing work/life initiatives.
(Hints: Recruitment-Retention-Cost-Lack of staff)
Source: Maltos, K. and Galinsky, E. (2012), “2012 National Study of employers”, Families and Work Institute, SHRM,
When Work Works
Topic Course
Unit-3: Social and Ethical Responsibilities of Management;
Section-6: Measuring Social Responsiveness-Quality of Work Life;
24
15. Personal and Organizational Factors impacting Managerial Ethics

Personal and organizational factors impact the managerial ethics in decision making of the organizational
managers.
Ethics plays a major role in both public and private sector organizations. Unethical behaviors are very
expensive to the organizations, employees, investors and the society at large. Business ethics are positively
correlated to organizational performance. The more global the organization is the more ethical problems the
organization can face. Unethical behavior of the organization can reduce the stock prices. Example: SHELL
has to relook at their core business principles after it had major ethical issues in 1995.
Ethical decisions decide between right or wrong while differentiating between moral or immoral issues at the
same time. Ethics indicates how we think and behave with others and how we want others to think and
behave with us. Yusoff, Salleh, Zakaria, Nair, Vadevello and Luqman (2011) have done a study of 210
managers working in 42 oil and gas companies in Malaysia to find out the relationship between personal and
organizational factors and ethical decision making of managers. The personal factors they considered
include job satisfaction and organizational commitment. Organizational factors they considered are code of
ethics and rewards. The research model is shown in following diagram.
Personal Factors
Job Satisfaction
Organizational Commitment Ethical

Decision
Making
Organizational Factors
Code of Ethics
Rewards
InManagerial
the study, it ethics is about
was found deciding
that job right organizational
satisfaction, or wrong, correct or incorrect,
commitment, code ofjustified or rewards
ethics and unjustified,
have
acceptable
influence on or unacceptable,
and and dharma
positive correlation with or adharma
ethical (ethical
decision or unethical).
making of managers Ethics
in thehave longgas
oil and background
industry in
of cultureFewer
Malaysia. and religion.
rewardsThese ethics can with
are associated vary more
from individual to individual
ethical decision making.and fromrewards
More countryare
to associated
country.
For less
with example,
ethicalgiving giftmaking
decision to a customer
behavior is
in ethical in one culture and unethical in another culture. The
managers.
factors such as individual values, attitude, behavior, country culture, organizational culture, group
culture, top management culture, job satisfaction, economic/financial situation, competition, self-interests
and personal life can impact the managerial ethics in an organization.
 Discuss the importance of ethics to an organization.

(Hints: Effect on organizational performance-Effect on employees and investors)
Discuss the factors that influenced the ethical decision making process.
(Hints: Personal factors-Organizational factors)
Source: Yusoff, Z.Z.M., Salleh, W.A., Zakaria, Z., Nair, G.K.S., Vadevello, T. and Luqman, A. (2011), “The influence of
personal and organizational factors on ethical decision making intentions among managers”, International Journal of
Business and Management, Vol. 6, No. 9,
Topic Course
Unit-3: Social and Ethical Responsibilities of
Management; Section-7: Managerial Ethics
25
Block II: Planning

16. Strategic Planning for Better Organizational Business Value
17. Technology and Innovation Strategies of an Organization
18. HR alignment for Effective Implementation of Strategy
19. Decision-Making Process in Automotive Industry
20. Risk Culture for Decision Making in an Organization
21. Data Analytics as Systems Approach to Decision Making
26
16. Strategic Planning for Better Organizational Business Value

Institutional logic as part of strategic planning enhances business value historically.
Traditionally, the sole purpose of business has been to make money and more profits-the more it made the
better-it used to be. Rosabeth Moss Kanter takes a different approach, which she terms as institutional logic
and says great companies believe that they are more than money-making machines.
Institutional logic states that companies are more than instruments for generating money; they are also
vehicles for accomplishing societal purposes and for providing meaningful livelihoods for those who work
with them. According to institutional logic, the value that a company creates should be measured not just in
terms of short-term profits or pay cheques but also in terms of long term benefits. The Corporate leaders
have to build enduring institutions.
Aims of Great Companies:

Producing goods and services that improve the lives of users
Providing jobs to many and enhancing workers‘ quality of life.
Developing a strong network of suppliers and business partners
Ensuring financial viability
Promoting economic value along with societal and human values.
Six facets of institutional logic are a common purpose, long-term focus, emotional engagement, partnering
with the public, innovation, and self-organization.
Institutional Logic of Great Companies
Facets of
Institutional Purpose Examples
Logic
Common To provide Mahindra Group operates in many industries, including
Purpose coherence amidst automobiles, finance, IT, and several others. It invests in creating
diversity and to a culture based on a common purpose. Its Group Executive Board
enable people to rise is made up of people from all segments of industry to unite their
goals and forge strategic plans to enable people to rise.
Long-term To sacrifice short- In South Korea, after the Asian financial crisis of the late 1990s,
focus term financial when Shinhan Bank wanted to acquire Chohung Bank, there was
opportunities if they a huge protest and the management changed its approach without
are incompatible compromising on long term benefits. They negotiated an
with institutional agreement with the Chohung union, giving equal representation
values to both Shinhan and Chohung managers on a new management
committee and increased the salary of Chohung employees.
Within 18 months, Shinhan was outperforming not only the
banking industry but also the South Korean stock market.
Facets of
Institutional Purpose Examples
Logic
Emotional To evoke positive The CEOs of great companies‘ allocated considerable resources
Engagement emotions, stimulate and time, engaging managers in the task of communicating
motivation and values.
propel As a Procter & Gamble executive, Robert McDonald had long
Self-regulation or believed that the company‘s Purpose, Values, and Principles
peer regulation. To become embedded in tasks, goals, and performance standards by
increase employee evoking strong emotions in employees and giving meaning to the
engagement company‘s brands.
Partnering To address societal International activities, conducted in collaboration with the
with the needs along with United Nations and other global organizations - Procter &
Public business interests Gamble‘s Children‘s Safe Drinking Water program with
UNICEF and several NGOs
Large domestic projects, undertaken in collaboration with
27
Block II –Planning
government ministries and development agencies- PepsiCo‘s

agricultural projects in Mexico with the Inter-American
Development Bank
Product or service development to address unmet societal needs-
P&G‘s linkages with public hospitals in West Africa
Short-term volunteer efforts- IBM‘s work following the Asian
tsunami, Hurricane Katrina, and earthquakes in China and Japan
to provide software to track relief supplies and reunite families.
Innovation To serve society to IBM‘s Corporate Service Corp- develops future leaders by
become credible sending diverse teams of the company‘s best talent on month
when leaders allocate long projects around the world.
time, talent, and Cemex- produced innovations such as antibacterial concrete,
resources to national which is particularly important for hospitals and farms; water-
or community resistant concrete, useful in flood-prone areas; and road surface
projects material derived from old tires, desirable in countries that are
building roads rapidly.
Novartis employees- serve in hospitals, where they see first-hand
the challenges of disease and how their drugs are used
Self-- To create networks Three PepsiCo managers in Latin America had shared a dream
organization to share information, for around a decade of developing new kinds of potatoes that
new initiatives or were suitable for southern climates. In August 2010, CEO Indra
innovations to Nooyi announced the establishment of a global potato
facilitate them development center in Peru, headed by one of the three
through champions
communication
platforms or meeting
spaces.
Leaders in great companies use an institutional or social logic to supplement economic or financial logic in
guiding and growing their enterprises. Institutional logic cannot be captured by cost-benefit equations or
reduced to the language of economics, and yet it turns out to be a powerful driver of financial performance.
All the six facets are interlinked and together they help in institution building and realizing business values.
Strategy Planning is about long term planning for the organization. It is best practice to include
organizational logic, innovation, networking and social media in strategy planning. These give better
inputs to the planning process in addition to the internal marketing and product development teams. The
early days of strategic planning was known as top management planning. Current day organizations are
involving other important stakeholders also into strategy planning. Some organizations even take
customers and their product lines and strategies into consideration while devising their own
organizational strategies. It is also better to follow industry trends and technology trends for strategic
planning. Strategy involves deciding on products and services to offer, sources of income, profit making,
processes to deal with customers and employees.
 Discuss the importance of strategy planning to an organization.
(Hints: Better inputs to planning process-Long-term planning for the organization)
 What are the six facets of institutional logic?
(Hints: Common purpose-Long-term focus-Self-organization-Emotional engagement-Public

partnering-Innovation)
Source: Kanter, R.M. (2011), “How Great Companies Think Differently”, Harvard Business Review, November 2011
Topic Course
Unit-6: Strategies, Policies and Planning Premises; Principles of Management
Section-6.5: Strategy Planning;
28
17. Technology and Innovation Strategies of an Organization

Balancing in the box and out of box thinking is critical to strategy.
Lego‘s fall and rise story speaks about how a global toy industry with its ‗out of the box thinking‘ and
‗innovation binge‘ became almost bankrupt and could once again rise to supremacy with ‗in box thinking‘
and turning to ‗innovation inside the brick‘. The success behind the story is Lego‘s creativity and innovation
coupled with focus and control in business.
Out of the Box Strategy Vs. In the Box strategy


An expression that describes
An expression that describes
conformal thinking

non-conformal creative thinking

Traditional strategies
New Innovative strategies
Out of the Box expression is derived from the famous nine dot puzzle which asks for joining the
dots in four straight lines without lifting the pen when once started joining
. . .
This means that managers go beyond the normal borders to get solutions or if
they have to solve problems. In the case of Lego they shifted from excessive
. . . innovative methods and out of the box strategy and went back to their
traditional brick assembling toys.
. . .
David Robertson, the author of the book ‗Brick by Brick: How Lego rewrote the Rules of Innovation and
Conquered the Global Toy Industry‘ writes about the transformation of Lego from a small company that
made wooden toys to a worldwide giant and a recovery from near bankruptcy to supremacy in global market.
Here goes the story.
The Lego Company: The Lego Group is a family-owned company based in Billund, Denmark, and best
known for the manufacture of Lego brand toys. The company was founded in 1932 by Ole Kirk
Christiansen. From 1978-1993 was a golden period for Lego where company grew at 14% per year, every
year for 15 years.
Fall of Lego: It went through a decline when sales did not grow and costs rose during 1993-98 even though
it tried to triple its number of new toys. One reason for the decline it reached could be attributed to the end of
a natural growth cycle and the other is rise in the cost without changing sales. Company laid off 1000
people. That time it was managed by Kjeld Kirk Christiansen, grandson of the founder Ole Kirk
Christiansen.
Importance and perils of Innovation: Looking at the losses he felt that he was not the right person to lead
the company and passed it on to a turnaround expert, Poul Plougmann. He embarked innovation and
experimented by introducing a lot of products, including Star Wars, Harry Potter and Bionicle. The company
tried to create whole set of complementary innovations that would reinforce each other. For instance,
Galidor toy had video games, TV show, telling the story behind the toy. Unfortunately, the TV shows were
so bad that Lego did not know how to make them. Harry Potter and Star Wars were successes only for a
short time as people lost liking for those toys when these movies were out dated. The company tried to
innovate in lots of ways and lost control of the innovation. Lego started losing money in 2003.
Rise of Lego: While other firms abandoned innovation, Lego continued in a different way. They shifted
from the ‗out of the box strategy‘ to be back ‗in the box‘ strategy. They went back to their old brick and
focused on police stations and trucks which their fans liked very much and they also profited from that
business. The importance and the dangers of innovation illustrate the story of Lego. Excessive innovation
29
bankrupted Lego. It could come back by adopting new strategies. The success of Lego lies in small
innovations and small ideas integrated well by focusing on what the customers wanted and needed. For the
past five years, Lego has sales growing at 24% per year every year and profits growing at 40% per every
year.
Strategy is thinking about long term. That is, devising long term plans for the organization. Strategies
include functional strategies and operational strategies. Functional strategies for an organization include
marketing strategy, finance strategy, product or engineering strategy, HR strategy, IT strategy or
technology strategy. Operational strategies deal with day to day operations of the organization. Usually
strategy formulation is done in a top-down approach. CEO, top and senior management are part of
strategy formulation. Board of directors can help and mentor the CEO in formulating a strategy. Every
employee in the organization is part of strategy implementation. Out of the box thinking is required for
strategy formulation.
1. Discuss the significance of functional and operational strategies.
(Hints: Deal with day-to-day operations-Help in formulating marketing and finance strategies, etc.)
2. How did ‗out of the box‘ strategy help Lego to resurrect itself?
(Hints: Focus on innovation-Experimentation-Small ideas)
Source: “How Lego clawed its way out of near Bankruptcy”, Knowledge@Wharton
Topic Course
Unit-6: Strategies, Policies and Planning Premises; Principles of Management
30
18. HR alignment for Effective Implementation of Strategy
Effective managers require high degrees of managerial skills such as technical, human and conceptual skills.
What makes employees to consider workplace as a great place to work? Organizations are realizing the
importance of aligning HR policies and procedures with organizational strategies for building their image.
Every organization probably aspires to enter into the list of Fortune 100 Best Companies to Work. A great
place to work is one where management and employees are happy and feel that they are mutually benefitting
with each other‘s contribution and where employees are proud to work.
Fortune Partners with the Great Place to Work Institute annually conduct a Survey in Corporate America to
pick the 100 best companies to work with.
The Top 10 Best Companies for 2013 are:
Rank Name of the Company

1 Google. Inc
2 SAS
3 CHG Healthcare Services
4 The Boston Consulting Group, Inc.
5 Wegmans Food Markets, Inc.
6 NetApp
7 Hilcorp Energy Company
8 Edward Jones
9 Ultimate Software
10 Camden Property Trust
Methodology used for selecting Best Companies:
More than 277 000 employees from 259 firms participated in a survey this year. The eligibility criteria for
participating in the survey were: 1) the company should be 5 years old, and 2) the company should have
more than 1000 US employees. Data was collected through two questionnaires, one called Trust Index
Survey and the other Culture Audit Survey. The Trust Index Survey questions related to management‘s
credibility, job satisfaction and camaraderie. Two thirds of the score was based on this survey. Questions on
Culture Audit Survey included on Pay and Benefit programs, Hiring practices, Methods of internal
communication, Training programs, Recognition programs and Diversity efforts. One thirds of the score was
based on this survey. Ranking of companies was done on the basis of overall score obtained by each
company.
Effective implementation of strategy is possible only with involvement of all employees in the
organization. That is, HR strategy should be in line with organizational strategy to implement the
strategy in the organization. This is because any new strategy implementation involves some extent of
change management in an organization. In turn, change management in an organization has to do
something with people in the organization. Thus without human resources effective strategy
implementation is not possible in an organization. HR professionals must understand the organisations‘
business, it‘s competition and relevant trends. Organizational strategy implementation requires changes
to organizational structure, organizational culture, business processes, technical processes, marketing
strategies, product strategies, operational strategies and HR strategies.
1. What are the benefits of aligning HR strategy and organizational strategy?
(Hints: Effective strategy implementation-Image building)
2. Discuss the factors that are essential for implementation of strategy.
(Hints: Employee involvement-Understanding an organization‟s business)
Source: “Fortune 100 Best Companies to Work For”
Topic Course
Unit-6: Strategies, Policies and Planning Premises;
Section-6.11: Effective Implementation of Strategy;
31
19. Decision-Making Process in Automotive Industry

Multidisciplinary collaborative and cohesive process is used as complex decision-making process in an automotive
industry.
Continuous technological and operational changes impact decision-making in the automotive industry. The
amount of software in parts of cars is growing rapidly. Software is replacing mechanical devices, thereby
making the integration tight and complex. There is a need for cohesion and cooperation between different
stakeholders in the automobile industry such as among automobile manufacturers, OEMs (Original
Equipment Manufacturers), suppliers and design partners. American and European OEMs are facing
competition from Asian countries such as from India and China. The demand for automobiles is shifting
from America and Europe to India, China, Latin America and even Africa. Under these scenarios, decision
making in the automobile industry is becoming more complex.
Decision Making Process: The decision making process in the automotive industry is a multidisciplinary
collaborative process. It includes all the stakeholders throughout the product development life cycle. The
complexities in product development process, supply chains, interoperability, connectivity and visibility are
impacting the decision making process. IT is widely used in the industry for connectivity, interoperability
and visibility. Tools such as CAD, CAM, analytics, supplier scorecards and costing are used in product
development process. If the stakeholder takes a single decision it is going to impact all the other stakeholders
in the product development life cycle. Hence, the decision should be timely and accurate and it should be
informed to all other stakeholders in the life cycle.
Decisions include both internal and external stakeholders and it should happen in a collaborative and
cohesive environment. Automotive manufacturers are looking to reduce the costs and increase revenues.
Hybrid cars and Electric cars are also putting more pressure on manufacturers and OEMs. It is best practice
to have a centralized product data management system connecting all the stakeholders for efficient decision
making in this complex automotive industry.
Decision-making process varies from organization to organization, situation to situation, issue to issue
and industry to industry. In some industries, decision making is very quick, such as in the nuclear energy,
defence and healthcare industries. Decision making process involves finding the issue, gathering facts,
finding alternative solutions, selecting best alternative and implementing the alternative. Sometimes
brainstorming, Delphi technique and group decision making can help.
1. What factors affect the decision-making process in the automotive industry?
(Hints: Technological changes-Operational changes-Shift in demand to newer markets)
2. Discuss the salient features of the decision-making process in the automotive industry.
(Hints: Multidisciplinary process-Collaborative process- Use of IT)
Source: Barkai, J. (2010), “The Automotive Industry: New Complexities Demand Better Decision Making”, IDC
Manufacturing Insight
Topics Course
Unit-7: Managerial Decision Making;
Section-7.5: Decision-Making Process;
32
20. Risk Culture for Decision Making in an Organization

Risk culture affects decision making under risk and uncertainty in an organization.
Risk Management Organizational

Cult ure Drives
Strategy Drives
Values
Policies Risk
Culture
Chain
Practices
Procedure
Systems Behaviour
Correct Treatment Actual Treatment

of Risk of Risk
If Strategy and culture are fully aligned then

Correct and Actual Treatment will be Match
Source: Google Images
KPMG launched a survey on Enterprise Risk Management across Europe, Middle East, Africa and India to
understand the current trends and practices and the imperatives for more effective risk management in future.
Some important findings of the survey are:
1. Risks are on the rise and becoming more complex
2. CEOs view risk as an opportunity whereas others want ‗safety first‘ approach
3. Boards are responsible to ensure alignment between strategy and risks. They doubt the reliability of
risk information as companies do not have confidence in the board‘s ability
4. Organizations are trying to improve risk management systems and processes but the issue of
embedding risk into the organization‘s culture and making it an integral part of the business is not
getting adequate attention.
5. Information sources are largely inward focused (but not forward looking) and external focused.
Sustainability and climate change issues are not covered
6. Organizations are developing responses at individual process level but not at higher levels and are
not aware of the interdependence between various risks
Risk culture encompasses constant and consistent communication about risk, ethics and values, practices,
behaviours, considering risk factors in decision making, clearly defined roles and responsibilities, clearly
documented policies, procedures and systems.
Global financial crisis brought the discipline of risk management to the agenda of all enlightened
organizations throughout the world. It is against this backdrop that creating a robust risk culture in the
organization assumes importance.
The study reveals that risk culture is inadequate even in well-established and reputed organizations.
Primarily there are three main actors/ factors in risk management:
33
 Compliance with the risk policies and appetite is independently presented and reviewed by the
1. Attitude at the top:
 Personnel reward structures are aligned to risk adjusted measures

board
 Organization has committed sufficient resources to risk management

2. Risk ownership:


Clarity on the risk appetite from senior management and the board
ERM is integrated into management‘s risk management processes
3. Risk facilitation:


CROs have a role to play in strategic decisions-M&A, new products, entering new markets etc.
Risk management training in place, covering the policy, methodology, tools and practices
The key challenges faced by the surveyed organizations in the area of risk culture are:


Risk is practiced in silos and the companies still view it with a complaints mind set
Risk owners are unclear about the organization‘s risk appetite
 Risk responsibility delegated authority limits and compensation structures are not seamlessly
integrated with risk appetite/tolerance
The study established the following imperatives towards ensuring effective risk culture:
Imperative 1: Enhancing board governance of risk: effective risk oversight by the board
Imperative 2: Linking objectives, strategy and risks to Key Risk Indicators
Imperative 3: Instilling robust risk culture by settling the conflict between organizational and individual
decision maker‘s appetite and attitude towards risks
Imperative 4: Position the CRO as a strategic business advisor
Imperative 5: Integrating risk management at the enterprise level
The study also suggested undertaking a risk culture survey before implementing risk management. This is
necessary to:
 Assess the current level of understanding of the organization‘s objectives, risk concepts and the

attitude towards risk taking

A poorly integrated and forced risk management will not yield anticipated results
Dynamically respond to risks on a continuous basis
 Understanding the perception of risk of the CEO and senior management

Focus areas for risk culture survey:
 Understanding the pressure points in risk management-compensation policy, ability to discuss
 Establishing the expectations from the CEO regarding risk management

emerging issues, clarity about roles and responsibilities etc.
34
The organizational culture towards risk taking impacts the decision making under risk and uncertainty.
Every organizational task involves some sort of risk or uncertainty associated with it. Hence, taking
decisions on these kinds of tasks require courage, communication skills and influencing skills in the
manager. The task failure can impact the manager‘s career in the organization or organizational
reputation. Hence, decision making under risk and uncertainty requires lot of patience, maturity,
listening, initiative, innovation, courage and confidence.
1. What were the findings of KPMG‘s survey?
(Hints: Rise of risks-Increase in the complexity of risks-Risks viewed as an opportunity)
2. What are the requisites of a risk taking organizational culture?
(Hints: Courage-Communication skills-Influencing skills)
Source: KPMG (2011), “Risk Management, A Driver of Enterprise Value in the Emerging Environment”, KPMG
Topic Course
Section-7.7: Decision-Making Under Certainty, Risk and Uncertainty;
35
21. Data Analytics as Systems Approach to Decision Making

Data analytics with a systems approach to decision-making can improve organizational performance.
An organizational survey by Bain & Company shows how big data is becoming critical to business
performance. The top performing organizations are good at capturing data, collecting, parsing, storing,
analytics and drawing implications, insights and conclusions from it. Top management and the CEO have to
explain the importance of analytics in business performance to the employees. The article explains how to
build capability.
The Survey
Bain & Company surveyed 400 organizations whose revenues were more than $1billion each, to find out the
relationship between their data and analytics capabilities and decision making speed and effectiveness.
 It was found that only 4% of the organizations are good at analytics. These organizations combine
the data, people, tools and organizational intent for achieving excellent analytics to meet superior
business performance.
 Other companies are using analytics, but not up to this extent. They are using analytics for
improving their products and services.
 The elite organizations using the analytics to the maximum extent are
- Three times more likely to execute decisions as they thought
- Five times more likely to make quick decisions
- Twice likely to be in the top 25% of the financial performers in their industries.
Best Practice in Building Analytics Capability

The top performing organizations build the analytics capabilities by combing quality data, data savvy people,
state of the art tools and organizational intent.
 Data: Data collection and organization should be in line with the organizational strategy.
Organizations have to identify the relevant sources of data. For example, gathering all the data from
the queries put on company website, customer calls, emails and chatting lines can give right
insights and provide direction to deal with the customer.
 66% of the organizations do not have the right technologies to store and access the data. 56% of the
organizations do not have the systems to capture the data.
 People: A successful analytics team should consist of data scientists who look after the raw data,
correlations, statistics and quality; business analysts who looks after identifying and prioritizing
solvable problems, and understand patterns and anomalies provided by the data scientists; and
technical specialist who looks after needed hardware and software solutions and support.
 56% of the companies expressed that they do not have the right capabilities to bring out the rich
insights from the data.
 Tools: Successful companies are using analytics tools such as Hadoop, NoSQL and HPCC (High
Performance Computing Cluster). 38% of the companies are using any one of the above mentioned
tools.
 Organizational Intent: consists of the processes and incentives that support the management
decision making. CEO and top management have to communicate the importance of analytics in
reaching business performance to their employees. For example analytics are used in optimizing
internal processes, improving products and services and transforming business models.
Example: Nest is into home thermostats business. It uses big data and analytics to the maximum extent.
Other thermostat manufacturers provide remote control facility to their customers using web interface to
adjust the needed temperatures at homes. Whereas, Nest went a step ahead and issuing crowdsourcing
intelligence, collects data such as weather, location, time, type of home and adjusts the home temperatures.
36
Application Areas
 Analytics are used very much in financial services, healthcare and technology industries.
 Analytics can be used in Call Centers.
 Example: An Airlines company can attach a suitable call center executive immediately after
receiving the call from a frequent flier based on his ID. They can even go a step further and collect
which type of flights he is booking, timing, days and correlate with why he is calling. The main
purpose here is to increase the revenues by targeting premium customers and to detect the
customer‘s mood while the phone is ringing.
Organizations who have invested in big data and superior analytics already outperformed their peers
financially.
Systems approach to decision-making suggests making decisions based on facts, figures, data, and a
well-defined decision making process. The managerial decisions made based on data are usable,
efficient and applicable in organizations. The approach involves gathering data, cleaning data,
processing data, analyzing data, finding different alternatives and selecting best alternative through data
analysis. In current day organizations, business analytics teams help the management in right decision
making at right time. Systems approach involves systems and subsystems and their interactions.
1. Discuss the best practices in building data analytics.
(Hints: Data-People-Tools)
2. Discuss the key elements of the systems approach to decision-making.
(Hints: Based on facts, figure, etc.-Gathering data-Cleaning data)
Source: Wegener, R. and Sinha, V. (2013), “The value of Big Data: How Analytics Differentiates Winners”,
Topics Course
Section-7.8: The Systems Approach to Decision-Making;
37
Block III –Organizing
Block III: Organizing
22. Reaching High Performance in an Effective Organization
23. Prioritizing Management Issues to Avoid Organizational Inflexibility
24. Factors impacting Organizational Culture
25. Factors impacting Intrapreneurship in Organizations
38
22. Reaching High Performance in an Effective Organization

The right organizational culture is a prerequisite of effective organizing for high performance.
What is culture? How do we understand the important attributes of organizational culture? When does an
organization change its culture? Why do different organizations have different cultural patterns? Studying
them will make us understand how organizations become successful or break. The people, the structure and
the processes of organization- all speak volumes about that organizations‘ culture.
Julie Morath of a Children‘s Hospital in Minnesota wanted to implement safety measures in the
Hospital, but her efforts materialized only when she made the staff express their experiences the
previous week on what went wrong in the hospital. This made the staff to realize the need for changing
the organization culture. Morath‘s display of curiosity, passion and empathy changed dramatically the
organization climate and culture. Source: Edmondson (HBR Dec 2013)
Edmondson (HBR Dec 2013) says collaborating with team spirit is an important aspect of culture which
relies on curiosity, passion and empathy-curiosity to know what other‘s know, to be passionate for working
and empathy to understand other‘s perspectives, and with this type of culture; organizations can get things
done quicker, better and with more impact.
Michael C. Mankins (HBR Dec 2013) says culture plays a vital role in the performance of a company. High
performing organizations adopt a culture that depicts honesty, focused performance, owner-like
accountability, collaboration, agility and adaptation, innovation and winning orientation. These are the
attributes of winning culture that foster an environment that is conducive to generating the best possible
results.
Adopting any of these three or four attributes also bring progress in the company as seen in Ford Motor,
which adopted a leadership model based on collaboration, innovation and a desire to win. Alan Mulally
created a culture of ‗working together‘ and with this culture Ford went from losing money and share to
gaining both money and share.
Source: Michael C. Mankins (HBR Dec 2013)
How to instill performance culture among employees? The experience of ANZ bank employees adopting
‗openness and honesty‘ and ‗can-do-culture‘ proved that right culture can transform the performance of
employees.
Source: Carolyn Dewar and Scott Keller (HBR Jan 2012)
For Carolyn Dewar and Scott Keller (HBR Jan 2012) the important three steps for high performance culture
are: establishing a common understanding of culture and metrics, focusing on few vital changes and
integrating changes with business improvement initiatives.
Traditionally, Tylor‘s definition of culture is exhaustive which says ‗culture ... is that complex whole which
includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man
as a member of society.‘ Now, we understand organizational culture plays several important roles. Each
organization has its own recipe for success. While Steve Jobs of Apple could become successful with his
‗anything is possible‘ culture, Southwest Airlines is successful with its ‗employee empowerment and cost
containment‘ culture. Culture, therefore is contextual. Healthy organizations by adopting right culture get
things done quicker, better and with more impact than unhealthy ones.
39
Prerequisites for effective organizing include organizational culture, organizational structure, and
positive attitude of employees, innovation, team work and accountability. Better organization can give
better individual, group and organizational outcomes. With better organization, unnecessary conflicts
can be avoided in the team/organization. With better organization, both technical and business processes
can be well defined. The response time and turnaround time for customers can be reduced with proper
organization. Individual values, attitudes and behaviours can form a better culture helpful for an
effective organization.
1. What are the 3 steps for high performance culture?
(Hints: Common understanding of culture-Focus on few vital changes-Integrating changes)
2. Discuss the prerequisites for effective organizing.
(Hints: Organizational culture-Organizational structure-Positive attitude)
Sources:
i. Dewar, C. and Keller, S. (2012), “Three Steps to a High performance Culture”, Harvard Business Review,
January 2012
ii. Mankis, M.C. (2013), “The Defining Elements of a Winning Culture”, Harvard Business Review,December
2013
iii. Edmondson, A.C. (2013), “The Three Pillars of a teaming Culture”, Harvard Business Review, December
2013
Topic Course
Unit-11: Effective Organizing and Organizational Culture;
Section-11.3: Prerequisites for Effective Organizing;
40
23. Prioritizing Management Issues to Avoid Organizational Inflexibility

Organizations have to prioritize management issues in order to avoid organizational inflexibilities.
Kathereine Bell, basing on the publications in HBR in 2013, evaluated a list of best management concerns
which she considers as important, useful and original. She feels this is the appropriate time to do such
evaluation. She has importantly found seven such concerns. What follows now is a discussion on the same:
 Changing attitudes of men over women’s issues- In an article on ‘Women Rising: The Unseen
Barriers‘ Herminia Ibarra and others discuss various hidden discriminatory practices followed in
companies that prevent women from climbing up the ladder. They also suggest actions to be taken
by companies to make effective women leaders. Second generation bias is an invisible barrier
arising from cultural assumptions and organizational structures and practices, putting women at a
disadvantageous position and benefiting men to gain leadership roles. Many organizational
structures and practices were designed to fit men‘s lives. In another article, ‗Why Do So Many
Incompetent Men Become Leaders?‘ Tomas Chamorro-Premuzic says that women‘s path to
leadership positions is paved with many barriers including a very thick glass ceiling. He also says
the lack of career obstacles for incompetent men- a system that rewards men for their incompetence
while punishing women for their competence, is another reason for women not rising. Katherine
Bell says men need to change for women rising but the silver lining is the millennial men are
changing to fit into family life and are contributing to women development in their writings.
 Disruption and Innovation- The process of disruption is occurring in many industries, markets,
consulting groups and it is very likely many other firms are going to be affected. MOOCs are
replacing many higher education traditional courses. The interesting point is in many cases
disruption is accompanied with innovation. The general trend is somebody picks up a piece of
business that is not attractive to the leaders and starts at the bottom and moves up innovatively.
Many articles have come up this year on this aspect- on higher education, on health care, on
consulting groups and on publishing groups. One should look at disruption as a way for innovation.
 Project Management-Another important concern for managers is failing projects and their hidden
aspects. Over the past 50 years, the Pentagon‘s Defence Advanced Research Projects Agency
(DARPA) has produced an unparalleled number of breakthroughs and its applications have played a
central role in creating a host of multibillion-dollar industries. The three elements that contributed
to the success of DAPRA are its ambitious goals, temporary project teams and autonomy in
selecting and running projects. The main issue here is having the right kind of project management
and the right kind of manager.
 People Management-There are many articles on people management and its innovative practices
from hiring practices to leadership development emerging from new technology. For all this to
happen, effective managers are required however much the work involved is technological. The
best is the Google experience.
 3 D printing-From replacement kidneys to guns, cars, prosthetics and works of art, 3D printing is
predicted to transform our lives in the coming decades as dramatically as the Internet did before it.
It is like a revolution that is going to change the world now.
 Emotional Agility- Warmth in organizations is essential. Research shows that generous leadership
leads to higher productivity, profitability, efficiency and customer satisfaction. People with
emotional challenges at work—anxiety about priorities, jealousy of others‘ success, fear of
rejection, distress over perceived slights cannot contribute to development. Whereas people with
emotional agility can transform their organizations for better.
 Reducing waste of Time- Employee engagement has attracted the attention of many writers. It is
strongly felt that the performance of employees is negatively affected for those who indulge in
gossip, excessive e-mail usage and in other ways of wasting office time. Without wasting time,
employees should concentrate on focused work. Time management is a skill which all executives
need to imbibe.
41
Continuous readers of HBR notice that the magazine analyzes with practical examples on current
management concerns and trends. For 2013, diversity, disruption, project management, people management,
3D printing, emotional agility and employee engagement ranked the top. All companies need to make a
SWOT analysis and make their weaknesses irrelevant and capitalize on their strengths.
Avoid organizational inflexibilities to achieve better customer satisfaction, revenues, profits, and
employee satisfaction. Inflexibilities can be result of organizational culture, structure, individual
behavior, team behavior or the rigidity or denial or resistance for process change by certain employees
in the organization. Inflexibilities can be handled with proper change management in the organization,
prioritization of management issues, innovation, proper project management and business process
management.
1. Discuss the management concerns highlighted by Katherine Bell.
(Hints: Disruption and innovation-Emotional agility-People management)
2. What factors could lead to inflexibilities in organizations?
(Hints: Organizational culture-Organizational structure-Individual behavior)
Source: Bell, K. (2013), “The ideas that shaped management in 2013”, HBR Blog Network
Topic Course
Section-11.5: Avoiding Organizational Inflexibility;
42
24. Factors impacting Organizational Culture

The CEO has a lot of influence on creation and design of Organizational culture.
About Zappos: Zappos is an online shoe retailer, which entered into apparels recently. It has revenues of
more than $1 billion. In 2008, it has entered into Fortune 100 list of best places to work for. Its CEO Tony
Hsieh (Tony) has lot of impact on designing its organizational culture. Currently they have 1,800 employees.
The CEO Tony has spent more than a decade at Zappos.
Organizational Culture of Zappos: According to its CEO Tony, if you get the culture right, most of the
other things automatically follow. Its culture is to attract best people, motivate them and retain them. Its
culture is to give preference to customer service, listen to customer questions, feedback and complaints.
They have 10 core values which define the company culture. They interact with customer at the personal
front. They encourage employees to write to their Culture Book which they publish every year about their
meaning of culture. They provide employees with free snacks, lunch, coffee and popcorn. They have events
like ‗employee of the day‘ and ‗random acts of kindness‘, etc.
New Organizational Cultural Practices at Zappos: They preserved the customer service culture even after
their corporate relocation from San Francisco to Las Vegas in 2004. The practice is to recruit the right talent
and retain them. It is difficult to get job in Zappos rather than getting admission into Harvard Business
School. They talk to customers with personal touch and call center is their core competency. They hired
people who hang over with their colleagues after office hours. This is the time ideas flow in the team.
Zappos has invested time, money and resources in three key areas such as customer service, employee
training and development and organizational culture.
The CEO wants to create a hybrid between community, city and corporate. He wants the young energy, ideas
and creativity to flow in the organization. His philosophy is first get the right organizational culture,
customer service and product branding comes later automatically. CEO wants the people to have same
behavior at home and office but not only the co-worker relationships. Instead of work-life balance as other
companies look for, Zappos practiced work-life integration. According to CEO Tony happiness comes
through vision, meaning, connectedness, perceived control, and perceived progress.
Components of Organizational Culture: The components of organizational culture include:
i. Cooperative involvement and trust: High cooperation comes through trust. Trust can be trust on
individual and trust on overall organization.
ii. Vision and values-An organisation‘s purpose and how the purpose is translated to behaviours.
iii. Business stories-Legend and heritage of the business
iv. Incentives: Incentives play major role in organizational culture.
v. Current leadership: Current leadership strongly impacts the organizational culture. If leadership
changes, there is possibility for change in vision of the organization.
vi. Past dealings: The past dealings have lot of impact on organizational culture. Even if the manager
changes, the employees expect the decisions to come as before and if any deviations are observed, it
requires management of change.
vii. Organizational structures: organizational structures can have impact on employee behavior.
Future Zappos culture after its current CEO’s exit: The culture inculcated by the CEO Tony has strong
roots in the organization since its inception in 1999. Hence, there is not drastic culture change foreseen in
Zappos. This has been part of all employees who are mostly long timers in the organization. They went
along with the company for its organizational culture. Hence, the same culture which has strong roots in
employees continues further. However, the new CEO may even have impact on it. However this may require
huge change management. Here, Zappos culture is an amalgamation of all its employees‘ culture. The
CEO‘s exit may not have negative impact as far as organizational culture is concerned. The culture is
imbibed by each and every employee of the organization.
43
Organizational culture is about collective values, beliefs, attitudes and behaviors of the employees.
Organizational culture is an indication of customer satisfaction and employee satisfaction. Culturally rich
organizations are more productive, sustainable, reputed and socially responsible. Bringing a culture
change is a difficult task for any organization because it has to deal with emotions and feelings of
employees. Factors such as individual skills, organizational structure, task complexity, business
processes, working environment, external factors, attitude of management towards risk taking customer
attitude and behavior can impact the organizational culture. The culture has to be inculcated by the senior
management, top management, CEO and the board in the organization.
1. Discuss the components of organizational culture.
(Hints: Incentives-Current leadership-Past dealings)
2. What were the new organizational cultural practices at Zappos?
(Hints: Recruit high talent-Retain high talent- Employee training-Investment in customer service)
Source: Case Study – OB0026-1: “Designing Organizational Culture: Tony Hsieh Wrapping Zappos‟ Organizational
Culture”
Topic Course
Section-11.7: Organizational Culture;
44
25. Factors impacting Intrapreneurship in Organizations

Organizational factors such as organizational culture, organizational structure, management support, resource
availability and reward systems positively impact organizational environment for entrepreneuring and
intrapreneuring.
Organizations go for intrapreneurship for promoting new venture, products and services. Intrapreneurship
results into better economic value and improved organizational performance. Intrapreneurship is required for
competitive advantage, growth and business positioning. Learning is required for knowledge creation and
understanding knowledge is required for intrapreneurship. This article describes the different dimensions of
intrapreneurship and mentions the factors affecting it in organizations.
Different Dimensions of Intrapreneurship: Entrepreneurship dimensions include innovativeness, pro-
activeness, risk taking ability, and competitive aggressiveness. One can measure the intrapreneurship in an
organization using these dimensions.
Learning Organization Relationship to Intrapreneurship: Factors related to learning organization
impacting the intrapreneurship in the organization include continuous learning, leadership, team learning,
embedded organizational systems, dialogue and enquiry, employee empowerment and system connections.
Organizational Factors Impacting Intrapreneurship: Organizational factors such as organizational
culture, organizational structure, management support, resources availability and reward systems are
positively correlated to intrapreneurship in the organization. The more these factors are present in the
organization, the better the intrapreneurship in the organizationis. Top management support is strongly
correlated to intrapreneurship in the organization to compare with other factors.
Intrapreneurship in an organization can be developed with self-directed learning, employee commitment,
increased adaptability, personal knowledge, organizational knowledge, innovation, and professional growth.
Organizational environment for entrepreneuring and intrapreneuring make organizations to retain

effective business leaders. There are many factors impacting intrapreneurship in organizations such as
organizational culture, resource availability, people skills, organizational learning, individual goals,
organizational goals, financial situation and economic conditions. Organizations such as Cisco and HP
have extensively benefited with intrapreneurship. Cisco has spun off many independent business
units/organizations successfully with intrapreneurship. This increases the risk taking abilities and
confidence of the employees. It also improves the innovation, learning and knowledge management in
the organization. Ultimately, intrapreneurship should help increase in revenues to the organization,
provide brand building, and provide new technological directions and strategies.
1. Discuss the benefits of intrapreneurship for an organization.

(Hints: Promote new venture-Better economic value-Improved organizational performance)
2. Discuss the different factors impacting intrapreneurship.
(Hints: Management support-Resources availability-Reward systems)
Source: Alipour, F., Idris, K. and Karimi, R. (2011), “Intrapreneurship in Learning Organizations: Moderating Role of
Organizational Factors”, Journal of American Science, Vol. 7, No. 11
Topic Course
Unit-11: Effective Organizing and Organizational Culture; Section-11.8:
Organizational Environment for Entrepreneurship and Intrapreneurship;
45
Block IV - Staffing
Block IV: Staffing
26. Innovative HRM Policies and Practices
27. Key Success Factors of Training and Development
28. Different Sources of Recruitment in Current Days
29. The Role of Selection Science in Selection Process
30. Benefits of Effective Socialization Process of New Employees
31. Factors Impacting Organizational Change
32. Achieving Planned Organizational Change through Focus
33. Team Building as an Organizational Development Process
34. Management Development Approaches of Leaders and Managers for International

NGOs
35. Handling Organizational Conflicts
46
26. Innovative HRM Policies and Practices

Innovative human resource management policies, practices and procedures can bring profits to the organization.
Netflix, an American provider of on-demand internet streaming, moving from traditional to innovative and
unconventional and common sense based HR policies, procedures and practices could emerge successful. In
2013, its stocks tripled, won three Emmy awards and its subscribers‘ base grew to 29 million. The success
story of Netflix speaks volumes about the company‘s HR policies and practices.
Innovative HR Policies and Practices adopted by Netflix

 Relying on logic and common-sense rather than on formal policies of hiring people who put
company‘s interests on top
 Instead of writing and enforcing HR policies, adopting adult like behavior, where open

discussions take place between bosses, colleagues and subordinates
where employees show responsible behavior by saving money for the company- for instance,
employees themselves book their own travel tickets instead of relying on travel agents;

responsible spending on restaurants and buying gadgets required for the company
Telling truth on performance reviews- and adopting face to face informal 360 degree reviews,

and having honest conversations by telling employees where they fit in
Hiring people with right skills- for instance for storing massive volumes of files in DVDs,

people with experience in cloud technology are required

Instead of offering annual bonuses, paying market-based compensation

Offering equity compensation rather than stock options
Making no special retention strategies as holding people who are not interested in the company

is no good HR policy

Maintaining punctuality and never delaying meetings

Managing expenses logically

Opening bank accounts for hourly workers also
Building great teams as great teams accomplish great work and making every employee
understand high performance work culture.
HR policies are guidelines that show how employees are to be treated and motivated for high performance.
Good HR policies help in high productivity and employee satisfaction.
The innovative human resource management policies and practices can increase organizational
productivity, make profits, reduce costs, increase efficiency, increase job satisfaction, increase
employee commitment, increase customer satisfaction, increase customer loyalty and reduce attrition
rates in an organization. HR functions impact the engineering, production, finance and operations
functions in an organization. HR policies should be strong and innovative for survival of the company
in the market and to attract top talent.
1. Discuss the benefits of adopting innovative human resource management policies.
(Hints: Increase organizational productivity-Reduce costs-Increase efficiency)
2. What innovative HR policies did Netflix adopt?
(Hints: Open discussions-360 degree performance reviews-Equity compensation)
Source: McCord, P. (2014), “How Netflix Reinvented HR”, Harvard Business Review, January 2014
Topic Course
Unit-12: Human Resource Management and Staffing;
Section-12.3: Human Resource Management;
47
Block IV - Staffing
27. Key Success Factors of Training and Development

Corporate universities can be a strategic platform for human resource management.
The Boston Consulting Group (BCG) conducted a global study interviewing senior HR executives in 23
companies to help companies that are considering a corporate university and to provide a roadmap for
organizations looking to bolster the effectiveness of their existing training organizations. The aim of the
study is to identify trends and best practices which they put as Six Building Blocks.
In the post-industrial society talent shortage is the biggest challenge faced by corporate companies. The
problems of companies are manifold-- Greying workforce, Generation Y‘s (though there is no unanimity for
the birth years, generally people born in mid 80s and later are treated as Gen Y, more than that Gen Y
reflects the people who have just entered workforce) expectations of development opportunities, developing
global leadership skills and employability gaps. Corporate universities are trying to attract and develop the
Generation Y employees by creating development opportunities for them. It is said that only 15-30% of
university graduates in the BRIC countries are immediately employable. Corporate Universities are
emerging as powerful vehicles to cope up with these challenges.
Six Strategic Building Blocks of a successful Corporate University:
(1) Ambition and Objectives

(2) Activity Scope
(3) Target Audience and
Content
(4) Delivery Model
(3) (4) (5) (6) (5) Governance and Structure
(6) Branding and Alliance
(2)
(1)
Source: Corporate Universities – An Engine for Human Capital, BCG, July 2013
There are the six strategic building blocks that form the foundation of a successful corporate university. A
clear definition of the corporate university‘s vision and objectives, and the scope of its activity are the two
that address the highest level.
1. Ambition and objectives:
Although corporate universities define themselves in different ways, they are generally dedicated units
acting as partners with senior leadership to develop strategic skills and capabilities. They serve as
platforms for strategy development and execution.
The two important reasons to develop a corporate university, according to the executives interviewed,
are-1) developing talent and leadership (22%) and 2) creating networks and opportunities to develop and
disseminate strategic direction (14%).
48
2. Activity scope:
Corporate universities are carving out new roles to address talent shortages. BCG identified that they
tend to focus on one of four primary roles, depending on the target audience and strategic objectives.
Those four roles include Training Center, Leadership Accelerator, Strategy Platform, and Learning
Network.
Sl.No Role Activity



Goal is to achieve operational excellence
1 Training Center

Provides training to regular employees and company leaders

Target middle and top management

2 Leadership Accelerator Diverse groups of company leaders are brought together

Creates networks that connect participants

Targets senior and top management

Tie professional development to specific challenges

3 Strategy Platform Embed the learning process in strategy development
Top talent to act as internal consultants, think tanks to address
company‘s main growth challenges


Targets broad base of management and employees

Creating a learning culture
4 Learning Network

Creating on going learning opportunities beyond the classroom
Fortify functional, technical, and management skills.
3. Target audience and content:

The curriculum should match the corporate university‘s objectives, scope, and target audience. It should
also be updated to ensure that it is in line with business objectives and needs. In emerging markets,
balancing the content demands of different target groups is especially important. Most corporate
universities focus on leadership or strategy development (95%), developing a common company culture
(70%) and concentrating on content for the broader employee base (33%). In addition, corporate
universities provide lifelong learning experiences to ensure that the capabilities of aging workers remain
fresh.
4. Delivery Model:
There are three distinct trends in the effort to boost the quality and impact of corporate university offerings.
However, a general strategic gap still exists.
instinct Trends: What Corporate Universities must do?


They must analyze

Innovating program content
 Workforce demographics

Leveraging Web 2.0
 Retention levers

Developing more robust collaboration
strategies. Employability issues
Corporate university offerings should be integrated into the company‘s leadership and employee-
development process.
4. Governance and Structure:
In fact, a corporate university‘s ability to gain companywide acceptance depends on how well it is
integrated into the corporate structure. Reporting lines play a significant role, and CEO involvement is
one of the most critical success factors. In leading companies, CEOs ensure that content is in sync with
enterprise and business unit priorities. A close connection to top management demonstrates that the
corporate university is a key strategic vehicle.
49
Block IV - Staffing

Reporting Patterns for Corporate Universities

32% to CEOs and Board

37% to Top level of H R
33% to the rest of HR units
Over the last decade, globalization has driven corporate universities away from centralized campuses. The
trend now is toward decentralized structures where learning programs can be regionalized.
5. Branding and Alliance:
Over the past few years, signature leadership programs with traditional business school offerings have
somewhat fallen out of favour, since they are perceived as too expensive. The emphasis now is on
individually designed offerings, blending customized and open-enrolment programs. Usually the
corporate university will build its own faculty network with specialized expertise. Corporate universities
often work directly with a particular professor or with more specialized niche providers in their network.
As a result, business schools are becoming learning consultants, providing a strong network of
specialists and experts to meet a company‘s specific needs. As corporate universities become
increasingly professional, strong internal brands can provide a stamp of approval similar to that of
partnerships with major business schools. Moreover, extensive internal marketing can underscore the
message that all training and development activities have a common touch and feel, further
strengthening the corporate university‘s link to the company.
In addition to the six building blocks there are seven key success factors in developing corporate university.
 Engaging the CEO

Key Success Factors:
 Connecting to company strategy

 Staying close to business
 Proving high calibre offerings
 Creating links with employee development processes
 Measuring the value
 Marketing internally and externally
Corporate universities can become a strategic platform to develop HR capabilities to attract, develop, and
retain the talent it will need. Best practices in staffing, training and developing human resources can
minimize the problem of talent shortage.
Human resource management involves human resource planning, developing human resources,
training human resources, appraising human resources, controlling human resources and motivating
human resources. The important aspect of training human resources is being handled by corporate
universities within the organizations. For example, corporate universities in TCS, Infosys, HCL,
Motorola and Oracle train their employees both on a short term and long term basis. Recruitment,
selection, payroll, attendance maintenance and performance management systems are also part of HR
department.
1. Discuss the challenges faced by companies in the post-industrial society.
(Hints: Talent shortage-Greying workforce-Entry of Gen Y)
2. Discuss the strategic building blocks and key success factors for building a successful corporate
university.
(Hints: Delivery model-Target audience and content-Engaging the CEO)
Source: Kolo, P., et.al (2013), “Corporate Universities- An Engine for Human Capital”, Boston Consulting Group
Topic Course
Section-12.3: Human Resource Management;
50
28. Different Sources of Recruitment in Current Days

Sources of recruitment such as recruitment CRM, social networking sites and deep web searchers became cost
effective, efficient and timely for the organizations.
Looking at job boards for candidates was the best practice in the 1990s. Recruitment 2.0 is phasing out this
practice with better practices, reduced times, and efficiency in recruitment. This is because the jobs became
highly skilled and organizations are looking for cost effective and efficient ways. Job boards have become
like Classified Ads of the 1980s. The traffic to job boards has fallen and traffic to social networking sites is
gaining momentum.
Recruitment 2.0 comes with three initiatives or practices. They are
1. Recruitment CRM
Organizations are building relationships and proactively looking for candidates with recruitment
CRMs. They are sending branding e-mail campaigns to candidates. Some are even calling this as
Candidate Relationship Management (CRM).
2. Social Networking Sites
Social networking sites such as Linked, Facebook, and Twitter are becoming the sources of
candidates. Organizations are looking at these sites for passive candidates based on their networking.
Organizations are maintaining active and passive pipelines of candidates based on social networking
sites.
3. Deep Internet Searches
Deep searches in the Internet using specific keywords became a practice to find highly skilled
candidates. Organizations are using search techniques such as X-Ray, Boolean Logic and flip search
in finding the right candidates. After getting the search results, organizations are using traditional
practices in contacting the candidates.
Technological innovations and Web 2.0 are helping the organizations in getting the right, niche and highly
skilled candidates for the organizations. Other sources of recruitment for the organizations include internal
sources and external talent pool. Internal sources save lot of time and the time taken for an organization to
reach productivity levels is less for the internal candidates.
Recruitment process in an organization involves performing job analysis, designing the job description,
developing the job specification and attracting a pool of applicants. It also involves advertising about the
open position and identifying the sources of candidates for that specific position in the organization. The
sources of candidates for an organization can be internal or external sources. Sometimes, organizations
maintain free pools for immediately identifying the internal candidates for open positions. Some other
internal sources are: inside moonlighting, job bidding, job posting, employee referrals. The external
sources for candidates include newspaper advertisements, job boards, social networking sites such as
LinkedIn, Facebook, Twitter, recruitment agencies, open house, outplacement services, job fairs,
community awareness and employment exchanges. Organizations such as TCS and Wipro advertise the
open positions in the organization in their internal job boards. The interested candidates apply for those
positions. It may not be required to do background check in case of internal candidates.
1. What are the practices of ‗Recruitment 2.0‘?
(Hints: Recruitment CRM-Social Networking Sites-Deep Internet searches)
2. What are the steps involved in the recruitment process?
(Hints: Job analysis-Designing job description-Developing job specification-Attracting pool of
applicants through advertisements)
Sources:
i. Snell, A. (2009),“Focus on process to reduce your recruiting costs”, Special Advertising Supplement to
Workforce Management
ii. The Right Thing (2009),“Death of the Big Board: The Next Generation of Recruiting”, Special Advertising
Supplement to Workforce Management
Topic Course
Section-12.4: Recruitment;
51
Block IV - Staffing
29. The Role of Selection Science in Selection Process

Selection science along with data analysis and automation can help the organizations in selection process.
It is very difficult to estimate how a candidate will perform on the job before hiring. A very important
decision an organization makes on any employee is to hire him or her. The traditional way of judging how
an employee will perform on the job before hiring him is to verify what the candidate has done previously.
Here it is very difficult to get reliable data of the past. Recruiters faced this challenge for a long time. They
used to have difficulty in predicting the candidate‘s future performance at workplace. To rescue recruiters
from this situation, selection science has been evolved.
 Selection Science: It analyses all the factors which will impact the candidate‘s job performance.
With respect to the position available, it keeps three things in mind while predicting the candidate‘s
future job performance. They are:
- What has the candidate already done?
- What would the candidate like to do?
- What is the candidate capable of doing?
 Selection science combined with data analysis and automation can give better predictions of a
candidate future performance for the organization reducing recruitment costs, loss of productivity
and loss of time.
 The Theory Behind Selection Science:
First the organization has to keep application data of all employees, previous employment history
and current performance data with them. The organization has to create a match between
employee‘s application data with their work history in the current organization. When a new
candidate applies for a job, his application data has to be matched for similar profile in the
organization to be able to project a candidate‘s performance based on his work history. These
predictions indicate the candidate‘s future success in the organization and in the job.
Selection science can help huge organizations as well. When recruitment quantity is more, selection science
along with data analysis techniques can give better results for the organization in the selection process.
Candidate selection happens through different stages in an organization. Based on the level of the
position in the organization structure, different stages exist for candidate selection in organizations. For
example, some organizations have written test, technical interview and HR interview for candidate
selection. Written tests test the analytical, logical and reasoning capabilities of the candidates. In some
organizations, written tests include the technical written tests such as C++, Java, Dot Net, C#, etc for
programmer positions. Technical interviews concentrate on testing candidate skills and competencies.
HR round of selection process tests the candidates fitment in the organizational culture and
organizational structure.
1. How does the ‗selection science‘ process work?
(Hints: Analyses of job performance factors-Data analysis and automation)
2. What are the different selection methods used in organizations?
(Hints: Written test-Technical interview-HR interview)
Source: Kronos (2009), “How science has changed the way businesses hire”, Special Advertising Supplement to
Workforce Management
Topic Course
Section-12.5: Selection;
52
30. Benefits of Effective Socialization Process of New Employees

Effective socialization process of new employees results into higher productivity and higher employee engagement.
Socializing new employees in the right way at the time of their joining, yields good results. The research
conducted on the on boarding process and the way new employees are indoctrinated to organizational culture
at Wipro by Daniel M. Cable and others illustrates that companies can make significant improvements in
employee engagement and retention.
The aims of on boarding process are:


Introducing employees to the work environment and company culture

To make employees understand and commit to company values

Enable new employees to fit in and conform to company norms

Instil a sense of pride to be part of the organization
To build and retain talent
Daniel Cable and others examined on boarding process of many companies and felt that many organizations
are not following the best way of on boarding. They concentrated on their research and developed a new
approach, which they call it as ‗personal-identity socialization‘. They compared this approach with
traditional approaches, focusing on Wipro‘s 605 newcomers. They divided them into three groups:
 on newcomer‘s unique perspectives

Group Emphasis Focus
 signature strengths
 asking them how they relate to the job
Group 1 Personal identity


on organizational strengths

taking pride on their affiliation to the new organization
Group 2 Organizational identity
knowing about the accomplishments of the new
 on describing job requirements and

organization
 the details of the organization

Group 3 Traditional Approach
They tested the differences between the three groups on turnover and operational performance and also ran a
laboratory experiment to study the drivers of the beneficial outcomes.
Results:
Employees exposed to Personal Identity compared to organizational Identity and

Traditional Approach have:


Stronger employment relationships

Lower employee turnover

Greater customer satisfaction

Increased work engagement and job satisfaction

Higher productivity with fewer errors

Lower quit rates

Greater levels of performance
Higher self-esteem and self-expression
The results showed that
 If individuals are not encouraged for self-expression, a sense of ‗alienation from oneself‘ arises

resulting in identity conflict
Authentic self-expression is associated with less emotional exhaustion and less anxiety, leading to

higher levels of performance
They are more likely to invest their energy in their work environments
Principles for right on boarding socialization process:
 Breaking out from the traditional employment set up involves helping employees to express their
strengths and achieve their basic human desires rather than thinking work as paid employment. The
Generation Y or Generation Me (the term coined by Jean Twinge, according to him, Generation Me
53
Block IV - Staffing
is anyone born in the 1970s, 1980s, or 1990swho take it for granted that the self comes first) people
especially love to express their authentic identities
 Helping newcomers to identify their authentic strengths- By asking personalized questions,
encourage new comers to express their unique strengths and moments when they were at their
personal best
 Facilitating introductions to other organizational members- Making people know who they are and
what they are helps in constructing social identity around their authentic strengths
 Asking newcomers to consider how their authentic strengths can be applied to the job- when
newcomers are encouraged to identify their strengths and apply them to the job, employees respond
positively leading to greater connectivity with colleagues, positive employment relationships and
greater employee retention.
Following the four principles of personal-identity socialization, companies can reshape the on boarding
process and help newcomers to identify their strengths and apply them effectively to their jobs with more
connectivity with their work in the organization and with their colleagues. The result is higher productivity
and greater engagement and retention of employees.
Every organization should have socialization process of new employees at the time of joining the
organization. This increases the confidence level and trust in the new employee joining the organization.
For example, IT organizations such as TCS, Wipro, Infosys, SISL and Cognizant Technology Solutions
have employee induction programs for the new employees. In these programs, they explain about the
business of the organization, vision, mission, values, ethics, organizational structure and processes. These
kinds of programs help the new entrant in the long run in the organization. This improves the overall
organizational culture.
1. What should the on boarding process aim at?
(Hints: Employee introduction-Talent retention-Instil a sense of pride)
2. What are the principles of on boarding socialization process?
(Hints: Identification of authentic strengths-Facilitating introductions-Breaking conventional set-up)
Source: Cable, D.M., Gino, F. and Stats, B.R. (2013), “Reinventing Employee On boarding”, MIT Sloan Management
Review, Spring 2013, Available online at http://sloanreview.mit.edu/article/reinventing-employee-onboarding/.
Topic Course
Section-12.6: Socialization Process of New Employees;
54
31. Factors Impacting Organizational Change

Organizational core values and principles impact the organizational change.
Excerpts from the talk between Justin Fox, editor of HBR and Steven G. Mandis, author of the book ‗What
Happened to Goldman Sachs–An Insider‘s Story of Organizational Drift and Its Unintended Consequences‘.
Steven writes in his Ph. D dissertation on how organizations drift when they deviate from principles. He
wrote with special reference to Goldman Sachs where he worked for 12 years before he left the industry.
Goldman Sachs once was an organization with strong identity and its employees were like a family. They
were receiving a percentage of profits with good compensation structure. But such a tight band company
drifted due to several pressures-regulatory, organizational, technological and competitive pressures. The
regulatory pressure was high when commercial banking was separated from investment banking. There was
pressure for Goldman Sachs to do investment banking on a large scale par with competing banks like J. P.
Morgan and Citibank. Competitors, who initially could go public with three years profits, changed their IPO
policies and practices and started going public even without having profits also. When Goldman was a small
private partnership, it had the freedom to select its clients. But when it started growing, it had to take many
risks in selection of clients and IPO policies. All these pressures combined together forced Goldman Sachs
to change its policies and procedures resulting in diluting its basic principles.
Despite possessing a good market share, when any organization dilutes its principles and brings forward
changes to grow, organizational failures occur. The drift in the organization is difficult to overcome, though
not impossible. Management of drift without disturbing its core values and principles is essential for
organizational change.
Organizational change is due to the changing customer requirements, market conditions, economic
conditions, political environment, technological advancements and employee job satisfaction. The
change is required for maintaining the competitiveness of the organization. Every employee is part of
organizational change processes. If an organization does not change in the changing external
environment, it cannot survive in the market. The change should be supported by top management in the
organization. Organizational change can be a business process change, product development process
change, technological change, people change, customer change, structural change, climate change or
cultural change because of new stakeholders in the organization.
1. What reasons contributed to the drift at Goldman Sachs?
(Hints: Regulatory pressures-Organizational pressures-Pressure from competitors)
2. Discuss the reasons that lead to organizational change.
(Hints: Changing customer requirements-Market conditions-Political environment)
Source: HBR (2013), “How Goldman Sachs Drifted”, HBR Blog Network
Topic Course
Unit-14: Organizational Change and Organization Development;
Section-14.3: Organizational Change;
55
Block IV - Staffing
32. Achieving Planned Organizational Change through Focus

Planned change through organization development can be achieved through focus and simplification.
For an organization to develop, it needs to imbibe simplification and focus. Mark Gottfredson (2012) says
complexity in business is the biggest challenge faced by CEOs. To meet this challenge, companies need to
focus on their strategies, customers, products, organizations and processes and IT. Gottfredson talks of ways
to create a focused company by giving several examples of companies and their CEOs who rose from losses
to gains.
Focused Strategy
Alan Mulally, Ford‘s chief executive transformed the company drowning in complexity into a
focused company. Ford which lost more than $2 billion in 2007 earned more than $20 billion in
2011.This is mainly because Mulally adopted strategies of simplification and focus. Focused
strategy implies simplification in business and understanding the needs of its core customers and
knowing which products will most appeal and which are unnecessary. Ford could do this. Similarly,
Jorgen Vig Knudstrop, the CEO of LEGO, a famous Danish Toy Company believed in focused
strategy and simplification of business. As a result LEGO‘s sales rose to 22% in 2009 and 37% in
2011.
Focused Customers
The second strategy for a company to be a focused company is to focus on its customers.
Companies need to know their core customers and their needs and eliminate those products which
customers no longer need. They need to simplify processes to make customer interactions easier and
faster. Insurance Company in Asia Pacific region could identify the segments that were most
important to business through customer based approach. By applying simplification and knowing
the customer needs the company could realize 30% gain in efficiency.
Focused Products
The third strategy is to focus on its products by giving customers exactly what matters most to them
and trimming what customers no longer value because customers confronted with too many choices
walk away. Market demand pulls innovation. Companies have to add regularly new products,
options, features and line extensions. A computer manufacturer by moving from giving customized
products to preconfigured machines could help the company in reducing its product line and also
made its consumers happy.
Focused Organization
 A Focused organization designs its organizational structure to support critical decisions.
The organizational structure of an aerospace company requires 125 individuals and 709
interactions to process for approving a contract change request. This complexity led to
delay in taking decisions. Only by simplifying its processes it could improve.
Focused Processes and IT
Focused company redesigns to maximize integrated process efficiency and aligns IT system with
business objectives. A chemical company by applying Lean Six Sigma effort could become
successful and improve utilization by about 20%.
Complexity needs to be rooted out for building a focused company which requires commitment of time and
resources. If that is done, the pay-offs would be significant and it would help the company to cut costs. Sales
56
would rise because customers will find it easier to buy. That is how organization development takes place
and success follows.
A planned change can be achieved through organization development in an organization. The change
process involves identifying the change required, finding alternatives, doing impact analysis, selecting
the best approach, implementing the change and evaluating the feedback. Here implementing the change
requires changes to organizational existing processes, adding new processes, or deleting some existing
processes. This requires training and mentoring the employees through both technical and managerial
training. This also deals with managing emotions and resistances of employees. These training programs
that are conducted and the mentoring done to implement the changes is nothing but the organizational
development activities.
1. How can CEOs effectively tackle the complexities of business?
(Hints: Focused strategy-Focused organization-Focused products)
2. What are the stages involved in a change process?
(Hints: Identification of the change needed-Finding alternatives-Selecting best alternative)
Source: Gottfredson, M. (2012), “The Focused Company”, Bain and Company
Topic Course
Section-14.4: Planned Change through Organization Development;
57
Block IV - Staffing
33. Team Building as an Organizational Development Process

Team building as an organizational development process makes the employees as efficient team players in an effective
team.
Team Building is an important OD intervention. Team Building improves organizational problem solving
and decision making abilities of team members. It promotes effective interpersonal relationships and
develops communication among members. Team leaders have crucial role in developing teams. The
important characteristics for team building are:
 Organisational skills
 Ability to resolve conflicts
 Strong work ethics
 Problem sensing
 Giving and receiving feedback
 Developing interactive skills and constructive behavior
 Follow-up actions
Sir Alex Ferguson, one of the greatest football coaches, retired in May 2013, after spending 26 seasons as
manager at Manchester United. He won more than double the number of titles as the most successful English
club manager. He was more than a coach as he played a crucial role in managing the entire club. Anita
Elberse, Harvard Business School Professor, with her student Tom Dye, who conducted a series of in-depth
interviews with Ferguson and observed him on many occasions, examines Sir Ferguson‘s management
approaches. She particularly analyses his leadership qualities and team building capabilities in eight
perspectives. What follows now are those eight approaches, demonstrating Ferguson‘s exceptional
capabilities in developing work teams and team-building.
1. Developing young players- He felt that great clubs should have young players who need to be trained
to develop into successful players. He established ‗two Centres‘ of Excellence‘ for this purpose and
tried to give the young talent technical skills so as to make them winners and better people. His
conviction was ‗building a club brings stability and consistency‘. The famous football players, Ryan
Giggs, Beckham, Paul Scholes and Gary Neville were all the products of the Centres‘ of Excellence.
2. Rebuilding teams- Ferguson was well aware that in sports, age mattered the most. Rebuilding the
teams was a continuous process as the cycle of a successful team lasted at the most for four years. So
he concentrated on developing young players. He believed in moving out older players, though they
were great players and bringing in younger ones.
3. Setting high standards and holding everyone to them- Spreading work ethics and energy
throughout the club was his ambition. He felt that working hard is a talent and that talented people
must work harder for showing others that they are star players and winners. His training sessions were
full of quality, intensity, concentration, speed and a high level of performance.
4. Not to lose control over the team- To maintain high standards, he always maintained control over his
team. He never hesitated to respond forcefully when players violated the standards set. For instance,
when Captain Roy Keane publicly criticized his teammates, his contract was terminated. He believed
that to maintain control, responding forcefully and quickly is essential. Otherwise situations go out of
hand.
5. Match the message to the moment- Ferguson is known for his reputation in communication. He had
his own style of communication. He was tough and demanding in his communication. He was
insisting that players should act according to the need of the moment. Andy Cole, Manchester
United‘s hit man, would tell players ‗even if you lose, there is no problem with Ferguson, if you gave
in the best‘. Some of his communication types depicted his talents and conviction in winning the
game.
a. Post- game messages- pointing the mistakes right after the game in the dressing room.
b. Pre-game messages- telling about his expectations from players, mutual trust of the
players, not letting the mates down.
c. Half time messages- when winning, asking the players to concentrate on the game by not
getting complacent; and when losing correct them on why they are losing and focusing on
their strengths.
d. Training session messages- he felt that as a manager he must play different roles in
different times. He must act like a doctor, teacher or father depending upon the situation.
58
1. Prepare to Win- He always prepared his team to win and win every time, even at the advent of
adversaries. He encouraged the players with inspirational half time talks, and made players ready
when they entered the pitch, with confidence to play. When they were losing, the message was not to
panic and to concentrate and if necessary to take the risks and play aggressively as it makes no
difference to lose with 1-2 or 1-3 goals. When they were winning, the message was inspirational and
encouraging them to attack and asking them to be aggressive and systematic. Practice sessions were
always important for winning.
2. Rely on power of observation-He felt that there is lot to learn through observation. The world‘s best
coach delegated training sessions to his assistant coaches while he watched. By observing the training,
he was able to pick up much more in detail, change in habits, energy, mood, etc. Observation is a best
technique to gauge information. In his words ‗the ability to see things is the key--- the ability to see
things you don‘t expect to see‘.
3. Never stop adapting- Willingness to change was his important attitude. He used to take care of minute
things also and adapt to changes. When players were not exposed to sunlight, he used to give them
Vitamin D tablets, conduct Yoga classes for their fitness, hiring optometrist for players, medical
facility etc. He had a lot of confidence in his team members and that was how he used to manage
change by accepting it.
From these eight approaches, we notice important team building characteristics: Promoting young players,
continuous process of rebuilding teams, setting high standards, inculcating team spirit, responding to the
situational needs, achievement of organizational goals, learning through observation and willingness to
change. These eight approaches illustrate the importance of team building in modern organizations. An
effective team is one that contributes to the achievement of organizational goals by performing the tasks
under an effective team leader. Ferguson proved to be an effective coach who ensured that his team had won
several matches.
Organizational development process includes activities such as process improvement, audits,

performance appraisal system, training programs, team building, collecting feedback through surveys,
employee induction programs, and crowd sourcing for innovation and product design. The organization
development process involves setting targets, providing training to employees, measuring performance,
taking corrective actions and documenting lessons learned. Every employee in the organization is part of
this development process. Sometimes, it is best practice to involve customer also in organizational
development process.
1. Discuss the steps involved in the organizational development process.
(Hints: Process improvement-Audits-Performance appraisal system)
2. What is Team Building? What are its important characteristics?
(Hints: An OD process-Problem sensing-Strong work ethics)
Source: Elberse, A. and Ferguson, S.A. (2013), “Ferguson‟s Formula”, Harvard Business Review, October 2013
Topic Course
Section-14.5: Organizational Development Process;
59
Block IV - Staffing
34. Management Development Approaches of Leaders and

Managers for International NGOs
International NGOs follow different approaches to manager development such as experiential learning, institutional
coaching, mentoring, and competency development and performance management.
The Hauser Center and Harvard Humanitarian Institute at Harvard University have done a study of
international NGOs operating in humanitarian areas to find out the approaches they follow in management
development of their managers and leaders. International NGOs studied have more than $200 million
budgets and operate in more than 30 developing countries. The work at these international NGOs requires
both technical and managerial skills. The international NGOs studied include Action Aid International,
Mercy Corps, Save the Children, World Vision US, Habitat for Humanity International, Child Fund
International, Catholic Relief Services, CARE USA, and Oxfam America. The management development
 Child Fund International: They have signature leadership development programs, in which, the
approaches that these international NGOs follow in developing their leaders and managers are as follows:
facilitation team meets the senior management team for one day before the actual training program.
They embed senior management issues and organizational problems in simulations and exercise for
the training participants. At the end of the program the training participants make presentations to
the senior management team. The training participants are encouraged to have scheduled meetings
with CEO and Executive Vice Presidents. The participants are provided with support for learning
 Save the Children: They have Leadership Development Program (LDP) and Senior Management
and they are provided with coaches.
Development Program (SMDP) for their managers and executives. They concentrate on developing
five leadership competencies such as managerial courage, delivering results, external orientation,
 Action Aid International: They have Women Leadership Development (WLD) program, which
building high performance teams and communicating vision.
spans for 14 months. They engage line managers in training. They encourage networking of
participants. It gets sponsorship for their programs from Women Rights Forums and provides
 Mercy Corps: It develops entrepreneurial and business skills of their participants at Portland State
support for women leaders.
University in areas such as project management, innovation, strategy, financial management,

business operations, leadership effectiveness, critical thinking and problem solving.
There are different approaches to manager development in current day organizations. This is possible
through training, management development programs, mentoring, coaching and on job training. Another
way of developing managers is to conduct 360 degree performance appraisal for managers so that
supervisor, peer and sub-ordinate can give feedback on manager‘s skills and competencies. It is better to
assess the technical, managerial, conceptual and soft skills of the manager. Based on 360-degree
feedback, a training plan is to be devised for a manager to improve his technical, conceptual and human
skills. Other approaches for manager development are through experimentation, entrepreneurship,
motivation and case study based approaches. Sending them for seminars, conferences and trade shows
can also help in developing them professionally. Asking managers to participate in performance
evaluation of his team members also helps him.
1. Discuss the management development approaches followed by international NGOs.
(Hints: Save the Children-Mercy Corps-Child fund international)
2. What approaches can be adopted for manager development?
(Hints: Training-Mentoring-Coaching)
Source: Jayawickrama, S. (2011), “Developing Managers and Leaders: Experiences and Lessons from International
NGOs”, A Hauser Center – HHI Special Report, Harvard University
Topic Course
Section-14.6: Approaches to Manager Development;
60
35. Handling Organizational Conflicts

Organizational conflicts should be handled tactfully and logically.
Conflicts at workplace are common, some are silly and some are genuine. Sometimes we are inconvenienced
if the lift does not operate or when we are disturbed by power cuts. All irking issues need not be fought. But
genuine complaints need to be sorted out for the good of the employees and also organizations.
Dissatisfaction of employees leads to poor performance and low productivity. So it is essential to sort out
problems at work.
Amy Gallo suggests how and on what issues one can fight at work, citing two case studies.
Case A:
Ms. X who was working in a government security agency, though wanted her company to think of
delivering information to policy makers digitally, she did not work on it as this aspect was not in her job
description. But when she was offered a position that included on line delivery, she fought for digital
strategy and won the case because of the confidence and her role clarity.
Case B:
In another case Ms. Y considered it as a waste of time, when employees met for a safety meeting because
the presentations were all repetitive. But when she presented something useful and constructive, people
found the meetings productive. She felt that one must fight only when one can show some solutions to
problems
 One should understand one‘s authority- one must have good standing with the superiors and co-
Basic principles to understand before going for the battle
 Before going for the battle, one must have a solution to the problem.
workers. One can fight if it is part of the job responsibilities.
 It is essential to know that the issue is important to the person who fights and also to the
organization. One needs to assess the importance of the issue on a scale of 1-10 and go for the battle
 Before going for the battle, one has to test the issue with a reliable colleague.
if it is greater than 6.
 One should never fight alone and must assess whether there are supporters for the issue.
Dos and don’ts for taking up the irking issues
Dos Don’ts
Take the issue if it fits into the role Do not take a problem which does not concern you
responsibilities
Before raising the problem , have a solution for it Do not rely on boss to fight for you, but the boss
needs to be informed
Find the importance of the issue Do not take an issue which is not important to the
organization
Look for supporters of eminence Do not go alone
Take only few issues which are very important Do not fight frequently
Workplace conflicts are common. Individuals can fight if the issues are rational and by sorting out those
issues individual performance and organizational productivity increases.
The traditional way of looking at conflict is unproductive, disturbs the organizational tasks, spoils the
human relations and is not encouraged in the organization. Modern research proves that conflicts up to
some extent are good for the organization. Conflict can be viewed as an opportunity. They increase
organizational productivity, performance, team work, collaboration, cohesion and improve human
relations. It was proved that some of the conflicts in product design and development have improved the
design quality of products and reduced the product development time. The modern way is to look at the
organizational conflicts in a positive and productive way. There are different reasons for conflicts in
organizations such as communication, resources, time, tasks, administrative issues, costs, and contracts.
The conflict resolution techniques such as confrontation, compromise, forcing, withdrawal and
smoothing can be used to resolve conflicts. Organizational conflicts are of 3 types. They are 1) process
conflicts 2) task conflicts and 3) relationship conflicts.
61
Block IV - Staffing
1. Discuss the benefits of conflicts at workplace.
(Hints: Increase productivity-Performance-Team work)
2. Discuss the do‘s and don‘ts of handling irking issues in an organization.
(Hints: Identify the importance of the issue-Fights should not be frequent)
Source: Gallo, A. (2013), “How to pick your battles at work”, HBR Blog Network
Topic Course
Section-14.7: Organizational Conflict;
62
Block V: Leading
36. Nature of People: Abraham Lincoln
37. Douglas McGregor‘s Theory X and Theory Y Revisited
38. Meaningful Work Motivates Employees
39. Herzberg New Theory of Motivation
40. Self-Determination Theory: A New Motivational Theory
41. Meaning Quotient as a Motivational Technique
42. Effective Leader‘s Systems and Contingency Approach to Motivation
43. The Internals in Meaning of Leadership
44. Organizational Conversation as Key Element of Leadership
45. Leadership Traits for Crisis Situation
46. Insights from Transformational Leadership
63
Block V - Leading
36. Nature of People: Abraham Lincoln

Abraham Lincoln managed the nature of people who surrounded him for good effect.
This is essentially about leading during difficult times. For President Barack Obama, Lincoln is a role model
as there are many leadership lessons to be learnt from Lincoln. Important strategies adopted by Lincoln to
cope up the difficult times form the essence of the conversation between the authors of the reference article
Doris Kearns and Coutu include:
Take a ways from Lincoln’s Leadership:
 Lincoln surrounded himself with efficient and powerful people, including rivals. He felt as long as
his rivals are for the good of the country; he had no issues as the rivalry wasn‘t personal. Obama
did the same when he included Hillary Clinton as his Secretary of State, Joe Biden as Vice-
President and many other Republicans. Lincoln‘s strategy was to have best people to emerge

successful in extreme times
Lincoln was a good decision-maker but at the same time consulted his subordinates before taking a
decision. He gave sufficient time for debate and argument before taking any decision. The cabinet
members felt they had been heard. Once the decision is taken he is bold enough to convey his
decision emphatically to his subordinates. His statement ‗Like it or not, here is what we are doing‘
shows his decisive firmness. He did the same while declaring the historic ‗Emancipation
Proclamation‘ abolishing slavery. For implementation also he listened and took the advice of his

cabinet members
A trait of a good leader is not only to take credit for one‘s actions but also to take responsibility for
one‘s mistakes. Lincoln always included his team for the credit and owned responsibility for the

mistakes of his as well as his subordinates. That is how his subordinates became loyal to him.
Good leaders need to connect themselves to larger public. Lincoln, like Roosevelt connected

himself with public through his marvellous speeches.
Successful leaders know how to relax in adverse situations too. Lincoln used to go to theatre or
cocktail parties during World War II. He had extraordinary sense of humour and was widely

admired as a story teller.
Exceptional quality of Lincoln was ‗liking people‘ and not hurting them in any case. This was his
weakness which coasted him many a time.
Obama imbibed many of these leadership qualities of Lincoln which is depicted in his victory speech.
Obama was optimistic when he said that what is faced in America now may be bad but not worse like the
‗Great Depression‘ or ‗Civil War‘ faced by his predecessors. Obama reminded his people that America had
faced disasters before and had come out successful and hence it is not difficult to manage extreme times.
Nature of people can be in different forms. The nature of people can be rational or irrational, emotional or
balanced, moral or immoral, empathetic or pathetic, aggressive or polite, responsible or irresponsible,
careless or caring, reckless or committed, judgmental, loyal or deceive, cheat or support, cunning,
functional, task oriented, cultural, religious, regional, global, partial or impartial. The nature of an
individual depends on the attitude, character and behaviour of the individual, his past experiences and
also the external environmental factors at a given moment. The nature of an individual can also be
influenced by stakeholders and the situation or task or issue in picture. Nature of an individual is assessed
on a long term basis. Whereas, behavior of an individual is assessed on a short term basis. That is,
behavior can change from time to time and incident to incident. Whereas, nature is the collective
behaviors of an individual put together.
1. Discuss Abraham Lincoln‘s leadership lessons.
(Hints: Able decision-making-Not hurting people-Take responsibility for mistakes)
2. Discus the diverse nature of people.
(Hints: Rational/irrational-Emotional/balanced-careless/caring)
Source: Goodwin, D.K. and Coutu, D. (2009), “Leadership Lessons from Abraham Lincoln”, Harvard Business Review,
April 2009
Topic Course
Unit-15: Managing and The Human Factor;
Section-15.3: The Nature of People;
64
37. Douglas McGregor’s Theory X and Theory Y Revisited

Douglas McGregor‟s Theory X and Theory Y is still believed as one among the prominent behavioral models in
current day best places to work.
Matthew Stewart (2010) has revisited McGregor‘s Theory X and Theory Y after 50 years of its existence
and proposed Theory U (Utopian) and Theory T (Tragic) in Oxford Management Journal. 50 years ago,
Douglas McGregor at MIT distinguished Theory X managers with Theory Y managers in his popular book
The Human Side of Enterprise (McGraw-Hill).These are the two competing theories about human nature
which dominated the world in the rest of the time. The current day organizations which are rated as best
places to work believed in these theories and continued their trust on their employees.
 Theory X: says that average human being is lazy, less ambitious, needs to be told what to do, and
self-cantered. To handle these kinds of people, the management approach to be followed is
controlling.
 Theory Y: says that individuals want to grow and work. They would like to take the responsibility.
They are active rather than passive. They actively shape themselves and the environment. The best
way to deal with them is to manage them minimal.
 Theory Y believes that the freedom and self-realization to workers lead to huge productivity
improvements. It believes that business is all about people. If you trust people, they trust you back.
Many of the current best places to work believe this theory. Theory Y does not believe in spending
too much time in cubicles.
 The world of Theory X is in a state of conflict between managers and workers. The world of Theory
Y makes the managers and workers as partners in doing the organizational activities.
 Theory U (Utopian):says that conflict is inevitable. Human beings return to a state of peace after
conflict. According to this theory, we can solve our problems by changing our view. It can bring
everybody together with the right words. Theory U depends on the fairness of its schemes. It
ensures happy endings.
 Theory T (Tragic): says that conflict is endemic and peace is just a temporary state. Endurance
depends on the human relations. To solve our problems, we have to change the world. It depends
mostly on the processes. It can temporarily postpone disasters. Theory T depends on fairness of its
processes. Theory T temporarily avoids disasters.
Behavioral Models include Edger Schein‘s complex person, Douglas McGregor‘s Theory X and Theory
Y and Lyman Porter‘s model of human nature. According to Theory X behavioral theory, an individual
is not self-motivated. Some coercive forces are to be applied to make him productive. He does not feel
responsible and he has to be continuously monitored. According to Theory Y, an individual is self-
motivated. He takes initiative. He requires less monitoring. He is productive and committed to the job
given. Theory X believers need change all the time.
1. Compare and contrast McGregor‘s and Stewart‘s theories.
(Hints: Theory X & Y-Theory U&T-Conflict is inevitable-Peace is temporary)
2. What are the various behavioural models?
(Hints: Complex person-Lyman Porter‟s model of human nature)
Source: Stewart, M. (2010), “Theory X and Y, Revisited”, Oxford Leadership Journal, Vol. 1, Issue 3
Topic Course
Unit-15: Managing and The Human Factor;
Section-15.4: Behavioral Models;
65
Block V - Leading
38. Meaningful Work Motivates Employees

Meaningful work is a source of motivation for employees in an organization.
Leaders must create a sense of purpose and reinforce it to their followers. Important leadership traits, besides
others, include inducing creativity, productivity, and commitment towards work. Many times leaders kill
meaning at work and jeopardize the performance of employees and workplace productivity. One of the
important responsibilities of leaders is to motivate employees for accelerating their performance levels and
make work meaningful to them. Unfortunately this is not happening in many cases. ‗The inner work lives‘
of employees are the perceptions, emotions, and motivations that constitute a person‘s reactions to the events
of the work day, are adversely affected. Amabile and Kramer, in their recent book ‗The Progress Principle‘
say that people are more creative, productive, committed and collegial in their jobs when work is meaningful
to them.
How Leaders damage the inner work lives of employees:
Instead of promoting meaningfulness at work, many leaders undermine the meaningfulness of work by
 Dismissing the importance of subordinates‘ work or ideas
 Switching off project teams before completion of the work
 Shifting goals frequently
 Not updating subordinates on changing priorities for customers
The Understanding Gap:
In a survey by authors, 669 managers at all levels from dozens of companies around the world were asked to
rank the importance of motivators from the given 5 choices-incentives, recognition, clear goals, interpersonal
support, and progress in the work. Only 8% of senior executives ranked ‗progress in the work‘ as top priority
for motivation, showing that executives do not understand the power of progress in meaningful work. In this
way four traps are laid to the executives to understand meaningful work.
The Four Traps:
 Trap 1- The priority for the team is ‗cost saving‘ instead of ‗creating a new product‘. As a result the
employees were feeling that they were doing mediocre work for a mediocre company. They no
 Trap 2- Many managers are not clear about their strategies. It is ‗Attention Deficit Disorder‘
longer consider that they are working for a great company.
 Trap 3- When consideration and support are absent within the organization people do not find
(ADD). The priorities mentioned by them for product development were really not priorities.
 Trap 4-Management Gurus Jim Collins and Jerry Porras consider BHAG- Big, hairy, audacious
meaning to their work. They cannot produce anything of high quality.
goal as a strategic vision statement. Many of the mission statements of companies have little
relevance and meaning to people. Most of the times, they are unattainable and empty leading to
meaning vacuum. A meaningful mission statement should contain milestones towards goals and
indicate ways and means to achieve the targets and point to ‗what and how‘ that employees and
customers will value.
Leaders can avoid these mistakes by:
 Communicating with employees on how process innovation helps customers
 Using the past experiences as reference points
 Paying attention to ‗pain points‘ as they prevent quality work and meaning to employees
 Providing a sense of purpose and progress even in bad economic times through persistent efforts.
Leaders need to carefully and consistently in still meaning and purpose of work to their employees so as to
have qualitative, productive and meaningful work in organizations. This motivates employees for better
performance.
Motivation is of two types. They are 1) Intrinsic Motivation and 2) Extrinsic Motivation. Intrinsic
motivation comes from within an individual. It is self-driven. It is an individual‘s interest and zeal to do
something. Every individual has some interests or other which are self-driven. Extrinsic motivation is
induced by supervisors, managers, top executives, friends and relatives in the individual. This is possible
with talks, coaching, mentoring, observation, viewing, listening, hearing, and sometimes even with a
word of mouth. Motivation drives an individual to do something without which an individual‘s intention
to do that specific task is low. Motivation increases an individual‘s interest and intention towards the
given task and for owning and completing that specific task.
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1. Compare and contrast intrinsic and extrinsic motivation.
(Hints: Self-driven-Individual‟s interest-Induced by supervisor-Induced through talks, coaching,
etc.)
2. How can managers motivate employees?
(Hints: Communication-Using past experience-Attending to the „pain points‟)
Source: Amabile, T. and Kramer, S. (2012), “How leaders kill meaning at work”, Mckinsey Quarterly, Jan 2012
Topic Course
Unit-16: Motivating Employees for Job Performance;
Section-16.3: Definitions and Meaning of Motivation;
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39. Herzberg New Theory of Motivation

Herzberg revisits his motivation theory with a focus on job enrichment.
Frederick Herzberg is popularly known for his two factor theory of motivation- dissatisfaction caused by
hygiene factors and satisfaction caused by motivation factors in job. He finds that even after five or six
decades of formulation of his theory, still many managers ask questions on how to motivate employees for
better performance. So he rewrites his theory with scholastic approach in a humorous way.
He begins his new essay with KITA- kick the person in the pants, if he does not do what is expected of him.
He uses the term KITA not in the literal sense but as a motivational factor. He distinguishes between
negative KITA and positive KITA. Negative KITA-whether physical or psychological does not lead to
motivation, at best it leads to movement.
Positive KITA personnel practices:
 Reducing time spent at work

 Spiralling wages
 Fringe benefits
 Human Relations Training
 Sensitivity Training
 Two way communication
 Job Participation
 Employee counselling
But all these practices lead to motivation in a temporary way, people will be asking for more programs and
more incentives to perform.
Earlier Theory:
 Factors of job satisfaction and dissatisfaction are different.

 The opposite of job satisfaction is not dissatisfaction but having no satisfaction. Similarly, the
opposite of job dissatisfaction is not having satisfaction but having no dissatisfaction.
 Hygiene factors that cause dissatisfaction are: security, status, relationship with subordinates, peers
and supervisors, personal life, salary, work conditions and supervision.
 Intrinsic motivation factors are: growths, advancement, responsibility, work itself, recognition and
achievement.
 Of all the factors contributing to job satisfaction, 81% were motivators and of all the factors
contributing to job dissatisfaction, 69% were hygiene factors.
Job enrichment project:
 The motivation-hygiene theory suggests that work be enriched to bring about effective utilization of
personnel.
 To enrich jobs, horizontal job loading (increasing the quantity of work to be done, adding new
tasks, rotating the work, removing the difficult tasks) will not help but vertical job loading (or
providing motivational factors) will enrich the jobs. Earlier the emphasis was on horizontal job
loading, that is job enlargement.
 A job enrichment project was initiated between two groups- one group called achieving group
adopting enriched principles and the other group called control group continuing traditional
principles and changes in performance observed over a period of six months.
 At the end of six months the members of the achieving group were found to be outperforming than
the control group. There was a marked increase in the liking for their job with lower absenteeism.
Their performance improved to a high level of accomplishment.
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 The attitude towards the job was much more positive for the achieving group than the control
group.
Changes suggested now for job enrichment:
 Select those jobs in which motivation will make a difference.

 Approach those jobs which can be changed.
 Brainstorm list of changes that enrich the job.
 Screen the list to eliminate hygiene factors.
 List for generalities such as giving responsibility in real terms.
 Screen the list to eliminate horizontal loading factors.
 Avoid direct participation with the employees whose job is to be enriched,
 Concentrate on the content of the job.
 Experiment with controlled group and enriched group and notice the changes.
 The performance of the motivated group may fall initially.
 Some anxiety may be there in initial months.
After the job enrichment program, an employee-cantered style of supervision will emerge by changing the
jobs that they do. Job enrichment is a continuous process which should last for long for real motivation.
Even then if employees are not motivated, KITA must work, otherwise motivation is a big problem in the
organizations.
Motivation theories can be classified as 1) content or need based motivational theories and 2) process
based motivational theories. Content based motivational theories emphasize the human motivation
based on his or her needs. Process based motivation theories talk about the dynamics or process of
motivation of an individual. Content or need based motivational theories include Maslow‘s need
hierarchy theory, Hertzberg‘s two factor theory, McClelland‘s needs theory and Aldermen‘s ERG
theory. Process based motivational theories include Victor H. Vroom‘s expectancy theory. These
theories explain in what conditions, human beings get motivated.
1. Compare and contrast the conventional and new job enrichment methods.
(Hints: Work enrichment-Horizontal job loading-Brainstorm list of changes)
2. Discuss the various classifications of motivation theories.
(Hints: Content or need based-Process based motivational theories)
Source: Herzberg, F. (2003), “One more time: How do you motivate employees?”, Harvard Business Review, January
2003
Topic Course
Section-16.4: Classification of Motivation Theories;
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40. Self-Determination Theory: A New Motivational Theory

Self-determination theory as a motivation theory includes autonomous motivation and controlled motivation.
Self-determination theory, a new motivational theory, is gaining popularity in the21 st century. It was first
proposed by Deci, E.L. and Ryan, R.M (2000) in their paper ―The ―what‖ and ―why‖ of goal pursuits:
Human needs and the self-determination of behavior‖ published in Psychological Enquiry. Dr Claude Fernet
has further extended this self-determination theory and won Canadian Psychological Association‘s New
Researcher award in 2012. This summary brings out the findings from his research on self-determination
theory.
 Work motivation plays major role in employee‘s psychological health at work place.
 Different dimensions and factors effect employee motivation impacting their adaptation to work
and their psychological health.
 In 21st century, employees functioning and their psychological health is top priority for
organizations.
 Most effective and productive employees work with high energy, bring out quality outcomes, are
highly motivated and maintain good health.
Self-Determination Theory:
 It distinguishes between quantity and quality people invest in an activity with respect to motivation.
 Motivation is broadly two categories:
- Autonomous Motivation: It is an intrinsic motivation. It comes with the inherent pleasure
and satisfaction for the employee and it makes the employee feel the importance of the
work for him.
- Controlled Motivation: It is result of the internal or external pressure. It is result of the
organizational demands, rewards and threats. This motivation comes to avoid pressure,
guilt or anxiety.
 Autonomous motivation is positively related to job satisfaction, job commitment and psychological
well-being.
 Controlled motivation is positively associated with the negative things such as intention to leave
and employee burnout.
Both autonomous motivation and controlled motivation impact the employee functioning at the workplace.
There are different motivation theories existing in literature and also applicable in current day business
organizations. They include Maslow‘s need hierarchy theory, expectancy theory, achievement theory,
contingency theory and Hygiene factor theory, etc. These theories talk about different scenarios and the
applicable factors in those scenarios. Motivational theories are applied to employees in an organization to
improve productivity, performance, change attitude, change behaviour, to keep employees happy, and to
make them fit for the organizational culture.
1. What are the salient features of the ‗Self-determination‘ theory?
(Hints: Quantity vs. quality invested in an activity-Autonomous and controlled motivation)
2. How can organizations benefit by applying motivation theories?
(Hints: Improves productivity-Change in attitude-Employee‟s happiness)
Source: Fernet, C. (2012), “The Role of Work Motivation in Psychological Health”, Canadian Psychology, Vol. 54, No.
1, pp. 72-74
Topic Course
Section-16.4: Classification of Motivation Theories;
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41. Meaning Quotient as a Motivational Technique

Meaning quotient as a motivational technique can make employee‟ work more meaningful and can bring out better
performance.
How can companies make work meaningful to employees and instilling them a sense of belongingness to
their workplaces? Employee motivation will be higher when the work is meaningful to them resulting in
higher performance. Making work meaningful to employees is making them feel good at work. Feeling good
is reflected in deriving satisfaction from work by developing their potential to its fullest without stress and
understanding the meaning and purpose of what and why they are doing or what and why the company is
doing. When they feel good, they concentrate on work resulting in high productivity. Employee motivation
is high when the work is meaningful to them resulting in peak performance. This article discusses what
business leaders can do to create „meaning‟ at workplace as meaning drives higher workplace productivity.
Meaning here implies ‗a feeling that what‘s happening really matters, that what‘s being done has not been
done before or that it will make a difference to others‘.
Elements that create peak performance are: Intellectual Quotient (IQ), Emotional Quotient (EQ) and
Meaning Quotient (MQ)
Intellectual Quotient (IQ) Emotional Quotient (EQ) Meaning Quotient (MQ)
   Excitement

Role clarity, Quality of
 interactions

Clear understanding Challenges people feel
of objectives Trust and Respect which they never felt
 Access to the  Constructive before
knowledge and Conflict
resources needed to  Sense of humor
get the job done  Sense of oneness
When IQ is low employee energy is misdirected and conflicting
When EQ at workplace is low employee energy dissipates
When MQ is low employees put less energy into their work and consider
work as a mere job
While IQ and EQ are essential for peak performance, they are not sufficient conditions for peak performance
It is said that if employees work in high IQ, high EQ and high MQ during peak performance, performance
will be five times higher than the average.
In fact the bottlenecks to peak performance are related more to MQ related issues.
One of the most important ingredients to improve employee motivation and workforce productivity is
employee engagement. There is a big gap between the desire to create meaning at workplace and the tools
that leaders know how to use.
The actionable techniques or strategies to enhance workforce productivity highlighted in the Mckinsey‘s
Report are:
 Not telling turnaround stories that performance is at lower levels than desired or performance can
be great with provision of more amenities. But what can inspire people are the stories that
demonstrate the impact on change on society, customers, working teams, and individuals as well as

on the company itself.
If employees choose the direction for themselves, they are more committed to the outcomes. By
using this strategy Coca- Cola Company reported an unprecedented increase in employee
engagement. The motivational effect of Emerson employees was also high even though their CEO
had given directions by involving himself with the employees.
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 Going beyond financial motives and giving employees small and unexpected rewards which will
highly motivate employees to drive for results. Examples of which are seen from the methods used
by Mean Genes, ANZ Bank giving champagne to all its employees for Christmas, CEO of Wells
Fargo sending personal thank-you notes to its employees and Indra Nooyi of Pepsi Co. sending
thank-you letters to the spouses of her top performing teams.
The authors feel that MQ strategies are very effective in enhancing workplace productivity.
Motivational techniques used in the organizations are of two types. They are 1) Monetary motivational
techniques and 2) Non-monetary motivational techniques. Monetary motivational techniques include
salary hikes, incentives, perks, bonuses, stock options, shares, and profit sharing etc. Non-monetary
motivational techniques include progression in designation without salary hike, increasing responsibilities,
increasing visibility, providing membership to professional bodies, asking to give a guest lecture, sending
to seminars and conferencing and asking to represent a delegation for a trade show.
1. Discuss the different motivational techniques used in organizations.
(Hints: Monetary-Non-monetary)
2. What elements were responsible for creating peak performance?
(Hints: IQ-EQ-MQ)
Source: Cranston, S. and Keller, S. (2013), “Increasing the „meaning quotient‟ of work”, McKinsey Quarterly, January
2013
Topic Course
Section-16.5: Motivational Techniques;
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42. Effective Leader’s Systems and Contingency Approach to Motivation

Leadership style can affect motivation.
Which leadership style contributes to higher employee engagement? Who are the effective leaders who can
enhance productivity and employee satisfaction? Jack Zenger and Joseph Folk man have conducted a study
on this aspect and say that effective leaders produce highly committed, engaged and productive employees.
Their study included 160,576 employees working for 30,661 leaders from hundreds of companies around the
world. Their findings show that the engagement and commitment levels are high for those employees who
work under best leaders and low for those who work under less effective leaders. They have adopted two
approaches to classify leaders-as drivers and enhancers. The third one is the combination of the two.
Leadership Approaches
Drivers Enhancers Drivers and Enhancers

Establish high standards of Stay in touch with people with Tough and Nice
excellence concern
Stretch for goals Role models Demanding, considerate
Focus and priority for goals and Develop people and maintain trust Great developers of people
objectives
They tried to find which of these approaches help in maximum engagement of employees. Surprisingly, they
found that


Only 8.9% of employees working under drivers are effective

Only 6.7% of employees working for enhancers are effective
68% of employees working for leaders who are drivers as well as enhancers are effective.
The results show that effective leaders should be both drivers and enhancers- demanding high
accomplishments with priority to goals and objectives combined with high consideration to people and act as
trusting and collaborative leaders. It‘s the nice and tough who are the effective leaders that can promote
productivity as well as employee satisfaction and engagement.
This study confirms the noted behaviour al leadership theories-Ohio studies, Michigan Studies and
Managerial Grid theories. Ohio theories state that ‗a high initiating structure and high consideration‘ type of
leadership yields the best results. Similarly, Michigan studies show that ‗high employee-oriented and high
production-oriented‘ leaders are the best to engage employees. The famous Managerial Grid theory of Blake
and Mouton say managers with ‗high concern for production and high concern for people‘ whom they term
as ‗9.9 Team Management‘ are the most effective leaders.
Motivation is required for better performance. Usually managers motivate the employees to increase
their performance levels in the organization. They use different motivational techniques to achieve this.
The external motivation should bring the drive, initiative and generate internal instigation in the
individual. The motivation impacts the productivity and performance of the individual, in turn impacting
job satisfaction, customer satisfaction, organizational performance and organizational profitability.
1. What were the key findings of Zenger and Folk man‘s study?
(Hints: Higher employee engagement under good leaders- Low commitment levels under less
effective leaders)
2. Why is it important to motivate employees?
(Hints: Better performance-Generate drive and initiative-Generate internal instigation)
Source: Zenger, J. and Folkman, J. (2013), “Nice or Tough: Which Approach Engages Employees Most”, HBR Blog
Network
Topic Course
Unit-16: Motivating Employees for Job Performance; Principles of Management
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43. The Internals in Meaning of Leadership

Meaning of Leadership includes fairness and impartiality.
Likes and dislikes are human. But expressing likes and dislikes is an art and a science, especially for a
person leading an institution. A good Leader has to learn how to manage persons whom he dislikes and also
whom he likes. He has to remember that normally everyone in the institution likes to be liked by the leader.
The job becomes easy for him if he thinks vice versa-how to manage a boss who doesn‘t like the employee.
It‘s not necessary for the boss to like all employees, but it is very necessary for him not to dislike anyone.
As Amy Gallo puts ‗people liking each other is not necessary component to organizational success‘. She
refers the book ‗Good Boss, Bad Boss‘ authored by Robert Sutton. Citing two case studies, she analyses the
problem.
Cases depicting the benefits from people who are disliked:
Case 1:
Linda Abraham hired people whom she did not like also for her digital analytics company. Her principle
was to hire people who would be good for the team. The case was with Dan whom she hired against the
wishes of other teams. Though he was harsh in his expressions, he gave good ideas for the benefit of the
company. Linda concentrated more on what he said rather than on how he said it. She realized that he was
not diplomatic but insightful. For the improvements he suggested he was promoted and gradually liking
increased between them.
Case 2:
Kevin Niehaus, a business manager hires Chris who was the source for 90% of problems in the
organization. Kevin‘s dislike towards him was so high that he gave Chrispoor feedback. When Chris
questioned his bias, Kevin realized and started giving honest feedback. Slowly, they could get along well
and developed trusting relationship. Kevin started controlling his emotions and Chris was happy.
But certainly, there may be some people in the organization whom the boss dislikes. Sutton prescribes some
tips to the bosses about the people whom the boss dislikes.
 It‘s not bad to have people in the team with different views. They can pinpoint the mistakes.
Tips to bosses to get most from the persons he dislikes:
 Find out honestly what attributes make you irritated.

 Be fair, impartial and composed always.
 It is common to see good thing in the people you like and bad things of whom you dislike. Change
this attitude and try to find out good things of people you dislike.
 To find the strong points, keep the bias out of your mind and take the help of other managers for
assessment.
 Keep an open mind and spend more time with the person you dislike. Probably, you may find good
things in him.
Principles to remember to become a good boss (Dos and Don‘ts for bosses)
Dos Don’ts
Be honest Do not assume that disliking an employee is a bad thing.
Check your bias Remember everyone wants to be liked by the boss. Do not show your
distaste.
Keep an open mind Collaborate with the person you dislike. Do not stop working with the
person.
Make communication a top
priority and do it frequently
Be approachable and available
The cases and illustration on how a leader should treat all employees fairly help us to conclude that one of
the important characteristics of leadership to become a good boss is to learn from the mistakes of bad bosses.
Leadership demands fairness and impartiality and leaders should be able to see good things of the people
they dislike also.
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The meaning of leadership in our modern organizational terms is getting things done through influencing
and motivating skills. The leader has to set targets and goals to the team members and his business unit. He
has to develop the team through training, mentoring and coaching. He is responsible for the success of the
team. He has to delegate the tasks to individuals. He has to regularly evaluate the performance of
individuals and provide necessary training and take corrective actions. The leader should be able to get the
things done through the people who do not want to work even. This skill is nothing but the leadership skill.
1. Discuss the do‘s and don‘ts of becoming a good boss.
(Hints: Be honest-Check bias-Collaborate with those you dislike)
2. What measures can leaders take to get things done?
(Hints: Set targets-Team development-Task delegation)
Source: Gallo, A. (2013), “How to manage someone you don‟t like”, HBR Blog Network
Topic Course
Unit-17: Leadership;
Section-17.3: Definition and Meaning of Leadership;
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44. Organizational Conversation as Key Element of Leadership

Organizational conversation is one of the key elements of leadership.
Groysberg, B. and Slind, M. (2012), in their Harvard Business Review article ―Leadership is a conversation‖
express that the old method of corporate communications is phasing out and new ways of organizational
conversation is taking place in order to achieve leadership in the organization. They have proposed an
organizational conversion model comprising intimacy, interactivity, inclusion and intentionality (Figure 1).
These factors impact the organizational conversation in turn impacting leadership in the organization.
Intimacy
Trust
Listening
Personal Organizational
Conversation
Interactivity
Inclusion
Brand Ambassador
Thought Leader
Leadership
Storyteller
Intentionality
Figure 1: Impact of Organizational Conversation on Leadership

Groysberg, B. and Slind, M. (2012) interviewed 150 top managers and top communicators in 100
organizations to find out the impact of organizational conversation on leadership. They found that smart
leaders employ person-to-person communication, initiate practices, foster culture to conversation, engage
employees, align with strategy and create flexibility.
Intimacy: Getting Close to Employee
Organizational leaders should reduce the distances such as spatial, institutional and attitudinal in order to
build trust in employee. Leaders have to practice the art of listening and communicate directly and
authentically with employees. Shift should be from top-down distribution of information to bottom-up
exchange of ideas. It should be more casual than corporate tone. It should be asking and answering questions
rather than issuing orders. Conversational intimacy (getting closer to employee) can be achieved through
building trust, patient listening and by taking it personal.
Example: i) Athena health, a medical records technology company, has made all of their employees as
―insiders‖ to verify the organizational records and made them involved more in the business. They used to
give account books to employees and shared strategic and financial information with them. This affected the
company‘s business prospectus positively.
ii) CEO and Chairman of Cinenrgy, a technology services company (later merged with Duke Energy) used
to conduct listening sessions of 3 hours with 90 to 100 of their managers. He also used to take the
feedback personal and ask them to rate him on a grade of ‗A‘ to ‗E‘ and later work on his performance.
iii) In Exelon, an energy company based in Chicago, top leaders used to have personal conversations with
employees to inculcate the organizational values in the employees.
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1. Interactivity
Smart leaders talk ‗with‘ employees not just ‗to‘ employees. They make interactive conversation open and
fluid rather than closed and directive. They exchange comments and questions with the employees. Social
technologies can also be used in interactive communication.
Example: Cisco Systems has interactive video communications product called ‗Telepresence‘. This platform
provides life size video images for high quality back and forth communication. John Chambers, CEO of
Cisco, used to have ‗birthday chat‘ with employees every alternate month. Also he used to send monthly
video mail to employees to build trust in communication.
2. Inclusion: Expanding Employee Roles
Inclusive leaders involve employees and make them quasi-official communicators for organizations. They
make employees as communication partners by making them as brand ambassadors, thought leaders and
storytellers. In these roles, employees work for the organization in communicating with other stakeholders
and customers.
Example: i) Coca-Cola uses their employees as brand ambassadors and gives them speaking opportunities
in events. They post these opportunities in Intranet and collect the interested employees list.
 Juniper Networks sponsors their engineers as thought leaders and sends them to national and

international technology conferences and provides the opportunity to communicate with customers.
EMC had an initiative in 2009 to story tell the working mother experiences at EMC. They have
published a 250 page book on it by collecting the stories from the working mothers of their
organization.
3. Intentionality
Intimacy, interactivity and inclusion enable flow of information and ideas in the organization, whereas
conversational intentionality brings a measure to closure of the process. Leaders strategically derive actions
from the conversation. Leaders have to convey strategic principles not with assertion but with explaining.
Example: Infosys has involved every range of roles of the organization in forming their 2011 organizational
strategy. With this they have collected 17 transformational trends impacting their customers. Later, they
have worked on the solution to these transformation trends through discussion forums in the organization
from the employees. It helped them in forming their organizational strategy in 2011.
Smart leaders use organizational conversation in open and honest fashion for managing information flow in
the organization.
Key elements of leadership include mutual trust, team building, listening, patience, personal touch,
communicating, interactive, vision, strategy formulation, supporting and motivating employees, learning,
entrepreneurship and top thinking. A leader is one who depends on everybody in the organization, like a
crawling baby, who depends on everybody at home. This happens through trust building, commitment,
accountability, responsiveness, team work and mutual dependency. Leaders believe in team work. A
team can do more than sum of individuals can do. Other leadership elements include openness,
decisiveness, breaking ice, remaining ethical and unprejudiced.
1. According to Groysberg and Slind what factors impact organizational conversation?
(Hints: Intimacy-Interactivity-Inclusion-Intentionality)
2. Discuss the key elements of leadership.
(Hints: Mutual trust-Team building-listening-Personal touch)
Source: Groysberg, B. and Slind, M. (2012), “Leadership is a Conversation”, Harvard Business Review, June 2012, pp.
1-10
Topic Course
Unit-17: Leadership;
Section-17.4: Key Elements of Leadership;
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45. Leadership Traits for Crisis Situation

Crisis situations need suitable leadership traits.
Background:
This is the case of the Chilean Mine Rescue lead by Andre Sougarret, a mining engineer of EI Teniente,
world‘s largest underground mine. He with his team of 32 managers exhibited tremendous leadership
qualities to rescue the trapped miners. On August 5, 2010, 700,000 metric tons of rock caved in blocking
passage to the tunnels of San Jose copper and gold mine in Chile‘s Atacama Desert. While 33 men working
deep underground were trapped, those present near the entrance escaped unhurt. The gravity of the situation
increased after two days when a second rock fall blocked ventilation shafts and the probability of getting
them out alive appeared remote. On October 13, after 69 days of the incident (17 days of search and 52 days
of rescue operations) the trapped miners were brought out alive. The rescue operation was an extraordinary
effort of the team.
Learning’s:
1. A crisis team should consist of a spokesperson, a psychologist and a communication expert in addition
to other general experts.
2. There should be a core mission. In this case it was saving the lives of the miners.
3. Leaders must alternate directing action and enabling innovation.
Implementation involves three tasks
Envision Enrolling Engagement

Promote realism and Finding the helpful ones Action through
hope disciplined execution
Motivating them to
Moving from the existing address the problem. Rapid innovation
condition to the desirable
Excluding the irrelevant Encourage the team
one.
people to do things quickly
and efficiently
 Establishing situational awareness which keeps changing

What leadership traits are required to lead in a crisis?
 Consultation and conversation with experts, For example So garret held conversations with
 Understanding the dangers involved- In this case the danger was that the miners could perish
mine workers, geologists and drilling experts
 Boosting the morale of the families and giving them hope without disguising the truth about
before rescuers could reach them
 Though outcome is not clear, showing determined effort and commitment to overcome the
the odds against them
 Understanding and assessing possible options to adopt and executing multiple options to solve
difficulties
 Finding new innovative ways to overcome the crisis

the problem in quickest possible time
 Inspiring the technical team to do their best

 Updating the family members everyday directly
 Appreciating and encouraging Team work
 Developing tolerance for failure and ambiguity to ensure effective leadership
Some of the leadership traits include forgiving, excusing, non-violence, courage, commitment to tasks,
look after wellbeing of team members, equality among everybody, no jealous, no partiality and respect
diversity. Current day business leaders should also possess these traits. In addition to the above
mentioned traits, leadership traits include patient listening, effective communication, presentations,
persuasion, initiative, empathy, maturity, public speaking, decision making under uncertainty, conflict
resolution under stress, influencing, motivating and having followership.
78
1. Discuss the leadership traits needed to lead in crisis.
(Hints: Situational awareness-Consultation with experts-Finding innovative solutions)
2. Which leadership traits must a leader exhibit during a crisis situation?
(Hints: Courage-Commitment to tasks-No bias-Equality among all)
Source: Rashid,F., Edmondson, A.C. and Leonard, H.B. (2013), “Leadership Lessons from the Chilean Mine Rescue”,
Harvard Business Review, July- August 2013
Topic Course
Unit-17: Leadership; Principles of Management
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46. Insights from Transformational Leadership Theory

Leaders should be effective.
Transforming an ineffective leader to an effective leader is not an easy job. Peter Fuda and Richard Badham
in their Doctoral Research Project interviewed mainly seven CEOs to find the success stories behind
transforming themselves and their organizations as effective. They found seven important factors, used as
metaphors, of which they applied four metaphors to more than 10000 managers in four countries to
transform them into effective leaders.
The four metaphors are: fire, snowball, mask and movie.
Fire:
Fire represents ambition. To achieve something, motivation is required. Fire creates fear and this fear
initiates achievement. But the real motivator is aspiration. The authors find that sustainable change requires
the fire of a ‗burning ambition‘.
One of the CEOs of the Research Project Tim was desperate in 2004 to turn around his advertising
company. The fear in him was due to: Low profits, Employees turning around, Competitors gaining
ground, Insecurity about his leadership and deterioration in his health.
But the real fear-the ambition burning inside Tim was to ‗lead a big and authentic life‘ and to push his
organization toward a worthy social cause.
By 2011 with the burning ambition Tim could transform his company into an effective company by
winning a prestigious advertising award in the world.
Snowball:
Snowball represents accountability. When leader shows accountability by involving his subordinates, they
too get inspired and become accountable for their acts. The momentum of accountability turns like a
snowball to become effective.
Clyton, managing director of a German Company could transform his company by exposing himself to
the snowball technique. By encouraging his subordinates to step-up and take initiatives for achieving his
individual and organizational goals, Clyton could become successful as he acknowledges his failings and
motivated his subordinates to that end. If the team members along with the leader take more initiatives
and work in collaboration with accountability, success follows in snowball technique.
Mask:
Mask represents authenticity. When leaders uncover themselves with true identity of themselves, by
dropping their inner conflicts, they could emerge as successful leaders and enhance their relationships and
business outcomes.
Mike, the CEO of a multi-national IT Company was initially inconsistent with his behaviour and used to
mask himself from his subordinates. Realizing his failings, he adopted more authenticity at work and
focused on core business values with empathy and connection towards his team members. Then he could
see his company‘s profits rising and his effectiveness as a leader enhancing.
Movie:
Movie represents evaluating one‘s behavior and performance and making required amendments. Leaders
have to view and edit their performance to realize their vision.
Alan, the CEO of a German pharmaceutical company found that employee engagement was low and
financial performance in the company stalled. Initially all members were competing with each other. After
reviewing, he found that collaboration would lead to success, his company exceeded financial targets and
culture of the company changed to better and could win a prestigious Hewitt Best Employers award.
The authors experimented with these metaphors on all types of organizations and with all levels of managers
and could emerge successful in transforming them into effective organizations and effective leaders. They
concluded that to be an effective leader, one has to identify his burning ambitions, become accountable to
his actions, uncover the masks he possesses to represent his real picture and constantly review and edit his
performance like a movie director.
80
Leaders should take initiative, show commitment, accountability, empathy, ambitions and responsibility.
They should lead by example. They should build respect, mutual trust, cooperation and coordination in the
team. They should inculcate the positive culture and climate in the team. The transforming leaders
evaluate their performance themselves at regular intervals and take corrective actions for them. They learn
from the incidents and experiences and transform their behaviour, attitude, skills and orientation. Most
effective CEOs are transforming leaders. They have worked extensively upon themselves. They evaluate
themselves and act up on them.
1. What metaphors did Fuda and Badham use in their study of transformation into effective leaders?
(Hints: Fire-Snowball-Mask-Movie)
2. Discuss the measures that could make leaders effective.
(Hints: Identify burning ambitions-Accountability for actions-Constant performance revision)
Source: Fuda, P. and Badham, R. (2011), “Fire, Snowball, Mask, Movie: How Leaders Spark and Sustain Change”,
Harvard Business Review, November 2011
Topic Course
Unit-17: Leadership; Principles of Management
81
Block X –Operations and Systems
Block VI: Controlling
47. Factors impacting Production in Indian Manufacturing Sector
48. Productivity Problems in Italian Manufacturing Industry
49. Importance of Operations Management in the Global Manufacturing
50. Corporate Website: A type of Information System
51. Advantages of Management Information Systems
82
47. Factors impacting Production in Indian Manufacturing Sector

Resource management can be an important factor effecting production and productivity in manufacturing.
Overview and highlights

Population growth and economic development have severely strained the natural resources and
ecosystems globally. Traditional ways of production and distribution are no longer competitive nor are
they fully eco-friendly. Companies started competing on the basis of more efficient use of resources
with focus on eco-friendly operations. They are optimizing consumption through more efficient use of
resources and continuously monitoring the effect of their actions on the future supply of natural
resources and on the climate. Total return on resources is the focus of resource management, a critical
area of Operations Management.
Businesses are affected by six resource constraints:
Raw-material scarcity
Food scarcity Energy scarcity

Sustainability
Trends
Waste and waste management Climate change
Water scarcity
Available supplies will decrease for four key factors of production: Raw material, energy, water and
food. Scarcity of raw materials leads to bottlenecks in their operations. Prices increase affecting
competitiveness and profitability. There may be protests in the society over the use of these resources
due to fears of pollution and threat to the environment.
Resources management became a critical factor in business and focus is on Total Return on
Resources. Companies who can turn this constraint into an opportunity gain market share. Others
will suffer from price increases and volatility, regulation and social pressures
Jain Irrigation Systems & Shree Cement are the two Indian companies among the five selected
globally by the Boston Consulting Group for a detailed study of their resource management strategies
and approaches. These two companies were found to be wedded to the concept of ‗Total Return on
Resources’. They converted constraints into opportunities and became role models.
Jain Irrigation Systems focused on conservation of water resources. It has helped farmers directly for
more efficient use of an important natural resource for agriculture- water. Their technology is coupled
with imparting the knowledge to farmers by educating them and helping the farmers to sell their
produce.
 Installing small drip irrigation systems suitable for Indian conditions

Initiatives:
 Educating the farmers on ‗precision farming‘- optimising the mix of pesticides, fertilizers and
 Setting up an organization that guarantees farmers a minimum price for their crops
water
 Sending employees into the countryside to spread the word about the new irrigation systems
through traditional media like dancing and singing shows
 Consumption of water reduced by 50%; yields increased;

Results:
 Banks lent money to farmers

 Rapid growth and solid profitability were ensured.
The company had $740 million in revenues in 2011 and expanded aggressively outside India into South
Africa and elsewhere. Its researchers work with their counter parts in Israel and the US to continue to
improve the technology of water-conserving irrigation.
83
Block VI –Controlling
Shree Cement, India is the first cement company in the world to achieve certification for EN16001,
the global standard for Energy Management System. This is in recognition of its strategic intent in
establishing a road map for conservation of energy, fixing energy targets and continuously monitoring
energy consumption. It has also pioneered ways to reuse wastes.
 Focus on reducing energy use and waste

Initiatives:
 Implementation of Energy Management System standards EN 160001

 Use of waste in production processes
 Capital investments to conserve resources
 Developed processes for synthesizing gypsum from bye products
 Replacement of water cooled process by air-cooled process
 46 megawatt green power plant that runs on waste heat from production processes
 Spent $1.9 million on betterment projects for local communities.
Results:
Revenues increased by 50% per year from 2005 to 2009. One of the five largest cement manufacturers
in India with 2012 revenues at $1.06 billion and a stable EBIT-DA margin of 32 %.
Both production and productivity are important for any manufacturing organization. Production is
the process of manufacturing goods in the assembly line. Production process combines/mixes
various materials, goods and tools to make products. Continuous production is important of the
organization to generate revenues for the organization, to continue the business cycle in the
organization and for optimum utilization of the material and resources. Similarly, Productivity is the
number of units produced per unit of input parameter. For example, productivity can be measured in
terms of the number of toys manufactured per hour in a toy manufacturing company. Both
individual and team productivity are required for organizational performance, productivity,
profitability, growth and stakeholder and shareholder satisfaction.
1. What is the significance of production and productivity in a manufacturing organization?
(Hints: Revenue generation-Organizational performance-Profitability)
2. Discuss the resource constraints that affect organizations.
(Hints: Raw material scarcity-Energy scarcity-Food scarcity)
Source: Goh, E., Haanaes, K., Michael, D., Rangan, S., Vismans, D., Wagner, K., Jurgens, J. and Nazaruk, L.
(2012), “Handle with Care, Resource Management as a Competitive Edge”, Boston Consulting Group & INSEAD
Topic Course
Unit-21: Productivity and Operations Management;
Section-21.3: Production and Productivity;
84
48. Productivity Problems in Italian Manufacturing Industry

Productivity problems, lack of innovation and inefficient operations are affecting Italy‟s manufacturing sector.
Only a miracle can save Italy‘s manufacturing sector, Europe‘s second largest hub for a long time. It is
threatened by competition from abroad and downturn at home. In the recent past, 20% of manufacturing
firms were shut down and output fell by 26% of 2007‘s peak.
Highlights of Decline
Only luxury clothing and accessories makers catering to the world‘s rich survived the competition;
output in all others went down significantly from 18% to a huge 75% in a range of products. All these
contributed heavily to Italy‘s post-war economic supremacy.
Major reason


High labour costs leading to low productivity and loss of competitive advantage
Bureaucracy and poor infrastructure, according to the Italian appliance-maker trade body.
The Inevitable
The slump had its cascading effect on


The small suppliers of parts for the major manufacturers, many of them closing down
The steady loss of links in the supply chains, forcing big manufacturers to recreate the whole

chain abroad, accelerating the hollowing-out of Italian manufacturing
A fall in domestic consumption due to cautious consumers. They wait and watch due to the
climate of political and economic uncertainty with likely tax rises and job losses, adding fuel
to the fire.
One way to survive, according to experts is to shift production to lower-cost countries. This threatens
about 130,000 jobs. Innovative economic reforms with major emphasis on innovation, productivity
improvement and competitiveness of the entire Italian manufacturing sector.
85
Productivity is the major concern for both product-oriented and services organizations.
Organizations continuously strive for improvement of both individual and team productivity using
different techniques. There are many productivity problems organizations are facing in current
days. They include employee absenteeism, health problems, and work-life balance of employees,
personal life, family life, social status, team, climate, organizational culture, top management
support and financial condition of the employees. These are majorly non-technical problems
impacting the productivity in an organization. There are technical problems in an organization
impacting productivity such as hardware issues, machinery issues, machine response time, machine
up time, software issues, logistics issues and other operational problems.
1. Discuss the reasons for the decline in the Italian manufacturing industry.
(Hints: Competition from abroad-Downturn in home market-High labor cost)
2. What productivity issues plague contemporary organizations?
(Hints: Employee absenteeism-Health problems-Work-life balance issues)
Source: The Economist (2013), “A washout: Years of crisis have reinforced the pressure on Italy‟s once envied
industrial base”, http://www.economist.com/news/business/21583283-years-crisis-have-reinforced-pressure-italys-
once-envied-industrial-base-washout
Topic Course
Unit-21: Productivity and Operations Management;
Section-21.4: Productivity Problems and Measurement;
86
49. Importance of Operations Management in Global Manufacturing

Recent research studies by McKinsey Global Institute highlights the importance of operations management
and innovations in global manufacturing.
Overview and highlights
 Host of challenges and plenty of opportunities characterize the dynamics of the rapidly
evolving global manufacturing sector
 Existing players can combat the challenges and upstarts with lower barriers to entry and
flourish
Two forces will dominate global manufacturing in the coming decade:
 Major shifts in demand

 Innovations in product design, manufacturing, selling and after sales support
Manufacturing remains the driver of growth and employment as nations develop and become less
important as economies become wealthier; their service sectors account for the bulk of growth and
employment
Manufacturing
 Will be a driver of innovation, trade, and productivity.

 Will create high-skilled jobs, particularly in design, big data, and other service roles, but not
help to promote masses of production-line positions.
Major findings
 Overall demand is fragmenting, both geographically and in terms of customer requirements.

1. Demand is shifting
- more options, faster product cycles, more customization and after-sale services
 Consumers want
- more variety, more frequent upgrades, and greater customization
 Customers demand
- more after-sale services
 Demand will shift to developing economies
Annual consumption by developing economies is likely to rise from $12 trillion in 2010 to $30
trillion in 2025, accounting for nearly 70% of global demand for manufactured goods.
2. Innovations will guide product designs
 Advances in materials, processes, and information technology will make possible entirely new
kinds of products and can radically alter manufacturing operations
- Nanotechnologies will create a new era in microelectronics
- Materials such as lightweight steel and aluminium and carbon fiber that are being
introduced into auto manufacturing can help to create new lightweight vehicles.
 Global automakers are mastering new drive train technologies
 Pharmaceutical companies are mastering bio-engineering techniques that will help develop
 Most interesting advances are in new production processes and new information technologies.
personalized medicines.
 Additive manufacturing techniques such as 3-D printing, are opening up new possibilities
87
 Robots are gaining new capabilities at lower costs and are increasingly able to handle

intricate works.
Big data is being applied across the manufacturing value chain for understanding what
products to build, guiding production machinery on the shop floor, and monitoring products
 With sensors and transponders, products can constantly feed performance data back to the
that are in use
 These opportunities arise in a very volatile and uncertain environment

manufacturer, enabling all sorts of new after-sale services
 Commodity prices and wages are rising rapidly

 Natural disasters like tsunami are increasing risk perception in operations and supply
chain management, thereby encouraging facility location strategies
3. The dynamics of global manufacturing is shifting
 Manufacturing companies are rethinking their facility locations and not simply following the
path of lowest wages
- Rock-bottom wages matter a lot in some segments, such as in garment manufacturing,
but in most manufacturing industries, hourly labor amounts to less than 20% of costs.
 A bigger challenge for many manufacturers is
- Access to high-skill talent, both for the shop floor and for a growing number of
service-like occupations within manufacturing.
 Manufacturing is not monolithic and
- There is a wide range of manufacturing industries — from the very labor-intensive
and resource/energy-intensive to the very R&D intensive.
 Advanced economies depend more on
- High-skill talent to support "global innovation for local markets" in industries such as
pharmaceuticals and autos.
 Re-shoring will shift some jobs back to wealthy nations
- May help to restore some of the huge losses that the manufacturing unit suffered in
the past decade and reverse the long-term trend in manufacturing employment.
Operations management plays a major role both in the manufacturing and services industries.
Operations management plays a major role in airlines, travel, tourism, automobile manufacturing and
retail industries. Operations management includes management of supply chains, logistics, facilities, IT
support, customer support, and contact center and help desk operations. Mainly operations provide
support functionality to projects, R&D and engineering in the organization. Operations management
includes operations planning, operations strategy and operations monitoring and controlling. Operations
management is very critical to any business organization. Organizational strategy implementation
includes implementation of projects and necessary operations.
1. Discuss the factors that would dominate the global manufacturing according to McKinsey
Global Institute.
(Hints: Major shift in demand-Innovations in product design)
2. How does operations management contribute to the manufacturing and services fields?
(Hints: Support functionality to projects-Supports R&D-Supports engineering)
Source: McKinsey Global Institute (2012), “Manufacturing the future: the Next era of global growth and
innovation”, McKinsey Global Institute
Topic Course
Unit-21: Productivity and Operations Management; Principles of Management
Section-21.5: Operations Research, Production & operations Management;
88
50. Corporate Website: A type of Information System

Corporate website serves as an information system for customers by providing information, targeting e-
customers, offering customer relationship management and relationship building. It also helps in employment
branding.
In 2013, IDC surveyed Chief Marketing Officers (CMOs) to find out the effectiveness of corporate
websites and observed that the CMOs felt that corporate websites are very important in digital
marketing.
60% of the respondents felt that the investments in website content and website maintenance will
increase.
Accenture surveyed 15 consumer electronics companies in the USA. The survey participants
included Smartphone, TV and PC/Laptop manufacturers.
In this survey, the3 most important performance factors identified for websites were
 Information: Which enables decision making

 Relationship Building: Which brings repeat customers
 Commerce: Which enables instant purchasing
Case Studies:
Apple has efficient, simple navigation and a clear, engaging, and service oriented approach to
customers in delivering product information, customer support and purchases.
DELL has distinct product information that enables customers to customize the product online.
Also, online forums and self-help groups are supported in their website.
SAMSUNG, a TV manufacturer provides streamlined commerce solutions, which is unique among
TV manufacturers.
Navigation
Commerce Website
Effectiveness
Communities
Information
Organizational Customer
Customer Effectiveness Satisfaction
Service
Branding
Relationship
Building
Figure 1: Website Success Factors
89
Information systems provide useful information for strategic and operational decision making in an
organization. There are different types of information systems such as management information
systems, executive information systems, project management information systems, financial
information systems, operational information systems, and expert systems, etc. The early
generations of information systems are known as decision support systems, EDP (Electronic Data
Processing) systems, numerical computing systems, and analytical devices. All these devices store,
process and analyze data. They keep the data in an organized form for the understanding of the
users. Complex algorithms are applied to process data in information systems.
1. Discuss the importance of information systems to organizations.
(Hints: Information for strategic decision-making-Help customer relationship management)
2. What factors contributed to a website‘s success?
(Hints: Navigation-Commerce-Branding)
Source: Lewren, M, Mitra, R. and BjÖrnsjÖ, A. (2013), “How effective is your corporate website … really?”,
Accenture Outlook Point of View, June 2013, No.2
Topic Course Name

Unit-22: Management Information Systems;
Section-22.5: Types of Information Systems;
90
51. Advantages of Management Information Systems

Management information systems can be of strategic advantage to organizations.
 The main objective of IT and Enterprise IT systems is to enable a business.

 Current day IT becomes more strategic to business.
 Organizations should exploit IT for strategic advantage. Here ‗exploitation‘ means, use IT to
maximum possible extent.
 IT leaders should reject the systems asked by businesses that are not effective or that won‘t
complement the business success.
 Business Change requests consume enormous resources such as IT, financial, time, human and
emotional. Every project needs to justify the resources it consumes.
 According to MIT‘s Centre for Information Systems Research, IT leaders should think about the
percentage of projects meeting the expected business results.
How to Exploit IT?
1. Conduct Regular Post-Implementation Reviews (Check if Projects are meeting time and cost
deadlines)
Case Study: A Financial Services company used to review the business case after every stage gate. If any
technology or markets changes, they used to update the business case or they used to stop the project. This
enabled the organization to get huge returns on IT investments.
2. Restrict the Number of People who can Request for a Project

Case Study: TetraPak, a Swiss packaging company used to start projects only asked by their senior
business process owners. This made sure the IT and Business focused on the objective. They have
standardized their processes in 170 countries using IT. The main objective of IT is to minimize the costs
of business operations.
3. Think about Speed and not the Functionality

Case Study: USAA, a Texas based Financial Services firm used to reduce the average number of project
days. This made the IT and Business People to reduce the scope of project resulting into quick solution
coming out of the project. It made the technology to get into peoples‘ hand quickly and speed up the
business functioning.
Management information systems provide useful information for efficient managerial decision making in
an organization. They gather data, process data, analyze data and generate reports for different levels of
management in an organization. They take data as input and provide reports, graphs and images as output.
They are the recent generation of information systems. The more advanced and latest information systems
are business intelligence systems. MIS are to be planned, designed, and implemented in an organization.
The IT department plays a major role in implementing MIS in an organization.
1. Discuss the ways in which IT could be exploited.
(Hints: Regular Post-implementation reviews-Restrict project requests-Focus on speed)
2. What benefits do management information systems offer an organization?
(Hints: Provides useful information-Aids efficient decision-making-Aids data collection, data
analysis, etc.)
Source: Ross, J. and Beath, C. (2013), “Exploiting IT for Strategic Benefit”
Topic Course
Unit-22: Management Information Systems;
Section-22.6: Management Information Systems;
91
The ICFAI Group
ICFAI was established in
1984 as a not-for-profit ICFAI practices the value of academic integrity at all
society with the broad levels.
objective of empowering
The ICFAI Group's culture of teaching and learning
citizens through world class
supports and fosters intellectual and personality
quality education. Since its
development among its graduating students. They carry
establishment, ICFAI Group
an attitude of ownership of their work. ICFAI Group strives
has made a significant mark
to make the students - DOERS. ICFAI Group system,
in the Indian educational
strongly believes in developing an 'entrepreneurial
field with a pan Indian
network and presence.
Subsequently, there was a
big leap when ICFAI Group
started its chain of business
schools (IBS) across India in
1995 to offer management
program. Since its
inception, IBS has been
consistently ranked among
the top ranked B-Schools of
India providing excellent
academic delivery and
infrastructure to its students
and transforming them into
leaders for the future.
ICFAI Group has 3 Strategic
Institutional Units, the ICFAI
Universities, the ICFAI
Business Schools and the Flexible Learning Programs
(Distance Mode). In all the programs offered across these
units, the emphasis is on adherence to academic rigor mindset' among its
and differentiated curriculum that bridges the industry graduating students.
–academia gap.
The alumni of ICFAI
Flexible and tech enabled learning also plays an Group are working in
important role in ICFAI's teaching methodology. The renowned companies
delivery takes place with the use of hi-tech learning world-wide. Collectively,
management system at campus programs and content ICFAI Group alumni
delivery for distance learning through online medium. contribute significantly to
the growth story of India.
Awards won by ICFAI Group

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AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS

Participants in flexible learning programs have limitations on the nature of the

 Adults learn differently from B. School or college going

students who spend long hours at campus.

 Helps stay motivated and connected.

 Easier to move ahead in the learning process.

Spending more time is your choice.

© The ICFAI Foundation for Higher Education (IFHE), Hyderabad,

Ref. No. POM-PN-IFHE – 042015

The PEP Notes may be used for Assessment.

Block I: Introduction to Management

Block II: Planning

Block III: Organizing

Block IV: Staffing

33. Team Building as an Organizational Development Process 58

Block VI: Controlling

Block I: Introduction to Management

2. Management Functions Require Different Skill set in Managers

3. Engaging Middle-Level Managers

4. Management Skills for Effective Indian Managers

5. Operational Excellence Model as Management Approach

6. Charles Dupin‘s Work: An Origin to Social Sciences

7. The Human Factor in Classical Approach of Scientific Management

8. Are there any deviations in Maslow‘s hierarchy of needs in Current Days?

9. Quantitative Approaches in Operations Management

10. Applications of Systems Theory as Modern Approaches to Management

11. Social Responsibility of Corporates

12. Different Perspectives on Corporate Social Responsibility

13. Social Stakeholders as Drivers of Long Term Business Value

14. Quality of Work Life as a Measure of Social Responsiveness

15. Personal and Organizational Factors impacting Managerial Ethics

1. The Role of Management in Manufacturing Industry

Return on Capital Employed (ROCE)

2. Management Functions Require Different Skill set in Managers

3. Engaging Middle-Level Managers

4. Management Skills for Effective Indian Managers

analyze the situation.

5. Operational Excellence Model as Management Approach

“Excellence is an art won by training and habituation. ……………..We are what

What is Operational Excellence Management System?

6. Charles Dupin’s Work: An Origin to Social Sciences

7. The Human Factor in Classical Approach of Scientific Management

 Naming the worker as Schmidt after worker selection process.

 Evaluation of individual worker efficiency as part of performance measurement

 Studied characteristics that lead to optimized performance

executive position as determination, grit, bulldog endurance, and tenacity are.

8. Are there any Deviations in Maslow’s Hierarchy of needs in Current Days?

9. Quantitative Approaches in Operations Management

10. Applications of Systems Theory Integral to Modern Approaches to Management

 Organizations: Systems theory is widely applicable to organizations. An organizational system has

the processes such as:

11 Social Responsibility of Corporates

Company Social value Business value

Social responsibility of organizational management includes employment generation, improving life

12. Different Perspectives on Corporate Social Responsibility

13. Social Stakeholders as Drivers of Long Term Business Value

 Organizations require Environmental, Social and Governmental (ESG) performance in order to

 The objective of business is to create shareholder value and be socially responsible.

efficient resource management, to community through investments in community, and to

consumer boycott and impact supply-chain network.

14. Quality of Work Life as a Measure of Social Responsiveness

 greater engagement in their jobs;

 The demographics of the workforce—percentage, women, of