Thursday, February 19, 2015

Leadership Theory - Contribution of Howard Gardner

Did a google search on transactions between leaders and followers

Leading Minds: An Anatomy of Leadership (Google eBook)
Howard Gardner
Basic Books, 2011 - Business & Economics - 415 pages

Leader and followers, together, have embarked on a journey in pursuit of certain goals, and along the way into the future, they can expect to face some obstacles or resistances that must be overcome. The leader has to understand his followers: where they have been and where they would like to go. He needs to tell a story of a vision which appeals to them in their context.   But there are already stories in the air. The story that the leader is going to tell must be superior to the existing stories to have an impact.

Cognitive psychologists examine how ideas develop and how they are stored etc.

Leadership is  always a transaction between the leader, his or her followers, and the goal or dream. A resonance exists between leaders and followers that makes them allies in support of a common cause. My studies show, for instance, that leaders are highly focused, that they are able to inspire trust, and that they are purveyors of hope.

Leaders are capable of deep listening: Gandhi demonstrated that when he traveled throughout India learning the heart of his people. But what distinguishes leaders from, say, psychotherapists or counselors is that they find a voice that allows them to articulate the common dream.

Effective leaders put words to the formless longings and deeply felt needs of others. They create communities out of words.

Review of Gardner Book (1995 edition) by Warren Bennis contain the above lines.

Principles of Management - Koontz and O'Donnell - Propositions - 4th Edition

Staffing Principles

Principles Related to the Purpose of Staffing

1. Principle of staffing objectives

The objective of managerial staffing is to assure that organization roles are filled by personnel able and willing to occupy them.

2. Principle of staffing

The better the clear definition of an organizational role and its translation into human requirements and the better candidates and incumbents are evaluated and trained, the more the quality of personnel can be assured.

Principles related to the Process of staffing
3. Principle of job definition

Specification for the job rest on the need for results from plans, the requirement of a clear structure of roles, and the provision for incentives to induce efficient and effective performance.

4. Principle of managerial appraisal

Complete appraisal of managers requires appraisal of performance in terms of verifiable objectives and in terms of the quality of managing.

5. Principle of open competition in promotion

If an enterprise is to assure maintenance to the best quality of management, it is necessary to open selection of candidates for promotion to those available both inside and outside the enterprise.

6. Principle of management development

The more programs of management development aim at improving the abilities of existing managers in their present position, as well as making it possible for them to be promotable, and the more top managers give example and encouragement through participating actively in the leadership and operation of such programs, the more effective such programs will be.

7. Principle of universal development

Since management techniques and knowledge and the total environment of managing change constantly, the enterprise that would assure its managerial competence cannot tolerate mangers who are not interested in their continuous development.

A comparison of Major Control Principles (Book by Harold Koontz and Cyril o’Donnel – page 731-736)  and A Preliminary Statement of Principles of Planning and Control (Paper by Harold Koontz in 1958 – page 57 - 60 )

The basic principles of control can be grouped into three categories, reflecting their purpose and nature, structure, and process.

1. Purpose and nature of control includes (book)
1) Principle of assurance of objective
2) Principle of efficiency of control
3) Principle of control responsibility
4) Principle of direct control

Principle of assurance of objective:

The statement of principle is in preposition form as,
“The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective correction action.” (book)
The purpose of control is attainment of objectives. This it can be achieved by detection of failures in plans that are designed to attain objectives. (paper)

Principle of efficiency of control:
The statement of principle is in preposition form as,
“The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with minimum of costs or other unsought consequences, the more efficient these control are.”  (book)
Principle of control responsibility:
The statement of principle is in preposition form as,
“The primary responsibility for the exercise of control rests in manager charged with the execution of plan”. (book)
This principle clarifies the often misinterpreted role of controllers and control units. The control units may act in staff or service capacity to furnish control information to managers, but they cannot exercise control without assuming the managerial responsibility and managerial authority for the things controlled.

Principle of direct control:
The statement of principle is in preposition form as,
“The higher the quality of managers and their subordinates, the less will be the need for indirect controls”. (book)
While the statement of principle in paper is as follows,
“The most effective technique of control in an enterprise is to assure the quality of subordinates, particularly managers.” (paper)
From book the assumptions of principles of direct control are different than as mentioned in paper except 1) manager makes a minimum error / fewer mistakes.
Other assumptions of principles of direct control mentioned in the book are managerial performance can be measured, management principle are useful diagnostic tools in measuring management performance, application of management principle can be evaluated.

While paper mention best managers plan better and more thoroughly, establish a clear and coordinated organization, do best job of selecting and training subordinates and most effectively direct the activities of subordinate.

2. The structure of control (book)
1. Principle of reflection of plans
2. Principle of Organisational suitability
3. Principle of individuality of controls

Principle of reflection of plans
The statement of principle is in preposition form as,
“The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effectively they will serve the interests of the enterprise and its managers.”

Principle of Organisational suitability
The statement of principle is in preposition form as,
“The more controls are designed to reflect the place in the organisation structure where responsibility for action lies, the more they will facilitate correction of deviation of events for plans.”. Controls must fit a manger’s authority area and therefore be designed to reflect organization structure.(book)
Controls must be designed to reflect organization structure. Effective controls must be applicable to a manager’s authority area and therefore must reflect organization structure. All figures and reports used for the purpose of control should be in terms of the organization structure. (paper)

Principle of individuality of controls
The statement of principle is in preposition form as,
“Since it is the task of controls to inform people who are expected to act to avoid or correct deviation from plans, effective controls require that they be consistent with the position , operational responsibility ,competence, and needs of the individual concerned.” (book)

3. The Process of control
1. Principle of standards
2. Principle of critical point control
3. The exception principle
4. Principle of flexibility of controls
5. Principle of action

Principle of standards
The statement of principle is in preposition form as,
“Effective control requires objective, accurate , and suitable standards”. (book)
There should be simple, specific , and verifiable way to measure whether a planning program is being accomplished. Control is accomplished through people. Good standards of performance objectively applied , will more likely to be accepted by a subordinate as fair and reasonable. (book)

Under the Principle of Strategic point control , it is mentioned that “Although total plans furnish the most complete and accurate standards against which to measure performance, it would ordinarily be wasteful for the manager to follow every detail of planning execution and often unnecessary and inefficient for him to watch even every fairly important phase of performance. What he must know is that plans are executed in such a manner that they can be accomplished. He must therefore concentrate his attention on such factors of performance as will indicate whether significant deviations are occurring or will occur”. The author says that he doesn’t know any guideline which might be applied by a practicing manager to determine what standards he should have, since selection of standards seems predominantly a matter of the managerial art.(paper)

Principle of critical point control
The statement of principle is in preposition form as,
“Effective control requires attention to those factors critical to appraising performance against an individual plan.” (book)
The Principle of Strategic point control states that the most effective control occurs when primary attention is given to such factors as are strategic to the appraisal of performance. (paper)
The exception principle
The statement of principle is in preposition form as,
“The more a manager concentrates his control efforts on exceptions , the more efficient will be the results of this control.” (book)
The Principle of Strategic point control says that manager can reach his own solution to his problem by asking himself what things in his operations will show him best whether plans for which he is responsible are being accomplished. This Koontz says is akin to Taylor’s exception principle. It was Taylor’s wise contention that manager should only concern himself with the especially good and especially bad situations. In a very real sense , the principle of strategic point control is a refinement and extension of the exception principle. (paper)

 Principle of flexibility of controls
The statement of principle is in preposition form as,
“If controls are to remain effective despite failure or unforseen changes of plans, flexibility is required in the design of controls.”(book)

Principle of action
The statement of principle is in preposition form as,
“Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organising, staffing, and directing.”

The Principles of Control
1. The principle of strategic point control:
The principle states that the most effective control occurs when primary attention is given to such factors as are strategic to the appraisal of the performance.
Manager must concentrate on factors of the performance as well as will give an indication whether significant deviations are occurring or will occur.
Refinement of Taylor’s Execution principle:
Taylor’s Execution principle: Manager should concern himself with especially good or especially bad situations.
But the extension is given as the emphasis on strategic point of control by Koontz in the principle of strategic point control.
2. The principle of organizational suitability:
In accordance with this principle, control must be designed to reflect organizational structure.
Managers and their subordinates are the means through which planning events must be accomplished and control exerted, it follows that if effective controls mist be applicable to manager’s authority area and therefore must reflect in organizational structure.

Refinement of Urwick’s principle of Uniformity: All the figures and reports used for purpose of control must be in terms of the organizational structure. (L. Urwick The elements of Administration, Harper and Bros. New York 1943)
3. The Principle of Future control
Past can’t be changed; effective control should be aimed at preventing present and future deviations from plans.
Just as planning, control should also be forward looking; Koontz claims this as simple principle as ‘often disregarded in management practice.’
4. The principle of Direct Control
“The most effective technique of control in an enterprise is to assure the quality of subordinates, particularly managers.”

Tuesday, February 10, 2015

The Social Construction of Management - Nancy Harding - Book Information

The Social Construction of Management

Nancy Harding
Routledge, Jun 1, 2004 - 240 pages

What is management and how do the people who become managers take on a managerial identity?

How does text inform the manager's identity?

It analyses management textbooks published since the 1950s and shows they construct a world in which chaos is kept at bay only by strong management, and in which strong management is based upon the rationality of modernity. This book exposes and analyses such claims-to-truths, and theorizes their arguments using the work of Butler and Foucault, the sociology of scientific knowledge, critical legal studies, art history and queer theory.

By revealing a postmodern turn in management textbooks, The Social Construction of Management is both a critical and empirical study that explores the constitution of managerial identities in the age of mass education in management. An exciting contribution to the growing body of knowledge within critical management studies, this book challenges the way we think about organizations and their management, and about management education as a whole. This is thought provoking reading for anyone studying management, or working in the managerial organization.

Saturday, February 7, 2015

Joseph Schumpeter - Biography and Contribution

Joseph Schumpeter - Biography

Joseph Alois Schumpeter (8 February 1883 – 8 January 1950) was an Austrian-American economist and political scientist. He briefly served as Finance Minister of Austria in 1919. In 1932 he became a professor at Harvard University where he remained until the end of his career.

Schumpeter was born in Třešť, Habsburg Moravia (now Czech Republic, then part of Austria-Hungary) in 1883 to Catholic German-speaking parents. When Joseph was only four years old, Joseph and his mother moved to Vienna.

Schumpeter studied under the Austrian capital theorist Eugen von Böhm-Bawerk and did  his PhD in 1906. In 1909,  he became a professor of economics and government at the University of Czernowitz. In 1911, he joined the University of Graz, where he remained until World War I.

In 1918, Schumpeter was a member of the Socialization Commission established by the Council of the People's Deputies in Germany. In March 1919, he was invited to take office as Minister of Finance in the Republic of German-Austria. In 1921, he became president of the private Biedermann Bank. He was also a board a member at the Kaufmann Bank.

From 1925 to 1932, Schumpeter held a chair at the University of Bonn, Germany. He lectured at Harvard in 1927–1928 and 1930. In 1931, he was a visiting professor at The Tokyo College of Commerce. In 1932, Schumpeter moved to the United States, to Harvard In 1939, Schumpeter became a US citizen.

At Harvard, Schumpeter took heavy teaching load and he showed his personal and painstaking interest in his students. He served as the faculty advisor of the Graduate Economics Club and organized private seminars and discussion groups.Schumpeter in 1942 published what became the most popular of all his works, Capitalism, Socialism and Democracy. It was  reprinted many times and in many languages in the following decades, as well as cited thousands of times.

Schumpeter died in his home in Taconic, Connecticut, at the age of 66, on the night of 7 January 1950. Schumpeter's  posthumous publication was History of Economic Analysis.

Economic Ideas and Analysis of Schumpeter

The source of Joseph Schumpeter's dynamic, change-oriented, and innovation-based economics was the Historical School of economics. Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of Gustav von Schmoller and Werner Sombart.

According to Schumpeter circular flow excluding any innovations and innovative activities, leads to a stationary state. The stationary state was, according to Schumpeter, described by Walrasian equilibrium. The entrepreneur disturbs this equilibrium and is the prime cause of economic development, which proceeds in cyclic fashion along several time scales. In fashioning this theory connecting innovations, cycles, and development, Schumpeter kept alive the Russian Nikolai Kondratiev's ideas on 50-year cycles, Kondratiev waves. Schumpeter suggested a model in which the four main cycles, Kondratiev (54 years), Kuznets (18 years), Juglar (9 years) and Kitchin (about 4 years) can be added together to form a composite waveform.

Lecture on Capitalism of Schumpeter

Upload by Adam G.

Schumpeter also thought that the institution enabling the entrepreneur to buy the resources needed to realize his or her vision was a well-developed capitalist financial system, including a whole range of institutions for granting credit.

Schumpeter believed that the success of capitalism would lead to corporatism and to values hostile to capitalism, especially among intellectuals. Unemployment and a lack of fulfilling work will cause intellectual critique, discontent and protests. Parliaments will increasingly elect social democratic parties, and democratic majorities will vote for restrictions on entrepreneurship. Increasing workers' self-management, industrial democracy and regulatory institutions would evolve non-politically into "liberal capitalism". Thus, the intellectual and social climate needed for thriving entrepreneurship will be replaced by some form of "laborism". This will restrict "creative destruction" and so will burden and destroy the capitalist structure.

Schumpeter's democracy is the mechanism for competition between leaders.  Although periodic votes by the general public legitimize governments and keep them accountable, the policy program is very much seen as their own and not that of the people, and the participatory role for individuals is usually severely limited.

His fundamental theories are often referred to as Mark I and Mark II. In the first, Schumpeter argued that the innovation and technological change of a nation come from the entrepreneurs, or wild spirits. He and asserted that "... the doing of new things or the doing of things that are already being done in a new way" stemmed directly from the efforts of entrepreneurs.

Mark II was developed when Schumpeter was a professor at Harvard. Contrary to the prevailing opinion, Schumpeter argued that the agents that drive innovation and the economy are large companies which have the capital to invest in research and development of new products and services and to deliver them to customers cheaper, thus raising their standard of living. In one of his seminal works, "Capitalism, Socialism and Democracy", Schumpeter wrote:

... large concerns--which, as in the case of agricultural machinery, also account for much of the progress in the competitive sector--and a shocking suspicion dawns upon us that big business may have had more to do with creating that standard of life than with keeping it down.

Schumpeter sees innovations as clustering around certain points in time periods that he refers to as "neighborhoods of equilibrium", when entrepreneurs perceive that risk and returns warrant innovative commitments. These clusters lead to long cycles by generating periods of acceleration in aggregate growth.  New inventions are typically primitive, their performance is usually poorer than existing technologies and the cost of their production is high. A production technology may not yet exist, as is often the case in major chemical inventions, pharmaceutical inventions. The speed with which inventions are transformed into innovations and diffused depends on actual and expected trajectory of performance improvement and cost reduction.

Philip Bayard Crosby - Quality Guru - Biography

Philip Bayard Crosby, (June 18, 1926 – August 18, 2001) was an accomplished quality manager and a quality management guru who contributed to management theory and quality management practices.

Crosby was born in Wheeling, West Virginia, in 1926. He served in the Navy during World War II He earned a degree from the Ohio College of Podiatric Medicine. His first job was in the field of quality was that of test technician in the quality department at Crosley Corporation in Richmond, Indiana beginning in 1952. He joined  as reliability engineer at Bendix Corporation in Mishawaka, Indiana in 1955 and worked on the RIM-8 Talos missile. He became senior quality engineer at The Martin Company's new Orlando, Florida organization to develop the Pershing missile. There he implemented quality management practices that later developed into the Zero Defects Program concept. He eventually rose to become department head. He subsequently joined ITT Corporation in 1965 to become director of quality. In 1979, Crosby started the management consulting company Philip Crosby Associates, Inc. This consulting group provided educational courses in quality management. In 1979, Crosby published his book, Quality Is Free. This book would become popular at the time because of the crisis in North American quality.

Crosby's quality message is the principle of "doing it right the first time" (DIRFT). It implies that each time a part is produced, it has to be produced for the specification. There should not be rework and scrappage. The operator must be provided with testing or inspection equipment and production equipment and method that enables him to produce to specification every unit made by him.

 He also advocated four major principles:

The definition of quality is conformance to requirements (requirements meaning both the product and the customer's requirements).
The system of quality is prevention.
The performance standard is zero defects (each unit to specification)
The measurement of quality is the price of nonconformance

His belief was that an organization that establishes good quality management principles and practices will see savings that more than pay for the cost of the quality system put in place. So the statement,  "quality is free". It is less expensive to establish a system and produce to specification every time a unit is produced rather than produce, inspect and then do rework and repairs or scrap the defective part.

Important Books

(1967). Cutting the cost of quality. Boston, Industrial Education Institute.
(1979). Quality is Free. New York: McGraw-Hill. ISBN 0-07-014512-1.
(1984). Quality Without Tears. New York: McGraw-Hill. ISBN 0-07-014511-3.
(1994). Completeness: Quality for the 21st Century. Plume. ISBN 0-452-27024-3.
(1995). Philip Crosby's Reflections on Quality. McGraw-Hill. ISBN 0-07-014525-3.
(1996). Quality is still free: Making Quality Certain in Uncertain Times. McGraw-Hill. ISBN 0-07-014532-6.
(1999). Quality and Me: Lessons from an Evolving Life. Jossey-Bass. ISBN 0-7879-4702-4.

About Serving Philip Crosby