( De) Centralization of Authority

( De) Centalization of Authority

1. Centralizaiton of authority

The discipline of Management is incomplete without discussing the concept of ' Authority' its centralization and decentralization.

Power in the hands of the few people is centralization.  Power in the hands of the hands of many is DE- Centralizaton. Power is the central issue here. How the power is distributed matters most for the outcomes by its use. 

Centralization or Decentralization - Which concept is GOOD for higher performance ? 

There are no clear answers available to this question.

It might  be true that centralisattion may produce better results. At the same time,  Decentralization may lead to lower results.

Does the higher / lower organizational  performance matter for what need to be preferred DCZN  / CZN  ?

Centralization or Decentralization - which one is GOOD for ?  

Each of the ways of dealing given authority has its implications for the people and also organisational prerformance... .  

Centralisation lead to:

• Isolation of many people  who are powerless and possibility of misuse of power by few are powerful.
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• Isolation of powerlessness leads to lower involvement of people. Less power given to the people lesser their involvement.. higher the power ..higher the involvement..
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• It is possible that Centralization  leads to misuse of POWER by FEW powerful  over many others who are not powerful.....
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The TWO concepts - Centralisation and   DeCentralizaton - through open many  a  challenges. Especially these concepts have great relevance for the people who enjoy  so much of POWER as part of their positions and roles in any society / organisations.

• Such people   must personally experience both the states -  Centralised and   DeCentralized situations for themselves. 
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• Such people  must practice  -  How to use given  power in  i.e., Centralised and   DeCentralized contexts. They should become experts in using the power for themselves in both the given ways without any liking and favour and prejudice.
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• Such people should not develop any  particular taste for  CZN / DCZN  ( either this way or that way ) .  They need to be value neutral with regard to CZN / DCZN.. 
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• The central issue related to this concept is  - People like you  must become experts  in using  the power ( either way ) leading to results ..  

2. DCZN of power leads to .....Empowerment concept ..

Concept of Decentralization  leads to one more concept called  EMPOWERMENT. Decentralizaiton with out any doubt favours  distribution of authority / power among many and all.  but the issue is ' Power given to the people need to be used by them ... Unless otherwise, decentralizaion makes no sense. 

Empowerment has the following componenets: 

YOu need to note that..

Power receved  does not automatically make those  people who receive the power  use it  effectively. Making the people  who receive the  power  is important NEED.

Effective power use means:

• Peoople who gain power need to develop positive orientation  for power itself
• Understand the power of its use and misuse.
• make people proficient / expert  to use the power and produce results without negative impact 
• Empowerment of people is real need in any society.. Especially in underdeveloped economies where there is unequal distribution of powr it is much more important. 
• Especially those people who gain power for fist time ( ! ) and who are not accustomed to  using the power badly need to be  empowered. 

A person first time becoming an  MLA  / Sarpanch needs empowerment training. Same is the case with first time managers or and first time village sarpanchs.

3. There are TWO other related concepts which M K Gandhi wrote much . They are: 

Centralization of Production

Centralization of Consumption

Both the concepts given above again  lead to CENTRALIZATION  of POWER in any given society. It seems these two concepts are not VALUE NEUTRAL but have clear NEGATIVE  implications for any given society. Clearly, these two ways of dealing lead to monopolies, enmeshing undue  wealth by few people, higher costs of production and wealth mal-distribution, contribution to environmental pollution, imbalanced access for the things.  

Further, Centralization of production also leads to centralization of consumption. Powerful people  need to take extra care so as to avoid any  pitfalls related to the above  two concepts . 

In contrast, decentralization of production and decentralized consumption - both the concepts  has their  DIVINE implications for the society without any doubts. 

Org Structures Diamond molecular structure model

Org. Structures - Diamond - Molecular Structures








Orgn has adopted Diamond - Modelled Tetra hydron molecular structure.  The Organogram is similar to Diamond molecular structure given above.

Arrive at how many employees will be covered in the organisaion?

Discuss organisational related concepts with this example..

Video collection of Films for POm subject for various sesisons

Video collections

See NITIE local videos too..

http://www.youtube.com/user/nitieprasad1/videos

Decision Making - Operation Blue Star..

http://www.youtube.com/watch?v=-5HTW6u9U5E

Great source of various videos 

http://www.imds.iu.edu/imds/W200bb.shtml

YOU TUBE - The essential skills series .. has good presentations on various management skills ..

See the sample..
http://www.youtube.com/watch?v=6SVUo2dGcUk


Example is.. Organisaiotns 

http://www.imds.iu.edu/silverlight/IU/EE4KSBplayer1.php?account=ksbindy&file=W200/6_2.wmv&width=512&height=384

Yale University

http://www.youtube.com/ucberkeley

Teamwork video - Medical team working

Medical team working - A Video from PULSE .. Asia net program.. 

http://www.youtube.com/watch?v=4JSylcbDOL4&feature=relmfu

CONCEPTS: Division of Labor

Division of Labour ( DOL )  / Division of Work ( DOW ) 
 

What is DOL ? How the concept  needs to be understood ?

Dvision of labour is  NOT dividing the work among the workers.. NO. Not at all.. Most of the students write this answers in their answer sheets. Work distribution is not Division..!

Division of Labour may be appropriately / in other name is  called Division of WORK. I believe that this uis the best NAME to call rather than DOL..


What is DOL / DOW..?

It is a processs of dividing, dividing and dividing ...  continously the work . In this process work turns in to smaller and smaller  components.. This process takes the given sequence of forms....

Work  -  Jobs - Activities - Tasks - Elements..

Dividing and dividing .. is the fundamental process of modern management. Organizations achieve Efficiency and Effectivenss thruogh this process.. this is called .. modern manageemnt technique.

Some questions ..

1. Why to divide..the work ? Canot  the work done without dividing? .. Why it should be divided further and further.. so that work becomes elements.. ? There is reason for this.. Think of it..

2. DOL X Craftsmanship

Opposite of DOL is Craftsmanship.. It  is the process of carrying out given  work without dividing. This process is exactly opposite of DOL/ DOW. Here work is not divided.

Examples are millions... Road side shoe maker / bread maker / tailor  etc. These people never divide the work..

3. What are the dis advantages of Craftsmanship ?

Happiness ! 

Swaraj !

3.1 Work becomes Secret:. No ones else except the WORKER / CRAFTSMAN Knows.......

 - What is there in the work . S / he alone knows it.. 
- How much time  takes to do the work?
- How to do the work ? 

Out of craftsmanship -  craftsman ( worker ) left with the possibility ( ! )  to do some manipulation with others .. especially organisaitons.. 

3.2 Strong Skills are needed to do the work.. Why this is .. think of it..

3.3  The process is IDIOSYNCRATIC + UNSCIENTIFIC + UNSYSTEMATIC.. etc.

4. Divison of L A B O U R E R S

Division of LABORERS  is NOT the same as Division of Labor . Important to NOTE this.. 

More on this concept is there in other blog.. titled.. Division of Laborers.. Read it... there..

 

All the Best..

 

Performance Excellence and S M A R T Goals

S M A R T  GOALS  &  EXCELLENCE 

NOTE: Try to see this You tube video to get confused about the concept of  REALISTIC GOALS.

 http://www.youtube.com/watch?v=w6dpTcCCVYQ

I believe that there is no great clarity for many people ( espcially MBAs) realistic understanding of REALISTIC GOALS . This is effecting their Goal setting and finally  Performance. 

Let me make an attempt in this blog  to clarify..  why, what  and how  of SMART goals 
 
Purpose of this  blog  is not to push or suggest any body to SET DIFFICULT goals and make their lives miserable if they feel so . It is their choice to make themselves so. And I take NO responsibility for this misfortune.  But purpose here for me  is to  make clear what is the meaning by S M A R T  Goals and how to set them RIGHT ,,,, and  how they affect the performance.

Objective of this blog  is.. 


What is meant by Goal setting  ?
How many types of  goals of are there ?
What are the misunderstandings related to Goal setting ( GS)  ?

How  TWO process ( 1) Goal setting is different from  ( 2) Goal achievement.(GA) .

What is the relationship if at all between these two concepts.. ?

In my view....... POINT - 1: 

There are NO ' Realistic ' or 'Unrealistic ' goals.( What I feel is  the word   R E A L is UN REAL. TRUTH is ABSOLUTE.. not R EAL word..  )

Further, there are NO ' Difficult ' or 'Easy ' goals.

Further, There are NO ' Achievable  ' or 'UN achievable ' goals. This categorization of goals is W R O N G... It is only misunderstanding to say so... My advice is try to AVOID using these concepts when you talk about SMART goals.. OK..

BUT..  POINT - 2:

There are ' High ' ( Example.... getting 99 out of 100 marks - market leader  ) ,  ' Average '  ( getting 60 out of 100 marks  - Market follower ), Low' ( 30 out of 100 Marks )  goals. The concept of Low / Medium / Average is more clearer  concept than realistic / difficult / achievable concept of goals . OK.

There is no / cannot / little  confusion about the  concept of  Low - Average - High goals. Because these are fact  based concepts ( marks are numbers ) . No body can dispute what is High / Medium / Low goals.

There is clear definition for High / Medium / Low goals. Even small child and a worker can tell which is high / medium/low goal..OK..

At the same time, REALISTIC / EASY / ACHIEVABLE  GOALS ARE   CONFUSING, DO NOT MEAN the same TO EVERY BODY.. THEY ARE DIFFERENT to DIFFERENT PEOPLE. They speak   DIFFIDENCE of and lack of confidence of individuals. 

What is realistic to  somebody  turns out to be unrealistic, difficult, and non achievable for somebody else . It is NOT fact.. but it is a FEELING ..

Caution: Dont use the concepts / Jargaon .. Realistic /  Difficult goals while you talk to others. Always avoid to use them.. OK.

Caution: Always use the terms - High, Average,  and Low goals

Two things ONE must keep in mind while .. Setting Goals ! !

Point  1    

First and foremost principle:  Set High Goals../ Dont set low and average goals.. 

This is the wisdom one need to imbibe. Goals that are set  should never be LOW. How high the goals one set  is left to oneself..But they must be high and high only . 

Principle - TWO :  Aftter setting  HIGH goals.... Then one should start thinking on how to make those  goals ACHIEVABLE   - What is needed to make such high goals REALISTIC,  What else needed to be done so make them to achieve EASY,  and POSSIBLE.

Please note that these two process ( GS and GA) are in a particular sequence.. First comes Goal Setting and then followed by Goal realisation. These processes should not be REVERSED...

Try to avoid to start thinking of - whether the  goals that are going to be set are realistic or not .. This spoil and ruin the Goal Setting process..

Invariably set the goals first.. and then ( later on.. due course )  start thinking of how to achieve such and such goals that are set..  . . 

• These  TWO things are TWO separate things ( 1)  Setting goals and ( 2) Making them realistic..

• Both are intensely related. but their relationship is sequential..

Read this statement -  Set ' Realistic Goals';  Set Achievable goals

Note that these  statements are  100 % WRONG...  Shun these  statements. Dont use this concepts for your good..  It is because there are NO Realistic Goals for some body to set..There are only  Low - Average - High goals..

Always  Say .......

SET   High / Difficult Goals.. and Start making such goals Achievable and Realistic.. OK.

POINT - 2: 

Ones  goal setting is over..... then it start thinking of how to make the goals that are set achievable , and realistic 

Here the Indian Innovation concept  i.e., J U G A D  effect comes in ... 

J U G A D : Indians way of Innovation D E F Y I N G   so called  R E S O U R C E S..!
 
POINT - 3:  

Performance Excellence  =  

Setting HIGH goals  x Working towards making the HIGH Goals achievable.

Performance is product of these TWO things.. if any one element  goes wrong....,  total performance also goes wrong. Excellence is where both the terms in the above equation are highest.

JUDGING  SMART GOALS ?    C R I T E R I A

• SMART Goals must  INSPIRE
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• SMART Goal achievement must  lead to  MATERIAL BENEFIT.. Goal achievement is ... Not Value Erosion but  Net Economic Value Creation ..
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• SMART Goals are there to  realize and enhance the P O T E N T I A L... 
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• SMART Goals MUST   NOT CONTRADICT each other themselves. 

Relationship of certain  concepts related to Goal Setting and Achievement

A. Historical Performance
B. Goal Set
C.Goal  Achieved ( Performance )
D. Potential
E. Realistic Goal Setting
F. Realistic Goal achievement 

Appropriate Relationships of the above components is : 

E Realistic Goal  Setting ( B > A >  C  )

F. Realistic  Goal  Achievement  ( C < B >  A )

G. Excellent in Management is  .. E and F......both the conditions are V A L I D..

* Purpose of Goal setting and Goal realization process is

Just NOT the ACHIEVEMENT OF CERTAIN PERFORMANCE..

but ...

.......REALIZING 

the  U L T  I M A T E     H U M A N     P O T E N T I A L 
and reaching to  E X C E L L E N C E  ! 

E and F both together will lead to realizing the potential (D) ..

Sample answers for the POM Final Test

Sample  POM Question Paper 

Dear Management Trainees ! !

It is my belief that examinations can be made interesting to the learners.

It is also possible to create loads of information through routine media of examinations. Every time hundreads of studens are writting examnations. Why not use the same media to crate loads and loads of informaiton pertaining to a subject / course ? It is quite possible.

In reality, the system of examinations CAN not only test the learning of the students but it can  create wealth of information  which can be useful to many successive students. Information thus created out of examinations  can be boon for  all those unfortunate majority of people who could not afford education and could not join the academic system.

In pursuit of this, I made a policy for my self, where  PREVIOUS year exam papers that are used will be shared and published as blogs. This is done so as to make the students to develop an idea  on how to PREPARE  for the final examinations.

In this blog post, I have published THREE previous question papers. As a sample, answers to one / two questions are given to the readers. The idea is to inform the student on  how to right answers; and how to write them.. 

Q. No. 1: 

a)      Discuss the  differences  if any in the contributions made by  the management thinkers viz., F W Taylor, Max Weber, and Henry Fayol  to the discipline of  Management. 

The three management thinkers viz., Taylor, Weber, Fayol have contributed THREE different aspects related to the discipline of MANAGEMENT.  It is surprising that although three different thinkers have contributed different aspects, and all the three aspects are related and together becomes whole  for achieving managerial excellence in organizations.  These three aspects do not CONFLICT each other rather COMPLEMENT each other in managing organizations. 

Taylor contribution was focused on  assembly line / Shop floor. His focus was - the work, worker, tools for working, methods of work, work performance, comfort in working, methods of  payment of wages etc. 

Fayol focused on creating right kind of organization. Focus here is management and managers. 14 principles of Fayol lead to emergence to build modern organizations. Organizations became reality  when 14 principles are put to action. 

Weber again focused on management of organizations. Here the focus was on Bureaucracy - Rules and Rules  for better management of organizations.Rules pervade whole of organizations.

 b) Discuss  the application of the theories proposed by these management thinkers in   managing ‘ Valley Crossing’ exercise you have participated  in POM Class .

Taylor:

Training of the members for the task roles 
Developing role description for each of the members

Method study and written procedure for valley crossing  

Weber

Norms of behaviour among the members 

Fayol 

Valley crossing involves only three members. and there is no place for mangers . Hence much of management is taken care of the members only. Fayol ideas of management comes into effect when  organizations grow and they become larger and larger.

 

Q. No. 2 :  

a)      What is Theory X and Theory  Y Management?  

 Theory X and Theory Y is ..

b) Explain   how  you to make use of the knowledge the Theory X  and Theory Y in managing the Valley Crossing exercise ? 

 Theory X and Y comes in to play on account of the assumptions the members hold for their colleagues. Team members may assume that other members are  regressive, work inhibiting, un trust worthy, less competent,  and demotivating ones.  Here, Theory X management comes into play.

 On the other hand, when valley crossing team members assume that their colleagues are progressive, proactive, work promoting and trust worthy  then Theory Y Management comes into play.

The way the members will work together will vary depending upon their assumptions. if they hold Theory X assumptions .. the working style will be - 



On the other hand, they hold Theory Y assumptions the working methods will be -