Saturday, 9 July 2011

Leadership and Organisational Management


• An organisation is an institution consisting of two or more people, having a structure and an accepted process for fulfilling functions that will enable the achievement of its goals
• An organisation is the planned coordination of the activities of a number of people for the achievement of some common explicitly purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility

Components of Organisation
• Mission and Objectives
• Input
• Process
• Output
• Outcome
• Feedback
• Boundary/Environment

1. Mission
• The purpose or reason for the organisation’s existence
• It tells what the company is providing to society
• To improve the quality of home life by designing, building, marketing, and servicing the best appliances in the world
• We shall build good ships here –at a profit if we can – at a loss if we must –but always good ships

2. Objectives
• End results of planned activity
• They state what to be accomplished by when and should be quantified if possible
• To achieve 10% annual growth in earnings per share
• To achieve 20-25% return on equity
• To achieve 27% return on capital employed

3. Process
• The inputs of the organisationtransformed to obtain the desired output
• Includes functions of planning, organising, communicating, interacting, working, etc. which combine to form organisational strategies

4. Output
• Goods and services produced by transforming the inputs in order to meet the objectives of the organisation

5. Outcome
• The impact that the output has in fulfilling the objectives of the organisation

6. Feedback
• The organisation has to obtain feedback to determine how its strategies have fared in achieving its objectives and goals for purpose of remedial or corrective actions, if  necessary

7. Boundary
• Each organisationhas a boundary which differentiates it from others and determines the internal and external environments

8. Environment
• The external environment is anything outside the boundary of the organisation–technology, political, social, demography or the economy-all of which influence the performance of the organisation
• The success of organisationis also influenced by its ability to manage the internal environment which reflects the organisational culture

Characteristics of Organisational Effectiveness - Goal Achievem’t
• Clearly defined goals
• Increase in output
• Higher productivity
• Better quality of product and service

Satisfying the Customers
• Good corporate image
• Proven quality of output
• Reduced complaints

Organisational Performance

• Effectiveness
• Efficiency
• Quality
• Productivity
• Profitability/ROI
• Quality of Work Life
• Adaptability/Work culture

1. Effectiveness
• Attainment of organisational objectives (meeting of expected standards)

2. Efficiency
• Doing the job on time and correctly in relation to goals and objectives
• Efficient utilisation of resources for the job
• Return from investment of time, energy and resources

3. Quality
• Conformance to standards
• Output fit for use
• Meeting customer’s requirement

4. Productivity
• Relationship of output to input

5. Quality of Work Life
•Creating a positive culture; responsiveness to worker’s need, effective communication

6. Adaptability
• Ability to ensure viability in a changing environment through innovativeness/ creativity/ managing change/ maintaining its competitive edge

7. Work Culture
• Values held by members of the organisationeg. –creativity and innovation, customer is the boss, employee focus, teamwork, nothing but the best in work performances


• The behavior of an individual when he is directing the activities of a group toward a shared goal
• Interpersonal influence, exercised in a situation, and directed, through the communication process, toward the attainment of a specified goal or goals
• The initiation and maintenance of structure in expectation and interaction
• The process of influencing the activities of an organized group toward goal achievement
• Is a process of giving purpose (meaningful direction) to collective effort, and causing willing effort to be expanded to achieve purpose
• Key to implementation of any change programme. Effective leadership and top management commitment and support critical for quality impr’t

• Proactive –Ability to anticipate change
• Resourceful –Making change happen
• Interpersonally Skillful –Know most powerful resource is human resource
• Mentally Positive – Outperform others because continue to keep spirit up
• Expertise Driven –Subscribe to the concept of team building

21st Century Organization- Structure
• Non bureaucratic, with fewer rules and employees
• Limited to fewer levels
• Organized with the expectation that management will lead, lower-level employees will manage
• Characterized by policies and procedures that produce the minimal internal interdependence needed to serve customers

• Depend on many performance information systems, providing data on customer’s especially
• Distribute performance data widely
• Offer management training and support systems to many people

• Externally oriented
• Empowering
• Quick to make decisions
• Open and candid
• More risk tolerant

Role of a Leader
• Leading by example
• Setting clear goals
• Communicating down the line
• Delegating/Being fair and consistent
• Recognisingindividual contribution
• Strengthening team work
• Acting decisively under pressure

Leadership Styles
– Authoritative (Exploitative) –sets goals, tells what is expected/Not too keen to listen
– Authoritative(Benevolent) –Being firm, but does care for staff’s views
– Democratic(Consultative) –Listens to staff before making decision/acting
– Democratic(Participative) –Takes active part in discussing problems and finding solutions

- DO
• Cultivate a high standard of personal ethics
• Have high working energy level always
• Have work priorities/have courage
• Be hardworking, committed and dedicated
• Be creative/be goal oriented/help others
• Always maintain enthusiasm in your work
• Be level headed, always keeping your cool

• Attempt to make use of the wrong person for the task/insult people when they don’t
do well
• Abandon your “work ship” in crisis
• Critisehonest efforts that failed
• Question others’ loyalty
• Threaten people with loss of job
•Play one person against the other
•Have favorites in the team
•Steal someone’s credit
•Shirk responsibility0

• Set objectives/Identify priorities
• Develop strategies/Forecast
• Budget/Schedule
• Program
• Set policies
• Set procedures

• Organization structure
• Job (Position descriptions)
• Position qualifications
• Salary structure and sales

• Select people
• Induct people
• Train people
• Develop people

• Communicate
• Co-ordinate
• Delegate
• Motivate
• Reward
• Enforce discipline

• Set up feedback system
• Set up realistic performance standard
• Measure performance
• Evaluate performance
• Rectify poor performance


• The effective and efficient utilisationof human resources to meet organisational objectives
• Involves all those activities necessary to ensure acquisition and maintenance of a productive work force in line with the organisational objectives
• Not only focuses on HR needs and costs but also on the long term issues of organisational continuity and productivity

•To have an adequate number of competent employees with needed skills, abilities, know how and experience to further organizational goals

• Organisational Management
• Leadership and Strategic Management
• Human Resource Planning
• Recruitment, Selection and Placement
• Human Resource Development
• Corporate Culture and Organization Devt
• Career Planning and Development

• Performance Appraisal
• Motivation
• Counseling
• Negotiation
• Effective Communication
• Compensation and Benefits
• Safety & Health/Employee & Labor Relations
• Human Resource Research

Personnel Management vs Human Resource Management
 • Deals with micro issues/macro issues
 • Compartmentalized/Global
 • Ad hoc & short term/Planned & long term
 • Reactive/Proactive
 • Looks at people’s needs from employees’ point of view/organization’s point of view
 • Department seen as not important/important

 • Reports through another line manager/directly to CEO
 • Has no role in decision making/has role in decision making process
 • Maintains status quo/Agent of change
 • Not aware of culture/Facilitator of positive organizational culture

Roles of Human Resource Manager
 • Planner –staffing matters
 • Facilitator –training and development
 • Coordinator –occupational safety & health
 • Auditor –performance and compensation
 • Mediator –employee & industrial relations

 • Behaviours that are necessary to achieve a desired outcome
 • Behaviour, skills, knowledge, understanding and personal qualities for competent work performance
 • Ability to perform activities within an occupation or function and to maintain the standards expected

Underlying Characteristics

   • Motives – things a person consistently thinks about or wants that cause action
   • Traits – Physical characteristics and consistent responses to situations of information
   • Self-Concept –A person’s attitudes, values, or self-image
   • Knowledge – Information a person has in specific content areas
   • Skill – Ability to perform a certain physical or mental task

Core Competencies
  • Accountable/ Customer Focus
  • Discipline/ Integrity
  • Loyalty/ Social
  • Sensitivity/ Tolerance
  • Transparency

Core Managerial Competencies
  • Communication/ Teamwork/ Motivation
  • Drive and Resilience/ Creativity/ Leadership
  • Implementation/ Decision Making/ Technical
  • Strategic Orientation
  • Commercial Awareness
  • Organizational know how/ Broad Scanning
  • Information Seeking/ Relationship Building and Networking/ Negotiation/ Deal Making, Emotional Stability/ Cultural Sensitivity

Professional Competencies
  •  Group and Interpersonal Effectiveness – conceptual thinking, decision making, influence, leadership, change management, problem solving, strategic planning
  • Leadership Effectiveness – coaching, diversity management, facilitation, negotiation, teamwork
  • Personal Effectiveness – achievement orientation, adaptation, analytical thinking, ownership, resilience, self management, technology capability, oral and written communication

Functional Competencies
 • Job related knowledge and skills associated with an individual’s capability to complete his/her tasks and work


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