B.Ed (1.5 years) / B.

Ed (4 years) SLM

MANAGEMENT STRATEGIES IN
EDUCATIONAL INSTITUTIONS
Course Code 8615
 Management Strategies
in Educational Institutions

Course Code: 8615 Units: 1–9

Department of Educational Planning,

Policy Studies and Leadership
Allama Iqbal Open University, Islamabad

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 Disclaimer
The materials for the contents development of this course were initially collected and
prepared from several sources. A substantial amount of effort has been made to review
and edit the materials and convert them into this courseware. References and
acknowledgements are given as required. Care has been taken to avoid mistakes, but
mistakes are possible. Please let us know of errors or failed links you discover.

All rights reserved with the publisher © AIOU 2017

Edition.............................................. 1st

1st Printing ........................................ 2017

Quantity ........................................... 5000

Printing Coordinator ....................... Dr. Sarmad Iqbal

Printer .............................................. Printing Press Operations Committee

Publisher .......................................... Allama Iqbal Open University, Islamabad

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 COURSE TEAM

Course Development Coordinator: Hamid Ali Nadeem

Course Writers: Dr. Afshan Huma

Dr. Azhar Mumtaz Saadi

Dr. Muhammad Safdar Kiyani

Mr. Hamid Ali Nadeem

Ms. Tahira Bibi

Mr. Arshad Mahmood Qamar

Course Reviewer: Dr. Afshan Huma

Dr. Azhar Mumtaz Saadi

Mr. Hamid Ali Nadeem

Ms. Tahira Bibi

Course Coordinator: Dr. Farkhunda Rasheed

Editor: Ms. Humera Ejaz

Composing & Layout: Asrar ul Haque Malik

Print Production Unit (PPU)

iii
 PREFACE
Management is one of the key areas of functioning in the field of education. From top to
lowest level of management, various tools and methods help the managers to run the
processes smoothly, ensure quality and bring about a positive change. A manager is someone
who coordinates and oversees the work of other people so that organizational goals can be
accomplished. It is not about personal achievement but helping others do their job.
Managers need certain skills to perform the challenging duties and activities associated
with being a manager. Managers need three essential skills:
1. Technical skills are job-specific knowledge and techniques needed to proficiently
perform specific tasks.
2. Human skills are the ability to work well with other people individually and in a
group.
3. Conceptual skills are the ability to think and to conceptualize about abstract and
complex situations.
Management techniques are systematic and analytical methods used to assist in decision-
making, the improvement of efficiency and effectiveness and in particular the conduct of
key managerial activities.

• Systematic techniques consist of specified and often sequential methods of tackling

a problem, providing information for decision making or improving operational
efficiency. These ensure that each step is carried out in prescribed manner.
• Analytical techniques have been developed by considering what and possibly
quantitative methods are required to deal with every aspect of a situation and
achieve an end result. They subject complex situations to close and systematic
examination and resolve them into their key elements.
• Quantitative techniques measure in numerical or financial terms what is happening
and quantify forecasts of future trends. These techniques place monetary/digitory
values on performance reports, forecasts and plans.
This course is consisting of nine units. These units discuss the concepts of Management,
Tools of Educational Management, Strategic and Operational Management, Performance
Management, Organizational Behavior Management, Quality Management, Change
Management, Data Driven Instructional Management. The last unit explains Application
of Technological Tools of Management. Areas like quality management and change
management have emerged to guarantee customer care and satisfaction. All these
management trends are equally applicable to education. Therefore this course is designed
to introduce modern management strategies to the students of educational planning and
management. The content of this course is designed to equip prospective educational
administrators with techniques of managing the tasks at institution level.

Prof. Dr. Nasir Mahmood

Dean, Faculty of Education

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 INTRODUCTION

Management is one of the key areas of functioning in the field of education. With the turn
of new millennium some new strategies of management have emerged. Now from top to
lowest level of management various tools and methods help the managers to run the
processes smoothly, ensure quality and bring about a positive change. Areas like quality
management and change management have emerged to guarantee customer care and
satisfaction. All these management trends are equally applicable to education. Therefore,
this course is designed to introduce modern management strategies to the students of
educational planning and management.

Dr. Farkhunda Rasheed

Course Coordinator

Learning Outcomes:
After completing this course the learners will be able to:

1. Use the knowledge of effective management strategies.

2. Apply new tools and techniques of strategic and operational management.

3. Identify new dimensions in educational management.

4. Utilize the available technological tools and design new systems of management.

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 COURSE OUTLINE
Unit 1: Introduction to Management
1. Concept and Definitions of Management
2. Need and Scope of Management
3. Significance of Management in Education
4. Functions of Management
Unit 2: Tools of Educational Management
1. Control Charts
2. Gantt Chart
3. Critical Path Method
4. Program Evaluation and Review Technique
5. Process Capability Calculations
6. Planning-Programming -Budgeting System
Unit 3: Strategic and Operational Management
1. Strategic Management Process
2. Strategic Decision Making
3. Operational Management Techniques
4. Operational Decision Making
Unit 4: Performance Management
1. Key Performance Indicators
2. Monitoring and Evaluation
3. Performance Appraisal
4. Reviewing and Reporting
5. Feedback and Coaching
Unit 5: Organizational Behavior Management
1. Organizational Behavior
2. Behavioral Systems Analysis
3. Behavior-Based Safety
4. Behavior Change Communication
Unit 6: Quality Management
1. Quality Indicators
2. Process Approach
3. System Approach
4. Stakeholder/Customer Satisfaction
Unit 7: Change Management
1. Readiness Assessment
2. Coaching and Training
3. Resistance Management
4. Corrective Actions
5. Change Process
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Unit 8: Data Driven Instructional Management
1. Assessment
2. Analysis
3. Forecasting Achievement
4. Benchmarking
5. Action

Unit 9: Application of Technological Tools of Management

1. Management Information System
2. Organizational Communication System
3. Accounting and Budgeting System
4. Web based Management System

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 CONTENTS

UNIT 1: Introduction to Management ............................................................1

UNIT 2: Tools of Educational Management ................................................19

UNIT3: Strategic and Operational Management .........................................43

UNIT 4: Performance Management .............................................................77

UNIT 5: Organizational Behavior Management ........................................103

UNIT 6: Quality Management ....................................................................123

UNIT 7: Change Management ...................................................................149

UNIT 8: Data Driven Instructional Management .......................................173

UNIT 9: Application of Technological Tools of Management ..................195

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UNIT-1

INTRODUCTION TO MANAGEMENT

Written by: Hamid Ali Nadeem

Reviewed by: Dr. Azhar Mumtaz Saadi

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 CONTENTS

Introduction ......................................................................................................... 3
Objectives............................................................................................................. 3
1. Concept and Definitions of Management .............................................. 4
1.1 What is Management? Definitions............................................. 5
1.2 Meaning of Management ........................................................... 6
1.3 Features of Management ............................................................ 6
2. Need and Scope of Management ........................................................... 8
3. Significance of Management in Education ............................................ 9
3.1 Models of Management in Education ................................... 11
4. Functions of Management.................................................................... 12
4.1 Early Management and the Study of Management ............ 12
4.2 Fayol’s Functions of Management..................................... 14
4.3 Fayol’s Principles of Management .................................... 16
5. References ............................................................................................ 18

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INTRODUCTION
Introduction to management provides you the foundational knowledge and skills
concerning the role and functions of management. These frameworks support a critical
analysis of individual or organizational operations and performance in the light of
business opportunities and pressures, societal expectations and environmental
contingencies. These insights enable the students to identify their roles as future
managers and to map their contributions to creating value at both individual and
organizational level.

OBJECTIVES
After studying this unit, you will be able to:
1. Describe concept and definitions of management
2. Explain the need and scope of management
3. Discuss the significance of management in education
4. Elaborate different functions of management

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1. CONCEPT AND DEFINITIONS OF MANAGEMENT
Resources are very limited in supply. All resources are to be managed by human.
However, human have unlimited wants. Therefore, there are limited resources and
unlimited wants and desire. Complete satisfaction is very necessary for better functioning
of every aspect of the society. Therefore, for complete satisfaction in life resources are to
be managed properly in such a way that human achieve complete utility and benefit
simultaneously. Thus, to manage all resources available in such a way that it gives
complete satisfaction to human beings is the theoretical meaning of management.

To go on a deeper level, management can be defined as art and skill of getting things
done through others is called management. More elaboration is given by George R Terry.
According to Terry-“management is the distinct process consisting of planning,
organizing, activating, and controlling activities performed to determine and
accomplishes the objectives by the use of people and resources.” If we give our attention
towards the definition we find that terry perceives the management as a process a
systematic way of doing things. The four management activities are included under the
process and they are planning, organizing, activating and controlling.

MANAGEMENT = MANAGE+MEN+T (TACTFULLY)

Basically, there are 5 concepts of management. They are:

1. Functional concept: Management basically is the task of planning, coordinating,

motivating and controlling the efforts of other towards the goals and objectives of
the organization. According to this concept, management is what a manager does
(planning, executing, and controlling)
2. Human relation concept: According to this concept, Management is the art o
getting things done through and with people in organized groups. It is the art of
creating an environment in which people can perform and individuals could
cooperate towards attaining of group goals. It is an art of removing blanks to
such performance a way of optimizing efficiency in reaching goals.
3. Leadership and decision making concept: According to this concept,
management is the art and science of preparing, organizing, directing human
efforts applied to control the forces and utilize the materials of nature for the
benefits to man.
4. Productive concept: According to this concept, management may be defined as
the art of securing maximum prosperity with a minimum effort so as to secure
maximum prosperity and happiness for both employer n employee and provide
best services thereby.
5. Integration concept: According to this concept, management is the coordination
of human and material resources towards the achievement of organizational
objectives as well as the organization of the productive functions essential for
achieving stated or accepted economic goal.

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These above definition of management, given by different writers and authorities, are
found giving different senses. Virtually, the five concepts are found developed by the
authorities emphasizing in different aspects. However, it has been realized by many that
it will not be fair to define management based upon any one aspect. Management can be
taken as process-managerial process or social process either engage in planning,
organizing, staffing, directing and controlling or mobilizing the group activities to
achieve the corporate goals.

To overcome the limitations of the above concepts, Theo Haimann, the leading
management expert has explained three basic concepts of management as under:

a. Management as a process: Management is a process. It includes the process of

planning, controlling, coordinating, motivating, and staffing. These processes are
the series of interrelated sequential functions. Processes refer to accomplish these
mentioned activities. Management is the efforts of organizational members to
accomplish the organizer’s objectives. This concept is very simple because
i. It is very simple and very easy to understand
ii. It indicates functions of management as a process
iii. It recognizes management as a universal process
b. Management as a discipline: The term management is used as a subject of
instructions. It is a specific branch of knowledge which is studied in campuses
and schools like economics, sociology, mathematics, political science etc. the
scholars of management have found that the information and management are
used in practical life for better functioning. The scope of management is being
increased day to day as a discipline
c. Management as a noun: The word management itself refers as a noun. There
are many kinds of employees in an organization. Some people are involved in
managerial function and some are involved in operating functions. The
individuals who manage the organization and departments are managers. As a
noun, the term management is used as single name of managers, board of
directors, managing directors; departmental managers etc are included in
management.

1.1 What is Management? Definitions

According to Harold Koontz,
"Management is the art of getting things done through and with people in formally
organised groups."

Harold Koontz gave this definition of management in his book "The Management Theory
Jungle".

According to Henri Fayol,

"To manage is to forecast and to plan, to organise, to command, to co-ordinate and to
control."

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Henri Fayol gave this definition of management in his book "Industrial and General
Administration".

According to Peter Drucker,

"Management is a multi-purpose organ that manages business and manages managers and
manages workers and work."

This definition of management was given by Peter Drucker in his book "The Principles of
Management".

According to Mary Parker Follet,

"Management is the art of getting things done through people."

1.2 Meaning of Management

According to Theo Heimann, management has three different meanings, viz.,
1. Management as a Noun: refers to a Group of Managers.
2. Management as a Process: refers to the Functions of Management i.e. Planning,
Organizing, Directing, Controlling, etc.
3. Management as a Discipline: refers to the Subject of Management.
Management is an individual or a group of individuals that accept responsibilities
to run an organization. They Plan, Organise, Direct and Control all the essential
activities of the organization. Management does not do the work themselves.
They motivate others to do the work and co-ordinate (i.e. bring together) all the
work for achieving the objectives of the organization. Management brings
together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods
and Markets.

1.3 Features of Management

The nature, main characteristics or features of management:
1. Continuous and never ending process.
2. Getting things done through people.
3. Result oriented science and art.
4. Multidisciplinary in nature.
5. A group and not an individual activity.
6. Follows established principles or rules.
7. Aided but not replaced by computers.
8. Situational in nature.
9. Need not be an ownership.
10. Both an art and science.
11. Management is all pervasive.
12. Management is intangible.
13. Uses a professional approach in work.
14. Dynamic in nature.

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Now let's briefly discuss each feature of management.

1. Continuous and never ending process

Management is a Process. It includes four main functions, viz., Planning,
Organizing, Directing and Controlling. The manager has to Plan and Organize all
the activities. He has to give proper Directions to his subordinates. He also has to
Control all the activities. The manager has to perform these functions
continuously. Therefore, management is a continuous and never ending process.
2. Getting things done through people
The managers do not do the work themselves. They get the work done through
the workers. The workers should not be treated like slaves. They should not be
tricked, threatened or forced to do the work. A favorable work environment
should be created and maintained.
3. Result oriented science and art
Management is result oriented because it gives a lot of importance to "Results".
Examples of Results like, increase in market share, increase in profits, etc.
Management always wants to get the best results at all times.
4. Multidisciplinary in nature
Management has to get the work done through people. It has to manage people.
This is a very difficult job because different people have different emotions,
feelings, aspirations, etc. Similarly, the same person may have different emotions
at different times. So, management is a very complex job. Therefore,
management uses knowledge from many different subjects such as Economics,
Information Technology, Psychology, Sociology, etc. Therefore, it is
multidisciplinary in nature.
5. A group and not an individual activity
Management is not an individual activity. It is a group activity. It uses group
(employees) efforts to achieve group (owners) objectives. It tries to satisfy the
needs and wants of a group (consumers). Nowadays, importance is given to the
team (group) and not to individuals.
6. Follows established principles or rules
Management follows established principles, such as division of work, discipline,
unity of command, etc. These principles help to prevent and solve the problems
in the organization.
7. Aided but not replaced by computers
Now-a-days, all managers use computers. Computers help the managers to take
accurate decisions. However, computers can only help management. Computers
cannot replace management. This is because management takes the final
responsibility. Thus Management is helped but not replaced by computers.
8. Situational in nature
Management makes plans, policies and decisions according to the situation. It
changes its style according to the situation. It uses different plans, policies,
decisions and styles for different situations.

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 The manager first studies the full present situation. Then he draws conclusions
about the situation. Then he makes plans, decisions, etc., which are best for the
present situation. This is called Situational Management.
9. Need not be an ownership
In small organizations, management and ownership are one and the same.
However, in large organizations, management is separate from ownership. The
managers are highly qualified professionals who are hired from outside. The
owners are the shareholders of the company.
10. Both an art and science
Management is result-oriented. Therefore, it is an Art. Management conducts
continuous research. Thus, it is also a Science.
11. Management is all pervasive
Management is necessary for running a business. It is also essential for running
business, educational, charitable and religious institutions. Management is a must
for all activities, and therefore, it is all pervasive.
12. Management is intangible
Management is intangible, i.e. it cannot be seen and touched, but it can be felt
and realized by its results. The success or failure of management can be judged
only by its results. If there is good discipline, good productivity, good profits,
etc., then the management is successful and vice-versa.
13. Uses a professional approach in work
Managers use a professional approach for getting the work done from their
subordinates. They delegate (i.e. give) authority to their subordinates. They ask
their subordinates to give suggestions for improving their work. They also
encourage subordinates to take the initiative. Initiative means to do the right
thing at the right time without being guided or helped by the superior.
14. Dynamic in nature
Management is dynamic in nature. That is, management is creative and
innovative. An organization will survive and succeed only if it is dynamic. It
must continuously bring in new and creative ideas, new products, new product
features, new ads, new marketing techniques, etc.

2. NEED AND SCOPE OF MANAGEMENT

1. It helps in Achieving Group Goals - It arranges the factors of production,
assembles and organizes the resources, integrates the resources in effective manner to
achieve goals. It directs group efforts towards achievement of pre-determined goals. By
defining objective of organization clearly there would be no wastage of time, money and
effort. Management converts disorganized resources of men, machines, money etc. into
useful enterprise. These resources are coordinated, directed and controlled in such a
manner that enterprise work towards attainment of goals.

2. Optimum Utilization of Resources - Management utilizes all the physical &

human resources productively. This leads to efficacy in management. Management
provides maximum utilization of scarce resources by selecting its best possible alternate

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use in industry from out of various uses. It makes use of experts, professional and these
services leads to use of their skills, knowledge, and proper utilization and avoids wastage.
If employees and machines are producing its maximum there is no under employment of
any resources.

3. Reduces Costs - It gets maximum results through minimum input by proper

planning and by using minimum input & getting maximum output. Management uses
physical, human and financial resources in such a manner which results in best
combination. This helps in cost reduction.

4. Establishes Sound Organization - No overlapping of efforts (smooth and

coordinated functions). To establish sound organizational structure is one of the objective
of management which is in tune with objective of organization and for fulfillment of this,
it establishes effective authority & responsibility relationship i.e. who is accountable to
whom, who can give instructions to whom, who are superiors & who are subordinates.
Management fills up various positions with right persons, having right skills, training and
qualification. All jobs should be cleared to everyone.

5. Establishes Equilibrium - It enables the organization to survive in changing

environment. It keeps in touch with the changing environment. With the change is
external environment, the initial co-ordination of organization must be changed. So it
adapts organization to changing demand of market / changing needs of societies. It is
responsible for growth and survival of organization.

6. Essentials for Prosperity of Society - Efficient management leads to better

economical production which helps in turn to increase the welfare of people. Good
management makes a difficult task easier by avoiding wastage of scarce resource. It
improves standard of living. It increases the profit which is beneficial to business and
society will get maximum output at minimum cost by creating employment opportunities
which generate income in hands. Organization comes with new products and researches
beneficial for society.

Self Assessment Questions

Q.1 Describe concept of management with reference to different definitions.

Q.2 Explain different features of management.
Q.3 Discuss need and scope of management.

3. SIGNIFICANCE OF MANAGEMENT IN EDUCATION

What is Educational Management?
Educational management is a field of study and practice concerned with the operation of
educational organizations. There is no single generally accepted definition of the subject
because its development has drawn heavily on several more firmly established
disciplines, including sociology, political science, economics and general management.

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Bolam (1999) defines educational management as ‘an executive function for carrying out
agreed policy’. He differentiates management from educational leadership which has ‘at
its core the responsibility for policy formulation and, where appropriate, organizational
transformation’. The author has argued that educational management should be centrally
concerned with the purpose or aims of education. These are the subject of continuing
debate and disagreement, but the principle of linking management activities and tasks to
the aims and objectives of schools or colleges remains vital. These purposes or goals
provide the crucial sense of direction which should underpin the management of
educational institutions. Management is directed at the achievement of certain
educational objectives. Unless this link between purpose and management is clear and
close, there is a danger of ‘managerialism’, ‘a stress on procedures at the expense of
educational purpose and values’. Managerialism places the emphasis on managerial
efficiency rather than the aims and purposes of education (Newman and Clarke, 1994;
Gunter, 1997). ‘Management possesses no super-ordinate goals or values of its own. The
pursuit of efficiency may be the mission statement of management – but this is efficiency
in the achievement of objectives which others define’ (Newman and Clarke, 1994: 29).
While the emphasis on educational purpose is important, this does not mean that all aims
or targets are appropriate, particularly if they are imposed from outside the school by
government or other official bodies. Managing towards the achievement of educational
aims is vital but these must be purposes agreed by the school and its community.

Educational management as a field of study and practice was derived from management
principles first applied to industry and commerce, mainly in the United States. Theory
development largely involved the application of industrial models to educational settings.
As the subject became established as an academic discipline in its own right, its theorists
and practitioners began to develop alternative models based on their observation of, and
experience in, schools and colleges. By the twenty-first century the main theories,
featured in this book, have either been developed in the educational context or have been
adapted from industrial models to meet the specific requirements of schools and colleges.

Educational leadership and management has progressed from being a new field
dependent upon ideas developed in other settings to become an established discipline
with its own theories and significant empirical data testing their validity in education.
This transition has been accompanied by lively argument about the extent to which
education should be regarded as simply another field for the application of general
principles of leadership and management, or should be seen as a separate discipline with
its own body of knowledge.

One strand of opinion asserts that there are general principles of management which can
be applied to all organizational settings. The case for a standard approach to the training
and development of managers rests largely upon the functions thought to be common to
different types of organization. These include financial management, human resource
management, and relationships with the organization’s clients and the wider community.
The debate about the most appropriate relationship between general management and that
specific to education was rekindled from 1995 with the TTA’s emphasis on the need to

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take account of ‘best practice outside education’ in devising professional development
programmes. For example, its National Standards document stated that ‘the standards …
reflect the work undertaken on management standards by those outside the education
profession’ (TTA, 1998) and ‘the knowledge and understanding that head teachers need
draw on sources both inside and outside education’

Taking account of ‘best practice outside education’ appears uncontentious, but it assumes
that definitions of ‘best practice’ are widely understood and accepted. In practice, there
are several problematic issues: Who decides what good, let alone ‘best’, practice is?

How is such good practice to be adapted for use in training school leaders and managers?
Is good practice a universal trait or does it depend on the specific school setting?

Managing the formal process of imparting knowledge and skills, widely known as
education, is not an easy task. There are many factors to consider, as well as opportunities
to grab and threats to look out for. As said, education is the formal process in which sets
of knowledge and skills are passed from instructors, teachers and professors to students.
To expedite this process, there is a need to manage all concerned affairs, including those
not directly related to teaching – education management.

Education management deals with administering all the affairs inside an academe.
Usually, education managers are not given teaching assignments, and if they were, their
loads were minimal so as to have them focus on the affairs of the school. Professors,
instructors and other members of the teaching faculty are usually made to focus on their
task as passers of knowledge and skills. The non-teaching affairs of the academe –
including handling teaching salaries, maintenance of school buildings, equipment and
ground, as well as doing other transactions – are left for education managers to mind.
Education managers make the job easier for the teaching staff by handling the school’s
problems and affairs alike.

While teachers and professors worry about the intellectual well-being of their students,
education managers are in-charge of taking care of the over-all wellness of the students
and teachers alike. They do this by providing safe and suitable places for instructions,
procuring equipment necessary to speed up the learning process, and handling all
paperwork and finances needed. These tasks are not easy ones, since running schools is
totally different from running company. The main concern of education managers is to
make the lives easier for professors for the latter to concentrate on their teaching jobs.
Education management is a complex thing to do but is a very rewarding task.

3.1 Models of Management in Education

Modern authors most often connect themselves on Cuthbert’s, Bolman’s and Deal’s as
well Margan’s approaches to the theories of educational management and guidance.
Cuthbert (1984) resumes models into five groups: analytically rational, pragmatically
rational, political as well the models that point out bilingualism and phenomenal and
interaction models. As criteria for design, he takes the levels of dialogue among

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employees about their objectives, the manners that value efficiency and concepts of
structure of their institution / organization. Bolman and Deal give four aspects or scopes:
structural, 328 political, symbolical and human resource. Morgan (1997) offers
metaphors for organizations. He names them as: mechanical, organic, contemplative,
cultural, political and the like. The integration of their views has realized an English
theoretician of management and guidance in education, Tony Bush in his well – known
study Theories of Educational Leadership and Management (2003). In his distinction of
theories and models, the author starts from the objective, structure, background and
guidance in cultural organizations. The models preferred in some institutions differ in
insisting on the importance of organizational objectives, against the individual objectives
of employees. The emphasis on structure within educational organizations indicates
comprehension and acceptance of individuals through their roles. The relation between an
institution and its environment is recognized through intensity and quality of
collaboration. Organizations differentiate as well according to strategies of guidance.
Buch has established a classification of six models of management in the institutions of
upbringing and education: formal, friendly (cooperative), political, subjective, bilingual
and culture (ones). He connected these models together with adequate guidance models.
These are models of management, participation, transformation, transaction, contingency,
instruction, as well as postmodern, moral and interpersonal models. The models of
educational management and guidance are diverse conceptual accesses. Each of them
almost never „cover“ reality of some educational practical experiences, so in certain
situations one can recognize many of them – in different percentage. Proportion of some
models in educational institutions depends on their magnitude, organizational structure,
the time that can be given to management, ability of resources procuring and institution
background (www.azoo.hr).

4. FUNCTIONS OF MANAGEMENT
4.1 Early Management and the study of management
Although great feats of human achievement such as the Egyptian pyramids, the Great
Wall of China, the Colosseum in Rome and the Taj Mahal in India all bear testimony to
skilled management in ancient times, the formal study of management only began late in
the 19th century. The main driving force behind this development of management as a
science was the transition from 19th century “entrepreneurial capitalism” to early
20th century “managerial capitalism”. Whereas the first capitalists were business owners
who used their own finances to fund organizations that they managed themselves, rapid
industrial growth saw the formation of large organizations with capital often provided by
outsiders. This not only “widened the gap” between owners or shareholders and
management, it also brought new management challenges.

4.1.1 Scientific Management

One of the early pioneers of management theory was Frederick W. Taylor (1856-1915), a
mechanical engineer who believed that it was management’s task to design jobs properly
and to provide incentives to motivate workers to achieve higher productivity. While
working at the Midvale Steel Company in Philadelphia, Taylor developed a new, and at

12
the time radical approach to managing, known as scientific management. He conducted
studies into how workers or machines performed tasks, measuring and analyzing each
measurable aspect of the work. He then determined standard times and sequences for the
completion of each task. With this information, Taylor provided managers with realistic
production standards per man- and machine-hour.

Taylor’s scientific management changed the role of managers from being run-of-the-mill
whip men to specialized foremen who were adequately equipped to supervise each phase
of the production process. On a larger scale, he revolutionized managerial thought and
laid the foundation for the formation of many other management systems in decades to
come.

Contribution of Scientific Management Theory

The modern assembly line pours out finished products faster than Taylor could ever have
imagined. This production “miracle” is just one legacy of scientific management. In
addition, its efficiency techniques have been applied to many tasks in non-industrial
organizations, ranging from fast-food service to the training of surgeons.

Limitations
 Of
 Scientific
 Management
 Theory

Although
 Taylor's
 method
 led to dramatic increases in productivity and to higher pay
in a number of instances, workers and unions began to oppose his approach because they
feared that working harder or faster would exhaust whatever work was available, causing
layoffs. Moreover, Taylor's system clearly meant that time was of the essence. His critics
objected to the "speed up" conditions that placed undue pressures on
employees to
perform at faster and faster levels. The emphasis on productivity and, by extension,
profitability led some managers to exploit both workers and customers. As a result, more
workers joined unions and thus reinforced a pattern of suspicion and mistrust that shaded
labor management relations for decades.

4.1.2 The Administrative Approach

Across the Atlantic ocean Jules Henri Fayol (1841-1925), a fellow engineer and manager
of a group of French mines, came to the conclusion that management was an activity
common to all human undertakings (including home, business, government, schools, etc.)
and that all these undertakings needed five basic administrative functions (planning,
organizing, commanding, coordinating and controlling). He argued that because
management was an all-encompassing activity, it should be taught in schools, colleges
and universities.
Fayol’s approach rejected the old notion that “managers are born, not made”, proposing
instead that management is a skill which can be acquired if its principles are understood.

4.1.3 The Bureaucratic Approach

Max Weber (1864-1920) was a German sociologist who approached management by
focusing on organizational structure, dividing organizations into hierarchies with clear
lines of authority and control. This meant that managers were given “legal authority”

13
based on their position in the organizational structure, to enforce rules and policy (Smit &
Cronjé, 2002, p41).

Weber’s bureaucratic system helped large organizations to function in a more stable,

organized and systematic manner. However, by doing away with personality based or
charismatic leadership, individuality and creativity is often sacrificed. Bureaucratic
leaders and workers are required to obey rules and do only what they are told. The result
is that these leaders seldom think “outside the box” and therefore find it very difficult to
adapt to changing environments and new challenges.

4.1.4 The Human Relations Movement

Elton Mayo (1880-1949) was a Harvard professor who proposed that managers should
become more “people-orientated” (Smit & Cronjé, 2002, p43). Conducting experiments
on conditions in the workplace and incorporating the well-published findings of the
Hawthorne Studies, Mayo declared that “logical factors were far less important than
emotional factors in determining productive efficiency” (George, 1968, p129). He
concluded that participation in social groups and “group pressure”, as opposed to
organizational structures or demands from management, had the strongest impact on
worker productivity (Smit & Cronjé, 2002, p43).

Mayo’s findings once again revolutionized the role of managers in organizations. The
work performed by individuals has to satisfy their “personal, subjective” social needs as
well as the company’s productive requirements. He and other proponents of this
movement therefore called for managers to “accept a new role” in their relationship with
workers; develop a new concept of authority; and help foster a new social order in the
workplace (George, 1968). In practice managers were encouraged to consult workers
about change, take note of their views, and to show concern for their physical and mental
health.

4.2 Fayol’s Functions of Management

Henri Fayol (1841 – 1925) defined the five functions of management in his 1916 book
Administration Industrielle et Generale, which defined his general theory of business
administration and surprisingly, this text is still seen as a one of the basic definitions of
management. He defined five primary functions of management and 14 principles of
management: The five functions are:
 To forecast and plan. Planning is the function of management that involves
determining the best course of action for achieving the objectives of the
organization defined by the governing body5. It requires managers to be aware of
environmental conditions facing their organization, the capacity and capability of
the organization, and to forecast future conditions and trends. There are many
different types of plans and planning.
 Strategic planning involves analyzing competitive opportunities and threats, as
well as the strengths and weaknesses of the organization, and then determining
how to position the organization to best achieve its objectives. Strategic planning
has a long time frame and is the link between governance and management with

14
 a shared responsibility to develop the ‘right strategy’ to ethically achieve the
organization’s objectives.
 Tactical planning is intermediate-range planning that is designed to develop
relatively concrete and specific means to implement the strategic plan.
 Operational planning is short-range planning that is designed to develop
specific action steps that support the strategic and tactical plans.
 Project and program planning is short to medium term focused on achieving
the objectives the project or program has been created to deliver.
 To organize. Organizing involves developing an organizational structure and
allocating human resources to ensure the accomplishment of the organization’s
objectives and implementation of its strategic plan.

The structure of the organization is the framework within which effort is coordinated and
is shaped by the ethical and cultural requirements of the governing body. It involves the
design of individual jobs within the organization and striking a balance between the need
for worker specialization and the need for workers to have jobs that entail variety and
autonomy. Many jobs are now designed based on such principles as job enrichment and
teamwork. The management framework needs to support the needs of the governance
framework, and be accountable to the governing body for the actions and achievements
of the organization.

 To command or direct subordinates. Providing direction and leadership to

lower level managers and workers so that they are aware of their obligations and
are willing to carry them out efficiently and effectively.
 Leading involves influencing others toward the attainment of organizational
objectives. Effective leading requires the manager to motivate subordinates,
communicate effectively, and use his/her power and authority judiciously. If
managers are effective leaders, their subordinates will be enthusiastic about
exerting effort toward the attainment of the objectives.
 To coordinate. Coordination is inherent in the other aspects of management and
is primarily focused on organization of the different elements of the organization,
or an activity, so as to enable them to work together effectively:
 To control (French: contrôller). A manager must receive feedback about a
process in order to analyze any deviations from the plan and make necessary
adjustments to correct negative deviations and prevent future deviations.
Controlling consists of three basic steps, plus the requirement to provide
assurance, establishing the plan or required performance standards; comparing
actual performance against the required standards at appropriate intervals, and
Taking corrective or preventative action when necessary. Providing assurance to
the organization’s governing body that all levels of management and staff are
held accountable for their actions and are performing and conforming to the
organizations objectives and governing principles.

15
Inherent in all of these functions is decision making! The primary role of management is
to make decisions and value judgements within the framework set by the governing body,
including the organization’s ethical and cultural standards, to achieve the objectives set
by the governing body. This required the delegation of appropriate levels of
responsibility and authority to decision makers and the decision makers being prepared to
accept this responsibility and be accountable for their actions.

The primary output from management can be defined as information and instructions that
have to be communicated to others. The communication is firstly to the workers so they
understand what has to be produced, where and when; secondly to the governing body to
provide assurance that the right decisions have been made and the right things are being
produced in the right ways applying the organization’s policy framework correctly.

4.3 Fayol’s Principles of Management

The principles of management define some of the ways the functions of management can
be implemented. Some of these original principles need adjusting to remain effective in
some modern organizations, but the most of the concepts are still valid:
1. Division of work. This principle is the same as Adam Smith’s ‘division of
labour’ and Taylor’s ‘scientific management’. Specialization increases output by
making employees more efficient. Division is still important, but modern trends
are towards teams and self-managed work groups.
2. Authority. Managers must be able to give orders. Authority gives them this right
and flows from their position in the hierarchy. Responsibility arises wherever
authority is exercised and effective leadership reinforces authority.
3. Discipline. Employees must obey and respect the rules that govern the
organization. Good discipline is the result of effective leadership, a clear
understanding between management and workers regarding the organization’s
rules, and the judicious use of penalties for infractions of the rules.
4. Unity of command. Every employee should receive orders from only one
superior, from top to bottom in an organization. This is not practical in matrix
organizations and allowance needs to be made for the increased complexity of
the working environment.
5. Unity of direction. Each group of organizational activities that have the same
objective should be directed by one manager using one plan.
6. Subordination of individual interests to the general interest. The interests of
any one employee or group of employees should not take precedence over the
interests of the organization as a whole. One outcome of effective leadership is
the willingness of people to cooperate for the greater good.
7. Remuneration. Workers must be paid a fair wage for their services. This picks
up one of the key tenets of Henry Gantt’s work.
8. Centralization. Centralisation refers to the degree to which subordinates are
involved in decision making. Whether decision making is centralised (to
management) or decentralised (to subordinates) is a question of proper
proportion. The task is to find the optimum degree of centralisation for each
situation.

16
9. Scalar chain. The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain. However,
if following the chain creates delays, cross communications can be allowed if
agreed to by all parties and superiors are kept informed. This picks up the
concepts of the bureaucratic school of management.
10. Order. People and materials should be in the right place at the right time.
Another key tenet of Henry Gantt’s work.
11. Equity. Managers should be kind and fair to their subordinates. This picks up the
concepts of the humanistic school of management.
12. Stability of tenure of personnel. High employee turnover is inefficient.
Management should provide orderly personnel planning and ensure that
replacements are available to fill vacancies.
13. Initiative. Employees who are allowed to originate and carry out plans will exert
high levels of effort. The concept of ‘bounded initiative’ can be traced to concept
of ‘auftragstaktik’, or directive command.
14. Esprit de corps. Promoting team spirit will build harmony and unity within the
organization. This picks up on Karol Adamiecki’s focus on harmonization and
team work15.

How Managers Really Work

Some academics have suggested the functions of management as described by Fayol and
others of the Administrative (or Process) School of management are not an accurate
description of the reality of managers’ jobs. The functions of management such as
planning, organizing, leading, and controlling do not depict the chaotic nature of
managerial work in post bureaucratic organizations.

Based upon an observational study of five executives in the 1970s, Henry Mintzberg
concluded that the work managers actually performed could best be represented by three
sets of roles, or activities:
 Interpersonal roles consisting of figurehead, leader, and liaison;
 Informational roles consisting of monitor, disseminator, and spokesperson; and
 Decision-making roles including entrepreneur, disturbance handler, resource
allocator, and negotiator.

Self Assessment Questions

Q.1 Explain the concept of educational management.

Q.2 Describe historical evolution of different management theories.
Q.3 Discuss contribution of different management theories.
Q.4 Elaborate principles of management as described by Fayol.

17
REFERENCES
 http://www.swlearning.com/pdfs/chapter/0324117922_1.PDF

 http://www.ddegjust.ac.in/studymaterial/mcom/mc-101.pdf

 http://discovery.bits-
pilani.ac.in/dlpd/courses/coursecontent/courseMaterial/mgtszc211/principles_of_
management_notes.pdf

 http://www.londoninternational.ac.uk/sites/default/files/programme_resources/lse
/lse_pdf/subject_guides/mn1107_ch1-4.pdf

 http://geoff.cox.free.fr/Docs/Text1.pdf

 http://wps.prenhall.com/wps/media/objects/213/218162/IM/boddy.pdf

 http://www.bms.lk/download/GDM_Tutorials/e-books/Management.pdf

 http://www.dphu.org/uploads/attachements/books/books_5828_0.pdf

 http://www.nou.edu.ng/uploads/NOUN_OCL/pdf/SMS/MBA%20814.pdf

 http://www.who.int/hiv/pub/imai/om_10_leadership_management.pdf

 http://www.saylor.org/site/textbooks/Principles%20of%20Management.pdf

18
UNIT-2

TOOLS OF EDUCATIONAL
MANAGEMENT

Written by: Hamid Ali Nadeem

Reviewed by: Ms. Tahira Bibi

19
 CONTENTS

Introduction ....................................................................................................... 21
Objectives........................................................................................................... 21
1. Control Charts ...................................................................................... 25
2. Gantt Chart ........................................................................................... 25
3. Critical Path Method ............................................................................ 27
3.1 Key Steps in Critical Path Method........................................... 28
3.2 Advantages of Critical Path Method ........................................ 29
3.3 Critical Path Analysis .............................................................. 30
3.4 Disadvantages of Critical Path Method ................................... 35
4. Program Evaluation and Review Technique........................................ 38
5. Process Capability Calculations ........................................................... 40
6. Planning Programming Budgeting System .......................................... 41
7. References ............................................................................................ 42

20
INTRODUCTION
Managerial activities have become complex and it is necessary to make right decisions to
avoid heavy losses. The resources have to be utilized to its maximum in an efficient
manner. There is a greater need for applying scientific methods in management to
increase the probability of coming up with good decisions. The successful use of
Quantitative Technique for management would help the organization in solving complex
problems on time, with greater accuracy and in the most economical way. Today, several
scientific management techniques are available to solve managerial problems and use of
these techniques helps managers become explicit about their objectives and provides
additional information to select an optimal decision. This unit is presented with variety of
these techniques.

OBJECTIVES
After studying this unit, you will be able to:
1. Discuss use of Gantt Chart and Critical Path Method in Management process.
2. Discuss the Significance of Management in Education
3. Elaborate Program Evaluation and Review Technique (PERT) as a tool of
Functions of Management
4. Explain the concept of Planning Programming Budgeting System (PPBS)

21
EDUCATIONAL MANAGEMENT AND ITS IMPORTANCE
Managing the formal process of imparting knowledge and skills, widely known as
education, is not an easy task. There are many factors to consider, as well is not an easy
task. There are many factors to consider, as well as opportunities to grab and threats to
look out for. As said, education is the formal process in which sets of knowledge and
skills are passed from instructors, teachers and professors to students. To expedite this
process, there is a need to manage all concerned affairs, including those not directly
related to teaching – education management. Education management deals with
administering all the affairs inside an academe. Usually, education managers are not
given teaching assignments, and if they were, their loads were minimal so as to have
them focus on the affairs of the school. Professors, instructors and other members of the
teaching faculty are usually made to focus on their task as passers of knowledge and
skills. The non-teaching affairs of the academe – including handling teaching salaries,
maintenance of school buildings, equipment and ground, as well as doing other
transactions – are left for education managers to mind. Education managers make the job
easier for the teaching staff by handling the school’s problems and affairs alike.

While teachers and professors worry about the intellectual well-being of their students,
education managers are in-charge of taking care of the over-all wellness of the students
and teachers alike. They do this by providing safe and suitable places for instructions,
procuring equipment necessary to speed up the learning process, and handling all
paperwork and finances needed. These tasks are not easy ones, since running schools is
totally different from running company. The main concern of education managers is to
make the lives easier for professors for the latter to concentrate on their teaching jobs.
Educational management is a complex thing to do but is a very rewarding task

Significance of Management
The principles of management are in the form of pre-determined solutions for repeatedly
occurring problems. They guide the manager. It is very important for every manager to
know them thoroughly. The importance of the principles of management becomes
abundantly clear from the following facts:

1. Provide Useful Insight to Managers:

The principles of management were developed on the basis of the experience of various
professional people. The principles make the manager aware about the manner in which
he should act in various situations so that he does not repeat the mistakes of the previous
managers. In this way, timely guidance reduces the wastage of resources and the
objectives can be achieved in a less expensive manner. For example, according to one
principle of management, i.e., division of work, a job is divided into many small units.
Every unit or part is assigned to different individuals. Each individual does the same
work repeatedly that has been assigned. He gets used to it which helps him to perform his
job efficiently and quickly. Consequently, the entire job is completed in an economical
manner.

22
2. Optimum Utilization of Resources and Effective Administration:
In every organization physical (material, machines, money, etc.) and human (manpower)
resources are used. The function of management is nothing but to put them to optimum
use or avoid wastage of resources. And it is possible only when a manager makes use of
the principles of management. According to the principle of ‘unity of command’ there
should only be one boss for an employee at a time. In case there is more than one boss,
the employee will not be in a position to work properly. Consequently, human resource
will be wasted. Therefore, if we desire to use the human resource favourably, this
principle has to be adopted. Similarly, many other principles ensure favourable utilisation
of various other resources.

The primary need of every organization is that its administrative system should be
effective. Only that administrative system is called effective where the managers can take
balanced and quick decisions. In order to take such decisions, sufficient information and
authority should be available. This is made possible with the help of the principles of
management. For example, the principle of ‘authority and responsibility’ advocates
granting of sufficient authority, while the principle of scalar chain advocates making
adequate provision for providing information.

3. Scientific Decisions:
A scientific decision means a balanced decision. The principles of management provide
the necessary training to the managers so that they can take scientific/balanced decisions.
In the absence of these principles the managers have to adopt the method of trial and
error.

According to this principle, one is expected to do a job in a particular manner and if there
is some error, some other method has to be adopted. In this way, the work is done in
different ways till the error is eliminated. This method is not proper.

Therefore, the managers are trained with the help of the principles of management which
makes them capable of taking scientific decisions. For example, the principle of
‘authority and responsibility’ tells us that if a subordinate is entrusted with some
responsibility, he should be allowed sufficient authority to accomplish it. Only in such a
situation a subordinate will be able to take a scientific decision whenever needed.

4. Meeting Changing Environmental Requirement:

In modern times only such a business unit can remain alive and develop which can keep
pace with the rapidly changing environment. In every field of business activity
(production, marketing, etc.) new techniques are emerging every day. Managers who can
understand the changing situation well in time can alone face competition successfully.
The principles of management enable the managers to face this challenge. For example,
the principle of ‘unity of direction’ tells us that all the activities connected with the
attainment of the same objective should be completed under the direction of the same
manager. In doing so a manager would be able to have the detailed information
connected with the limited activities being done under his direction. In case the activities

23
connected with different objectives are being done under the direction of one manager, he
will not be able to understand the changes being effected in any activity.

5. Fulfilling Social Responsibility:

The principles of management increase the efficiency of the managers and enable them to
fulfill their social responsibility. More efficient managers can make good quality products
at reasonable prices available all the times.

For example, the principle of ‘Fair Remuneration’ advocates appropriate remuneration to

the employees and helps in fulfilling responsibility towards them.

6. Management Training, Education and Research:

The advantages of the principles of management encourage the researchers to bring in
more improvement in them. The attitude of the managers has molded itself in such a
fashion that they are doing, consciously or unconsciously, something new.

It means that the managers have come to acquire an attitude tilted towards research and
development. This has helped the managerial knowledge to be more solid and scientific.
The principles of management are actually providing education and training to the
managers by enriching their theoretical and practical knowledge.

For example, in order to take advantage of the change of attitude among the managers,
various big companies have established Research and Development Departments in
HRD. Consequently, many new techniques have come to light in the field of marketing,
production, finance, etc.

The tools and techniques of management enable a manager to:

1. Link project goals and objectives to stakeholder needs.
2. Focus on customer needs.
3. Build high-performance project teams.
4. Work across functional boundaries.
5. Develop work breakdown structures.
6. Estimate project costs and schedules.
7. Meet time constraints.
8. Calculate risks.
9. Establish a dependable project control and monitoring system.

24
1. CONTROL CHART
The control chart is essentially a graphical device for representing the data obtained so as
to directly reveal the frequency and extent of variations from established standards.
Control charts are simple to construct and interpret. They inform the quality controller at
a glance when the process is out of control, or in a state i.e. within the tolerance limits
specified by the product engineer. Hence, it is regarded as a graphical means of analysis
which have proved easy to maintain.

The procedures in preparing a control chart by the industry are as follows:

1. To collect samples at regular intervals or after production
2. To compute an appropriate statistics of product under consideration such as its
range, sample mean etc.
3. To plot the statistics of the particular product on a chart as a function of sample
number of time to reflect the quality of the remaining products.
4. To calculate the control line, upper control limit and ower control limit.
5. To observe the change and conclude

A control chart is made up of three lines.

 Central line (CL) which indicates the standard of process.
 Upper Control Limit (UCL).
 Lower Control Limit (LCL). This chart is based on measure of quality
characteristic of products and can be express in a specific limit of measurement.
It is found to be a more economical means of controlling quality than chart based
on attributes significance changes in either the mean or standard derivation are an
indication of significant change in process. X - CHART UCL = X + A2R LCL =
X - A2R R – CHART Center Line (CL) = R Upper Control Limit (UCL) = RD4
Lower Control Limit (LCL) = RD3 RD3 is the mean of the ranges in the sample
process. A2, D4 and D3 are variables in the appropriate statistical (SQC) table.

2. GANTT CHART
Gantt charts are helpful for planning and guiding projects. They are most appropriate for
small- to medium-sized projects, but can be used for larger projects, such as capital
projects on occasion. They are ideal for most planning projects that a department or
college would be involved in. Gantt charts are particularly helpful ways of dealing with
scheduling tasks, understanding critical paths of a project, and planning of resources.
Two concepts are particularly important in terms of the use of Gantt charts, the concept
of sequential and parallel tasks.

Gantt charts are used to show calendar time task assignments in days, weeks or months.
The tool uses graphic representations to show start, elapsed, and completion times of
each task within a project. Gantt charts are ideal for tracking progress. The number of
days actually required to complete a task that reaches a milestone can be compared with

25
the planned or estimated number. The actual workdays, from actual start to actual finish,
are plotted below the scheduled days. This information helps target potential timeline
slippage or failure points. These charts serve as a valuable budgeting tool and can show
dollars allocated versus dollars spent

To draw up a Gantt chart, follow these steps:

1. List all activities in the plan. For each task, show the earliest start date, estimated
length of time it will take, and whether it is parallel or sequential. If tasks are
sequential, show which stages they depend on.
2. Head up graph paper with the days or weeks through completion.
3. Plot tasks onto graph paper. Show each task starting on the earliest possible date.
Draw it as a bar, with the length of the bar being the length of the task. Above the
task bars, mark the time taken to complete them.
4. Schedule activities. Schedule them in such a way that sequential actions are
carried out in the required sequence. Ensure that dependent activities do not start
until the activities they depend on have been completed. Where possible,
schedule parallel tasks so that they do not interfere with sequential actions on the
critical path. While scheduling, ensure that you make best use of the resources
you have available, and do not over-commit resources. Also, allow some slack
time in the schedule for holdups, overruns, failures, etc.
5. Presenting the analysis. In the final version of your Gantt chart, combine your
draft analysis (#3 above) with your scheduling and analysis of resources (#4
above). This chart will show when you anticipate that jobs should start and finish

Parallel tasks are those that can go on at the same time. Projects often take much longer
than necessary because people assume that one thing follows another. A simple example
would be the signatures on a form. If each individual is approving a project, do they need
to sign-off on the idea one after the other, or could multiple proposals be sent out at the
same time and each reviewer sign within the same time frame? However, using the same
example, there may be a reason for the approvals to come sequentially. It may be that the
dean does not want to give approval if the chair has not signed off first. Sequential tasks
must occur one after the other. Both sequential and parallel tasks are well represented in
Gantt charts.

26
Benefits of using a Gantt chart include:
1. Gives an easy to understand visual display of the scheduled time of a task or
activity.
2. Makes it easy to develop "what if" scenarios.
3. Enables better project control by promoting clearer communication.
4. Becomes a tool for negotiations.
5. Shows the actual progress against the planned schedule.
6. Can report results at appropriate levels.
7. Allows comparison of multiple projects to determine risk or resource allocation.
8. Rewards the project manager with more visibility and control over the project.

3. CRITICAL PATH METHOD

Critical path is the sequential activities from start to the end of a project. Although many
projects have only one critical path, some projects may have more than one critical paths
depending on the flow logic used in the project. If there is a delay in any of the activities
under the critical path, there will be a delay of the project deliverables. Most of the times,
if such delay is occurred, project acceleration or re-sequencing is done in order to achieve
the deadlines. Critical path method is based on mathematical calculations and it is used
for scheduling project activities. This method was first introduced in 1950s as a joint
venture between Remington Rand Corporation and DuPont Corporation.

The initial critical path method was used for managing plant maintenance projects.
Although the original method was developed for construction work, this method can be
used for any project where there are interdependent activities. In the critical path method,
the critical activities of a program or a project are identified. These are the activities that
have a direct impact on the completion date of the project.

27
3.1 Key Steps in Critical Path Method
Let’s have a look at how critical path method is used in practice. The process of using
critical path method in project planning phase has six steps.

Step 1: Activity specification: You can use the Work Breakdown Structure (WBS) to
identify the activities involved in the project. This is the main input for the critical path
method. In activity specification, only the higher-level activities are selected for critical
path method. When detailed activities are used, the critical path method may become too
complex to manage and maintain.

Step 2: Activity sequence establishment: In this step, the correct activity sequence is
established. For that, you need to ask three questions for each task of your list.
 Which tasks should take place before this task happens.
 Which tasks should be completed at the same time as this task.
 Which tasks should happen immediately after this task.

Step 3: Network diagram: Once the activity sequence is correctly identified, the
network diagram can be drawn (refer to the sample diagram above). Although the early
diagrams were drawn on paper, there are a number of computer softwares, such as
Primavera, for this purpose nowadays.

Step 4: Estimates for each activity: This could be a direct input from the WBS based
estimation sheet. Most of the companies use 3-point estimation method or COCOMO
based (function points based) estimation methods for tasks estimation. You can use such
estimation information for this step of the process.

Step 5: Identification of the critical path: For this, you need to determine four
parameters of each activity of the network.

28
 Earliest start time (ES) - The earliest time an activity can start once the previous
dependent activities are over.
 Earliest finish time (EF) - ES + activity duration.
 Latest finish time (LF) - The latest time an activity can finish without delaying
the project.
 Latest start time (LS) - LF - activity duration.

The float time for an activity is the time between the earliest (ES) and the latest (LS) start
time or between the earliest (EF) and latest (LF) finish times. During the float time, an
activity can be delayed without delaying the project finish date. The critical path is the
longest path of the network diagram. The activities in the critical path have an effect on
the deadline of the project. If an activity of this path is delayed, the project will be
delayed. In case if the project management needs to accelerate the project, the times for
critical path activities should be reduced.

Step 6: Critical path diagram to show project progresses

Critical path diagram is a live artefact. Therefore, this diagram should be updated with
actual values once the task is completed. This gives more realistic figure for the deadline
and the project management can know whether they are on track regarding the
deliverables.

3.2 Advantages of Critical Path Method

Following are advantages of critical path methods:
 Offers a visual representation of the project activities.
 Presents the time to complete the tasks and the overall project.
 Tracking of critical activities.

The critical path method (CPM) is a step-by-step project management technique for
process planning that defines critical and non-critical tasks with the goal of preventing
time-frame problems and process bottlenecks. The CPM is ideally suited to projects
consisting of numerous activities that interact in a complex manner.

In applying the CPM, there are several steps that can be summarized as follows:
 Define the required tasks and put them down in an ordered (sequenced) list.
 Create a flowchart or other diagram showing each task in relation to the others.
 Identify the critical and non-critical relationships (paths) among tasks.
 Determine the expected completion or execution time for each task.
 Locate or devise alternatives (backups) for the most critical paths.

The origin of CPM:

The CPM was developed in the 1950s by DuPont, and was first used in missile-defense
construction projects. Since that time, the CPM has been adapted to other fields including
hardware and software product research and development. Various computer programs
are available to help project managers use the CPM.

29
The Critical Path Method (CPM) can help you keep your projects on track.

Critical path schedules...

 Help you identify the activities that must be completed on time in order to
complete the whole project on time.
 Show you which tasks can be delayed and for how long without impacting the
overall project schedule.
 Calculate the minimum amount of time it will take to complete the project.
 Tell you the earliest and latest dates each activity can start on in order to maintain
the schedule.

The CPM has four key elements...

 Critical Path Analysis
 Float Determination
 Early Start & Early Finish Calculation
 Late Start & Late Finish Calculation

3.3 Critical Path Analysis

The critical path is the sequence of activities with the longest duration. A delay in any of
these activities will result in a delay for the whole project. Below are some critical path
examples to help you understand the key elements...

Using the Critical Path Method (CPM)

The duration of each activity is listed above each node in the diagram. For each path, add
the duration of each node to determine it’s total duration. The critical path is the one with
the longest duration.
There are three paths through this project...

30
Float Determination
Once you’ve identified the critical path for the project, you can determine the float for
each activity. Float is the amount of time an activity can slip before it causes your project
to be delayed. Float is sometimes referred to as slack. Figuring out the float using the
Critical Path Method is fairly easy. You will start with the activities on the critical path.
Each of those activities has a float of zero. If any of those activities slips, the project will
be delayed. Then you take the next longest path. Subtract it's duration from the duration
of the critical path. That's the float for each of the activities on that path. You will
continue doing the same for each subsequent longest path until each activities float has
been determined. If an activity is on two paths, it's float will be based on the longer path
that it belongs to.

Determining Float
Using the critical path diagram from the previous section, Activities 2, 3, and 4 are on the
critical path so they have a float of zero. The next longest path is Activities 1, 3, and 4.
Since Activities 3 and 4 are also on the critical path, their float will remain as zero. For
any remaining activities, in this case Activity 1, the float will be the duration of the
critical path minus the duration of this path. 14 - 12 = 2. So Activity 1 has a float of 2.
The next longest path is Activities 2 and 5. Activity 2 is on the critical path so it will have
a float of zero. Activity 5 has a float of 14 - 9, which is 5. So as long as Activity 5 doesn't
slip more than 5 days, it won't cause a delay to the project.

Early Start & Early Finish Calculation

The Critical Path Method includes a technique called the Forward Pass which is used to
determine the earliest date an activity can start and the earliest date it can finish. These
dates are valid as long as all prior activities in that path started on their earliest start date
and didn't slip.

Starting with the critical path, the Early Start (ES) of the first activity is one. The Early
Finish (EF) of an activity is its ES plus its duration minus one. Using our earlier
example, Activity 2 is the first activity on the critical path: ES = 1, EF = 1 + 5 -1 = 5.

31
Critical Path Schedules
You then move to the next activity in the path, in this case Activity 3. Its ES is the
previous activity's EF + 1. Activity 3 ES = 5 + 1 = 6. Its EF is calculated the same as
before: EF = 6 + 7 - 1 = 12. If an activity has more than one predecessor, to calculate its
ES you will use the activity with the latest EF.

Late Start & Late Finish Calculation

The Backward Pass is a Critical Path Method technique you can use to determine the
latest date an activity can start and the latest date it can finish before it delays the project.
You'll start once again with the critical path, but this time you will begin from the last
activity in the path. The Late Finish (LF) for the last activity in every path is the same as
the last activity's EF in the critical path. The Late Start (LS) is the LF - duration + 1.

In our example, Activity 4 is the last activity on the critical path. Its LF is the same as its
EF, which is 14. To calculate the LS, subtract its duration from its LF and add one. LS =
14 - 2 + 1 = 13. You then move on to the next activity in the path. Its LF is determined by
subtracting one from the previous activity's LS. In our example, the next Activity in the
critical path is Activity 3. Its LF is equal to Activity 4 LS - 1. Activity 3 LF = 13 -1 = 12.
It's LS is calculated the same as before by subtracting its duration from the LF and adding
one. Activity 3 LS = 12 - 7 + 1 = 6.

You will continue in this manner moving along each path filling in LF and LS for
activities that don't have it already filled in.

Advantages of Using the Critical Path Method

In the age where tools available to management are constantly changing and improving
the ability of CPM to still command respect among the project teams and managers is
testimony to the fact that this tools has proved very valuable and beneficial. Listed below
are some of the major reasons why CPM is still used in organizations today
1. CPM encourages managers and project members to graphically draw and identify
various activities that need to be accomplished for project completion. This step
encourages all members in the project team to evaluate and identify the

32
 requirements of the project in a critical and logical fashion. Activities that
precede and follow other activities also require their own evaluation and analysis.
This factor become very important if the activities are conducted at different
physical location and the time and cost element is also subjected to external
variables that have the potential to seriously impact the project time.
2. The network diagram also offers a prediction of the completion time of the
project and ca help in the planning and scheduling of the activities needed for the
completion of the project.
3. Identifying the critical path for the project is the next stage of the analysis of the
network diagram. In doing this, the management of the project has a reasonable
estimate of the potential problems that might occur and the activities at which
these problems might occur. In many cases the critical path also determines the
allocation of resources. The interpretation of the network diagram also ensures
that the same resource is not allocated for the same period of time.
4. CPM also encourages a disciplined and logical approach to planning, scheduling
and managing a project over a long period of time. Often, the root cause of many
project overruns is the failure to identify the factors that have the potential to
seriously impact the project. By forcing individuals in the project team to identify
activities, attention to details can be achieved. In turn, this helps a true and much
more accurate picture of the processes that need to be set up for the project and
the time and cost that is needed for every stage.
5. A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the
organization is also an important task to be undertaken at this point. In an
organization, SWOT analysis should be undertaken at the corporate level and at
the department level. Carrying out an analysis using the SWOT framework will
reveal changes that can be accomplished; as opposed to those changes that appear
to be optimal solutions initially but would not be as effective in the long run.
Being realistic when evaluating variables affecting the organization’s function
and its future is very important in order to make the SWOT analysis exercise
effective. Areas of improvements, problems faced, badly executed decisions and
avoidable choices made have to be evaluated. The opportunities and the areas
where the company can grow and improve should also be evaluated along with
real and perceived threats that face the company. Identifying methods for
creating an effective team performance across job-function strata in the
organization; and analyzing the methods for assigning responsibilities and duties
is important.
6. Optimization of the time-cost relationship in project management is also possible
using the CPM as managers can visually identify the activities that can pose a
problem if not managed and monitored effectively over a period of time. In many
situations the cost structures in organizations are still based on functional
structures, although project structured organization might have different form of
costing used for different projects. The task of identifying the accurate cost of the
project is not easy and is not universal to all projects or all companies.
Developing time-cost relationships for projects requires that project managers are

33
 able to identify root cause of the problems that are impacting the time and the
cost variable.
7. Based on the time-cost variables, the project can be tweaked to best satisfy the
goals and aims of the organization. For example, if a project team is able to
identify that they need more time if the project has to be within a certain budget
or vice versa this fact is clear right from the start of the project. While it is
presumptuous to aver that every factors affecting activities can be identified at
the initial stages, a large portion of the factors and variables can be understood
and the risks and uncertainties associated with each are known prior to starting of
the project.
8. Tracking the CPM is also helpful. Managers can identify areas where attention
needs to be focused. Critical paths do not remain static for the life of the project;
rather there is a very high chance that the CP might changes due to internal and
external factors affecting the organization. The 9/11 attacks, for example,
shutdown every major port. CP that estimated for example seven days for
delivery of raw material from out of the U.S. had to change their critical paths. In
some cases, the internal factors such as union issues and sudden equipment
failure might also impact the critical path.
9. Scheduling of activities is possible. The CPM identifies the entire chain of
activities. Often, during the initials stages of the project the number of activities
and the cost requirements might be high; but as the project progresses the
activities might sort themselves out into routine or critical. Project managers,
instead of tacking the entire issue, can focus their attention to groups of activities
that are immediate and have the ability to impact the next downstream activity.
10. The CPM also identifies slack and float time in the project. Thus, project
managers can identify when resources can be reallocated to different activities
and the shifting and moving of activities to best optimize the utilization of the
resources.
11. Critical paths are also updated periodically for any project and offer the project
manager and members a visual representation of the completion of various stages
of the project and easily identify problem areas where further attention might be
required.
12. In many large projects, there can be more than one critical path in the network
diagram mapped out. When such a situation arises, CPM can help managers
identify suitable plan of actions to handle these multiple critical paths.
13. CPM has been widely used by a variety of organizations in almost all industries
with great success. CMP can also help estimate the project duration and this
information can be used to minimized the sum of direct and indirect costs
involved in the project planning and scheduling
14. CPM offers organizations a form of documentation that they can reuse for similar
projects that they might undertake in the future. Documenting various activities
and the root causes of the problems can help future-project manager avoid similar
pitfalls. In addition, documentation can provide valuable data for estimation of
time requirements and cost factors, as opposed to managers using estimations and
guesses of the cost.

34
15. “Critical Path Analysis formally identifies tasks which must be completed on
time for the whole project to be completed on time, and also identifies which
tasks can be delayed for a while if resource needs to be reallocated to catch up on
missed tasks.” (MindTools, 2004) The CPM can identify the paths that can be
taken to accelerate a project to be completed prior to its due date or identify the
shortest possible time or the least possible cost that is needed to complete a task.
16. CPM methods are based on deterministic models and the estimation of time
activities are based on historical data maintained within the organization or data
obtained from external sources

3.4 Disadvantages of Critical Path Method

CPM has a number of advantages and it has been able to provide companies using it a
yardstick and a reasonable estimate of the time needed for the completion of the project.
The main disadvantages of the critical path method are listed below. Many disadvantages
are as a result of the technical and conceptual factors involved in the CP analysis (CPA)
process.

1. The CPA process can become complicated as the scope and extent of the project
increases. Too many interconnecting activities can result in the network diagram
becoming very complicated. The risk of making a mistake in calculation of the
critical chain becomes very high as the number of activities increase.
2. The CPA depends on the fundamental concept that the managers and personnel
involved in the project team are well versed with the various activities.
“Unfortunately, practical experience has shown that the principal assumption
underlying CPM techniques, i.e., the project team’s ability to reasonably predict
the scope, schedule, and cost of each project, is frequently far beyond control.”
(Knoke and Garza, 2003)
3. The task of understanding the needs of the critical path get more complicated
when there is more than one critical path in the project. In many situations, these
paths might be parallel and feed into a common node in the network diagram. It
becomes difficult in these situations to identify the best utilization of technology
and resources for the critical paths.
4. In many cases, as the project progresses, the critical paths might change and
evolve and past critical paths may no longer be valid and new CP have to be
identified for the project at regular intervals. This implies that the project
manager and project member have to constantly review the network diagram
initially created and identify the shifting and movement of the critical path over
time.
5. “The use of total float as a measure for assigning activities to their representative
paths can become problematic when analyzing as built schedules. CPM is unable
to calculate total float on an as built schedule in which estimated dates have been
replaced by actual dates.” (Peters, 2003)
6. As critical paths and floats change the scheduling of personnel also changes.
Reallocation of personnel is often very tricky as the individual might be working
on more than one project at a time and if the services of the individual are

35
 required on more than one critical path the identification and distribution of the
labor time can cause overloading of the personnel—creating a stressed out
worker.
7. Very often, critical paths are not easy to identify especially if the project is
unique and has never been undertaken by the organization in the past. The ability
to provide estimates of time and cost for every activity in a tradition CPM
process depends on historical data maintained by the company. In the absence of
this data, decision makers are forced to speculate and assume time and cost
requirements for the projects.
8. Traditionally, any good CPA requires that the process is understood and
evaluated using the forward and the backward pass to determine slack or float
times. In reality, however, the time constraints often result in decision makers
using only one method to find the time and cost requirements. As a safety,
however, these individuals often ‘crash’ the project during the planning stage and
determine the maximum cost that would be needed to complete a project. During
estimation, they use a midway cost value for the project thereby intentionally
hiking the cost of the project. This mentality can cost the often overestimation of
time and cost encourages the workers to postpone the start date of any activity on
the network diagram to the last possible start data. Any serious variances
consequently result in the slippage of the project completion date thereby
increasing the cost of the project as the project is then crashed from that point
onwards.
9. CPA and network diagrams are highly dependent of information technology and
computer software. The cost of set up of software systems in the organization can
have high initial cost. Maintaining the software also requires expertise and
monitoring that can quickly become very expensive if the organization does not
have in house capabilities for this task.
10. Planning and strategizing for the project based on the final expectation and the
internal culture and values of the organization is also very important.
11. Organizations are also becoming increasingly global and political. Social and
economical instability in one region of the world can seriously impact production
in another. If organizations depend on activities that span the globe the task of
coordinating the planning and scheduling of activities at various location can get
further complicated.
12. In order to improve profits, it is necessary for companies to streamline their
operations to maintain their position in a constantly evolving product market. To
do this, companies are forced to improve their manufacturing performance and
reduce the operations cost. Managers at every level are forced to evaluate their
processes from suppliers to the end user. A part of the analyses also extended
from the company’s supply chain and the individual suppliers. Companies are
going from a multitude of suppliers to a few trusted and reliable ones in an effort
to track quality and keep down costs. However, this process also is fraught with
perils if the supplier is unreliable and sudden unforeseeable factors impact the
activity time.

36
13. Although the CPM method is very valuable in the extent of details that it
provides, modifying the system constantly can be cumbersome especially if it
involves reallocation of resources and time.
14. In spite of the widespread use of CPM in organization the manner in which it is
used can differ significantly. Organizations that have a strong culture of timely
completion might be utilizing the methodology in a more appropriate manner
when compared to companies that use CPM only partially for planning and
scheduling.
15. Knowledge management of data is important. Defining knowledge is never easy.
Knowledge and information are different although they are often assumed to be
the same. There are important distinctions between data, information and
knowledge. Data are the raw facts collected by observation or monitoring. When
data are filtered out to identify trends and organized it converts to information
and when this information is used in the operation, planning and strategy it is
converted to knowledge. (Yahya and Goh, 2002) Information and knowledge get
transmitted through an organization through communication networks. CPM
depends on the efficiency of these networks.
16. Knowledge is defined as “information laden with experience, truth, judgment,
intuition and values; a unique combination that allows individuals and
organizations to assess new situations and manage change.” The main purpose of
any knowledge management strategy is to “reduce errors, create less work,
provides more independence in time and space for knowledge workers, generates
fewer questions, produces better decisions, reinvents fewer wheels, advances
customer relations, improves service, and develops profitability.” (Karlsen and
Gottschalk, 2004) In project environments, using this knowledge as and when
needed is critical.
17. In many recent cases, fear of litigation and delay claims based on the CPA used
by companies is also being observed. Lawyers are using experts to investigate the
CPA that were undertaken by contractors for projects and identifying the reasons
for project delays. (Schumacher, 1997) When penalties and fines are imposed for
late completion the CPM used by contractors can be subjected to scrutiny and
might be responsible for organizations loosing a case.
18. Sometimes projects use different calendars for the scheduling and planning and
this can cause more complications. “There are numerous types of calendars used
in construction projects. The following examples are most frequently found in
construction schedules. Construction projects typically run five-days-a-week (40-
hours/week) calendar. Besides, non-working Saturdays and Sundays, usually
holidays are also non-working days.” (Scavino, 2003) Some contractors however,
can also use the six-day calendar or a seven-day calendar as needed. Scheduling a
project using the combination of calendars can create confusion if the CPM if the
individual analyzing the CP is not careful about evaluating the type of calendar
used for the different activities in the network diagram. This issue gets only more
complicated if CP changes constantly.

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4. PROGRAM EVALUATION AND REVIEW TECHNIQUE
(PERT)
PERT is a planning and control tool used for defining and controlling the tasks necessary
to complete a project. PERT charts and Critical Path Method (CPM) charts are often used
interchangeably; the only difference is how task times are computed. Both charts display
the total project with all scheduled tasks shown in sequence. The displayed tasks show
which ones are in parallel, those tasks that can be performed at the same time. A graphic
representation called a “Project Network” or “CPM Diagram” is used to portray
graphically the interrelationships of the elements of a project and to show the order in
which the activities must be performed.

PERT planning involves the following steps:

1. Identify the specific activities and milestones. The activities are the tasks of the
project. The milestones are the events that mark the beginning and the end of one
or more activities.
2. Determine the proper sequence of activities. This step may be combined with #1
above since the activity sequence is evident for some tasks. Other tasks may
require some analysis to determine the exact order in which they should be
performed.
3. Construct a network diagram. Using the activity sequence information, a network
diagram can be drawn showing the sequence of the successive and parallel
activities. Arrowed lines represent the activities and circles or "bubbles"
represent milestones.
4. Estimate the time required for each activity. Weeks are a commonly used unit of time
for activity completion, but any consistent unit of time can be used. A distinguishing
feature of PERT is its ability to deal with uncertainty in activity completion times.
For each activity, the model usually includes three time estimates:
o Optimistic time - the shortest time in which the activity can be
completed.
o Most likely time - the completion time having the highest probability.
o Pessimistic time - the longest time that an activity may take.

From this, the expected time for each activity can be calculated using the
following weighted average:
Expected Time = (Optimistic + 4 x Most Likely + Pessimistic) / 6
This helps to bias time estimates away from the unrealistically short timescales
normally assumed.
5. Determine the critical path. The critical path is determined by adding the times
for the activities in each sequence and determining the longest path in the project.
The critical path determines the total calendar time required for the project. The
amount of time that a non-critical path activity can be delayed without delaying
the project is referred to as slack time.

38
 If the critical path is not immediately obvious, it may be helpful to determine the
following four times for each activity:
o ES - Earliest Start time
o EF - Earliest Finish time
o LS - Latest Start time
o LF - Latest Finish time
These times are calculated using the expected time for the relevant activities. The
earliest start and finish times of each activity are determined by working forward
through the network and determining the earliest time at which an activity can
start and finish considering its predecessor activities. The latest start and finish
times are the latest times that an activity can start and finish without delaying the
project. LS and LF are found by working backward through the network. The
difference in the latest and earliest finish of each activity is that activity's slack.
The critical path then is the path through the network in which none of the
activities have slack.
The variance in the project completion time can be calculated by summing the
variances in the completion times of the activities in the critical path. Given this
variance, one can calculate the probability that the project will be completed by a
certain date assuming a normal probability distribution for the critical path. The
normal distribution assumption holds if the number of activities in the path is
large enough for the central limit theorem to be applied.
6. Update the PERT chart as the project progresses. As the project unfolds, the
estimated times can be replaced with actual times. In cases where there are
delays, additional resources may be needed to stay on schedule and the PERT
chart may be modified to reflect the new situation. An example of a PERT chart
is provided below:

Benefits to using a PERT chart or the Critical Path Method include:

 Improved planning and scheduling of activities.
 Improved forecasting of resource requirements.
 Identification of repetitive planning patterns which can be followed in other
projects, thus simplifying the planning process.
 Ability to see and thus reschedule activities to reflect interproject dependencies
and resource limitations following know priority rules.
 It also provides the following: expected project completion time, probability of
completion before a specified date, the critical path activities that impact

39
 completion time, the activities that have slack time and that can lend resources to
critical path activities, and activity start and end dates.

5. PROCESS CAPABILITY CALCULATIONS

What is Process Capability?
Process capability is the long-term performance level of the process after it has been
brought under statistical control. In other words, process capability is the range over
which the natural variation of the process occurs as determined by the system of common
causes.

Process capability is also the ability of the combination of people, machine, methods,
material, and measurements to produce a product that will consistently meet the design
requirements or customer expectation.

Process capability study is a method of combining the statistical tools developed from the
normal curve and control charts with good engineering judgment to interpret and analyze
the data representing a process. The purpose of the process capability study is to
determine the variation spread and to find the effect of time on both the average and the
spread. The administration, analysis and use of the process capability study should be an
integral part of the quality engineering function. The results could be used for new design
applications, inspection planning and evaluation techniques.

Process capability means ability of the process to meet technological or other

requirements, i.e. to fulfill demands put on it. Measurement process capability is
determined by total variation caused by random reasons influencing the process.
Variation is caused by variability of the measured quantity values that are not connected
to the measurement conditions and must be excluded. Therefore it is recommended to
perform preventive measurements. In those texts check standards are measured by the
measuring equipment being tested. Variability of the measured data (caused by the
measurement process) as well as the systematic deviation from the required values is
observed during evaluation of the measurement process capability. Both such efforts are
determined by the technological development of the measuring instruments. Due to the
technical innovations (incorporating electronics enabling predictive diagnostics, auto
calibration, automatic correction of the output signal according to the status of the
measuring instrument) variability of the measurement process is decreasing and the effort
for its centering improve capability of the measuring instruments. Economical savings
represent the direct impact – possibility for better setting of the production process,
decreasing of the number of nonconforming products and resulting the increased
production efficiency.

The process capability is a measurable property of a process to the specification,

expressed as a process capability index (e.g. (Cpk or Cp) or as a process performance
index (e.g. (Ppk or Pp). The output of this measurement is usually illustrated by a
histogram and calculations that predict how many parts will be produced out of

40
specification (005). A capable process meets customer requirements 100% of the time.
Customer requirements are defined using an upper specification limit (USL) and a lower
specification limit (LSL). Process capability is measured by two primary capability
indices:
 Cp is the capability index. It measures how well the data fits between the upper
and lower specification limits.
 Cpk is the centering capability index. It measures how well the data is centered
between the specification limits.

The higher the value, the more centered the data index and estimate equation. Index
Symbol Meaning Estimate equation

Process Capability Rules of Thumb:

1. If Cp >1 process is capable (product will fit between the customer’s upper and
lower specification limit if the process is centered).
2. If Cpk >1 process is capable and centered between the LSL and USL.
3. If Cp = Cpk the process is centered at the mid-point of the specification limits.
4. If Cp >Cpk the process is off-center.
5. If Cpk = 1 the process is barely capable.
6. If Cpk <1 the process is not capable.
7. Pp is the performance index. Like Cp it measures how well your data fits within
the USL and LSL. It uses standard deviation in the calculation instead of sigma
estimator.
8. Ppk is the performance centering index. Like Cpk it measures how well your data
is centered between the USL and LSL. It uses standard deviation in the
calculation instead of sigma estimator.
9. Cp and Cpk should be close in value to Pp and Ppk.
10. If Cp and Cpk are much greater than Pp or Ppk, the process may not be stable.

6. PLANNING PROGRAMMING BUDGETING SYSTEM

Planning-Programming-Budgeting System (PPBS), a management tool to provide a better
analytical basis for decision making and for putting such decisions into operation. A
PPBS is constituted, basically, of five elements:
1. A program structure — a classification of the courses of action open to an
organization for attaining its objectives;
2. An approved program document that includes precise, quantitative data on needs,
resource inputs, and program outputs extending a number of years into the future;
3. A decision making process that establishes the functions, rules, and timetables
for the actions required by the PPBS;
4. An analysis process for measuring effectiveness and for weighing alternatives;
and
5. An information system that supplies the data required to implement the system.

41
This approach, elaborated by the RAND Corporation, USA in the middle of 60s
attempted to integrate in one system the elements of planning, programming and
budgeting all together and was called “planning‐programming‐budgeting system”
(PPBS). The abbreviation PPBS stands for the following three phases of this procedure:
a) Planning is what may be called strategy in the sense that at this point the concern
is to define, using prospective studies, the set of long term objectives for which
various services will be responsible.
b) Programming consists of defining the administrative steps and for organizing the
necessary logistics for carrying out the set of actions in order to reach the
selected objectives. In this phase, the resources in terms of human resources,
capital (investment) and research are determined for the duration period covered.
The programmes are laid out through a work plan that is, however, of only
indicative value.
c) Budgeting is the phase when the annual parts of the programme are translated
into annual budget, taking into account the financial constraints. The idea is to
adopt on a voluntary and progressive basis, within the administration, a coherent
way of preparing, implementing, and controlling decisions made at each level of
responsibility. In brief, the PPBS method is to set certain major objectives, to
define programmes essential to these goals, to identify resources to the specific
types of objectives and to systematically analyse the alternatives available.

Self Assessment Questions

Q.1 Discuss use of Gantt Chart and Critical Path Method in management process.
Q.2 Discuss the Significance of Management in Education.
Q.3 Elaborate Program Evaluation and Review Technique (PERT) as a tool of
Functions of Management.
Q.4 Explain the concept of Planning Programming Budgeting System (PPBS).

REFERENCES
 http://www.bain.com/Images/MANAGEMENT_TOOLS_2013_An_Executives_
guide.pdf

 https://www.itc.nl/library/papers_2003/tech_rep/groenendijk.pdf

 http://www.umsl.edu/~sauterv/analysis/488_f02_papers/ProjMgmt.html

 http://www.acornlive.com/demos/pdf/E2_EM_Chapter_7.pdf

 http://gbatech.org/article/change-management/projects/094.pdf

42
UNIT-3

STRATEGIC AND
OPERATIONAL MANAGEMENT

Written by: Dr. Azhar Mumtaz Saadi

Reviewed by: Dr. Afshan Huma
43
 CONTENTS

Introduction ....................................................................................................... 45
Objectives........................................................................................................... 45
1. Strategic Management Process ............................................................ 46
1.1 Strategic Management Process ................................................ 47
1.2 Steps in Strategy Formulation Process .................................... 49
1.3 Strategy Implementation .......................................................... 50
1.4 Strategy Evaluation .................................................................. 52
2. Strategic Decision Making ................................................................... 53
2.1 SWOT Analysis ....................................................................... 55
3. Operational Management Techniques ................................................. 58
4. Operational Decision Making .............................................................. 65
5. References ............................................................................................ 76

44
INTRODUCTION
Strategic management is one of the key tools available for managers of organizations to
establish the organizational management systems. This unit will look at the key elements
of strategic management to improve the students’ understanding of strategic management
by placing a major emphasis on strategic decision-making in a changing environment.
The volatile environment is the circumstance hindering the development of long-term
plans and forecasts, and complicating the planning and management processes by
introducing a great degree of uncertainty therein. Therefore, this teaching material is
based, to a large extent, on the strategic management process of an organization in a
changing environment. The learning approach is based on self study, workshops and
independent studies of strategic management. The material is aimed at improving the
students’ understanding of the idea and principles of strategic management, operational
management and decision making in both contexts.

OBJECTIVES
After reading this unit, you will be able to:
1. Understand the concept of strategic management and operational management
2. Manage an organization on the basis f process of strategic management
3. Make better decisions for the development of your organization

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1. STRATEGIC MANAGEMENT
Strategic Management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage for
their organization. An organization is said to have competitive advantage if its
profitability is higher than the average profitability for all companies in its industry.

Strategic management can also be defined as a bundle of decisions and acts which a
manager undertakes and which decides the result of the firm’s performance. The manager
must have a thorough knowledge and analysis of the general and competitive
organizational environment so as to take right decisions. They should conduct a SWOT
Analysis (Strengths, Weaknesses, Opportunities, and Threats), i.e., they should make best
possible utilization of strengths, minimize the organizational weaknesses, make use of
arising opportunities from the business environment and shouldn’t ignore the threats.

Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the
smallest organization face competition and, by formulating and implementing appropriate
strategies, they can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them. It
deals with making and implementing decisions about future direction of an organization.
It helps us to identify the direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business
and the industries in which an organization is involved; evaluates its competitors and sets
goals and strategies to meet all existing and potential competitors; and then reevaluates
strategies on a regular basis to determine how it has been implemented and whether it
was successful or does it needs replacement.

Strategic Management gives a broader perspective to the employees of an organization

and they can better understand how their job fits into the entire organizational plan and
how it is co-related to other organizational members.

It is nothing but the art of managing employees in a manner which maximizes the ability
of achieving business objectives. The employees become more trustworthy, more
committed and more satisfied as they can co-relate themselves very well with each
organizational task. They can understand the reaction of environmental changes on the
organization and the probable response of the organization with the help of strategic
management. Thus the employees can judge the impact of such changes on their own job
and can effectively face the changes. The managers and employees must do appropriate
things in appropriate manner. They need to be both effective as well as efficient.

One of the major role of strategic management is to incorporate various functional areas
of the organization completely, as well as, to ensure these functional areas harmonize and

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get together well. Another role of strategic management is to keep a continuous eye on
the goals and objectives of the organization.

Following are the important concepts of Strategic Management:

 Strategy - Definition and Features
 Components of a Strategy Statement
 Strategic Management Process
 Environmental Scanning
 Strategy Formulation
 Strategy Implementation
 Strategy Formulation vs Implementation
 Strategy Evaluation
 Strategic Decisions
 Business Policy
 BCG Matrix
 SWOT Analysis
 Competitor Analysis
 Porter’s Five Forces Model
 Strategic Leadership
 Corporate Governance
 Business Ethics
 Core Competencies

1.1 Strategic Management Process-Meaning, Steps and Components

The strategic management process means defining the organization’s strategy. It is also
defined as the process by which managers make a choice of a set of strategies for the
organization that will enable it to achieve better performance.

Strategic management is a continuous process that appraises the business and industries
in which the organization is involved; appraises its competitors; and fixes goals to meet
all the present and future competitor’s and then reassesses each strategy.

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of
collecting, scrutinizing and providing information for strategic purposes. It helps
in analyzing the internal and external factors influencing an organization. After
executing the environmental analysis process, management should evaluate it on
a continuous basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best
course of action for accomplishing organizational objectives and hence achieving
organizational purpose. After conducting environment scanning, managers
formulate corporate, business and functional strategies.
3. Strategy Implementation- Strategy implementation implies making the strategy
work as intended or putting the organization’s chosen strategy into action.

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 Strategy implementation includes designing the organization’s structure,
distributing resources, developing decision making process, and managing
human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are: appraising
internal and external factors that are the root of present strategies, measuring
performance, and taking remedial / corrective actions. Evaluation makes sure that
the organizational strategy as well as its implementation meets the organizational
objectives.

These components are steps that are carried, in chronological order, when creating a new
strategic management plan. Present businesses that have already created a strategic
management plan will revert to these steps as per the situation’s requirement, so as to
make essential changes.

Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized that each
component interacts with the other components and that this interaction often happens in
chorus.

Environmental Scanning - Internal & External Analysis of Environment

Organizational environment consists of both external and internal factors. Environment
must be scanned so as to determine development and forecasts of factors that will
influence organizational success. Environmental scanning refers to possession and
utilization of information about occasions, patterns, trends, and relationships within
an organization’s internal and external environment. It helps the managers to decide
the future path of the organization. Scanning must identify the threats and opportunities
existing in the environment. While strategy formulation, an organization must take
advantage of the opportunities and minimize the threats. A threat for one organization
may be an opportunity for another.

Internal analysis of the environment is the first step of environment scanning.

Organizations should observe the internal organizational environment. This includes
employee interaction with other employees, employee interaction with management,
manager interaction with other managers, and management interaction with shareholders,
access to natural resources, brand awareness, organizational structure, main staff,
operational potential, etc. Also, discussions, interviews, and surveys can be used to assess

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the internal environment. Analysis of internal environment helps in identifying strengths
and weaknesses of an organization.

As business becomes more competitive, and there are rapid changes in the external
environment, information from external environment adds crucial elements to the
effectiveness of long-term plans. As environment is dynamic, it becomes essential to
identify competitors’ moves and actions. Organizations have also to update the core
competencies and internal environment as per external environment. Environmental
factors are infinite, hence, organization should be agile and vigile to accept and adjust to
the environmental changes. For instance - Monitoring might indicate that an original
forecast of the prices of the raw materials that are involved in the product are no more
credible, which could imply the requirement for more focused scanning, forecasting and
analysis to create a more trustworthy prediction about the input costs. In a similar
manner, there can be changes in factors such as competitor’s activities, technology,
market tastes and preferences.

While in external analysis, three correlated environment should be studied and analyzed:
 Immediate / industry environment
 National environment
 Broader socio-economic environment / macro-environment

Examining the industry environment needs an appraisal of the competitive structure of

the organization’s industry, including the competitive position of a particular
organization and its main rivals. Also, an assessment of the nature, stage, dynamics and
history of the industry is essential. It also implies evaluating the effect of globalization on
competition within the industry. Analyzing the national environment needs an appraisal
of whether the national framework helps in achieving competitive advantage in the
globalized environment. Analysis of macro-environment includes exploring macro-
economic, social, government, legal, technological and international factors that may
influence the environment. The analysis of organization’s external environment reveals
opportunities and threats for an organization.

Strategic managers must not only recognize the present state of the environment and their
industry but also be able to predict its future positions.

1.2 Steps in Strategy Formulation Process

Strategy formulation refers to the process of choosing the most appropriate course of
action for the realization of organizational goals and objectives and thereby achieving the
organizational vision. The process of strategy formulation basically involves six main
steps. Though these steps do not follow a rigid chronological order, however they are
very rational and can be easily followed in this order.

1. Setting Organizations’ objectives - The key component of any strategy

statement is to set the long-term objectives of the organization. It is known that
strategy is generally a medium for realization of organizational objectives.

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 Objectives stress the state of being there whereas Strategy stresses upon the
process of reaching there. Strategy includes both the fixation of objectives as
well the medium to be used to realize those objectives. Thus, strategy is a wider
term which believes in the manner of deployment of resources so as to achieve
the objectives.
While fixing the organizational objectives, it is essential that the factors which
influence the selection of objectives must be analyzed before the selection of
objectives. Once the objectives and the factors influencing strategic decisions
have been determined, it is easy to take strategic decisions.
2. Evaluating the Organizational Environment - The next step is to evaluate the
general economic and industrial environment in which the organization operates.
This includes a review of the organizations competitive position. It is essential to
conduct a qualitative and quantitative review of an organizations existing product
line. The purpose of such a review is to make sure that the factors important for
competitive success in the market can be discovered so that the management can
identify their own strengths and weaknesses as well as their competitors’
strengths and weaknesses.
After identifying its strengths and weaknesses, an organization must keep a track
of competitors’ moves and actions so as to discover probable opportunities of
threats to its market or supply sources.
3. Setting Quantitative Targets - In this step, an organization must practically fix
the quantitative target values for some of the organizational objectives. The idea
behind this is to compare with long term customers, so as to evaluate the
contribution that might be made by various product zones or operating
departments.
4. Aiming in context with the divisional plans - In this step, the contributions
made by each department or division or product category within the organization
is identified and accordingly strategic planning is done for each sub-unit. This
requires a careful analysis of macroeconomic trends.
5. Performance Analysis - Performance analysis includes discovering and
analyzing the gap between the planned or desired performance. A critical
evaluation of the organizations past performance, present condition and the
desired future conditions must be done by the organization. This critical
evaluation identifies the degree of gap that persists between the actual reality and
the long-term aspirations of the organization. An attempt is made by the
organization to estimate its probable future condition if the current trends persist.
6. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best
course of action is actually chosen after considering organizational goals,
organizational strengths, potential and limitations as well as the external
opportunities.

1.3 Strategy Implementation

Strategy implementation is the translation of chosen strategy into organizational
action so as to achieve strategic goals and objectives. Strategy implementation is also
defined as the manner in which an organization should develop, utilize, and amalgamate

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organizational structure, control systems, and culture to follow strategies that lead to
competitive advantage and a better performance. Organizational structure allocates
special value developing tasks and roles to the employees and states how these tasks and
roles can be correlated so as maximize efficiency, quality, and customer satisfaction-the
pillars of competitive advantage. But, organizational structure is not sufficient in itself to
motivate the employees.

An organizational control system is also required. This control system equips managers
with motivational incentives for employees as well as feedback on employees and
organizational performance. Organizational culture refers to the specialized collection of
values, attitudes, norms and beliefs shared by organizational members and groups.

Following are the main steps in implementing a strategy:

 Developing an organization having potential of carrying out strategy
successfully.
 Disbursement of abundant resources to strategy-essential activities.
 Creating strategy-encouraging policies.
 Employing best policies and programs for constant improvement.
 Linking reward structure to accomplishment of results.
 Making use of strategic leadership.

Excellently formulated strategies will fail if they are not properly implemented. Also, it is
essential to note that strategy implementation is not possible unless there is stability
between strategy and each organizational dimension such as organizational structure,
reward structure, resource-allocation process, etc.

Strategy implementation poses a threat to many managers and employees in an

organization. New power relationships are predicted and achieved. New groups (formal
as well as informal) are formed whose values, attitudes, beliefs and concerns may not be
known. With the change in power and status roles, the managers and employees may
employ confrontation behaviour.

Strategy Formulation vs Strategy Implementation

Following are the main differences between Strategy Formulation and Strategy
Implementation:

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and decision- Strategy Implementation involves all those means related
making involved in developing organization’s strategic to executing the strategic plans.
goals and plans.
In short, Strategy Formulation is placing the Forces In short, Strategy Implementation is managing forces
before the action. during the action.
Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly an Administrative
Activity based on strategic decision-making. Task based on strategic and operational decisions.

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Strategy Formulation emphasizes on effectiveness. Strategy Implementation emphasizes on efficiency.
Strategy Formulation is a rational process. Strategy Implementation is basically an operational
process.
Strategy Formulation requires co-ordination among few Strategy Implementation requires co-ordination among
individuals. many individuals.
Strategy Formulation requires a great deal of initiative Strategy Implementation requires specific motivational
and logical skills. and leadership traits.
Strategic Formulation precedes Strategy Implementation. Strategy Implementation follows Strategy Formulation.

1.4 Strategy Evaluation-Process and its Significance

Strategy Evaluation is as significant as strategy formulation because it throws light on the
efficiency and effectiveness of the comprehensive plans in achieving the desired results.
The managers can also assess the appropriateness of the current strategy in todays
dynamic world with socio-economic, political and technological innovations. Strategic
Evaluation is the final phase of strategic management.

The significance of strategy evaluation lies in its capacity to co-ordinate the task
performed by managers, groups, departments etc, through control of performance.
Strategic Evaluation is significant because of various factors such as - developing inputs
for new strategic planning, the urge for feedback, appraisal and reward, development of
the strategic management process, judging the validity of strategic choice etc.

The process of Strategy Evaluation consists of following steps:

1. Fixing benchmark of performance - While fixing the benchmark, strategists
encounter questions such as – what benchmarks to set, how to set them and how
to express them. In order to determine the benchmark performance to be set, it is
essential to discover the special requirements for performing the main task. The
performance indicator that best identify and express the special requirements
might then be determined to be used for evaluation. The organization can use
both quantitative and qualitative criteria for comprehensive assessment of
performance. Quantitative criteria includes determination of net profit, ROI,
earning per share, cost of production, rate of employee turnover etc. Among the
Qualitative factors are subjective evaluation of factors such as - skills and
competencies, risk taking potential, flexibility etc.
2. Measurement of performance - The standard performance is a bench mark with
which the actual performance is to be compared. The reporting and
communication system help in measuring the performance. If appropriate means
are available for measuring the performance and if the standards are set in the
right manner, strategy evaluation becomes easier. But various factors such as
managers contribution are difficult to measure. Similarly divisional performance
is sometimes difficult to measure as compared to individual performance. Thus,
variable objectives must be created against which measurement of performance
can be done. The measurement must be done at right time else evaluation will not

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 meet its purpose. For measuring the performance, financial statements like -
balance sheet, profit and loss account must be prepared on an annual basis.
3. Analyzing Variance - While measuring the actual performance and comparing it
with standard performance there may be variances which must be analyzed. The
strategists must mention the degree of tolerance limits between which the
variance between actual and standard performance may be accepted. The positive
deviation indicates a better performance but it is quite unusual exceeding the
target always. The negative deviation is an issue of concern because it indicates a
shortfall in performance. Thus in this case the strategists must discover the
causes of deviation and must take corrective action to overcome it.
4. Taking Corrective Action - Once the deviation in performance is identified, it is
essential to plan for a corrective action. If the performance is consistently less
than the desired performance, the strategists must carry a detailed analysis of the
factors responsible for such performance. If the strategists discover that the
organizational potential does not match with the performance requirements, then
the standards must be lowered. Another rare and drastic corrective action is
reformulating the strategy which requires going back to the process of strategic
management, reframing of plans according to new resource allocation trend and
consequent means going to the beginning point of strategic management process.

2. STRATEGIC DECISION MAKING

Strategic decisions are the decisions that are concerned with whole environment in which
the firm operates the entire resources and the people who form the company and the
interface between the two.

Characteristics/Features of Strategic Decisions

a. Strategic decisions have major resource propositions for an organization. These
decisions may be concerned with possessing new resources, organizing others or
reallocating others.
b. Strategic decisions deal with harmonizing organizational resource capabilities
with the threats and opportunities.
c. Strategic decisions deal with the range of organizational activities. It is all about
what they want the organization to be like and to be about.
d. Strategic decisions involve a change of major kind since an organization operates
in ever-changing environment.
e. Strategic decisions are complex in nature.
f. Strategic decisions are at the top most level, are uncertain as they deal with the
future, and involve a lot of risk.
g. Strategic decisions are different from administrative and operational decisions.
Administrative decisions are routine decisions which help or rather facilitate
strategic decisions or operational decisions. Operational decisions are technical
decisions which help execution of strategic decisions. To reduce cost is a
strategic decision which is achieved through operational decision of reducing the

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 number of employees and how we carry out these reductions will be
administrative decision.

The differences between Strategic, Administrative and Operational decisions can be

summarized as follows:

Strategic Decisions Administrative Decisions Operational Decisions

Strategic decisions are long-term Administrative decisions are taken daily. Operational decisions are not
decisions. frequently taken.

These are considered where The These are short-term based Decisions. These are medium-period
future planning is concerned. based decisions.

Strategic decisions are taken in These are taken according to strategic These are taken in accordance
Accordance with organizational and operational Decisions. with strategic and
mission and vision. administrative decision.

These are related to overall Counter These are related to working of These are related to
planning of all Organization. employees in an Organization. production.

These deal with organizational These are in welfare of employees These are related to production
Growth. working in an organization. and factory growth.

Benefits of Strategic Management

There are many benefits of strategic management and they include identification,
prioritization, and exploration of opportunities. For instance, newer products, newer
markets, and newer forays into business lines are only possible if firms indulge in
strategic planning. Next, strategic management allows firms to take an objective view of
the activities being done by it and do a cost benefit analysis as to whether the firm is
profitable.

Just to differentiate, by this, we do not mean the financial benefits alone (which would be
discussed below) but also the assessment of profitability that has to do with evaluating
whether the business is strategically aligned to its goals and priorities.

The key point to be noted here is that strategic management allows a firm to orient itself
to its market and consumers and ensure that it is actualizing the right strategy.

Financial Benefits
It has been shown in many studies that firms that engage in strategic management are
more profitable and successful than those that do not have the benefit of strategic
planning and strategic management.

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When firms engage in forward looking planning and careful evaluation of their priorities,
they have control over the future, which is necessary in the fast changing business
landscape of the 21st century.

It has been estimated that more than 100,000 businesses fail in the US every year and
most of these failures are to do with a lack of strategic focus and strategic direction.
Further, high performing firms tend to make more informed decisions because they have
considered both the short term and long-term consequences and hence, have oriented
their strategies accordingly. In contrast, firms that do not engage themselves in
meaningful strategic planning are often bogged down by internal problems and lack of
focus that leads to failure.

Non-Financial Benefits
The section above discussed some of the tangible benefits of strategic management.
Apart from these benefits, firms that engage in strategic management are more aware of
the external threats, an improved understanding of competitor strengths and weaknesses
and increased employee productivity. They also have lesser resistance to change and a
clear understanding of the link between performance and rewards.

The key aspect of strategic management is that the problem solving and problem
preventing capabilities of the firms are enhanced through strategic management. Strategic
management is essential as it helps firms to rationalize change and actualize change and
communicate the need to change better to its employees. Finally, strategic management
helps in bringing order and discipline to the activities of the firm in its both internal
processes and external activities.

Closing Thoughts
In recent years, virtually all firms have realized the importance of strategic management.
However, the key difference between those who succeed and those who fail is that the
way in which strategic management is done and strategic planning is carried out makes
the difference between success and failure. Of course, there are still firms that do not
engage in strategic planning or where the planners do not receive the support from
management. These firms ought to realize the benefits of strategic management and
ensure their longer-term viability and success in the marketplace.

2.1 SWOT Analysis - Definition, Advantages and Limitations

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By
definition, Strengths (S) and Weaknesses (W) are considered to be internal factors over which
you have some measure of control. Also, by definition, Opportunities (O) and Threats (T) are
considered to be external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies that
will create a firm specific business model that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm operates.

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In other words, it is the foundation for evaluating the internal potential and limitations
and the probable/likely opportunities and threats from the external environment. It views
all positive and negative factors inside and outside the firm that affect the success. A
consistent study of the environment in which the firm operates helps in
forecasting/predicting the changing trends and also helps in including them in the
decision-making process of the organization.

An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is

given below:

1. Strengths - Strengths are the qualities that enable us to accomplish the

organization’s mission. These are the basis on which continued success can be
made and continued/sustained.
Strengths can be either tangible or intangible. These are what you are well-versed
in or what you have expertise in, the traits and qualities your employees possess
(individually and as a team) and the distinct features that give your organization
its consistency.
Strengths are the beneficial aspects of the organization or the capabilities of an
organization, which includes human competencies, process capabilities, financial
resources, products and services, customer goodwill and brand loyalty. Examples
of organizational strengths are huge financial resources, broad product line, no
debt, committed employees, etc.
2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing
our mission and achieving our full potential. These weaknesses deteriorate
influences on the organizational success and growth. Weaknesses are the factors
which do not meet the standards we feel they should meet.
Weaknesses in an organization may be depreciating machinery, insufficient
research and development facilities, narrow product range, poor decision-
making, etc. Weaknesses are controllable. They must be minimized and
eliminated. For instance - to overcome obsolete machinery, new machinery can
be purchased. Other examples of organizational weaknesses are huge debts, high
employee turnover, complex decision making process, narrow product range,
large wastage of raw materials, etc.
3. Opportunities - Opportunities are presented by the environment within which
our organization operates. These arise when an organization can take benefit of
conditions in its environment to plan and execute strategies that enable it to
become more profitable. Organizations can gain competitive advantage by
making use of opportunities.
Organization should be careful and recognize the opportunities and grasp them
whenever they arise. Selecting the targets that will best serve the clients while
getting desired results is a difficult task. Opportunities may arise from market,
competition, industry/government and technology. Increasing demand for
telecommunications accompanied by deregulation is a great opportunity for new
firms to enter telecom sector and compete with existing firms for revenue.

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4. Threats - Threats arise when conditions in external environment jeopardize the
reliability and profitability of the organization’s business. They compound the
vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a
threat comes, the stability and survival can be at stake. Examples of threats are -
unrest among employees; ever changing technology; increasing competition leading
to excess capacity, price wars and reducing industry profits; etc.

Advantages of SWOT Analysis

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. They also keep a watch on their overall business
environment and recognize and exploit new opportunities faster than its competitors.

SWOT Analysis helps in strategic planning in following manner-

a. It is a source of information for strategic planning.
b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data,
future plans can be chalked out.

SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.

SWOT ANALYSIS FRAMEWORK

Limitations of SWOT Analysis

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SWOT Analysis is not free from its limitations. It may cause organizations to view
circumstances as very simple because of which the organizations might overlook certain
key strategic contact which may occur. Moreover, categorizing aspects as strengths,
weaknesses, opportunities and threats might be very subjective as there is great degree of
uncertainty in market. SWOT Analysis does stress upon the significance of these four
aspects, but it does not tell how an organization can identify these aspects for itself.

There are certain limitations of SWOT Analysis which are not in control of management.
These include:
a. Price increase;
b. Inputs/raw materials;
c. Government legislation;
d. Economic environment;
e. Searching a new market for the product which is not having overseas market due
to import restrictions; etc.

Internal limitations may include-

a. Insufficient research and development facilities;
b. Faulty products due to poor quality control;
c. Poor industrial relations;
d. Lack of skilled and efficient labour; etc

3. OPERATIONS MANAGEMENT TECHNIQUES

Operation is that part of as organization, which is concerned with the transformation of a
range of inputs into the required output (services) having the requisite quality level.
Management is the process, which combines and transforms various resources used in the
operations subsystem of the organization into value added services in a controlled manner
as per the policies of the organization.

The set of interrelated management activities, which are involved in manufacturing

certain products, is called as production management. If the same concept is extended
to services management, then the corresponding set of management activities is called as
operations management.

Historical Development
For over two centuries operations and production management has been recognized as an
important factor in a country’s economic growth.

The traditional view of manufacturing management began in eighteenth century when

Adam Smith recognised the economic benefits of specialization of labour. He
recommended breaking of jobs down into subtasks and recognises workers to specialized
tasks in which they would become highly skilled and efficient. In the early twentieth
century, F.W. Taylor implemented Smith’s theories and developed scientific
management. From then till 1930, many techniques were developed prevailing the

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traditional view. Brief information about the contributions to manufacturing management
is shown below.

Production Management becomes the acceptable term from 1930s to 1950s. As F.W.
Taylor’s works become more widely known, managers developed techniques that
focused on economic efficiency in manufacturing. Workers were studied in great detail to
eliminate wasteful efforts and achieve greater efficiency. At the same time, psychologists,
socialists and other social scientists began to study people and human behaviour in the
working environment. In addition, economists, mathematicians, and computer socialists
contributed newer, more sophisticated analytical approaches.

With the 1970s emerge two distinct changes in our views. The most obvious of these,
reflected in the new name Operations Management was a shift in the service and
manufacturing sectors of the economy. As service sector became more prominent, the
change from ‘production’ to ‘operations’ emphasized the broadening of our field to
service organizations. The second, more suitable change was the beginning of an
emphasis on synthesis, rather than just analysis, in management practices.

Table: Historical Summary of Operations Management

Date Contribution Contributor

1776 Specialization of labour in manufacturing Adam smith
1799 Interchangeable parts, cost accounting Eli Whitney & others
1832 Division of labour by skill; assignment of jobs by Skill; basics of time Charles Babbage
study
1900 Scientific management time study and work study Developed; Frederick W. Taylor
dividing planning and doing of work
1900 Motion of study of jobs Frank B. Gilbreth
1901 Scheduling techniques for employees, machines Jobs in Henry L. Gantt
manufacturing
1915 Economic lot sizes for inventory control F.W. Harris
1927 Human relations; the Hawthrone studies Elton Mayo
1931 Statistical inference applied to product quality: quality control charts W.A. Shewart
1935 Statistical Sampling applied to quality control: inspection sampling H.F. Dodge & H.G. Roming
plans
1940 Operations research applications in World War II P.M. Blacker & others
1946 Digital Computer John Mauchlly and J.P. Eckert
1947 Linear Programming G.B Dantzig, Williams & others
1950 Mathematical programming, on-linear and stochastic processes A. Charnes, W. W. Cooper & others
1951 Commercial digital computer: large-scale computations available Sperry Univac
1960 Organisational behaviour: continued study of people at work L. Cummings, L. Porter
1970 Integrating operations into overall strategy and policy Computer W. Skinner J. Orlicky & G. Wright
applications to manufacturing, scheduling and control, Material
Requirement Planning (MRP)
1980 Quality and productivity applications from Japan: robotics, CAD-CAM W.E. Deming & J. Juran

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Concept of Production

Production function is ‘the part of an organization, which is concerned with the

transformation of a range of inputs into the required outputs (products) having the
requisite quality level’.

Production is defined as ‘the step-by-step conversion of one form of material into

another form through chemical or mechanical process to create or enhance the utility of
the product to the user’. Thus production is a value addition process. At each stage of
processing, there will be value addition.

Edwood Buffa defines production as ‘a process by which goods and services are
created’. Some examples of production are: manufacturing custom-made products like,
boilers with a specific capacity, constructing flats, some structural fabrication works for
selected customers, etc., and manufacturing standardized products like, car, bus, motor
cycle, radio, television, etc.

Production System

The production system is ‘that part of an organization, which produces products of an

organization. It is that activity whereby resources, flowing within a defined system, are
combined and transformed in a controlled manner to add value in accordance with the
policies communicated by management’.

A simplified production system is shown below:

Fig. Schematic production system

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The production system has the following characteristics:

 Production is an organised activity, so every production system has an objective.

 The system transforms the various inputs to useful outputs.
 It does not operate in isolation from the other organization system.
 There exists a feedback about the activities, which is essential to control and
improve system performance.

Classification of Production System

Production systems can be classified as Job-shop, Batch, Mass and Continuous
production systems.

Job-Shop Production
Job-shop production are characterized by manufacturing one or few quantity of products
designed and produced as per the specification of customers within prefixed time and
cost. The distinguishing feature of this is low volume and high variety of products.

A job-shop comprises of general-purpose machines arranged into different departments.

Each job demands unique technological requirements, demands processing on machines
in a certain sequence.

 Job-shop Production is characterized by

 High variety of products and low volume.
 Use of general purpose machines and facilities.
 Highly skilled operators who can take up each job as a challenge because of
uniqueness.
 Large inventory of materials, tools, parts.
 Detailed planning is essential for sequencing the requirements of each product,
capacities for each work centre and order priorities.

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Advantages
Following are the advantages of Job-shop Production:
 Because of general purpose machines and facilities variety of products can be
produced.
 Operators will become more skilled and competent, as each job gives them
learning opportunities.
 Full potential of operators can be utilised.
 Opportunity exists for Creative methods and innovative ideas.

Limitations
Following are the limitations of Job-shop Production:
 Higher cost due to frequent set up changes.
 Higher level of inventory at all levels and hence higher inventory cost.
 Production planning is complicated.
 Larger space requirements.

Batch Production
American Production and Inventory Control Society (APICS) defines Batch Production
as a form of manufacturing in which the job pass through the functional departments in
lots or batches and each lot may have a different routing. It is characterized by the
manufacture of limited number of products produced at regular intervals and stocked
awaiting sales.

Batch Production is characterized by

 Shorter production runs.
 Plant and machinery are flexible.
 Plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
 Manufacturing lead-time and cost are lower as compared to job order production.

Advantages
Following are the advantages of Batch Production:
 Better utilization of plant and machinery.
 Promotes functional specialization.
 Cost per unit is lower as compared to job order production.
 Lower investment in plant and machinery.
 Flexibility to accommodate and process number of products.
 Job satisfaction exists for operators.

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Limitations
Following are the limitations of Batch Production:
 Material handling is complex because of irregular and longer flows.
 Production planning and control is complex.
 Work in process inventory is higher compared to continuous production.
 Higher set up costs due to frequent changes in set up.

Mass Production
Manufacture of discrete parts or assemblies using a continuous process are called Mass
Production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardization
exists and all outputs follow the same path.

Mass Production is characterized by

 Standardisation of product and process sequence.
 Dedicated special purpose machines having higher production capacities and
output rates.
 Large volume of products.
 Shorter cycle time of production.
 Lower in process inventory.
 Perfectly balanced production lines.
 Flow of materials, components and parts is continuous and without any back
tracking.
 Production planning and control is easy.
 Material handling can be completely automatic.

Advantages
Following are the advantages of Mass Production:
 Higher rate of production with reduced cycle time.
 Higher capacity utilization due to line balancing.
 Less skilled operators are required.
 Low process inventory.
 Manufacturing cost per unit is low.

Limitations
Following are the limitations of Mass Production:
 Breakdown of one machine will stop an entire production line.
 Line layout needs major change with the changes in the product design.
 High investment in production facilities.
 The cycle time is determined by the slowest operation.

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Continuous Production
Production facilities are arranged as per the sequence of production operations from the
first operations to the finished product. The items are made to flow through the sequence
of operations through material handling devices such as conveyors, transfer devices, etc.

Continuous Production is characterized by

 Dedicated plant and equipment with zero flexibility.
 Material handling is fully automated.
 Process follows a predetermined sequence of operations.
 Component materials cannot be readily identified with final product.
 Planning and scheduling is a routine action.

Advantages
Following are the advantages of Continuous Production:
 Standardisation of product and process sequence.
 Higher rate of production with reduced cycle time.
 Higher capacity utilisation due to line balancing.
 Manpower is not required for material handling as it is completely automatic.
 Person with limited skills can be used on the production line.
 Unit cost is lower due to high volume of production.

Limitations
Following are the limitations of Continuous Production:
 Flexibility to accommodate and process number of products does not exist.
 Very high investment for setting flow lines.
 Product differentiation is limited.

Production Management
Production management is ‘a process of planning, organizing, directing and controlling
the activities of the production function. It combines and transforms various resources
used in the production subsystem of the organization into value added product in a
controlled manner as per the policies of the organization’.

E.S. Buffa defines production management as follows:

‘Production management deals with decision-making related to production processes so

that the resulting goods or services are produced according to specifications, in the
amount and by the schedule demanded and out of minimum cost’.

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Objectives of Production Management
The objective of the production management is ‘to produce goods and services of Right
Quality and Quantity at the Right time and Right manufacturing cost’.

Right Quality: The quality of product is established based upon the customers need. The
right quality is not necessarily being the best quality. It is determined by the cost of the
product and the technical characteristics as suited to the specific requirements.

Right Quantity: The manufacturing organization should produce the products in right
number. If they are produced in excess of demand the capital will block up in the form of
inventory and if the quantity is produced in short of demand, leads to shortage of
products.

Right Time: Timeliness of delivery is one of the important parameter to judge the
effectiveness of production department. So, the production department has to make the
optimal utilization of input resources to achieve its objective.

Right Manufacturing Cost: Manufacturing costs are established before the product is
actually manufactured. Hence, all attempts should be made to produce the products at
pre-established cost, so as to reduce the variation between actual and the standard (pre-
established) cost.

4. OPERATIONAL DECISION MAKING

An operation was defined in terms of the mission it serves for the organization,
technology it employs and the human and managerial processes it involves. Operations in
an organization can be categorized into Manufacturing Operations and Service
Operations. Manufacturing Operations is a conversion process that includes
manufacturing yields a tangible output: a product, whereas, a conversion process that
includes service yields an intangible output: a deed, a performance, an effort.

Operations system converts inputs in order to provide outputs, which are required by a
customer. It converts physical resources into outputs, the function of which is to satisfy
customer wants.

Everett E. Adam & Ronald J. Ebert defines as ‘An operating system is the part of an
organization that produces the organistion’s physical goods and services’.

Ray Wild defines operations system as ‘a configuration of resources combined for the
provision of goods or services’.

In some of the organization the product is a physical good (breakfast in hotels) while in
others it is a service (treatment in hospitals). Bus and taxi services, tailors, hospital and
builders are the examples of an operations system. The basic elements of an operation
system show in Figure 1.3 with reference to departmental stores.

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A departmental store's has an input like land upon which the building is located, labour as
a stock clerk, capital in the form of building, equipment and merchandise, management
skills in the form of the store’s manager. Output will be serviced customer with desired
merchandise. Random fluctuations will be from external or internal sources, monitored
through a feedback system.

Late delivery

Late delivery

Fig. Operations system for department stores

A Framework of Managing Operations

Managing Operations can be enclosed in a frame of general management function as
shown in figure 1.3. Operation managers are concerned with planning, organising, and
controlling the activities, which affect human behaviour through models.

Planning is the activity that establishes a course of action and guide future decision-
making. The operations manager defines the objectives for the operations subsystem of
the organization, and the policies, and procedures for achieving the objectives. This stage
includes clarifying the role and focus of operations in the organization’s overall strategy.
It also involves product planning, facility designing and using the conversion process.

Organizing is the activities that establish a structure of tasks and authority. Operation
managers establish a structure of roles and the flow of information within the operations
subsystem. They determine the activities required to achieve the goals and assign
authority and responsibility for carrying them out. Controlling is the activities that assure
the actual performance in accordance with planned performance. To ensure that the plans
for the operations subsystems are accomplished, the operations manager must exercise
control by measuring actual outputs and comparing them to planned operations
management. Controlling costs, quality, and schedules are the important functions here.

Behaviour: Operations managers are concerned with the activities, which affect human
behaviour through models. They want to know the behaviour of subordinates, which
affects managerial activities. Their main interest lies in the decision-making behaviour.

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Models: Models represents schematic representation of the situation, which will be used
as a tool for decision-making. Following are some of the models used.

Aggregate planning models for examining how best to use existing capacity in short term,
break-even analysis to identify break-even volumes, Linear programming and computer
simulation for capacity utilisation, Decision tree analysis for long- term capacity problem
of facility expansion, simple median model for determining best locations of facilities,
etc.

Fig. General model for managing operations

Operations Management

Joseph G .Monks defines Operations Management as the process whereby resources,

flowing within a defined system, are combined and transformed by a controlled manner
to add value in accordance with policies communicated by management.

The operations managers have the prime responsibility for processing inputs into outputs.
They must bring together under production plan that effectively uses the materials,
capacity and knowledge available in the production facility. Given a demand on the
system work must be scheduled and controlled to produce goods and/or services required.
Control must be exercised over such parameters such as costs, quality and inventory
levels. The definition of the operations Management contains following keywords:
Resources, Systems, transformation and Value addition Activities.

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Resources
Resources are the human, material and capital inputs to the production process. Human
resources are the key assets of an organization. As the technology advances, a large
proportion of human input is in planning and controlling activities. By using the
intellectual capabilities of people, managers can multiply the value of their employees
into by many times. Material resources are the physical facilities and materials such as
plant equipment, inventories and supplies. These are the major assets of an organization.
Capital in the form of stock, bonds, and/or taxes and contributions is a vital asset. Capital
is a store of value, which is used to regulate the flow of the other resources.

Systems
Systems are the arrangement of components designed to achieve objectives according to
the plan. The business systems are subsystem of large social systems. In turn, it contains
subsystem such as personnel, engineering, finance and operations, which will function for
the good of the organization. A systems approach to operations management recognises
the hierarchical management responsibilities. If subsystems goals are pursued
independently, it will results in sub-optimization. A consistent and integrative approach
will lead to optimization of overall system goals. The system approach to specific
problems requires that the problem first be identified and isolated from the maze of the
less relevant data that constitute the environment. The problem abstracted from the
overall (macro) environment. Then it can be broken into manageable (micro) parts and
analysed and solutions proposed. Doing this analysis is advantageous before making any
changes. If the solution appears to solve the problem in a satisfactory way, changes can
be made to the real system in an orderly and predictable way.

The ability of any system to achieve its objective depends on its design and its control.
System design is a predetermined arrangement of components. It establishes the
relationships that must exist between inputs, transformation activities and outputs in order
to achieve the system objectives. With the most structured design, there will be less
planning and decision-making in the operations of the system. System control consists of
all actions necessary to ensure that activities conform to preconceived plans or goals. It
involves following four essential elements:

Measurement by an accurate sensory device.

Feedback of information in a timely manner.

Comparison with standards such as time and cost standards.

Corrective actions by someone with the authority and ability to correct.

A closed loop control system can automatically function on the basis of data from within
its own system.

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Transformation and Value Adding Activities

The objective of combining resources under controlled conditions is to transform them

into goods and services having a higher value than the original inputs. The transformation
process applied will be in the form of technology to the inputs. The effectiveness of the
production factors in the transformation process is known as productivity.

The productivity refers to the ratio between values of output per work hour to the cost of
inputs. The firms overall ratio must be greater than 1, then we can say value is added to
the product. Operations manager should concentrate improving the transformation
efficiency and to increase the ratio.

Fig. Schematic model for operations/production system

Operations management objectives

Objectives of Operations Management can be categorized into Customer Service and
Resource Utilization.

Customer service
The first objective of operating systems is to utilize resources for the satisfaction of
customer wants. Therefore, customer service is a key objective of operations
management. The operating system must provide something to a specification, which can
satisfy the customer in terms of cost and timing. Thus, providing the ‘right thing at a right
price at the right time’ can satisfy primary objective.
These aspects of customer service – specification, cost and timing – are described for
four functions in Table 1.1. They are the principal sources of customer satisfaction and
must therefore be the principal dimension of the customer service objective for operations
managers.

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 Table: Aspects of customer service

Principal customer wants

Principal Function
Primary Considerations Other Considerations
Goods of a given, requested or acceptable Cost, i.e. purchase price or cost of obtaining
Manufacture specification goods. Timing, i.e. delivery delay from order or
request to receipt of goods
Management of a given, requested or Cost, i.e. cost of movements. Timing, i.e.
acceptable specification 1. Duration or time to move
Transport
2. Wait or delay from requesting to its
commencement.
Goods of given, requested or acceptable Cost, i.e. purchase price or cost of obtaining
Supply specification goods. Timing, i.e. delivery delay from order or
request to receipt of goods.
Treatment of a given, requested or Cost, i.e. cost of movements. Timing, i.e.
acceptable specification 1. Duration or time required for treatment.
Service
2. Wait or delay from requesting treatment
to its commencement.

Resource Utilization
Another major objective of operating systems is to utilize resources for the satisfaction of
customer wants effectively. Customer service must be provided with the achievement of
effective operations through efficient use of resources. Inefficient use of resources or
inadequate customer service leads to commercial failure of an operating system.

Operations management is concerned essentially with the utilization of resources, i.e.

obtaining maximum effect from resources or minimizing their loss, under utilization or
waste. The extent of the utilization of the resources’ potential might be expressed in
terms of the proportion of available time used or occupied, space utilization, levels of
activity, etc. Each measure indicates the extent to which the potential or capacity of such
resources is utilized. This is referred as the objective of resource utilization.

Operations management is concerned with the achievement of both satisfactory customer

service and resource utilization. An improvement in one will often give rise to
deterioration in the other. Often both cannot be maximized, and hence a satisfactory
performance must be achieved on both objectives. All the activities of operations
management must be tackled with these two objectives in mind, and because of this
conflict, operations managers’ will face many of the problems. Hence, operations
managers must attempt to balance these basic objectives.

The Table summarizes the twin objectives of operations management. The type of
balance established both between and within these basic objectives will be influenced by
market considerations, competitions, the strengths and weaknesses of the organization,
etc. Hence, the operations managers should make a contribution when these objectives
are set.

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 Table: The twin objectives of operations management

The Customer Service Objective The Resource Utilizations Objective

i.e. to provide agreed/adequate levels of i.e. to achieve adequate levels of resource
customer service (and hence customer utilizations (or productivity) e.g. to achieve
satisfaction by providing goods or services agreed levels of utilizations of materials,
with the right specification, at the right cost machines and labour.
and at the right time.

The Strategic Role of Operations

Primary goals of the organizations are related market opportunities. Economy and
efficiency of conversion operations are the secondary goals, which will be predominant
with the study and practice of operations management.

A Strategic Perspective
The general thrust of the process is guided by competitive and market conditions in the
industry, which provide the basis for determining the organization’s strategy. Where is
the industry now and where it will be in the future? What are the existing and potential
markets? What market gaps exist, and what competencies do we have for filling them? A
careful analysis of market segments and the ability of our competitors and ourselves to
meet the needs of these segments will determine the best direction for focusing an
organization’s efforts.

After assessing the potential within an industry, an overall organizational strategy must
be developed, including some basic choices of the primary basis for competing. In doing
so, priorities are established among the following four characteristics:
 Quality (product performance).
 Cost efficiency (low product price).
 Dependability (reliable, timely delivery of orders to customers).
 Flexibility (responding rapidly with new products or changes in volume).

In recent years, most organizations cannot be best on all these dimensions and, by trying
to do so, they end up doing nothing well. Furthermore, when a competency exists in one
of these areas, an attempt to switch to a different one can lead to a downfall in
effectiveness (meeting the primary objectives).

Time is emerging as a critical dimension of competition in both manufacturing and

service industries. In any industry the firm with the fastest response to customer demands
has the potential to achieve an overwhelming market advantage. In an era of time-based
competition, a firm's competitive advantage is defined by the total time required to
produce a product or service. Firms able to respond quickly have reported growth rates
over three times the industry average and double the profitability. Thus the pay-off for

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quick response is market dominance. These basic strategic choices set the tone for the
shape and content of the operations functions.

Operations objectives
The overall objective of the operations subsystem is to provide conversion capabilities for
meeting the organization’s goals and strategy. The sub-goals of the operations subsystem,
must specify the following:
 product/service characteristics.
 process characteristics.
 product/service quality.
 efficiency
o effective employee relations and cost control of labour.
o cost control of material.
o cost control in facility utilization.
 customer service (schedule)
o producing quantities to meet expected demand.
o meeting the required delivery date for goods or services.
 adaptability for future survival.

The priorities among these operations’ sub-goals and their relative emphases should be
direct reflections of the organization’s mission. Relating these six operations sub-goals to
the broader strategic choices above, it is clear that quality, efficiency, and dependability
(customer service) are reflected in the sub-goals. Flexibility encompasses adaptability but
also relates to product/service and process characteristics: Once choices about product
and process are made, boundaries for meeting the other operations objectives are set.

Operations Alternatives and Tradeoffs

The operations sub-goals can be attained through the decisions that are made in the various
operations areas. Each decision involves important tradeoffs between choices about product
and process versus choices about quality, efficiency, schedule and adaptability.

Once a decision is made, it leads to many choices. Where should facilities be located? How
large should they be? What degree of automation should be used? How skilled must labour be
to operate the automated equipment? Will the product be produced on site? How do these
decisions impact quality, efficiency, schedule (customer service), and adaptability? Are we
prepared for changes in product or service, or do these decisions lock in our operations?
These are examples of the tough, crucial tradeoffs that are at the heart of understanding the
choices that must be made when planning strategically and tactically.

Strategic Planning
Strategic planning is the process of thinking through the current mission of the
organization and the current environmental conditions facing it, then setting forth a guide
for tomorrow’s decisions and results. Strategic planning is built on fundamental concepts:
that current decisions are based on future conditions and results.

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Strategic Planning for Production and Operations
In the production or operations function, strategic planning is the broad; overall planning
that precedes the more detailed operational planning. Executives who head the production
and operations function are actively involved in strategic planning, developing plans that
are consistent with the firm’s overall strategies as well as such functions as marketing,
finance accounting and engineering. Production and operations strategic plans are the
basis for (1) operational planning of facilities (design) and (2) operational planning for
the use of these facilities.

Strategic Planning Approaches for Production/Operations

Henry Mintzberg suggests three contrasting modes of strategic planning: the
entrepreneurial, the adaptive, and the planning modes. In the entrepreneurial mode, one
strong, bold leader takes planning action on behalf of the production/operations function.
In the adaptive mode, a manager’s plan is formulated in a series of small, disjointed steps
in reaction to a disjointed environment. The planning model uses planning essentials
combined with the logical analysis of management science.

There are many approaches to strategic planning. The key point is that operations
strategies must be consistent with the overall strategies of the firm. Operations typically
utilize the overall corporate approach to strategic planning, with special modifications
and a focus upon operations issues and opportunities. One general approach to strategic
planning is a forced choice model given by Adam and Ebert.

Strategic Planning–Forced Choice Model

One of many planning models that have been used in strategic planning is a forced choice
model, shown in Figure. In-group sessions or individually, analysts assess environmental
considerations together with the organization’s current production/operations position,
thus forcing management to develop strategic options for operations.

Fig. A forced choice model of strategic planning for operations

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Source: Charles, N. Greene, Everett E. Adam, Jr., and Ronald J. Ebert, Management for
Effective Performance (Prentice Hall 1985)

A Strategic Planning Operations Model

Professor Chris A. Voss of the London Business School, England, has set forth a
framework for strategy and policy development in manufacturing. Concept is that
manufacturing strategy tries to link the policy decisions associated with operations to the
marketplace, the environment, and the company’s overall goals. A simplified framework
for examining operations strategy is shown in Figure 1.7.

One feature of this approach that is crucial to competitiveness is market-based view of

strategic planning. It suggests that any strategic business unit of a company operates in
the context of its corporate resources, the general and competitive industry environment,
and the specific corporate goals of the company. In any area in which the company
chooses to compete is a set of specific market-based criteria for success.

A low-cost, high productivity operation makes efficiency possible. Minimum use of

scarce resources while sustaining high outputs is the key to productivity. Effectiveness is
how well a company is able to meet specific criteria such as delivery schedules and
technical capability. Quality is the degree to which the product or services meets
customer and organization expectations.
Quality reflects the ‘goodness’ of the product or services to the customer. Flexibility is
the adoptability, the capability to change as business conditions change.

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Self Assessment Questions
Q.1 Explain the strategic management process; fit it into an example to elaborate.
Q.2 Differentiate between strategies management and operational management.
Q.3 Describe Strategic decision making.
Q.4 Suppose you are going to establish a school how strategic management will help
you?
Q.5 Explain the strategic role of operations

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REFERENCES
 Everett, E. Adam, Jr. Ronald J. Ebert, Production and Operations Management,
Prentice-Hall of India Private Limited, 5th Edition, 1994.

 R. Pannerselvam, Production and Operations Management, Prentice-Hall of

India Private Limited, 9th print, 2004.

 Joseph, G. Monks, Theory and Problems of Operations Management, Tata

McGraw-Hill Publishing Company Limited, 2nd Edition, 2004.

 S. Anil Kumar, N. Suresh (2009). Operations Management, New Dehli, New

Age International Publishers

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UNIT-4

PERFORMANCE MANAGEMENT

Written by: Arshad Mehmood Qamar

Reviewed by: Hamid Ali Nadeem

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 CONTENTS

Introduction ....................................................................................................... 79
Objectives........................................................................................................... 79
1. Key Performance Indicators ................................................................ 80
2. Monitoring and Evaluation .................................................................. 86
2.1 Key Principles for Monitoring and Evaluation .................. 89
3. Performance Appraisal......................................................................... 90
3.1 Advantages of Performance Appraisal ................................. 90
3.2 Methods of Performance Appraisal ...................................... 92
4. Reviewing and Reporting .................................................................... 96
5. Feedback and Coaching ....................................................................... 98
6. References .......................................................................................... 101

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INTRODUCTION
Performance management is one of a manager's most important contributions to
excellence of an organization. As a cycle that continues throughout the year. Effective
performance management aligns the efforts of managers and employees with department
and objectives, promotes consistency in performance reviews, and motivates all
employees to perform at their best. The process should be conducted with fairness and
transparency. Performance management, unlike the performance appraisal or annual
evaluation process, is an ongoing assessment of employees in a manner geared to match
their goals to the organizational goals. It also makes strong use of goal-setting and
metrics to identify progress and areas of individual strengths.

OBJECTIVES
After studying this unit, you will be able to:
1. Define and explain Key Performance Indicators.
2. Discuss concept of Monitoring and Evaluation.
3. Elaborate Performance Appraisal and its application in education
4. Explain process and benefits of Reviewing and Reporting
5. Explain ways and uses of Feedback and Coaching in the process of performance
management

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1. KEY PERFORMANCE INDICATORS
“A key performance indicator (KPI) is a metric that helps you understand how you nare
doing against your objectives” (Avinash Kaushil)

“In simple terms a KPI is a way of measuring how well we as individuals or how well
entire companies or business units are performing. KPI is short for Key Performance
Indicators. A KPI should help us understand how well a company, business unit or
individual is performing compared to their strategic goals and objectives”.(Bernard Marr)

Performance indicator refers to the means by which an objective can be judged to have
been achieved or not achieved. Indicators are therefore tied to goals and objectives and
serve simply as 'yardsticks' by which to measure the degree of success in goal
achievement.

Key performance indicators are not fixed for all types of enterprises, rather they may
differ from one institution to another institution. They depend upon the type of
objectives and goals for a certain enterprise. KPIs may differ at different levels of
organizations. KPIs are directly related to monitoring in a sense that performance
indicators act just like a check list. KPIs are used to measure the successes of an
enterprise or institution. KPIs are used for maintaining the quality of education.

Key Performance Indicators (KPI) in Higher Education

According to Parmenter (2010) “key performance indicators (KPI) represent a set of
measures focusing on those aspects of organizational performance that are the most
critical for the current and future success of the organization” (p. 4). KPI are a set of
measures that should be measured frequently and tie directly to the success of an
organization. KPI need to be tracked on a regular basis, and if they are not meeting the
target then processes or systems need to be modified (Arif & Smiley, 2004). Lyddon and
McComb (2008) state every KPI measure should include several components: “(1) the
actual results of the indicator; (2) the target for which the indicator is striving; (3) the
difference between actual results and target results; and 4) signal values, or benchmarks”
(p. 139). For educational institutions, determining their KPI should include all
stakeholders of the organization (Arif & Smiley, 2004), and should have had a direct
effect on the core budget (Conlon, 2004). According to Burke and Minassians (2002b)
using KPI are important because “how well college and universities meet the needs of
students, states, and society” (p. 116) is the true test of accountability. According to
Manning (2011), associate vice president of institutional research at determining which
indicators are key within higher education institutions is the focus of my research. In the
literature, there are some recommendations of some general indicators that could be used
to measure the outcomes of student’s higher education experience.

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 Activity 4.1

Pick some KPIs and Goals of the public institutions from the given narration.

Mr. Arshad is Monitoring officer in directorate of public schools. During his period
enrollment of the student increased. Collective synergy of the teachers enhanced to a
significant level. Parents’ appreciation level increased. Teachers are satisfied by the
achievements of their students. Students become regular. They do their homework well
in time. The students get good grades in continuing assessment. Inputs and outputs
have got balance. The number of certificates issuance has enormously increased. More
students want to take admissions in public schools. The quality of teaching has
increased.

Key performance indicator (KPI) is also a type of performance measurement that help
us understand how our organization, institution or department is performing and allows
us to understand if we are headed in the right direction with our strategy.

But if we look at KPIs for schools or higher education, we know that there are
hundreds of key performance indicators to select from. A list of twenty eight critical
educational KPIs are given below. Remember that each institution can frame their own
KPIs fro them. These indicators will only help the readers to identify the KPIs.

1. Graduation Rate: This KPI determines the number of students who completed
their schooling or received a particular certificate or degree within the normal
time frame.
2. Awards: This metric looks at the number of awards granted to students and/or
faculty and staff during each academic calendar year.
3. Research Grants: This metric examines the percentage of the grants students
and/or faculty received versus those that were applied for. You may also want to
track total grant dollars.
4. Student Attendance Rate: Determining the number of students that have
achieved, say, 90% attendance during a given semester or academic year is vital
to track. (You can set your target and measure accordingly.
5. Percentage of Students On Aid: This metric calculates the number of students
receiving some kind of financial assistance, like scholarship money or
government aid. In a secondary school you may also track those on meal
assistance.
6. Grant Money: It’s important to track the dollars fundraised for an institution
through endowments, donations, or partnerships.
7. Tuition Costs: This metric examines the cost to each student in a given
scholastic timeline (i.e. a quarter or semester) to attend the institution.
8. Student to Faculty Ratio: Schools may want to examine this metric to ensure
students are receiving the proper attention. In most cases, the lower your student
to faculty ratio is the better.

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9. Cost per Student: This metric calculates every cost a school incurs to educate
each student. This might include campus and building maintenance, teacher and
staff salaries, some books costs, some food costs, and much more.
10. Faculty to Administration Ratio: If this ratio is too low—say, you have only
two administrators for 50 faculty members—there may be issues with
scheduling, organization, and finances.
11. Number of Students Enrolled per Number of Applications: This metric is
particularly important for private schools who wish to remain academically
competitive. Additionally, it can help you keep tabs on statistics with the student
body so you are able to offer the right amount of student resources. This can also
be called the acceptance rate.
11. Percentage Students in Focus Areas: This metric allows you to examine the
percentage of students taking, say, a foreign language, STEM courses, or AP
courses. (Which focus areas you hone in on will depend entirely on your
strategy.)
12. Proficiency Rates for Each Subject: This allows you to see not just how your
curriculum breaks down, but how each area of a curriculum is performing.
13. Percentage of Faculty With Advanced Certifications Or Degrees: In higher
education, this metric may be important for recognition, grant money, or simply
the reputation of the school.
14. Number of Training Sessions Per Year: Ensuring faculty members are in touch
with the latest teaching methods or technologies helps ensure that students
receive the best educational experience.
15. Faculty & Staff Attendance Rates: If your institution has a low attendance rate
from faculty and staff members, this can have a negative effect on the
organization as a whole. Timelines can be thrown off, and time and money is
spent finding substitutes or temps.
16. Faculty & Staff Retention Rate: Not only does a high retention rate help
students and professors build better rapport, but education management also
doesn’t have to retrain new employees as regularly.
17. Average Age of Buildings: Renovating older buildings effectively lowers the
building’s age. Thus tracking the age of your buildings on campus helps ensure
that adequate maintenance is being provided and that they are fully functional.
18. Percentage of Buildings Passing Inspection: Of course, this metric should
ideally come out at 100%—but if it’s lower, you’ll know to pay immediate
attention to the buildings that did not pass. You could also have an internal
inspection for something like the availability of technology. For example, what
percent of your buildings have adequate WiFi?
19. Classroom Utilization Rate: This metric examines whether you’re making the
best use of your campus space and keeping classes as full as possible.
20. Percentage of Classes Using Technology: You’ll want a high percentage of
classes in your school using the technologies or online platforms that have been
provided to them.
21. Percentage of Administrators Using Technology: Both teachers and
administrators should be using the online- or classroom-based technologies

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 they’ve been provided for lessons, projects, or activities—and this metric should
make you aware of whether that is happening or not.
22. Social Media Engagement: The analytics you’ll need for this metric are often
available through the social media platforms your school chooses to employ (like
Facebook, for example), and can show how well your social media department is
performing.
23. Calls to Tech Department per Month: This may act as a productivity metric for
your IT department, showing them how many calls they’re fielded and how many
(if any) went unanswered
24. Percentage of Students that Take Public Transit: Whether at a junior high or a
large university, schools will want to track whether students are using the
transportation options that have been provided to them by the institution,
municipality, or state.
25. Percentage of Students That Commute: Month-to-month or year-to-year, the
admissions office will likely want to track what percentage of students
commute—as this is directly tied to how much parking and on-campus housing
may be needed.
26. Cost of Transit: Tracking your cost per student of busses will allow you to
analyze if you have an appropriate bus route or if you need to get creative about
getting your students to class. You have the same challenge at a university, when
looking at the availability of transit options. Having a school transit option might
be a good way to encourage attendance
27. Percentage of Students Living On Campus: Tracking this rate allows
administrators to ensure that there is enough room (or too much room) for
students on campus and that this stays in line with the long-term strategy of the
institution.
28. Percentage of Students That Say On-Campus Housing Is Above
Average: Survey results are always important to keep in consideration. You’ll
want to ensure that students feel their tuition and fees are being utilized
appropriately and that administrators are responding to their feedback
accordingly. The quality of housing options certainly affects where students
choose to live during college.

These KPIs were approved by the rector of European Humanities University in 2013.

Increased Quality of Education and Research

 Dropout rate
 Student Academic Grades
 Student/teacher ratio
 Permanent teachers holding PhDs
 Level of the research productivity
 Quality of the research productivity
 Student satisfaction
 Premises per student ratio

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 Student number to one specialist, coordinating teaching and research
 Workload of teachers holding PhD percentage to all workload
 Graduates' employment level
 Number of students per library working places (per computerized places)
 IT resources renewal ratio

Internationalized programs, students and faculty

 Exchange teachers percentage (outgoing)
 Exchange students percentage (outgoing)
 Exchange students percentage (incoming)
 Share of Belarusian students
 Disciplines in English percentage
 Share of workload of visiting teachers

High level of sustainability via effective management and a diverse funding base
 Share of tuition fees in budget
 Share of international students tuition fees
 Growth of alumni donations
 Annual income from projects to cover fixed EHU expenses
 Cost of one student
 Administration/student ratio
 Administration/teacher ratio;
 Workload of permanent teachers to all workload
 Competition: applications/places
 Admission average grade
 Admission ratio (percentage admitted to planned)
 Efficiency of admission

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Self Assessment Questions

Q.1 Find the correct answer from the given answers.

i. KPIs. Is the abbreviation of:
a) Key paper information
b) Key performance indicators
c) Key planning indicators
d) Kept people intact

ii. The KPI which determines the number of students who completes their
schooling is…
a) Graduate rate
b) Awards
c) Number of trainings per year
d) Activeness

Q.2 Give short answers.

i. Define KPIs
ii. How KPIs are important for educational purposes.
iii. What are different types of KPIs?

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2. MONITORING AND EVALUATION
Monitoring
Monitoring is the routine and systematic collection of information against a plan. The
information might be about activities, products or services, users, or about outside factors
affecting the organization or project

The regular observation and recording of activities taking place in a project or programme. It
is a process of routinely gathering confirmation on all aspects of the project.

To monitor is to check on how activities are progressing. It is observation; systematic and

purposeful observation.

Monitoring also involves giving feedback about the progress. Feedback enables the
gathered information to be used in making decisions for improving performance.

Teaching and learning includes a set of activities. This means this set of activities within
a specified time limit, for the achievement of goals is called a project.

Monitoring is very important in teaching and learning activities. It is said that our
educational implementation level is very weak. Monitoring is very important in project
implementation.

It is like watching where you are going. It is helpful to ensure that you are at right track.
 monitoring also provide information that will be useful in:
 analysis of situation of the teaching learning process.
 determining whether the inputs in the process are well utilized.
 identifying the problems and finding their solutions.
 ensuring that all activities are carried out properly by the right persons and well
in time
 using results of one project (study situation) experience on to another.
 determining whether the project was planned in an appropriate way.

Evaluation
Evaluation is about making judgments about the value of any component part of an
organization or its products, services or benefits, or about the organization as a whole.
Evaluation is vital to assess program effectiveness and to support continuous program
improvement.

The goal of evaluation of most evaluations is to provide ‘useful feedback” to a variety of

audiences including sponsors, donors, client-group, administrators, staff and other
relevant constituencies. Most often, feedback is perceived as “useful” if it aids in
decision- making. But the relationship between an evaluation and its impact is not a
simple one. Studies that seen critical sometimes fail to influence short- term decisions,

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and studies that initially seem to have no influence can have a delayed impact when more
congenial conditions arise. Despite this, there is broad consensus that the major goal of
evaluation should be to influence decision- making or policy formulation through the
provision of empirically-driven feedback.

Evaluation of any system may start at any stage of the project (activity). It may start at
the start, in the mid or at the end of the project (activity).

The major principle of the evaluation is testing pupils or rating teachers. It aims at
improvement of persons and products involved. It is a process of making judgment by
which more planning for improvement is possible. To be effective the supervisor must be
able to evaluate school situations as well as his own role in the professional growth of
teachers. An evaluator should have developed evaluative criteria with the co-operation of
teachers to assess teaching, learning and monitoring or supervision.

Monitoring and Evaluation

In general, monitoring is integral to evaluation. During an evaluation, information from
previous monitoring processes is used to understand the ways in which the project or
program developed and stimulated change. Monitoring focuses on the measurement of
the following aspects of an intervention:
 On quantity and quality of the implemented activities (outputs: What do we do?
How do we manage our activities?)
 On processes inherent to a project or program (outcomes: what were the effects
/Changes that occurred as a result of your intervention?)
 On processes external to an intervention (Impact: which broader, long-term
effects were triggered by the implemented activities in combnation with other
environmental factors?)

The evaluation process is an analysis or interpretation of the collected data which delves
deeper into the relationships between the results of the project/programme, the effects
produced by the project/programme and the overall impact of the project/programme

Monitoring and Evaluation (A model from Punjab Education Department)

Monitoring and evaluation provides a consolidated source of information of project
progress that contributes to transparency, accountability, retention and finally to the
development of an institution. It also helps in the evidence-based policy making and
ensures that desired outcomes are achieved. Owing to critical importance of the process,
Government of the Punjab (GoPb) has instituted a comprehensive school monitoring
mechanism. Its key components are Annual School Census and Monthly Monitoring
System. At the apex of the monitoring and evaluation (M&E) system is the Program
Monitoring and Implementation Unit (PMIU), which works in conjunction with the
Department of School Education, acting as the monitoring and implementation wing of
the Department. PMIU’s key task with regard to monitoring is to regulate an effective
data collection system at the district level.

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The lynchpin of the GoPb’s school monitoring system is the office of the District
Monitoring Officer (DMO), based at district and reporting to the PMIU. There are 36
DMOs in all and they are monitoring about 53,000 schools across the province. The
DMOs supervise a field staff of Monitoring and Evaluation Assistants (MEAs), who are
responsible to undertaking regular field visits and collect data on specified monitoring
indicators. There are 929 sanctioned posts of MEAs across the province. Each district has
number of MEAs proportionate to its number of schools. The MEAs are recruited and
funded by the Chief Minister’s Monitoring Force (CMMF) which functions directly
under control of the Secretary School Education. The MEAs are mostly retired army
personnel, hired by the department on contracts basis. Their performance is evaluated at
the end of the contract period by the concerned DMO.

MEAs are assigned “school clusters” in such a way that they are able to visit at least 4
schools per day. At least 90% of schools in the district have to be covered by MEAs each
month. MEAs’ circles are rotated every month, which prevents MEAs from forming
personal relationships with the school staff of a particular area. MEAs have been
provided with Tablet PCs containing online monitoring application. MEAs fill their
report on the monitoring proforma, which checks for the status of basic facilities,
enrolment and teacher attendance among other things.

The monthly monitoring data collected by the MEAs is used for monthly, quarterly and annual
ranking of the Districts and Divisions. The key use of the monitoring data is the development of
a composite index, which assigns weightage to different indicators in the monthly monitoring
forms, and is then used to rank district performance. The composite index of district
performance is prepared on monthly basis at the district level, and is presented by the DMO in
the monthly meeting of the District Review Committee, chaired by the DCO while DMO acts
as the secretary of the District Review Committee. The Committee reviews the month’s
progress, and takes decisions on issues highlighted through the composite index. The index also
enables a comparison across districts, and helps the PMIU to provide feedback to district
governments on areas where administrative measures have to be taken.

In practice, the issue of teacher’s absenteeism has been the most frequently highlighted
issue for all districts. The M&E system enables the identification of specific individuals
whose attendance is irregular, and both the PMIU and DMOs have provided lists of such
employees to the district governments for further action. Generally, the absentees get
minor penalties however in case of prolonged absence; major penalties like removal from
service are also imposed upon the absentees.

In addition to cross-checks across the two databases and triangulation of data, third party
validations (TPVs) have been institutionalized in the monitoring process under the aegis
of the PESRP. To-date, seven TPVs have been carried out to test the validity of various
data on monthly monitoring, enrolment, quality of civil works, supply of furniture,
provision of missing facilities, receipt of stipends and free textbooks

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2.1 Key Principles for Monitoring and Evaluation
 Monitoring and evaluation should refer to existing baseline data or begin with a
baseline study.
 Monitoring and evaluation are closely linked to, and should reflect the
methodology of, the initial project appraisal.
 Monitoring is an integral part of program implementation.
 Monitoring should be linked to the specific program objectives that were defined
through the appraisal and program planning process.
 Monitoring information should be used in decision making.
 Evaluation should follow a specific methodology designed to gather information
about program success.
 Monitoring and evaluation should respect principles of participation and involve
all program stakeholders, including program implementers, beneficiaries’ local
officials and other observers such as related civil society groups.
 Monitoring and evaluation should respect and protect the rights, welfare, and
confidently of all those involved in the program.

Self Assessment Questions

Q.1 Pick correct answers from the given options.

i. It enables the gathered information to be used in making decisions for
improving performance.
a) Evaluation b) Feedback
c) Assessment d) Monitoring (feedback)
ii. Monitoring and evaluation Assistants in Punjab are supervised by:
a) District Education Officers
b) District Coordination Officers
c) District Monitoring Officers
d) District Evaluation Officers
iii. This is about making judgments about the value of any component part
of an organisation.
a) Monitoring b) Evaluation
c) Feedback d) Performance management
iv. Mostly “accountability” element is a part of?
a) Monitoring b) Supervision
c) Evaluation d) Feedback

Q.2 Answer the following questions.

i. Define Monitoring ii. Define Evaluation
iii. What is main difference between Monitoring and Evaluation?
iv. What will happen if evaluation is excluded from the Monitoring?
v. What is difference between Monitoring and Evaluation?

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3. PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and
to understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:
 The supervisors measure the pay of employees and compare it with targets and
plans.
 The supervisor analyses the factors behind work performances of employees.
 The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:
 to maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
 to identify the strengths and weaknesses of employees to place right men on right
job.
 to maintain and assess the potential present in a person for further growth and
development.
 to provide a feedback to employees regarding their performance and related
status.
 to provide a feedback to employees regarding their performance and related
status.
 it serves as a basis for influencing working habits of the employees.
 to review and retain the promotional and other training programmes.

3.1 Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be
justified by following advantages:
1. Promotion: Performance Appraisal helps the supervisors to chalk out the
promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. Compensation
packages which includes bonus, high salary rates, extra benefits, allowances and
pre-requisites are dependent on performance appraisal. The criteria should be
merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programmes. It helps to
analyse strengths and weaknesses of employees so that new jobs can be designed
for efficient employees. It also helps in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand
the validity and importance of the selection procedure. The supervisors come to

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 know the validity and thereby the strengths and weaknesses of selection
procedure. Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between
employees and employers is very important. Through performance appraisal,
communication can be sought for in the following ways:
a. Through performance appraisal, the employers can understand and
accept skills of subordinates.
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
6. Motivation: Performance appraisal serves as a motivation tool. Through
evaluating performance of employees, a person’s efficiency can be determined if
the targets are achieved. This very well motivates a person for better job and
helps him to improve his performance in the future.

Meaning of Performance Appraisal

Performance Appraisals is the assessment of individual’s performance in a systematic
way. It is a developmental tool used for all round development of the employee and the
organization. The performance is measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision, dependability,
co-operation, judgment, versatility and health. Assessment should be confined to past as
well as potential performance also. The second definition is more focused on behaviors as
a part of assessment because behaviors do affect job results.

Use of Performance Appraisals

1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances

Goals of Performance Appraisals

General Goals Specific Goals

Developmental Use Individual needs
Performance feedback
Transfers and placements
Strengths and Development needs

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 Administrative Decision / Uses Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers Identification
Organizational Maintenance HR Planning
Training Needs
Organizational Goal achievements
Goal Identification
HR system Evaluation
Reinforcement of organizational needs
Documentation Validation Research
For HR Decisions
Legal Requirements

Performance Appraisal Process

1. Objectives definition of appraisal
2. Job expectations establishment
3. Design an appraisal program
4. Appraise the performance
5. Performance Interviews
6. Use data for appropriate purposes
7. Identify opportunities variables
8. Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to Appraisals:

Categories Traditional Appraisals Modern, Systems Appraisals

Guiding Values Individualistic, Control Systematic, Developmental,
oriented, Documentary Problem solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped, Organizational

3.2 Methods of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as they
relate to the particular needs of the organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.
 Past Oriented Methods
 Future Oriented Methods

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Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing

job related performance criterions such as dependability, initiative, output,
attendance, attitude etc. Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are derived. Advantages –
Adaptability, easy to use, low cost, every type of job can be evaluated, large
number of employees covered, no formal training required. Disadvantages –
Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the
form of Yes or No based questions is prepared. Here the rater only does the
reporting or checking and HR department does the actual evaluation. Advantages
– economy, ease of administration, limited training required, standardization.
Disadvantages – Raters biases, use of improper weighs by HR, does not allow
rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two
or more are given and the rater indicates which statement is true or false. The
rater is forced to make a choice. HR department does actual assessment.
Advantages – Absence of personal biases because of forced choice.
Disadvantages – Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point
on a rating scale. Rater is compelled to distribute the employees on all points on
the scale. It is assumed that the performance is conformed to normal distribution.
Advantages – Eliminates Disadvantages – Assumption of normal distribution,
unrealistic, errors of central tendency.
5. Critical Incidents Method: The approach is focused on certain critical
behaviors of employee that makes all the difference in the performance.
Supervisors as and when they occur record such incidents. Advantages –
Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate
improvement are high. Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too much and
may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective
behaviors determine the points. They are said to be behaviorally anchored. The
rater is supposed to say, which behavior describes the employee performance.
Advantages – helps overcome rating errors. Disadvantages – Suffers from
distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside employees’
own department usually from corporate or HR department. Advantages – Useful
for managerial level promotions, when comparable information is needed,
Disadvantages – Outsider is generally not familiar with employees work
environment, Observation of actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be

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 reliable and validated to be useful. Advantage – Tests may be apt to measure
potential more than actual performance. Disadvantages – Tests may suffer if
costs of test development or administration are high.
9. Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of
Annual Confidentiality Report (ACR) and may record ratings with respect to
following items; attendance, self expression, team work, leadership, initiative,
technical ability, reasoning ability, originality and resourcefulness etc. The
system is highly secretive and confidential. Feedback to the assessee is given
only in case of an adverse entry. Disadvantage is that it is highly subjective and
ratings can be manipulated because the evaluations are linked to HR actions like
promotions etc.
10. Essay Method: In this method the rater writes down the employee description in
detail within a number of broad categories like, overall impression of
performance, promote ability of employee, existing capabilities and
qualifications of performing jobs, strengths and weaknesses and training needs of
the employee. Advantage – It is extremely useful in filing information gaps about
the employees that often occur in a better-structured checklist. Disadvantages – It
its highly dependent upon the writing skills of rater and most of them are not
good writers. They may get confused success depends on the memory power of
raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary
returns yields to his or her organization. Cost to keep employee, and benefit the
organization derives is ascertained. Hence it is more dependent upon cost and
benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These
are collection of different methods that compare performance with that of other
co-workers. The usual techniques used may be ranking methods and paired
comparison method.

 Ranking Methods: Superior ranks his worker based on merit, from best to
worst. However how best and why best are not elaborated in this method. It is
easy to administer and explanation.
 Paired Comparison Methods: In this method each employee is rated with
another employee in the form of pairs. The number of comparisons may be
calculated with the help of a formula as under. N x (N-1) / 2

Future Oriented Methods

1. Management by Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management. MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee

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  Establish new goals and new strategies for goals not achieved in previous
year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may
result in setting short-term goals rather than important and long-term
goals etc.
2. Psychological Appraisals:
These appraisals are more directed to assess employees potential for future
performance rather than the past one. It is done in the form of in-depth
interviews, psychological tests, and discussion with supervisors and review of
other evaluations. It is more focused on employees emotional, intellectual, and
motivational and other personal characteristics affecting his performance. This
approach is slow and costly and may be useful for bright young members who
may have considerable potential. However quality of these appraisals largely
depend upon the skills of psychologists who perform the evaluation.
3. Assessment Centers:
This technique was first developed in USA and UK in 1943. An assessment
center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work
samples. Assessees are requested to participate in in-basket exercises, work
groups, computer simulations, role playing and other similar activities which
require same attributes for successful performance in actual job. The
characteristics assessed in assessment center can be assertiveness, persuasive
ability, communicating ability, planning and organizational ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to
feelings, administrative ability, creativity and mental alertness etc. Disadvantages
– Costs of employees traveling and lodging, psychologists, ratings strongly
influenced by assessee’s inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may
get affected.

Advantages – well-conducted assessment center can achieve better forecasts of

future performance and progress than other methods of appraisals. Also
reliability, content validity and predictive ability are said to be high in assessment
centers. The tests also make sure that the wrong people are not hired or
promoted. Finally it clearly defines the criteria for selection and promotion.
4. 360-Degree Feedback:
It is a technique which is systematic collection of performance data on an
individual group, derived from a number of stakeholders like immediate
supervisors, team members, customers, peers and self. In fact anyone who has
useful information on how an employee does a job may be one of the appraisers.
This technique is highly useful in terms of broader perspective, greater self-
development and multi-source feedback is useful. 360-degree appraisals are
useful to measure inter-personal skills, customer satisfaction and team building

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 skills. However on the negative side, receiving feedback from multiple sources
can be intimidating, threatening etc. Multiple raters may be less adept at
providing balanced and objective feedback

4. REVIEWING AND REPORTING

Meanings of Review
Examine or assess (something) formally with the possibility or intention of instituting
change if necessary.
As a result of appraisal if some parts look weak and their performance is bad. It is
recommended to review their drawbacks. If these draw backs are on the part of
individuals then reviews confirms these draw backs. It is suggested that those parts of the
system may be replaced by another more efficient parts or individuals.
When we want to measure the success of any activity, the process of review is very
helpful. It helps to answer the following questions:
 Did the activity (project) fully solved the problem for which it was designed?
 Can we go ahead, and get even bigger benefits?
 What lessons did we learn that we can apply to future projects (activities)

When to Review?
This depends upon the nature of the project. Some activities need frequent review. Some
may take some time to be reviewed. A good time to start thinking about the review is
when members of the project team remember the most, soon after the project has been
delivered, and most of the problems have been ironed out. Start to list ideas and
observations while they are still fresh in people’s minds. Even then a good reviewer may
wait for some days or a month before the start of project activities.

How to review?
While doing review certain methods and practices will help you the best possible
information.

Define the scope of the reviewer beforehand

First of all clarify your objectives for the review, this will better ensure that people share
their experiences openly and honestly. Then reviewer should stuck these objectives.

Review key documents

Gather the key project document together. This will help to assess the project planning
process, as well as the actual benefits achieved through the project.

Consider using independent reviewers

Where possible, use people in your review process to get an objective. Some people
recommend using only independent people in the review of the project. However this
depends upon the situation and type of the project.

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Use appropriate data Collection
Use most reliable tools to collect data. You can use interviews and surveys. Ensure
firsthand information.

Deliver appropriate reports

Remember that review is designed to help project managers conduct more effective
projects in future, as well as to measure and optimize the benefits of the specific project
being reviewed.

Present Recommendation
Present detailed recommendations to the organization and project leaders, as well as to
the clients and other stakeholders. Include as many people as necessary so that you keep
and apply the best practice information in future.

As you plan your review, beaware of the costs and benefits of the review process itself.
Interviewing stallholders’ and customers, testing the solution, and documenting the
results are time consuming activities. Make sure the time and resources dedicated to the
review are consistent with the project scope and its output, and that the potential benefits
of conducting the review are worth the effort put in.

Reporting
Reporting is the process for Collecting and distributing performance information, like
status reporting, progress measurement and forecasting. On the basis of the collected
information concerning scope, schedule, cost and quality this process generates the
reports, which are distributed to the managers and stakeholders.

Types of Reports
There are many types of reports. Four types are mentioned as follows:
Forecast Reports: for describing the future trends
Progress reports: for describing trends from past to present.
Status Reports: for describing actual status
Variance Reports: for describing difference between the planned baseline and the real
data.

The purpose of information is to promote action. The report is therefore a document that
pulls together all the relevant information with balance and objectivity.

A good report should contain all the information necessary to facilitate decision making
at management level. Good quality information should be relevant. Report must contain
relevant information which must reflect the defined objectives and overall strategy of an
organization.

Report must contain information of all possible alternatives, necessary for impartial
decisions.

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Report should be integrated means that data collected should be managed in a way that
satisfies both internal and external reporting needs.

A report should be presented in relevant time context. Late reports fails the organizations.

Reports should be reliable. The data in report must be comparable with previous reports
or with the reports of the other organizations of the same lecvel. Reports should always
be written clearly and simply. Everyday language should be used wherever possible and
jargon or acronyms should be avoided. Used judiciously, graphs and charts can be an
effective communication medium for key indicators. They also enable trends to be
identified more easily

5. FEEDBACK AND COACHING

Coaching: To increase the potential of the employees, coaching as a tool is effectively
employed by leaders in a workplace. This is a skill that is sought in managers and
considered to be important for the development of core competencies in workforce.
Coaching is difficult to visualize in a workplace if all one has seen in the name of
coaching is teaching classes organized to impart knowledge in a few subjects to clear
competitive exams. In a workplace, coaching is all about bringing positive changes in the
behavior of the workforce. It becomes clear to even an outsider that coaching without
feedback is incomplete, and one cannot expect a change in the behavior of a person until
he is provided with the feedback by his coach.

Feedback: Feedback is an important part of the training of an individual and is

considered an informal method of trying to effect changes in the behavior of employees
in the workplace. Feedback is perceived more as a positive advice or evaluation.
Feedback is an instrument in the hands of a coach to improve the performance of the
workforce. Feedback, if it is in the form of constructive criticism, can achieve wonders as
people like to know how they are faring and what they should do to improve.

Coaching and Feedback

Ongoing feedback and coaching is used to reinforce appropriate behavior, to teach the
employee new skills, to motivate employee to pursue higher levels of performance, to
mentor employees, as well as to correct performance deficiencies. Do you believe that
employee engagement is related to feedback and coaching? If not, you may be missing a
key to performance management in the workplace. Feedback is the breakfast of
champions – yet many supervisors are starving their employees! There’s no question that
feedback has greater impact on employee performance than anything else a corporation
can do, and it doesn’t cost a dime. Yet supervisors get caught up in daily administrative
tasks and often fail to provide feedback and coaching.

Every employee walks around wondering, “How am I doing?” …and longs to hear either
“You’re doing a great job” or “You’re off track here, but here’s how to get back on.” And
they want to hear it from someone they believe is genuinely interested in helping them

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succeed. Employee surveys indicate that supervisors give far more criticism than praise
and appreciation. Still fewer give constructive feedback and coaching tips.

Skilled supervisors who know how to give feedback to employees, who build coaching
into their daily interactions and who make it a priority help you achieve
important benefits:
 Significantly improved employee performance – quality, productivity,
responsiveness, creativity
 Improved employee engagement
 Faster learning of new skills and new procedures
 Greater employee loyalty and commitment to goals
 Development of leader potential among employees
 Development of an environment where ongoing feedback and coaching is a
normal part of everyday interactions, not a single event

Feedback and Coaching Training highlights:

 How to make every conversation an opportunity for feedback and coaching
 How feedback and coaching works – what we’ve learned from decades of human
experiments
 How to look for and find opportunities to give feedback and coaching every day
 How to give positive feedback that has a lasting effect
 How to give corrective feedback constructively
 How to “teach them to fish” instead of “giving them a fish”
 How to coach employees to think for themselves, take initiative, and take
responsibility

Feedback and Coaching Methodology

Participants in Feedback and Coaching spend most of their workshop time in
customized, hands-on practices applying the tools and skills, with coaching and feedback.
They bring their own real situations to use in the practice sessions.

Feedback and Coaching Customized Solutions

To ensure that training is not just an “event,” but instead produces enduring results, we
customize Feedback and Coaching to fit your unique situation, business strategy,
culture, and people. After discussion with you and other experts within your
organization, we select the emphasis, specific skills to be developed, key learning points,
exercises, and case studies for practice to create a solution tailored just for you.

Feedback and Coaching Applications

The following are some of the ways our clients have used custom versions of Feedback
and Coaching:
 To equip supervisors with the skills to be more professional managers
 To support the Learning Organization strategic initiative

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 To prepare team leaders for roles as first-line managers
 To reduce grievances in a union environment
 To fine tune customer service skill

On the face of it, the two words coaching and feedback feel so very different when you
hear them. It is because of perceived differences between the two concepts as we have
known them since our childhood. After all, isn’t coaching all about giving instructions to
someone and feedback concerned with providing information about someone’s
performance to him? In a workplace, both coaching and feedback are important for a
manager and he has to make judicious use of the two concepts. However, it is better to
understand the nuances of the two terms before applying these principles.

What is the difference between Coaching and Feedback?

 Feedback is an integral part of coaching endeavor though the converse of this is
not true, and feedback does not require coaching
 Feedback focuses on the past while coaching focuses on future
 Feedback makes one self-aware, and he realizes his strengths and weaknesses
 However, without further assistance in the form of coaching, feedback is
ineffective
 Feedback is just one of the tools in the hands of a coach to bring changes in the
behavior of the employees and to develop leadership skills
 Feedback is information about the past given now to have an effect on the future

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REFERENCE
 https://www.shrm.org/india/hr-topics-and-strategy/performance-
management/creating-high-performance-
culture/Documents/Performance%20Management.pdf

 http://usfweb2.usf.edu/human-resources/Talent-
Management/pdfs/overviewperformancemanagement.pdf

 https://www.ebsglobal.net/EBS/media/EBS/PDFs/Performance-Management-
Course-Taster.pdf
 http://www.pondiuni.edu.in/storage/dde/downloads/hrmiii_pm.pdf

 https://uminfopoint.umsystem.edu/media/fa/performancemgtguidelinesandproces
sfinal.pdf

 http://library.imtdubai.ac.ae/content%5Ce_books%5CE0016.pdf

 http://www.employment-studies.co.uk/system/files/resources/files/mp90.pdf

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102
UNIT-5

ORGANIZATIONAL
BEHAVIOR MANAGEMENT

Written by: Dr. Muhammad Safdar Kiyani

Reviewed by: Hamid Ali Nadeem

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 CONTENTS

Introduction ..................................................................................................... 105

Objectives......................................................................................................... 105
1. Organizational Behavior .................................................................... 106
1.1 Models of Organizational Behaviors ..................................... 110
1.2 Organizational Development ................................................. 112
2. Behavioral Systems Analysis ............................................................. 117
3. Behavior-Based Safety....................................................................... 118
4. Behavior Change Communication ..................................................... 118
5. References .......................................................................................... 122

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INTRODUCTION
Previous units discussed the concept of management, operational and strategic
management, the tools, and evaluation techniques regarding management but in this unit
we will discuss the actions and attitudes of individuals and groups toward one another
and towards the organization as a whole, and its effect on the organization's functioning
and performance. In this unit you will learn about different Management strategies
regarding organizational behavior and try to improve your educational setting.

The field of Organizational Behavior (OB) wasn’t fully recognized by the American
Psychological Association till 1970 but its roots go back to the late 1920’s when the
Hawthorne Electric Company (now called Hawthorne effect)set up a series of
experiments designed to detect how changes in environment and design, changed the
productivity of their employees. Organizational Behavior (OB) is the study of the way
people interact within groups. Normally this study is applied in an attempt to create more
efficient business organizations. The central idea of the study of organizational behavior
is that a scientific approach can be applied to the management of workers. Organizational
behavior theories are used for human resource purposes to maximize the output from
individual group members.

Behavioral systems analysis (BSA), or performance systems analysis, applies behavior

analysis and systems analysis to human performance in organizations. It is directly
related to Performance Management and Organizational Behavior Management.

Behavioural change communication (BCC) is the strategic use of communication to

promote positive educational outcomes, based on proven theories and models of behavior
change. BCC employs a systematic process beginning with formative research and
behavior analysis, followed by communication planning, implementation, and monitoring
and evaluation. Material and human resources, and interpersonal channels are used to
achieve defined educational objectives.

Behavior-Based Safety (BBS) is a process that creates a safety partnership between

management and employees. It focuses on what people do, analyzes why they do it, and
then applies a research-supported intervention strategy to improve what people do.

OBJECTIVES
After the end of this unit you will be able to:
1. Know the concept of organizational behavior (OB), behavior-based system
(BBS), behavior change communication (BCC), and Behavioral systems analysis
(BSA);
2. Apply the above mentioned Management strategies in your educational
institutions to solve the issues;

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3. Apply different models of organizational behaviour to achieve the desired
organizational objectives;
4. Apply behavior-based system of behavior change to real world problems
5. Develop communication strategies to promote positive behaviors which are
appropriate to your settings.
6. Apply behavior system analysis or performance system analysis to analysis
human performance in organizations for the purpose of improving the
organizational functioning.

1. ORGANIZATIONAL BEHAVIOR (OB)

Organizational behavior is the study of human behavior in organizational setting, the
interface between the human behavior and the organization, and the organization itself.
Furthermore, it may be defined as “the study of the way people interact within groups.
Normally OB is applied in an attempt to create more efficient business organizations. The
central idea of the study of organizational behavior is that a scientific approach can be
applied to the management of workers.”Organizational behavior theories are used for
human resource purposes to maximize the output from individual group members.

OB can be divided into three levels.

1. Micro-level (The study of the individuals working in the organizations): The
topics covered by Micro OB include cognition, decision making, learning,
motivation, negotiation, impressions, group process, stereotyping, and power,
and influence.
2. Meso-level ( The study of working groups in the organization): it covers the
working force, administrative / management group, etc.,
3. Macro-level (the study of how organizations behave): Macro OB covers
organizations as social systems, dynamics of change, relationships between
organizations and their environments, as well as identity in organizational
process, how social movements influence markets, and the power of social
networks.

Academic Focuses
Academic Programs focusing on organizational behavior are usually found in business
schools, and schools of social work and psychology. They draw from the fields of
anthropology, ethnography, and leadership studies and use quantitative, qualitative, and
computer models as methods to explore and test ideas. Depending on the program one
can study specific topics within organizational behavior, or broader fields.

As mentioned above that Organizational Behavior (OB) is the study and application of
knowledge about how people, individuals, and groups act in organizations. It does this by
taking a system approach. That is, it interprets people-organization relationships in terms
of the whole person, whole group, whole organization, and whole social system. Its
purpose is to build better relationships by achieving human objectives, organizational
objectives, and social objectives. As you can see from the definition above,

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organizational behavior encompasses a wide range of topics, such as human behavior,
leadership, group, etc. but our main focus will be on a few parts of OB: elements, models,
social systems, organizational development (OD), work life, action learning, and change.

Goals of Organizational Behavior

Most sciences have four major thrusts, and these are also the goals of organizational
behavior. The first objective is to describe, systematically, how people behave under a
variety of conditions. Achieving this goal allows managers to communicate about human
behavior at work using a common language. For example, one benefit from the study of
this book is the acquisition of a new vocabulary about organizational behavior (see, for
example, the Glossary at the end of this book). A second goal is to understand why
people behave as they do. Managers would be highly frustrated if they could only talk
about the behaviors of their employees and not understand the reasons behind those
actions. Therefore, inquisitive managers learn to probe for underlying explanations.
Predicting future employee behavior is another goal of organizational behavior. Ideally,
managers would have the capacity to predict which employees might be dedicated and
productive or which ones might be absent, tardy, or disruptive on a certain day (so that
managers could take preventive actions). The final goal of organizational behavior is to
control, at least partially, and develop some human activity at work. Since managers are
held responsible for performance outcomes, they are vitally interested in being able to
make an impact on employee behavior, skill development, team effort, and productivity.
Managers need to be able to improve results through the actions they and their employees
take, and organizational behavior can aid them in their pursuit of this goal. Some people
may fear that the tools of organizational behavior will be used to limit their freedom,
manipulate their thoughts and actions, and take away their rights. Although that scenario
is possible, it is not likely, for the actions of most managers today are subject to intense
scrutiny. Managers need to remember that organizational behavior is a human tool for
human benefit. It applies broadly to the behavior of people in all types of organizations,
such as businesses, government, schools, and service organizations. Wherever
organizations are, there is a need to describe, understand, predict, and control (better
manage) human behavior.

There are a variety of different models and philosophies of organizational behavior.

Areas of research include improving job performance, increasing job satisfaction,
promoting innovation and encouraging leadership. In order to achieve the desired
results, managers may adopt different tactics, including reorganizing groups,
modifying compensation structures and changing the way performance is evaluated.

Elements of Organizational Behavior

The organization's base rests on management's philosophy, values, vision and goals. This
in turn, drives the organizational culture that is composed of the formal organization,
informal organization, and the social environment. The culture determines the type of
leadership, communication, and group dynamics within the organization. The workers
perceive this as the quality of work life which directs their degree of motivation. The
final outcomes are performance, individual satisfaction, and personal growth and

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development. All these elements combine to build the model or framework that the
organization operates from.

The main goal of behavioral and organizational management is to create a business

staffed by ethical employees who do not compromise the safety or well-being of others.
If a small business does not have an effective strategy for dealing with the behavioral and
organizational problems that arise in the office, it risks creating a de-motivating work
environment full of unhappy employees.

Feedback
Managers cannot know their employee dynamic without encouraging communication and
feedback from their employees. The employee dynamic is the way in which coworkers
interact with one another and their managers. Managers can assess the behavioral and
organizational status of their workplace by asking employees to approach them when
there is a problem or by fielding surveys at certain times during the year. Both methods
obtain valuable information about potential problems in the workplace while maintaining
the anonymity of employees.

Investigation
Effective managers rely on thorough investigation, not word of mouth, when addressing
problems in the workplace. For instance, an employee may complain to a manager that
she faces daily harassment from another employee in the office. It is the responsibility of
a manager to monitor the situation and look for signs of harassment. By investigating the
allegations, you ensure your employees that you are sensitive to their concerns.
Additionally, if you must fire an employee, you have proof of the worker's wrongdoing in
the event of a lawsuit.

Prompt Action
Promptly responding to organizational and behavioral problems is critical to maintaining
the trust and motivation of your employees. If managers fail to respond quickly to issues,
employees might see this as disrespectful and evidence of an out-of-touch management
staff. For instance, if employees complain that working in groups is inefficient and a
waste of their time, managers should quickly analyze this organizational problem and
provide a solution. If more independence is the answer, managers must say this directly
and promptly to employees.

Recognition
Recognizing good deeds or exemplary behavior is another key element of effective
organizational and behavioral management. For example, if an employee comes forward
and tells a manager that he made a large mistake, the manager should commend the
employee for his honesty and give him recognition. This may seem counterintuitive, but
it is essential to promote an honest and responsible organization. If an employee knows
that he will be punished for a mistake, he is more likely to hide the problem, possibly
causing more problems for the business in the future.

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The key elements in organizational behavior are people, structure, technology and the
external elements in which the organization operates. When people join together in an
organization to accomplish an objective, some kind of infrastructure is required. People
also use technology to help get the job done, so there is an interaction of people, structure
and technology. In addition, these elements are influenced by the external environment,
and they influence it. Each of the four elements of organizational behavior will be
considered briefly.

People
People make up the internal social system of the organization. They consist of individuals
and groups, and large groups as well as small ones. People are the living, thinking,
feelings beings who created the organizations. It exists to achieve their objectives.
Organizations exist to serve people. People do not exist to serve organizations.

Structure
Structure defines the official relationships of people in organizations. Different jobs are
required to accomplish all of an organization’s activities. There are managers and
employees, accountants and assemblers. These people have to be related in some
structural way so that their work can be effective. The main structure relates to power and
to duties.

Mechanistic form of Organization

It is characterized by high levels of complexity, formalization and centralization. A
highly mechanistic system is characterized by centralized decision making at the top, a
rigid hierarchy of authority, well but narrowly defined job responsibilities especially at
lower levels, and extensive rules and regulations which are explicitly make known to
employees through written documents. In mechanistic organization, labor is divided and
subdivided into many highly specialized tasks (high complexity), workers are granted
limited discretion in performing their tasks and rules and procedures are carefully defined
(high formalization); and there is limited participation in decision making which tends to
be conducted at the highest levels of management high centralization.

Organic form of Organization

A highly organic system is characterized by decentralized decision-making which allows
people directly involved with the job to make their own decisions, very few levels in the
hierarchy with flexible authority and reporting patters, loosely defined job responsibilities
for members, and very few written rules and regulations. It is relatively simple, informal
and decentralized.

Job Design
Jobs can be designed to range from highly simple to highly complex tasks in terms of the
use of the workers skill.

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Technology
Organizations have technologies for transforming inputs and outputs. These technologies
consist of physical objects, activities and process, knowledge, all of which are brought to
bear on raw materials labor and capital inputs during a transformation process. The core
technology is that set of productive components most directly associated with the
transformation process. Technology provides the physical and economic resources with
which people work.

Environment
All organizations operate within an external environment. A single organization does not
exist alone. It is part of a larger system that contains thousand of other elements. All these
mutually influence each other in a complex system that becomes the life style of the
people.

1.1 Models of Organizational Behavior

There are four major models or frameworks that organizations operate; Autocratic,
Custodial, Supportive, and Collegial (Cunningham, Eberle, 1990; Davis, 1967):
1. Autocratic — the basis of this model is power with a managerial orientation of
authority. The employees in turn are oriented towards obedience and dependence
on the boss. The employee need that is met is subsistence. The performance
result is minimal.
2. Custodial — the basis of this model is economic resources with a managerial
orientation of money. The employees in turn, are oriented towards security,
benefits, and dependence on the organization. The employee need that is met is
security. The performance result is passive cooperation.
3. Supportive — the basis of this model is leadership with a managerial orientation
of support. The employees in turn are oriented towards job performance and
participation. The employee need that is met is status and recognition. The
performance result is awakened drives.
4. Collegial — the basis of this model is partnership with a managerial orientation
of teamwork. The employees in turn are oriented towards responsible behavior
and self-discipline. The employee need that is met is self-actualization. The
performance result is moderate enthusiasm.

Although there are four separate models, almost no organization operates exclusively in
one. There will usually be a predominate one, with one or more areas over-lapping with
the other models. The first model, autocratic, has its roots in the industrial revolution. The
managers of this type of organization operate mostly out of McGregor's Theory X. The
next three models build on McGregor's Theory Y. They have each evolved over a period
of time and there is no one best model. In addition, the collegial model should not be
thought as the last or best model, but the beginning of a new model or paradigm.

Social Systems, Culture, and Individualization

A social system is a complex set of human relationships interacting in many ways.
Within an organization, the social system includes all the people in it and their

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relationships to each other and to the outside world. The behavior of one member can
have an impact, either directly or indirectly, on the behavior of others. Also, the social
system does not have boundaries ... it exchanges goods, ideas, culture, etc. with the
environment around it.

Culture is the conventional behavior of a society that encompasses beliefs, customs,

knowledge, and practices. It influences human behavior, even though it seldom enters
into their conscious thought. People depend on culture as it gives them stability, security,
understanding, and the ability to respond to a given situation. This is why people often
fear change. They fear the system will become unstable, their security will be lost, they
will not understand the new process, and they will not know how to respond to the new
situations.

Individualization is when employees successfully exert influence on the social system by

challenging the culture.

The quadrant below shows how individualization affects different organizations (Schein,
1968):

Impact of socialization on organization

High
10
9 C D
8 Conformity Creative individualism
Socialization

7
6
5
4 A B
3 Isolation Rebellion
2
1
Low 1 2 3 4 5 6 7 8 9 10 High
Individualization

 Quadrant A — Too little socialization and too little individualization creates

isolation.
 Quadrant B — Too little socialization and too high individualization creates
rebellion.
 Quadrant C — Too high socialization and too little individualization creates
conformity.
 Quadrant D — too high socialization and too high individualization develop a
creative environment. This is what it takes to survive in a very competitive
environment ... having people grow with the organization, but doing the right
thing when others want to follow the easy path.

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This can become quite a balancing act. Individualism favors individual rights, loosely
knit social networks, self-respect, and personal rewards and careers—it may become look
out for Number One! Socialization or collectivism favors the group, harmony, and asks,
“What is best for the organization?” Organizations need people to challenge, question,
and experiment, while still maintaining the culture that binds them into a social system.

1.2 Organization Development

Organization Development (OD) is the systematic application of behavioral science
knowledge at various levels, such as group, inter-group, organization, etc., to bring about
planned change (Newstrom, Davis, 1993). Its objectives are a higher quality of work-life,
productivity, adaptability, and effectiveness. It accomplishes this by changing attitudes,
behaviors, values, strategies, procedures, and structures so that the organization can adapt
to competitive actions, technological advances, and the fast pace of change within the
environment.

There are seven characteristics of OD (Newstrom, Davis, 1993):

1. Humanistic Values: Positive beliefs about the potential of employees
(McGregor's Theory Y).
2. Systems Orientation: All parts of the organization, to include structure,
technology, and people, must work together.
3. Experiential Learning: The learners' experiences in the training environment
should be the kind of human problems they encounter at work. The training
should NOT be all theory and lecture, but rather provide experiences that create
learning opportunities.
4. Problem Solving: Problems are identified, data is gathered, corrective action is
taken, progress is assessed, and adjustments in the problem solving process are
made as needed. This process is known as action research.
5. Contingency Orientation: Actions are selected and adapted to fit the need.
6. Change Agent: Stimulate, facilitate, and coordinate change.
7. Levels of Interventions: Problems can occur at one or more level in the
organization so the strategy will require one or more interventions.

The OD paradigm values human and organizational growth, collaborative and

participative process and a spirit of enquiry. The change agent may be directive in OD;
however, there is a strong emphasis on collaboration. Concepts such as power, authority,
control, conflict and coercion are held in relatively low esteem among OD change agents.

The following are some of the key values in most OD efforts:

 Respect for people: Individuals are perceived as being responsible, conscientious
and caring. They should be treated with dignity and respect
 Trust and support: The effective and healthy organizations is characterized by
trust, authenticity, openness and supportive climate
 Power equalization: Effective organizations de-emphasize hierarchical authority
and control.

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 Confrontation: Problems should not be swept under the carpet. They should be
openly confronted
 Participation: The more the people who will be affected by a change are involved
in the decisions surrounding that change, the more they will be committed to
implementing those decisions.

Organizational Change and Development Intervention

These are organizational change and development intervention that can have an
organization-wide impact. Two of the most popular and widely used interventions are
management by objectives (goal setting) and the managerial grid. Both these
interventions have a common sense appeal to manage and are generally considered
worthwhile endeavors for improving behavior and performance.

Management by Objectives
Peter Druker defines MBO is process whereby the superior and subordinate manager of
an organization jointly identify its common goals, define each individual’s major areas of
responsibilities, interest of the results expected of him and use these measures as guides
for operating the unit and assessing the contributions of each of its members. The
following are the series of interrelated and interdependent steps of MBO Process.

Step I: Diagnosis for MBO Readiness: A through analysis of its people, the history of
change, jobs, technology, mission, plan and strategy of the company will be carried out in
advance to make the organization in a readiness state

Step II: Preparation for MBO: Initiative has to be taken to involve all the members to
participate in this exercise through active interaction. Certain facilities such as proper
communication system, formal training and development, establishing action plans,
developing criteria for assessing effectiveness have to be created.

Step III: Objective Setting: Special attention has to be paid to clarify the objectives of
individuals, departments, division and organization. The superiors and subordinates must
participate and jointly set the goals and objectives and prioritizes those objectives based
on the importance and weight ages

Step IV: Intermediate Review: This review will facilitate to modify the original
objectives considering the limitations or getting feedback on the process.

Step V: Final Review and Analysis of Results: An intensive analysis is taken up to

review its results and initiate the next complete cycle of objective setting

Step VI: Achieving Results: The accomplishment of better planning, control, and
organization through motivated involvement, based on achieved results instead of
personality and popularity. There are four key principles of MBO:

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i) MBO requires the involvement of superiors and subordinates. The subordinates
may be involved in a dyadic relationship, one superior-one subordinate, or in
group arrangements of one superior and more than one subordinate.
ii) MBO relies heavily on feedback, with needs to focus on results and should be as
closely connected to behavior and performance as possible
iii) The crucial first step in any MBO program should be a thorough diagnosis of
here job, the participants and the needs of the organization.
iv) The superior must be competent in counseling the subordinate on the achieved
results and the expected or agreed to results for the next cycle.

Benefits of MBO:
The following are some of the benefits of MBO program:
i) Increased short and long range planning,
ii) A procedure for monitoring work progress and results
iii) Improved commitment to the organization because of increased motivation,
loyalty and participation of employees
iv) Improved communication between superiors and subordinates
v) An improved organizational climate in general that encourages improvements in
performance.

Managerial Grid
The managerial grid model proposes two assumptions about managerial behavior (i)
concern for production specifies a manager’s concern for accomplishing productive task,
such as quality, quantity and efficiency of output, and (2) concern for people designates a
manager’s interest and concern for the personal worth of subordinates, the equity of the
reward and evaluation systems, and the nurturing of social relationships. In the
managerial grid framework, the manager who shows a high concern for both production
and people is the most effective manager in an organizational setting. Blake and Mouton
display the relationship between the production and people concerns on a 9 by 9 grid,
which enables them to plot eighty one possible combinations of managerial concern. The
managerial style of an executive can be assessed by a questionnaire which measures the
concern for production and people. By scoring the questionnaire responses, it is assumed
that where a manger fits in the eighty one cell grid can be determined. But the emphasis
is given on five major dimensions:
i) Impoverished Management (1, 1) – This style displays little concern for either
production or people. Exertion of minimum effort to get required work done is
appropriate to sustain organization membership.
ii) Task Management (9, 1) –This emphasizes completing jobs within time, quality
and budgetary constraints. Efficiency in operations results from arranging
conditions of work in such a way that human elements interfere to a minimum
degree.
iii) Middle-of-the-road Management (5, 5) – The manager attempts show at least a
moderate amount of concern for both production and people. Adequate
organization performance is possible thorough balancing the necessity to get out
work with maintaining morale of people at a satisfactory level.

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iv) Country Club Management (1, 9) –Manager gives much attention to people while
production tasks are overshadowed. Thoughtful attention to needs of people for
satisfying relationships leads to a friendly organizational atmosphere and work
tempo.
v) Team Management (9, 9) – The manager using this style attempts to help
subordinates satisfy self-actualization, autonomy and esteem needs; develops an
atmosphere of trust and supportiveness and emphasis task accomplishment. Work
accomplished from committed people, interdependence through a common stake
in organization purpose leads to relationships of trust and respect.

Quality of Work Life

Quality of Work Life (QWL) is the favorableness or un-favorableness of the job
environment (Newstrom, Davis, 1993). Its purpose is to develop jobs and working
conditions that are excellent for both the employees and the organization. One of the
ways of accomplishing QWL is through job design. Some of the options available for
improving job design are:
 Leave the job as is but employ only people who like the rigid environment or
routine work. Some people do enjoy the security and task support of these kinds
of jobs.
 Leave the job as is, but pay the employees more.
 Mechanize and automate the routine jobs.
 And the area that OD loves—redesigns the job.

When redesigning jobs there are two spectrums to follow—job enlargement and job
enrichment. Job enlargement adds a more variety of tasks and duties to the job so that it is
not as monotonous. This takes in the breadth of the job. That is, increase the number of
different tasks that an employee performs. This can also be accomplished by job rotation.

Job enrichment, on the other hand, adds additional motivators. It adds depth to the job—
more control, responsibility, and discretion to how the job is performed. This gives higher
order needs to the employee, as opposed to job enlargement that simply gives more
variety. The chart below illustrates the differences (Cunningham, Eberle, 1990):

The benefits of enriching jobs include:

 Growth of the individual
 Individuals have better job satisfaction
 Self-actualization of the individual
 Better employee performance for the organization
 Organization gets intrinsically motivated employees
 Less absenteeism, turnover, and grievances for the organization
 Full use of human resources for society
 Society gains more organizations that are effective
There is a variety of methods for improving job enrichment (Hackman and Oldham, 1975):

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 Skill Variety: Perform different tasks that require different skill. This differs
from job enlargement that might require the employee to perform more tasks, but
require the same set of skills.
 Task Identity: Create or perform a complete piece of work. This gives a sense of
completion and responsibility for the product.
 Task Significant: This is the amount of impact that the work has on other people
as the employee perceives.
 Autonomy: This gives employees discretion and control over job related decisions.
 Feedback: Information that tells workers how well they are performing. It can
come directly from the job (task feedback) or verbally form someone else.

Action Learning
Action Learning can be viewed as a formula: [L = P + Q]:
 Learning (L) occurs through a combination of
 Programmed knowledge (P) and
 The ability to ask insightful questions (Q).

Action learning has been widely used in Europe for combining formal management
training with learning from experience. A typical program is conducted over a period of 6
to 9 months. Teams of learners with diverse backgrounds conduct field projects on
complex organizational problems that require the use of skills learned in formal training
sessions. The learning teams then meet periodically with a skilled instructor to discuss,
analyze, and learn from their experiences.

Change In its simplest form, discontinuity in the work place is change. (Knoster and
Villa, 2000)

Self-Assessment Exercise 5.1

Answer these questions:

1. What is the origin and meaning of ‘observational behaviour?
2. At what levels the organizational behavior theories implemented to increase
the out to the maximum?
3. There are four major models or frameworks that organizations operate. Which
model, do you think better and you want to apply in your educational
institution to improve the efficiency of your institution?
4. What is organizational development? Write down its characteristics.
5. How you define Quality of Work Life (QWL)?
6. One of the ways of accomplishing QWL is through job design. What are the
options available for improving job design in your opinion?
7. What methods are recommended by Hackman and Oldham for improving job
enrichment?

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2. BEHAVIORAL SYSTEMS ANALYSIS (BSA)
Behavioral Systems Analysis focuses on performance improvement in organizations
through the methods and principles of behavior analysis and systems analysis. Behavior
Analysis is a scientific discipline that studies the behavior of individuals. Behavior
Analysis maintains that behavior which is the product of individual's interaction with his
or her environment (e.g., physical environment, social environment, genetic environment)
and the history of that interaction. All social organizations (e.g. educational institutions)
are comprised of individuals' behaviors and their products. Systems Analysis is a
scientific discipline that studies the operations of complex systems such as organizations,
and focuses on the interactions between parts of those systems. A system can be
understood as interrelated components or parts that interact toward a common purpose.
Accordingly, the behavior or functioning of one part or parts affect(s) the behavior or
functioning of other parts.

In systems analysis, a system is not considered to be reducible to its parts. Because the
parts not work in isolation, therefore, the parts can only be understood in terms of their
interaction with other parts of the system. Behavioral Systems Analysis draws upon basic
and applied research on behavior and the research and practice in Organizational
Behavior Management, Performance Management and Systems Analysis.

Behavioral Systems Analysis views organizational performance as a scientific subject matter.

From this perspective, an individual's behavior in organizations is a naturally occurring
phenomenon. Moreover, the discovery orderly relation between behavior and the system in
which it occurs gives us opportunities for Behavioral Systems Applications to improve
individual and system performance. Behavioral Systems Analysis is an approach to
organizational design and management. It is based on the premise that organizations are
complex systems. As such, a change in one aspect of performance in an organization
necessarily affects performance in other parts of an organization. A primary goal of BSA is
to create a balanced application in which areas of poor performance are improved, areas of
high performance are maintained, and employee performance outcomes are directed towards
organizational goals. This is done through the careful use of behavioral and systems theories
and the application of research based principles of behavior, such as reinforcement,
punishment, stimulus control, discrimination and generalization.

Self-Assessment Exercise 5.2

Answer these questions

1. Define Behavioral Systems Analysis (BSA) in your own words.
2. Think for a while that you are working in an educational institution, and found
that the interaction between the students and teachers (or the teachers and
administration) is poor which leads to the poor performance of the institution.
Give concrete suggestions to improve individual and system performance.

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3. BEHAVIOR-BASED SAFETY
Behavior-Based Safety (BBS) is the application of science of behavior change to real
world problems. It is a process that creates a safety partnership between management and
employees that continually focuses people's attentions and actions on their, and others,
daily safety behavior. BBS focuses on what people do, analyzes why they do it, and then
applies a research-supported intervention strategy to improve what people do.

A safety management system based upon the hierarchy of hazard control, BBS may be
applied to internalize hazard avoidance strategies or administrative controls, but should
not be used in preference to the implementation of reasonably practicable safety measures
further up the hierarchy. To be successful a BBS program must include all employees,
from the head of the organization (secretary education or District education officer,
sometime may principal) to the front line workers including hourly, salary, union
employees. To achieve changes in behavior, a change in policy, procedures or systems
most assuredly will also need some change. Those changes cannot be done without buy-
in (commitment to achieving shared goals) and support from all employees involved in
making those decisions. BBS is not based on assumptions, personal feeling, or common
knowledge but it must be based on scientific knowledge (empirical evidences).

Self-Assessment Exercise 5.3

Answer these questions

1. What do you know about the concept “behavior based safety”?
2. Do you think that for a successful management, all employees should be
included in BBS program?

4. BEHAVIOR CHANGE COMMUNICATION

Behavior change communication (BCC) is an interactive process of any intervention
with individuals, communities and/or societies (as integrated with an overall program) to
develop communication strategies to promote positive behaviors which are appropriate to
their settings. This in turn provides a supportive environment which will enable people to
initiate, sustain and maintain positive and desirable behavior outcomes.

BCC is the strategic use of communication to promote positive health outcomes, based on
proven theories and models of behavior change. BCC employs a systematic process
beginning with formative research and behavior analysis, followed by communication
planning, implementation, and monitoring and evaluation. Audiences are carefully
segmented, messages and materials are pre-tested, and both mass media and interpersonal
channels are used to achieve defined behavioral objectives.

Providing people with information and teaching them how they should behave does not
lead to desirable change in their response/behavior. However, when there is a supportive

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environment with information and communication (teaching) then there is a desirable
change in the behavior of the target group. Thus, BCC is proved to be an instructional
intervention which has a close interface with education and communication. It is a
strategic and group oriented form of communication to perceive a desired change in
behavior of target group.

BCC programs include a wide range of interventions that fall into three broad categories:
 Mass media (radio, television, print material, the internet);
 Interpersonal communication (client-provider interaction, group presentations);
and
 Community mobilization.

Limitations of organizational behavior

 Behavioral Bias
People who lack system understanding and become superficially infatuated with
OB may develop a behavioral bias, which gives them a narrow viewpoint that
emphasizes satisfying employee experiences while overlooking the broader
system of the organization in relation to all its publics. Concern for employees
can be so greatly overdone that the original purpose of bringing people
together—productive organizational outputs for society—is lost. Sound
organizational behavior should help achieve organizational purposes, not replace
them. The person who ignores the needs of people as consumers of
organizational outputs while championing employee needs is misapplying the
ideas of organizational behavior. To assume that the objective of OB is simply to
create a satisfied workforce is a mistake, for that goal will not automatically
translate into new products and outstanding customer service. Moreover, the
person who pushes production outputs without regard for employee needs is
misapplying or ignoring organizational behavior. Sound organizational behavior
recognizes a social system in which many types of human needs are served in
many ways.
Behavioral bias can be so misapplied that it harms employees as well as the
organization. Some people, in spite of their good intentions, so overwhelm others
with care that the recipients of such care are emotionally smothered and reduced
to dependent—and unproductive—indignity. They become content, not fulfilled.
They find excuses for failure rather than take responsibility for progress. They
lack self-discipline and self-respect. Concern for people can be misapplied by
overeager partisans until it becomes harmful, as the following discussion
illustrates.
 The Law of Diminishing Returns
Overemphasis on a valid organizational behavior practice may produce negative
results, as indicated by the law of diminishing returns It is a limiting factor in
organizational behavior the same way it is in economics. In economics, the law
of diminishing returns refers to a declining amount of extra outputs when more of
a desirable input is added to an economic situation. After a certain point, the

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 output from each unit of added input tends to become smaller. The added output
eventually may reach zero and even continue to decline when more units of input
are added. The law of diminishing returns in organizational behavior works in a
similar way. It states that at some point, increases of a desirable practice produce
declining returns, eventually zero returns, and then negative returns as more
increases are added. The concept implies that for any situation there is an
optimum amount of a desirable practice, such as recognition or participation.
When that point is exceeded, a decline in returns occurs. In other words, the fact
that a practice is desirable does not mean more of it is more desirable. More of a
good thing is not necessarily good (see “On the Job: U.S. Navy”). Why does the
law of diminishing returns exist? Essentially, it is a system concept. It applies
because of the complex system relationships of many variables in a situation.
When an excess of one variable develops, although that variable is desirable, it
tends to restrict the operating benefits of other variables so substantially that net
effectiveness declines. For example, too much security may lead to less
employee initiative and growth. Although the exact point at which an application
becomes excessive will vary with the circumstances, an excess can be reached
with nearly any practice. This relationship shows that organizational
effectiveness is achieved not by maximizing one human variable but by
combining all system variables together in a balanced way.
 Unethical Manipulation of People
A significant concern about organizational behavior is that its knowledge and
techniques can be used to manipulate people unethically as well as to help them
develop their potential. People who lack respect for the basic dignity of the
human being could learn organizational behavior ideas and use them for selfish
ends. They could use what they know about motivation or communication in the
manipulation of people without regard for human welfare. People who lack
ethical values could use people in unethical ways.
The philosophy of organizational behavior is supportive and oriented toward
human resources. It seeks to improve the human environment and help people
grow toward their potential. However, the knowledge and techniques of this
subject may be used for negative as well as positive consequences. This
possibility is true of knowledge in almost any field, so it is no special limitation
of organizational behavior. Nevertheless, we must be cautious so that what is
known about people is not used to manipulate them. The possibility of
manipulation means that people in power in organizations must maintain high
ethical and moral integrity and not misuse their power. Without ethical
leadership, the new knowledge learned about people becomes a dangerous
instrument for possible misuse.
Ethical leadership will recognize such principles as the following:
 Social responsibility: Responsibility to others arises whenever people
have power in an organization.
 Open communication: The organization will operate as a two-way open
system, with open receipt of inputs from people and open disclosure of
its operations to them.

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  Cost-benefit analysis: In addition to economic costs and benefits, human
and social costs and benefits of an activity will be analyzed in
determining whether to proceed with the activity. As the general
population learns more about organizational behavior, it will be more
difficult to manipulate people, but the possibility is always there. That is
why society desperately needs ethical leaders.

Self-Assessment Exercise 5.4

Answer these questions

1. What do you know about the concept “Behavior change
communication (BCC)”? Develop a definition of your own by understanding
this concept.
2. BCC programs include a wide range of interventions that fall into three broad
categories. Enlist these categories.
3. Is BCC an administratively control activity or communicative?

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REFERENCES
 Davis, K. (1967). Human relations at work: The dynamics of organizational
behavior. 9th ed., New York: McGraw-Hill

 Frederick, J. (1999) Comprehensive Health and Safety vs. Behavior-Based

Safety: The Steelworker Perspective on Behavioral Safety (Part 2). Remarks to
the 1999 Behavioral- Safety Now Conference. Las Vegas, Nevada, October 6

 Kincaid, D L., 2000. "Mass Media, Ideation, and Behavior: A Longitudinal

Analysis of Contraceptive Change in the Philippines." Communication Research
27, 6: 723-763.

 Mathis, T.L. (2009) Managing Safety: Unions and Behavior-Based Safety: The 7
Deadly Sins.

 Newstrom, J. W., Davis, K. (1993). Organizational Behavior: Human Behavior

at Work. New York: McGraw-Hill.

 http://www.investopedia.com/terms/o/organizational-behavior

 http://buc.edu.in/sde_book/msc_organ.pdf

 http://academlib.com/2811/management/elements_organiational_behavior

 https://www.tutorialspoint.com/organizational_behavior/organizational_behavior
_tutorial.pdf

 http://www.newagepublishers.com/samplechapter/001395.pdf

 http://www.emaytrix.com/mgmt307/section2.php

 http://www.iilstudents.com/wp-content/uploads/2013/01/Organisational-
Behaviour.pdf

 http://www.pearsoncanada.ca/media/highered-showcase/multi-product-
showcase/robbins-ch05.pdf

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UNIT-6

QUALITY MANAGEMENT

Written by: Ms. Tahira Bibi

Reviewed by: Hamid Ali Nadeem

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 CONTENTS

Introduction ..................................................................................................... 125

Objectives......................................................................................................... 125
1. Quality Indicators............................................................................... 129
1.1 Quality Management Principles ....................................... 130
1.2 Quality Standards ............................................................. 134
2. System Approach ............................................................................... 135
2.1 Benefits to System Approach........................................... 136
2.2 Steps to Achieve System Approach ................................. 136
2.3 Importance ....................................................................... 137
2.4 Limitations ....................................................................... 137
3. Process Approach............................................................................... 138
3.1 Process Approach to Quality System Management ......... 138
4. Stakeholder/Customer Satisfactions .................................................. 140
4.1 Customer Satisfaction ...................................................... 140
4.2 Customer Satisfaction Methods ....................................... 141
4.3 Approaches of Customer Satisfaction .............................. 142
5. References .......................................................................................... 147

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INTRODUCTION
We all know quality when we experience it, but describing and explaining it is a more
difficult task. In our everyday life we usually take quality for granted, especially when it
is regularly provided. Yet we are all too acutely aware when it is lacking. We often only
recognize the importance of quality when we experience the frustration and time wasting
associated with its absence. Of one thing we can be certain: quality is what makes the
difference between things being excellent or average. Increasingly, quality makes the
difference between success and failure. The best organizations, whether public or private,
understand quality and know its secret. Seeking the source of quality is an important
quest. Education is also recognizing the need to pursue it, and to deliver it to pupils and
students. There are plenty of stakeholders for the source of quality in education. Amongst
these are:
1. Outstanding teachers
2. High moral values
3. Excellent examination results
4. The support of parents, business and the local community
5. Plentiful resources
6. The application of the latest technology
7. Strong and purposeful leadership
8. The care and concern for pupils and students
9. A well-balanced and challenging curriculum. (Sallis,2002)

It is the responsibility of quality management to ensure that an organization, product or

service is consistent. It has four main components: quality planning, quality
assurance, quality control and quality improvement. Quality management is focused not
only on product and service quality, but also on the means to achieve it. Quality
management, therefore, uses quality assurance and control of processes as well as
products to achieve more consistent quality.

OBJECTIVES
After studying this unit you will be able to:
1. Describe the concept, related concepts, and importance of quality management.
2. Evaluate the principles of quality management and their application in
educational institutions.
3. Understanding about the process and system approaches to quality management.
4. Identify and analyze role of various stakeholders of educational institutions for
quality management.
5. Knowledge about the concept and importance of customer satisfaction.

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Quality and Quality Management
The origin of quality words is from French word “Qualite” in English it means character,
disposition, and particular property or feature. According to dictionary the meaning of
quality the standard of something as measured against other things of a similar kind, the
degree of excellence of something or a distinctive attribute or characteristic possessed by
someone or something.

Quality in the technical sense is largely a relative concept. The relative definition views
quality not as an attribute of a product or service, but as something which is ascribed to
it—‘the quality of your essay varies between good and excellent’. Quality in this sense is
about being measured against criteria. It is not an end in itself, but a means by which the
end product is judged as being up to (or not up to) standard. Quality products or services,
in this relative or ascribed definition,

The relative definition of quality has two aspects to it. The first is concerned with
measuring up and ensuring conformity to a predetermined specification. The question
that is asked is ‘Does this good or service do what is asked or expected of it?’ This is
sometimes called the producer definition of quality or the procedural concept of quality.

In an industrial setting quality is achieved by products or services meeting a predefined

specification in a consistent market demand. Quality is demonstrated by a producer
having a system, known as a quality assurance system that supports the consistent
production of the good or service to a particular standard or specification.

The procedural concept places considerable emphasis on working to defined systems and
procedures. This is seen as the method most likely to produce a standardized or quality
outcome. Quality is achieved by putting systems and procedures into operation and
ensuring that those systems are efficiently and effectively operated. It is the audit trail
approach to quality. Today much quality work is concerned with finding appropriate
evidence about the way particular activities within the institution have been carried out.
The procedural concept is about proving that things have happened in accordance with
predetermined specifications. It ensures that activities conform to requirements, although
critics of the approach argue that it can stifle creativity and innovation.

Quality management is the act of overseeing all activities and tasks needed to maintain a
desired level of excellence. This includes the determination of a quality policy, creating
and implementing quality planning and assurance, and quality control and quality
improvement. It is also referred to as total quality management (TQM). Quality
management is procedure as well as system.

Any discussion about the nature of quality has to centre on the crucial role of the
consumer. Who should decide whether a school or college is providing a quality service?
The answer will tell us much about the values and aspirations of the institution. It is
essential to have a clear idea of who is ascribing the attribute of quality. The views of
producers’ i.e. institution, governing bodies and consumers like learner, societies etc are

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not always identical. It does happen that consumers reject perfectly good and useful
products and services. Providing a service to specification does not guarantee success.

Quality Control, Quality Assurance and Total Quality

As well as providing a definition of quality, it is necessary to understand the difference
between three other important quality ideas. These are the distinctions made between
quality control, quality assurance and total quality.

Quality Control is the oldest quality concept. It refers to the detection and elimination of
components or final products that are not up to standard. It is an after-the-event process
concerned with detecting and rejecting defective items. As a method of ensuring quality it
may involve a considerable amount of waste, scrap and reworking.

Figure. Quality Standards

Quality controllers or inspectors usually carry out quality control. Inspection and testing
are the most common methods of quality control, and are widely used in education to
determine whether standards are being met.

Quality Assurance is different from quality control. It is a before and during the event
process concerned to prevent faults occurring in the first place. Quality assurance is about
designing quality into the process to attempt to ensure that the product is produced to a
predetermined specification. Put simply, quality assurance is a means of producing
defect- and fault-free products. The aim in the words of Philip B Crosby is ‘zero defects’.
Quality assurance is about consistently meeting product specification or getting things
right first time, every time.

The quality of the good or service is assured by there being a system in place, known as a
quality assurance (QA) system, that lays down exactly how production should take place
and to what standards.

Quality standards are maintained by following the procedures laid down in the QA
system. Quality assurance is the responsibility of the workforce, usually working in

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quality circles or teams, rather than the inspector, although inspection can have a role to
play in quality assurance.

Total Quality Management incorporates quality assurance, and extends and develops it.
TQM is about creating a quality culture where the aim of every member of staff is to
delight their customers, and where the structure of their organization allows them to do
so. In TQM the customer is sovereign. It is the approach popularized by Peters and
Waterman (1982), and which has been a constant theme of Tom Peters’ writings ever
since.

The Educational Product

It is always necessary to ask two fundamental questions when trying to understand
quality in any situation. The first is ‘What is product?’ The second is ‘Who are the
customers?’ These questions are equally applicable to the discussion of quality in
education. The product of education is an area of difficulty. There are a number of
different candidates for it. The pupil or the student is often spoken about as if they fulfill
that role. In education we often talk as though learners are the output, especially with
reference to the institution’s perceived performance over discipline and behavior.

Importance of quality management

1. “Quality management” ensures superior quality products and services (outputs).
Quality of an output can be measured in terms of performance, reliability and
durability. Quality is a crucial parameter which differentiates an institution from
other institutions. Quality management tools ensure changes in the systems and
processes which eventually result in superior quality outputs. Quality
management methods such as Total Quality management or Six Sigma have a
common goal - to deliver a high quality outputs. Quality management is essential
to create superior quality products which not only meet but also exceed customer
satisfaction.
2. Quality management is essential for customer satisfaction which eventually leads
to customer loyalty. It is important for every institutions and organizations to
have some loyal customers.
3. Customers would return to your organization only if they are satisfied with your
outputs and services. Make sure the end-user is happy with your product/output.
Remember, a customer would be happy and satisfied only when your product
meets his expectations and fulfills his needs. Understand what the (customer)
society and individual expects from you? Find out what actually his need is?
Collect relevant data which would give you more insight into customer’s needs
and demands. Customer feedbacks should be collected on a regular basis and
carefully monitored.
4. Quality management ensures high quality products and services by eliminating
defects and incorporating continuous changes and improvements in the system.
High quality products in turn lead to loyal and satisfied customers who bring ten
new customers along with them. Do not forget that you might save some money
by ignoring quality management processes but ultimately lose out on your major

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 customers, thus incurring huge losses. Quality management ensures that you
deliver products as per promises made to the customers through various modes of
promotions.
5. Quality management tools help an organization to design and create a product
which the customer actually wants and desires.
6. Quality Management ensures increased revenues and higher productivity for the
organization. Remember, if an organization is earning, employees are also
earning. Employees are frustrated only when their salaries or other payments are
not released on time. Yes, money is a strong motivating factor. Would you feel
like working if your organization does not give you salary on time? Ask yourself.
Salaries are released on time only when there is free cash flow. Implementing
Quality management tools ensure high customer loyalty, thus better business,
increased cash flow, and satisfied employees, healthy workplace and so on.
Quality management processes make the organization a better place to work.
7. Remove unnecessary processes which merely waste employee’s time and do not
contribute much to the organization’s productivity. Quality management enables
employees to deliver more work in less time.
8. Quality management helps organizations to reduce waste and inventory. It
enables management to work closely with input, process and output “Just in
Time” Philosophy.
9. Quality management ensures close coordination between all stakeholders of an
institution. It inculcates a strong feeling of team work in the employees.

1. QUALITY INDICATORS
There are ten quality indicators. These have been weighted to show their relative importance
in the quality process. The highest weighted areas are effective teaching and learning and
leadership. Leadership is of crucial importance because numerous studies have shown that
strong leadership is a key feature of high performing educational institutions. Excellent
leaders inspire their staff and ensure that there is a drive for quality improvement. In those
establishments where student success is high, those working in them and particularly their
management have a clear understanding of standards and the actions necessary to achieve
them. This is a combination of leadership and teaching and learning.

The indicators for the self-assessment of institutional quality are:

1. access
2. services to customers
3. leadership
4. physical environment and resources
5. effective learning and teaching
6. students
7. staff
8. external relations
9. organization
10. standards

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1.1 Quality Management Principles
The seven quality management principles are:
QMP 1 – Customer focus
QMP 2 – Leadership
QMP 3 – Engagement of people
QMP 4 – Process approach
QMP 5 – Improvement
QMP 6 – Evidence-based decision making
QMP 7 – Relationship management

These principles are not listed in priority order. The relative importance of each principle
will vary from organization to organization and can be expected to change over time.

1. Customer Focus
The primary focus of quality management is to meet customer requirements and to strive
to exceed customer expectations.

Benefits
1. Increased customer value
2. Increased customer satisfaction
3. Improved customer loyalty
4. Enhanced repeat business
5. Enhanced reputation of the organization
6. Expanded customer base
7. Increased revenue and market share

Actions you can take

1. Recognize direct and indirect customers as those who receive value from the
organization.
2. Understand customers’ current and future needs and expectations.
3. Link the organization’s objectives to customer needs and expectations.
4. Communicate customer needs and expectations throughout the organization.
5. Plan, design, develop, produce, deliver and support goods and services to meet
customer needs and expectations.
6. Measure and monitor customer satisfaction and take appropriate actions.
7. Determine and take actions on interested parties’ needs and expectations that can
affect customer satisfaction.
8. Actively manage relationships with customers to achieve sustained success.

2. Leadership
Leaders at all levels establish unity of purpose and direction and create conditions in
which people are engaged in achieving the organization’s quality objectives.

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Creation of unity of purpose and direction and engagement of people enable an
organization to align its strategies, policies, processes and resources to achieve its
objectives.

Benefits
1. Increased effectiveness and efficiency in meeting the organization’s quality
objectives
2. Better coordination of the organization’s processes
3. Improved communication between levels and functions of the organization
4. Development and improvement of the capability of the organization and its
people to deliver desired results

Actions you can take

1. Communicate the organization’s mission, vision, strategy, policies and processes
throughout the organization.
2. Create and sustain shared values, fairness and ethical models for behavior at all
levels of the organization.
3. Establish a culture of trust and integrity. Encourage an organization-wide
commitment to quality.
4. Ensure that leaders at all levels are positive examples to people in the
organization.
5. Provide people with the required resources, training and authority to act with
accountability.
6. Inspire, encourage and recognize people’s contribution.

3. Engagement of people
Competent empowered and engaged people at all levels throughout the organization are
essential to enhance its capability to create and deliver value and to manage an
organization effectively and efficiently, it is important to involve all people at all levels
and to respect them as individuals. Recognition, empowerment and enhancement of
competence facilitate the engagement of people in achieving the organization’s quality
objectives.

Benefits
1. Improved understanding of the organization’s quality objectives by people in the
organization and increased motivation to achieve them
2. Enhanced involvement of people in improvement activities
3. Enhanced personal development, initiatives and creativity
4. Enhanced people satisfaction
5. Enhanced trust and collaboration throughout the organization
6. Increased attention to shared values and culture throughout the organization

Actions you can take

1. Communicate with people to promote understanding of the importance of their
individual contribution.

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2. Promote collaboration throughout the organization.
3. Facilitate open discussion and sharing of knowledge and experience.
4. Empower people to determine constraints to performance and to take initiatives
without fear.
5. Recognize and acknowledge people’s contribution, learning and improvement.
6. Enable self-evaluation of performance against personal objectives.
7. Conduct surveys to assess people’s satisfaction, communicate the results, and
take appropriate actions.

4. Process Approach
Consistent and predictable results are achieved more effectively and efficiently when
activities are understood and managed as interrelated processes that function as a
coherent system. The quality management system consists of interrelated processes.
Understanding how results are produced by this system enables an organization to
optimize the system and its performance.

Benefits
1. Enhanced ability to focus effort on key processes and opportunities for
improvement
2. Consistent and predictable outcomes through a system of aligned processes
3. Optimized performance through effective process management, efficient use of
resources, and reduced cross-functional barriers
4. Enabling the organization to provide confidence to interested parties as to its
consistency, effectiveness and efficiency
5. Actions you can take
6. Define objectives of the system and processes necessary to achieve them.
7. Establish authority, responsibility and accountability for managing processes.
8. Understand the organization’s capabilities and determine resource constraints
prior to action.
9. Determine process interdependencies and analyse the effect of modifications to
individual processes on the system as a whole.
10. Manage processes and their interrelations as a system to achieve the
organization’s quality objectives effectively and efficiently.
11. Ensure the necessary information is available to operate and improve the
processes and to monitor, analyse and evaluate the performance of the overall
system.
12. Manage risks that can affect outputs of the processes and overall outcomes of the
quality management system.

5. Improvement
Successful organizations have an ongoing focus on improvement. Improvement is
essential for an organization to maintain current levels of performance, to react to
changes in its internal and external conditions and to create new opportunities.

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Benefits
1. Improved process performance, organizational capabilities and customer
satisfaction
2. Enhanced focus on root-cause investigation and determination, followed by
prevention and corrective actions
3. Enhanced ability to anticipate and react to internal and external risks and
opportunities
4. Enhanced consideration of both incremental and breakthrough improvement
5. Improved use of learning for improvement
6. Enhanced drive for innovation
7. Actions you can take
8. Promote establishment of improvement objectives at all levels of the
organization.
9. Educate and train people at all levels on how to apply basic tools and
methodologies to achieve improvement objectives.
10. Ensure people are competent to successfully promote and complete improvement
projects.
11. Develop and deploy processes to implement improvement projects throughout
the organization.
12. Track, review and audit the planning, implementation, completion and results of
improvement projects.
13. Integrate improvement considerations into the development of new or modified
goods, services and processes.
14. Recognize and acknowledge improvement.

6. Evidence-Based Decision Making

Decisions based on the analysis and evaluation of data and information are more likely to
produce desired results. Decision making can be a complex process, and it always
involves some uncertainty. It often involves multiple types and sources of inputs, as well
as their interpretation, which can be subjective. It is important to understand cause-and-
effect relationships and potential unintended consequences. Facts, evidence and data
analysis lead to greater objectivity and confidence in decision making.

Benefits
1. Improved decision-making processes
2. Improved assessment of process performance and ability to achieve objectives
3. Improved operational effectiveness and efficiency
4. Increased ability to review, challenge and change opinions and decisions
5. Increased ability to demonstrate the effectiveness of past decisions

Actions you can take

1. Determine measure and monitor key indicators to demonstrate the organization’s
performance.
2. Make all data needed available to the relevant people.
3. Ensure that data and information are sufficiently accurate, reliable and secure.

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4. Analyse and evaluate data and information using suitable methods.
5. Ensure people are competent to analyse and evaluate data as needed.
6. Make decisions and take actions based on evidence, balanced with experience
and intuition.

7. Relationship Management
For sustained success, an organization manages its relationships with interested parties,
such as suppliers. Interested parties influence the performance of an organization.
Sustained success is more likely to be achieved when the organization manages
relationships with all of its interested parties to optimize their impact on its performance.
Relationship management with its supplier and partner networks is of particular
importance.

Benefits
1. Enhanced performance of the organization and its interested parties through
responding to the opportunities and constraints related to each interested party
2. Common understanding of goals and values among interested parties
3. Increased capability to create value for interested parties by sharing resources
and competence and managing quality-related risks
4. A well-managed supply chain that provides a stable flow of goods and services
5. Actions you can take
6. Determine relevant interested parties (such as suppliers, partners, customers,
investors, employees, and society as a whole) and their relationship with the
organization.
7. Determine and prioritize interested party relationships that need to be managed.
8. Establish relationships that balance short-term gains with long-term
considerations.
9. Pool and share information, expertise and resources with relevant interested
parties.
10. Measure performance and provide performance feedback to interested parties, as
appropriate, to enhance improvement initiatives.
11. Establish collaborative development and improvement activities with suppliers,
partners and other interested parties.
12. Encourage and recognize improvements and achievements by suppliers and
partners.

1.2 Quality Standards

The International Organization for Standardization (ISO) created the Quality
Management System (QMS) standards in 1987. They were the ISO 9000:1987 series of
standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were
applicable in different types of industries, based on the type of activity or process:
designing, production or service delivery.

The ISO 9000 family addresses various aspects of quality management and contains
some of ISO’s best known standards. The standards provide guidance and tools for

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companies and organizations who want to ensure that their products and services
consistently meet customer’s requirements, and that quality is consistently improved.

Standards in the ISO 9000 family include:

a) ISO 9001:2015 - sets out the requirements of a quality management system
b) ISO 9000:2015 - covers the basic concepts and language
c) ISO 9004:2009 - focuses on how to make a quality management system more
efficient and effective
d) ISO 19011:2011 - sets out guidance on internal and external audits of quality
management systems.

This standard is based on a number of quality management principles including a strong

customer focus, the motivation and implication of top management, the process approach
and continual improvement. These principles are explained in more detail in the Quality
Management Principles. Using ISO 9001:2015 helps ensure that customers get consistent,
good quality products and services, which in turn brings many business benefits.

Self Assessment Questions

Q.1 Define the concept of quality and quality management.

Q.2 What are the international standards for quality management?
Q.3 Analyze the quality management principle with reference to educational
intuitions.
Q.4 Describe the quality management system of higher education in Pakistan.

2. SYSTEM APPROACH
The systems approach to management is a concept that regards an organization as
comprising three purposively designed parts that are interconnected: input, process and
output.

INPUT PROCESS OUTPUT

Figure: System Approach

The particular components of these three parts will depend on the nature, objectives and
level of institution. Inputs will include human resource (learner, teachers, management,
supporting staff, technician etc.) physical and financial resources. The process may refer
to quality assurance practices in an institution or all activities to attain the objectives of
the institution. Outputs will be the products or results of the undertaking. The systems

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approach principle emphasizes the use of feedback response to aid in correcting or
minimizing errors when executing certain operations and activities.

For any organization considering the implantation of quality management strategies,

certain quality management principles need to be considered. One such principle is
system approach, which determines the identification, understanding and management of
a system of interrelated processes for any goals that will improve the organization’s
efficiency. This approach plays an important role in any continuous improvement
process, offering great benefit to the organization.

2.1 Benefits to System Approach

The primary benefits of system approach in regards to quality management can be seen
on a short and long term scale. These benefits include the following:
1. Incorporation and configuration of processes that will best ensure return/output
on investment/input.
2. Capacity to concentrate efforts on the primary processes.
3. Giving confidence to relevant parties in regards to the reliability, success and
efficiency of the organization.

The systems approach to management introduces a structured configuration where

personnel work as a combined unit. The system is efficient; it provides an orderly plan of
action with personnel having clearly defined responsibilities that overlap and interlock to
ensure that absence of a member results in minimal loss of productivity. By improving
workflow, it frees the management of the routine details of operations management.
Feedback provides a good basis of control, leading to higher quality of products. Overall,
the approach improves strategic and management decision-making due to the
interrelationships between the various subsystems.

2.2 Steps to Achieve System Approach

There are five steps that comprise of the system approach, with each step assisting
organizations to achieve more effective systems within their operations and goals. These
steps include the following:
1. Outline the system through the identification or development of specific
processes that are able to ensure that certain goals can be achieved.
2. Organize the system in order to achieve the goal in the most efficient way
possible, with a clear plan that can be implemented by relevant bodies.
3. Understand the relationship among each one of the separate processes of the
system, and how they interrelate to form a complete system.
4. Continuously expand the system through reporting, goal measurement and
regular system evaluation.
5. Evaluate the resources that will be required to implement processes, to determine
resource constraints before implementation of each process within the system.

When these steps are taken into consideration during the development of systems within
the organization, processes will be far more effective. This in turn will assist with

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achieving quality management and continuous improvement within the workplace
through efficient systems.

2.3 Importance
As an interdisciplinary approach that considers the needs of customers, the systems
approach will ensure quality outputs that meet user requirements. This is because the
approach systematically integrates all functions into an interrelated team effort, providing
a structured framework for the development process that proceeds from concept to
production. This ensures that all the system functions are optimized to achieve maximum
compatibility for enhanced productivity. By leveraging feedback, such as assessment of
work done, identification of deviations, and corrective action, changes can be effected to
better accomplish the task.

2.4 Limitations
A systems approach does not adequately specify the interdependence and nature of
interaction between an organization and its environment. The system tends to be rigid and
will react slowly in open systems that interact with external forces. It generally is suitable
for the manufacturing industry but not the service industry, which often has to adapt to
the external environment. It also does not offer practicing managers specific tools and
techniques, remaining rather abstract for practical problems.

Self Assessment Questions

Q.1 Define the concept of System approach in Educational Management with suitable
examples.
Q.2 Describe the importance of system approach in quality management.
Q.3 Critically analyze the process of achieving system approach.

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3. PROCESS APPROACH
The role of process approach plays an important part of any quality management strategy.
An important goal of any organization is to develop and implement strategies that
enhance the ability to consistently deliver a quality product or service. As such, a process
approach where all resources and tasks are identified, analyzed and allocated to each step
of the production process will more effectively deliver the desired results.

The important elements of a process approach for achieving quality management success
include the following:
1. Define the process to achieve the needed results – a process needs to be
defined and described in details with the required results identified.
2. Identify and quantify the inputs and outputs of the process – the inputs of a
process would include human resource, energy and materials while the outputs
would comprise work in-progress product and finished product or service.
3. Identify where the process interacts with the various organizational
functions – The elements of a process will interface with various functional areas
and these need to be identified as well as being quantified for an effective quality
management procedure.
4. Estimate potential risks, outcomes and impact – this concerns how customers,
suppliers and other stakeholders are affected by the process at each phase of its
implementation.
5. Set key responsibility – for a process to be effectively planned and
implemented, specific responsibility, authority and scope will need to be clearly
laid out for each individual with a role in the process.
6. Determine key stakeholders of the process - internal and external customers,
suppliers and other stakeholders who are involved in the process and its delivery
should be identified.
7. Process resources – various elements need to be taken into account when
developing a process approach, with numerous steps, tasks, flows, control tactics,
training requirements, tools, approaches, data, supplies and any other resources
that will enable the process to be effectively implemented.

A Process approach plays a vital role for any Institution striving towards continuous
improvement. To ensure the best results from your various processes, each of the steps
above should be implemented into your quality management strategy.

3.1 The Process Approach to Quality System Management

The process approach to quality is a strategy used by service providers institutions to
identify and manage the interaction between systems that comprise an organization. A
process can be defined as an integrated set of activities that use various resources to
convert inputs to outputs. When adopting the process approach, it is equally as important
to identify each process as it is to characterize it. Characterization usually includes
defining the following six (6) universal process affecters:

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a. Method: establishes a procedure to describe how to carry out the process (e.g.
standard operating procedure, work instruction, etc.).
b. Human Resources: identifies the competency qualifications (e.g. education,
training certification, etc.) required.
c. Machines/Instrumentation: defines what type of machinery or instrumentation
(e.g. injection molding equipment, ICP-MS, pH meter, etc.) is required.
d. Materials: defines the materials (e.g. laboratory reagents, raw materials, etc.)
required.
e. Environment: defines the environmental conditions required.
f. Metrics– describes how the success of the process is measured.

Often times the outputs of one process are the inputs of another, and if your system is
rather complex, keeping tabs on how they’re all interrelated may prove to be a challenge.
Flowcharts serve as a useful tool for understanding and visually representing how all of
these processes are interconnected. These interconnections or ‘links’ are what
essentially comprise the quality management system (QMS).

How the process is measured for success is an area that is often overlooked, but it is a key
for ensuring control and improvement. Sometimes an indirect measure, like an internal
auditing program, is the only way to determine whether or not a process is under control.
Regardless of the process, one way or another success must be measured.

In summary, a QMS is made up of many simple or complex linked processes through a

series of input-output relationships. Taking a process approach to your QMS can help
manage these processes— no matter what the level of complexity.

Self Assessment Questions

Q.1 Elaborate the concept and importance of process approach.

Q.2 What is various approaches and method of process approach to quality system
approach?
Q.3 Compare and contrast the system approach and process approach.

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4. STAKEHOLDER/CUSTOMER SATISFACTION
Definition of A customer
There are two distinct types of customers i.e. external and internal. Internal customers are
within the company-the colleagues working together for delivering a service or product
for the external customer. An external customer may be an individual or an enterprise
that hires or purchases the product(s) or service(s) from another person or business in
exchange of money.

One of the most important factors for the success of an institution or organization is its
customers. Without them, a business cannot exist. But to capture customers, a business
must try to find out what people want, how much and how often they will buy and how
their post-purchase satisfaction will be ensured. In an educational institution external
customer are learners, parents and society.

4.1 Customer Satisfaction

In business customer satisfaction refers to the measure of how products are defined as the
number of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services (ratings) exceeds specified satisfaction goals.

It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers’ expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and profitability. When a
brand has loyal customers, it gains positive word-of-mouth marketing, which is both free
and highly effective.

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.
In researching satisfaction, firms generally ask customers whether their product or service
has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.
When customers have high expectations and the reality falls short, they will be
disappointed and will likely rate their experience as less than satisfying.

External Customer Satisfaction

An external customer is one who isn’t a part of an organization, rather is one who
receives service or product from the organization. They are the ones who pay for a
service or product and can make or break an organization. They have a choice. If a
particular product or service does not please them, they can easily find another company
that offers a better product or services. Quality must be incorporated into all activities

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with a clear customer focus. Customers usually compare perceptions of what they
actually received from the organization with their expectations (what they were expecting
to get from the organization).
1. Customer delight arises when perceptions exceed expectations. External
customer satisfaction shows the extent to which the organization;
2. Uses methods for determining and monitoring external customer's perceived
quality and value.
3. Uses customer feedback to improve product/service quality.
4. Handles complaints, resolves them, and uses complaint information for quality
improvement and prevention of recurrence of problems.
5. Measures performance against customer targets.
6. Compares its customer satisfaction results with that of main competitors.

Internal Customer Satisfaction

An internal customer can be anyone within an organization. It could be another
department, another branch or even a co-worker. Getting the internal relationships
working is essential if external customers are to be satisfied. Every single person in the
organization has an effect on the external customers. Internal co-operation needs to be
stimulated to enhance organizational performance. The most effective leadership style
tends to give high importance to teams and employee participation.

A summary of steps to improve Internal Customer Satisfaction is given below

1. Treat employees as you would treat your customers – They are valuable members
of your organization and they must feel important for the organization.
2. Share your vision – Communicating the company’s vision with the employees
will make them feel a part of the company. It can help them align their goals with
those of the company.
3. Surpass their expectations – To make your employees happy, offer unexpected gifts
or bonuses, arrange team parties, take them out for a team lunch or dinner, etc.
4. Take feedback and suggestions – To better understand your employees; you must
know what they feel about their jobs, or their work environment.
5. Show appreciation for good work – Appreciate a good work done.

4.2 Customer Satisfaction Methods

Following are the methods used for customer satisfaction of an organization or institution.

1. Encouraging Face-to-Face Dealings with customers.

This is the most daunting and downright scary part of interacting with a customer. If
you’re not used to this sort of thing it can be a pretty nerve-wracking experience.
Rest assured, though, it does get easier over time. It’s important to meet the
customers face to face at least once or even twice during the course of a project.
In doing so, the client finds it easier to relate to and work with someone they’ve
actually met in person, rather than a voice on the phone or someone typing into
an email or messenger program. When you do meet them, be calm, confident and
above all, take time to ask them what they need.

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2. Respond to Messages Promptly & Keep the Clients Informed
This goes without saying really. We all know how annoying it is to wait days for
a response to an email or phone call. It might not always be practical to deal with
all customers’ queries within the space of a few hours, but at least email or call
them back and let them know you’ve received their message and you’ll contact
them about it as soon as possible. Even if you’re not able to solve a problem right
away, let the customer know you’re working on it.
3. Being friendly and approachable by customers.
It’s very important to be friendly, courteous and to make your clients feel like
you’re their friend and you’re there to help them out. There will be times when
you want to beat your clients over the head repeatedly with a blunt object – it
happens to all of us. It’s vital that you keep a clear head, respond to your clients’
wishes as best you can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you’re just starting out, but a clearly defined
customer service policy is going to save a lot of time and effort in the long run. If
a customer has a problem, what should they do? If the first option doesn’t work,
then what? Should they contact different people for billing and technical
enquiries? If they’re not satisfied with any aspect of your customer service, who
should they tell?

4.3 Approaches of Customer Satisfaction

i. Regular customer feedback system.

This involves allowing communication from your customers through emails,
suggestion boxes. One should keep all documents and send copies to the person
who made the complain.
ii. Market research.
This is done to understand your customers better. This can be done through
sampling a few customers using appropriate sampling techniques and a detailed
study is conducted on their likes and dislikes.
iii. New or last customer survey.
These are useful ways of finding out what attracts customers to the organization
and indeed why they left.
iv. Focus groups.
This is intended to know what customers are thinking. A group of customers is
assembled in a meeting to answer a series of questions.
v. Customer visits.
This involves making visits to the customer’s premises to collect information.
These are meant to know how the product or service is performing.
vi. Front line personnel.
This is the use of employees who are in direct contact with customers to
understand the customers’ expectations. These employees should be trained on
how to carry out this task.

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vii. Critical incidents technique.
This attempts to identify issues that delight the customer and those that satisfy
them.
viii. Customer satisfaction performance measures.
a) Product reliability. Customer’s surveys can collect competitive data on
percent defectives on arrival and also percentage annual failure rate.
b) Ease of use. Data on confusion rating and competitive data can be
collected by customers’ surveys.
c) Availability of dealers and retailers. Products and accessory availability
percentage, percentage of an initial delivery and speed of delivery after
order.
d) Documentation. Customer surveys competitive data, customer helpline
etc.
e) Price and cost of ownership repair cost.
f) Customer complaints and feedback. Type, number, comparison.
g) Environment friendly products. Recyclable parts and consumer agency
approval data can be collected and performance measured.

Ways of Enhancing Customer Satisfaction

i. Measure and monitor customer satisfaction continuously (trends, problems).
ii. Establish and maintain contact with customers
iii. Focus on and analyze process for successful customer orientation.
iv. Promote a cultural empowerment, leadership and customer care.
v. Develop a commitment of trust, confidence and commitment to customers.
Develop the product or service delivery system to meet customers’ needs.
vi. Provide education and training to the employees.
vii. Honour the promises made to the customers.

Determinants of Customer Satisfaction

a. Key Indicators for Physical Products
1. Reliability
2. Aesthetics
3. Adaptability
4. Usability
5. Functionality
6. Appropriateness
b. Key Indicators for Services
1. Friendliness/courteousness of employees
2. Safety/risk of service
3. Billing/invoicing procedure
4. Responsiveness to requests
5. Appearance of physical facilities
6. Approachability of the service provider
7. Willingness to listen to customer
8. Honesty and an ability to communicate in clear language

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Customer satisfaction is not an objective statistics but more of a feeling or attitude. It
enhances customer loyalty, which is the feeling of attachment to or affection for a
company’s people, product or services. If a customer is happy with a product or a service
it has hired or purchase they will pay their bills promptly, which greatly improves cash
flow-the lifeblood of any organization. Customers that are satisfied will increase in
number, buy more, and buy more frequently. By delighting the customer you can turn
satisfied customers into loyal customers. Loyalty generates repeated purchases and
increased revenues, thus leading to organizational excellence. Employee satisfaction is
needed to support continuous improvement and external customer satisfaction. Delighted
employees who feel proud of their work have an outstanding performance, thus having a
positive impact on business excellence.

The Role of Quality Management in a Customer-Focused Organization

Quality management and its requirement for continuous improvement plays a vital role in
ensuring that customer-focused organizations better identify and address core customer
needs. Companies are reliant on their customers for their existence and well-being and
should therefore recognise all existing and potential customer needs, meet customer
requirements and strive to surpass customer expectations by following total quality
management processes across the organization. Steps in applying these processes include
the following:
1. Understanding customers’ needs and expectations – this is essential across all
aspects of a business, from product design and development, production, pricing,
delivery, after sales support and any other area of the organization that has an
impact on the relationship with the customer. Satisfied customers will be repeat
customers, they will also provide positive reference to other potential customers,
both of which are important in order to have a business prosper and grow.
Understanding what customers require, continuously adapting to suit their
changing requirements and improving the quality of service is an excellent route
for effective quality management.
2. Balanced approach among customers and other stakeholders – customers are
not the only parties who have a role or an interest in the success of a business and
its activities and achievements. Other interested parties who should be included
are employees, suppliers, partners, owners, shareholders, suppliers, the local
community, government and regulators, all who form the collective group of
stakeholders. Understanding their respective needs and balancing them with the
customer’s needs will ensure a more complete approach to exceed customer
expectations, a greater level of service and a better understanding of areas for
improvement.
3. Communicating these needs and expectations throughout the company –
both customer’s and stakeholder’s needs should be communicated throughout the
company to ensure that all employees fully comprehend these expectations and
requirements. This ensures that from the most junior to the most senior
employee, in all the functional areas, are committed to striving towards meeting
these expectations. This plays an important role in an effective quality
management process.

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4. Monitoring customer satisfaction and acting on results – customer
satisfaction is imperative to any business, no matter how large or small, or what
the industry may be. Both positive and negative feedback should be monitored
carefully, and all results should be acted on to allow customers to know that the
organization values their input. All feedback should be seen as a way to aid
continuous improvement and should be addressed quickly and efficiently.

Managing customer relations – this is by far the most important aspect of a customer-
focused organization. It is essential to maintain and grow relations with clients and
stakeholders, and this should mean being fair and honest at all times. Whether there is a
specific employee or department who deals with customer relations, or this role falls to a
designated senior management level employee, transparency and integrity play a vital
role in building effective relations. In this way, the company is able to work towards
effective quality management as a genuinely customer-focused organization.

Education and its Customers

We have defined education as a provider of services. Its services include advice, tuition,
assessment and guidance to pupils and students, their parents and sponsors. The
customers—the stakeholders of the service—are a very diverse group and need
identifying. If quality is about meeting and exceeding customer needs and wants, it is
important to be clear whose needs and wants we should be satisfying. It is important to
say something about the idea of a ‘customer’ in the context of education. To some
educationalists ‘customer’ has a distinctly commercial tone that is not applicable to
education. They prefer to use ‘client’ instead. Client, with its connotations of professional
service, is seen as more appropriate.

Figure: The customers of education

‘Stakeholder’ is another term often used in this context. Others reject all such language
and would rather stay with ‘pupil’ or ‘student’. Language is important if an idea is to be

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acceptable. Some people would make a distinction between clients, who are the primary
beneficiaries of the education service, and customers, who pay for it but who may be
once removed, such as parents, governors, employers or government. The diversity of
customers makes it all the more important for educational institutions to focus on
customer wants and to develop mechanisms for responding to them. It can be helpful to
make distinctions between:
1. Primary customers—who directly receive the service;
2. Secondary customers—such as parents, governors, sponsoring employers of
vocational students, all of whom have a direct stake in the education of a
particular individual or in a particular institution;
3. Tertiary customers—who have a less direct but nonetheless crucial stake
holding in education, such as future employers, government and society as a
whole;
4. Internal customers—who are the employees of the institution and who have a
critical stake holding in the organization’s success.

Self Assessment Questions

Q.1 What is the meaning of “Customer”. How do you define this term for educational
institutions?
Q.2 Define the external and internal customer of education with suitable examples.
Q.3 Identify the role of quality management for customer satisfaction.
Q.4 Critically analyze the indicators of customer satisfaction.

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REFERENCES
 http://www.iso.org/iso/home/standards/management-standards/iso_9000.htm

 https://www.lennoxhill.co.uk/blog/system-approach-to-quality-management

 https://www.lennoxhill.co.uk/blog/the-role-of-process-approach-in-quality-
management

 http://www.gatewayanalytical.com/blog/quality-assurance/process-approach-to-
quality-system-management/

 http://smallbusiness.chron.com/importance-system-approach-principle-
81413.html

 http://smartinvestorsreports.blogspot.com/2012/03/customer-satisfaction-is-key-
component.html

 http://www.managementstudyguide.com/importance-of-quality-management.htm

 http://www.investopedia.com/terms/q/quality-management.asp?lgl=no-infinite

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148
UNIT-7

CHANGE MANAGEMENT

Written by: Hamid Ali Nadeem

Reviewed by: Ms. Tahira Bibi

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 CONTENTS

Introduction ..................................................................................................... 151

Objectives......................................................................................................... 151
1. Readiness Assessment ....................................................................... 153
2. Coaching and Training ....................................................................... 153
3. Resistance Management..................................................................... 154
4. Corrective Actions ............................................................................. 155
5. Change Process .................................................................................. 160
5.1 Change Management during Process of Change ............. 165
5.2 Sources of Change ........................................................... 166
5.3 Levels of Change ............................................................. 166
5.4 Team Change ................................................................... 169
6. References .......................................................................................... 172

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INTRODUCTION
Organizations undergo major change approximately once every three years, whilst
smaller changes are occurring almost continually. In this context, managers have to be
able to introduce and manage the change to ensure that the overall objectives of this
change are met, while ensuring that they support their team through the change process,
both during and after implementation. Generally, at the same time, they also have to
ensure that business continues as usual.

OBJECTIVES
After studying this unit, you will be able to:
1. Explain the concept of change management.
2. Discuss Readiness Assessment for change management
3. Discuss role of Coaching and Training in the management of change.
4. Elaborate management of Resistance during change process.
5. Suggest Corrective Actions during management of change.
6. Describe the Change Process

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WHAT IS CHANGE MANAGEMENT?
Change Management is a systematic activity to prepare an organization for and
implement ongoing environmental changes in ongoing system. So to speak, Change
Management is about innovative strategies and speedy activities to deal with variable and
sudden changes. In addition, the current definition of Change Management can contain
individual change management models to address the people side of change

Change management is the process, tools and techniques to manage the people-side of
change to achieve the required business outcome. Change management incorporates the
organizational tools that can be utilized to help individuals make successful personal
transitions resulting in the adoption and realization of change.

Change Management is a management approach to change individuals, teams,

organizations, and societies from the existing set-up to a desired set-up in the future.
Change management may involve change in a new business process and/or adoption of
new technology. To have successful change management is to have the cooperation of the
people involved. It aims to provide a framework on how to manage people when change
is implemented. It is believed that to be effective is to combine a change in organization
management tools with individual change management tools.

Change management is seen by some as a threat to the position they presently enjoy.
Thus, often there is resistance to change management being implemented in an
organization.

In as much as employees are the most important asset in a business organization, the
impact of the change on them should be considered by management. Change
management should be able to look into the behavior patterns, work processes,
technological requirements, and motivation of its people. A business organization must
be able to assess what its employees’ reactions to change are, and then create ideas to
change the program. The goal is to modify the new process and thus enable workers to
accept it.

Change Management, if implemented, should be disseminated throughout the

organization, carefully monitored to ensure effectiveness, and adjusted as necessary.

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1. READINESS ASSESSMENT
School readiness assessment is a common topic these days, in large part because of
increased accountability pressures in both the public schools and early care and education
settings. What exactly is meant by the phrase school readiness assessment and what
should early care and education teachers and administrators know about it?

School readiness, in the broadest sense, involves children, families, early environments,
schools, and communities (NASBE 1991). Children are not innately ready or not ready
for school. Their skills and development are strongly influenced by their families and
through their interactions with other people and environments before coming to school.
With 81 percent of U.S. children in non parental care arrangements the year before
kindergarten (West, Denton, & Germino-Hausken 2000), child care centers and family
child care homes are important early environments that affect children’s development and
learning. Schools are also an important piece of the readiness puzzle because different
schools have different expectations about readiness. The same child, with the same
strengths and needs, can be considered ready in one school and not ready in another
school. It is the school’s responsibility to educate all children who are old enough to
legally attend school, regardless of their skills

2. COACHING AND TRAINING

Coaching has a proven impact: add coaching to an initiative and people will focus on that
initiative more. Add coaching to training and people learn more, up to 6 times as much in
some cases. Coaches are like midwives for change: they know when change is coming,
when it’s here, when it needs a nudge, and when it’s happening too fast. As change
catalysts, coaches assist with managing the speed of change and smooth transition
through change. With our understanding of how the brain works - there is an inbuilt
resistance to change, and minimizing the stress response, and error detection of the
amygdale through actions like naming and normalizing – we can make this process less
painful. Change can be deeply challenging and emotional change required in
organizational transition requires hardwiring of new learning through insight and action.
Coaches are the perfect people to have around to facilitate this process.

Changes can be on the organizational culture and structure level but can also be at
individual levels, team. levels and conversational levels, e.g.
 Driving the leadership pipeline through integrated coaching solutions – personal
and organizational performance change
 Shifting culture by transforming the quality of every conversation –
conversational leading to culture change
 Lifting performance by improving retention & engagement – development
leading to culture change.

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The most common approach to utilizing coaches to drive change is to hire external
coaches. This seems logical – firstly, confidentiality and trust are of key importance and,
secondly, internal people may be too busy to contemplate incorporating another skill and
activity.

3. RESISTANCE MANAGEMENT
It is usually repeated, in both academic and business world, that many of the change
initiatives one way or another have produced poor results. The rate of fail in
organizational formation has been fifty to seventy per cent (Hammer & Champy, 1993).
Although this high percentage, which indicates the large number of organizations that are
unable to realize their change plans, has attracted the attention of those who are interested
in the topic i.e. researchers, consultants, academicians, managers, complex nature of the
activity of transforming an organization makes it difficult to construct a perfect solution
or a plan that can be valid in different contexts for achieving intended outcomes. One
may list various causes for the failures experienced in implementation processes but
resistance to change is more likely to be described as one of the most widespread ones.
Even though the concept of resistance to change is not a new one, no consensus about its
content and the ways it is experienced has existed among the researchers who have
studied it. In the following section, we will review the concept of resistance to change
from the perspectives of some influential researchers in this field. Although resistance
has been usually conceived as an impediment to change, significant number of arguments
which emphasize the positive role of resistance have been existed in literature. There
have been a lot of books and scientific papers in the literature, and many of them have
approached the issue from different perspectives. Therefore, to prevent repetition, we find
it appropriate to review authors who have contributed to literature by representing each of
these different perspectives in terms of resistance to change.

According to Zander (1950), there are six main reasons for resistance to occur in change
initiatives;
 Ambiguity in the mind of those who will be affected by change about the nature
of change.
 Existence of diverse interpretations about the change and its impact
 Existence of strong forces preventing individuals from changing
 Strong top down imposition on individuals who will be influenced by change,
lack of participation
 Existence of personal interests directing change
 Ignorance of pre established institutions in the group

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4. CORRECTIVE ACTIONS
Organizational development, as the term implies, is the process by which an organization
survives and thrives through the years of its existence. Thus, organizational development
change management is the process by which decision makers attempt to manage the
changes that are inherent with any effort at organizational development.

To properly carry out organizational development change management, decision makers

need to first create a well-structured plan for organizational development. Many change
management efforts fail because decision makers (or those designing the organizational
development program) didn’t structure the program properly. A half-baked effort is
worse than no effort at all because it may result in changes detrimental to the
organization.

Next, organizational development change management must be communicated to all

affected levels of the organization. Granted, not all members will be affected by the
changes, but those who will should be informed beforehand so that they prepare.
Everyone knows that ill-prepared employees have the odds stacked against them when it
comes to properly and adequately handling change(s) related to organizational
development.

Sometimes, for organizational development change management to be successful, the

concepts and principles used should be as simple as possible. The same goes for the
execution of the program – sometimes, the simpler the process being installed, the better
it will be for the organization and all affected audiences, in the end. It’s perfectly obvious
that the more complex the program, the harder it will be for people to integrate it into
their daily responsibilities.

Skills & Strategies

Managing the kinds of changes encountered by and instituted within organizations
requires an unusually broad and finely honed set of skills, chief among which are the
following.

a. Political Skills
Organizations are first and foremost social systems. Without people there can be
no organization. Lose sight of this fact and any would-be change agent will likely
lose his or her head. Organizations are hotly and intensely political. And, as one
wag pointed out, the lower the stakes, the more intense the politics. Change
agents dare not join in this game but they had better understand it. This is one
area where you must make your own judgments and keep your own counsel; no
one can do it for you.
b. Analytical Skills
Make no mistake about it, those who would be change agents had better be very
good at something, and that something better be analysis. Guessing won’t do.
Insight is nice, even useful, and sometimes shines with brilliance, but it is darned

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 difficult to sell and almost impossible to defend. A lucid, rational, well-argued
analysis can be ignored and even suppressed, but not successfully contested and,
in most cases, will carry the day. If not, then the political issues haven’t been
adequately addressed.
Two particular sets of skills are very important here: (1) workflow operations or
systems analysis, and (2) financial analysis. Change agents must learn to take
apart and reassemble operations and systems in novel ways, and then determine
the financial and political impacts of what they have done. Conversely, they must
be able to start with some financial measure or indicator or goal, and make their
way quickly to those operations and systems that, if reconfigured a certain way,
would have the desired financial impact. Those who master these two techniques
have learned a trade that will be in demand for the foreseeable future.
c. People Skills
People are characterized by all manner of sizes, shapes, colors, intelligence and
ability levels, gender, sexual preferences, national origins, first and second
languages, religious beliefs, attitudes toward life and work, personalities, and
priorities — and these are just a few of the dimensions along which people vary.
We have to deal with them all.
The skills most needed in this area are those that typically fall under the heading
of communication or interpersonal skills. To be effective, we must be able to
listen and listen actively, to restate, to reflect, to clarify without interrogating, to
draw out the speaker, to lead or channel a discussion, to plant ideas, and to
develop them. All these and more are needed. Not all of us will have to learn
Russian, French, or Spanish, but most of us will have to learn to speak Systems,
Marketing, Manufacturing, Finance, Personnel, Legal, and a host of other
organizational dialects. More important, we have to learn to see things through
the eyes of these other inhabitants of the organizational world. A situation
viewed from a marketing frame of reference is an entirely different situation
when seen through the eyes of a systems person. Part of the job of a change agent
is to reconcile and resolve the conflict between and among disparate (and
sometimes desperate) points of view. Charm is great if you have it. Courtesy is
even better. A well-paid compliment can buy gratitude. A sincere “Thank you”
can earn respect.
d. System Skills
There’s much more to this than learning about computers, although most people
employed in today’s world of work do need to learn about computer-based
information systems. For now, let’s just say that a system is an arrangement of
resources and routines intended to produce specified results. To organize is to
arrange. A system reflects organization and, by the same token, an organization
is a system.
A word processing operator and the word processing equipment operated form a
system. So do computers and the larger, information processing systems in which
computers are so often embedded. These are generally known as “hard” systems.
There are “soft” systems as well: compensation systems, appraisal systems,
promotion systems, and reward and incentive systems.

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 There are two sets of systems skills to be mastered. Many people associate the
first set with computers and it is exemplified by “systems analysis.” This set of
skills, by the way, actually predates the digital computer and is known elsewhere
(particularly in the United States Air Force and the aerospace industry) as
“systems engineering.” For the most part, the kind of system with which this skill
set concerns itself is a “closed” system which, for now, we can say is simply a
mechanistic or contrived system with no purpose of its own and incapable of
altering its own structure. In other words, it cannot learn and it cannot change of
its own volition. The second set of system skills associated with a body of
knowledge generally referred to as General Systems Theory (GST) and it deals
with people, organizations, industries, economies, and even nations as socio-
technical systems — as “open,” purposive systems, carrying out transactions with
other systems and bent on survival, continuance, prosperity, dominance, plus a
host of other goals and objectives.
e. Business Skills
Simply put, you’d better understand how a business works. In particular, you’d
better understand how the business in which and on which you’re working
works. This entails an understanding of money — where it comes from, where it
goes, how to get it, and how to keep it. It also calls into play knowledge of
markets and marketing, products and product development, societys, sales,
selling, buying, hiring, firing, EEO, AAP, and just about anything else you might
think of.

Lack of Resistance Management

The theoretical solution that we have composed to manage resistance has been based
upon certain missing key elements that have been identified so far during our research.
These are;

Meaning creation: In most of failures, individuals, even the key players of change
programs, do not realize the nature of change which refers to its sources, types and
necessary actions to implement it.

Focus on straight-forward implementation rules: Managers, who are responsible from

implementing change, usually tend to employ pre set conventional approaches without
analyzing specific conditions of their organization and its members. This may lead
breakdowns and interruptions because needs of organizations and their members, which
are quite diverted, have not been addressed accordingly.

Employees as change recipients: Despite importance of participation that has been also
emphasized on literature, many change programs approach employees who are actual
agent in making change real, as passive recipient of change instructions.

Ignorance of positive resistance: Connected with the understanding that sees employees
as change recipients, managers also missed the opportunity to benefit from constructive
critics which may improve existing change strategy in positive manner.

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Inadequate assessment of resistant behaviors: In order to manage resistance to change,
individual behaviors need to be analyzed. Being able to distinguish symptoms and causes
of resistance is vital to take appropriate action. Additionally, understanding roots of
resistance is significant to identify constructive value of resistance, if exist.

The way change imposed: the manner in which managers introduce and try to implement
change also vital in terms of managing resistance. Language, credibility of change agents
and its approach to employees play critical role for successful change implementation.

Having defined missing these elements, in construction of theory for resistance

management, we have determined three essential issues; leadership from a sense making
perspective, participation and communication and all these three are expected to function
as complementary to each other and success of overall process depends on ability of a
change initiator to achieve certain level in these three areas.

Behaviors such as these tell us that people are resisting change; however, they don't tell
us why. The reason for this is that behaviors are external manifestations of internal issues
within a person's mindset. In other words, behaviors are symptoms while mindset issues
are causes. These distinctions lead to a definition of resistance. Resistance is a state of
mind reflecting unwillingness or unreceptiveness to change in the ways we think and
behave. Resistance can be contrasted with readiness, which is a state of mind reflecting
willingness or receptiveness to change. Resistance manifests itself behaviorally by either
active opposition to change or by attempting to escape or avoid it; readiness is manifested
behaviorally by either active initiation of change or by cooperation with it.

Readiness is not the opposite of resistance, since an absence of resistance doesn't

necessarily mean that someone is receptive to change. Other factors, such as lack of
information, lack of knowledge or skill, or an immediate need to attend to other matters,
could interfere with readiness. Nevertheless, anything which causes resistance can be
expected to undermine readiness at any point in time.

Active resistance
Following are the types of active resistance:

Being critical Blaming/accusing Blocking

Fault-Finding Sabotaging Undermining
Ridiculing Intimidating/threatening Starting rumors
Appealing to fear Manipulating Arguing Distorting facts
Raising objections Using facts selectively

Passive Resistance
if someone is not openly resistant, he/she can be categorized as passive resistant if
following indications are detected in their behavior.
 Agreeing verbally but not following through.
 Failing to implement change.

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 Procrastinating/dragging feet.
 Feigning ignorance
 Withholding information, suggestions, help or support.
 Standing by and allowing the change to fail.

The most important factors making up a person's state of mind The most important
factors making up a person's state of mind are his or her facts, beliefs and values. Facts
are objective realities that can be proven with evidence ("We tried that before"), while
beliefs are subjective assumptions, conclusions, and predictions ("It didn't work then; it
won't work now"). Values are people's conceptions about what is important in life ("I
want to be open and honest with everyone about this").

Four Basic Strategies for Managing Change

Empirical-Rational
People are rational and will follow their self-interest — once it is revealed to them.
Change is based on the communication of information and the proffering of incentives.

Normative-Reductive
People are social beings and will adhere to cultural norms and values. Change is based on
redefining and reinterpreting existing norms and values, and developing commitments to
new ones.

Power-Coercive
People are basically compliant and will generally do what they are told or can be made to
do. Change is based on the exercise of authority and the imposition of sanctions.

Environmental-Adaptive
People oppose loss and disruption but they adapt readily to new circumstances. Change is
based on building a new organization and gradually transferring people from the old one
to the new one.

Factors in selecting a strategy

Generally speaking, there is no single change strategy. You can adopt a general or what is
called a "grand strategy" but, for any given initiative, you are best served by some mix of
strategies.

Which of the preceding strategies to use in your mix of strategies is a decision affected by
a number of factors. Some of the more important ones follow.

Scope and Scale: This can vary from the minor “tweaking” of a process within a unit to
the complete transformation of the entire organization.

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The larger the scope and scale, the more likely a broad mix of strategies will be required
with Power-Coercive playing a central role.

Degree of Resistance: Strong resistance argues for a coupling of Power-Coercive and

Environmental-Adaptive strategies. Weak resistance or concurrence argues for a
combination of Empirical-Rational and Normative-Reductive strategies.

Target Population: Large populations argue for a mix of all four strategies, something
for everyone so to speak.

The Stakes: High stakes argue for a mix of all four strategies. When the stakes are high,
nothing can be left to chance.

The Time Frame: Short time frames argue for a Power-Coercive strategy. Longer time
frames argue for a mix of Empirical-Rational, Normative-Reeducative, and
Environmental-Adaptive strategies.

Expertise: Having available adequate expertise at making change argues for some mix of
the strategies outlined above. Not having it available argues for reliance on the Power-
Coercive strategy.

Dependency: This is a classic double-edged sword. If the organization is dependent on

its people, management's ability to command or demand is limited. Conversely, if people
are dependent upon the organization, their ability to oppose or resist is limited. (Mutual
dependency almost always signals a requirement for some level of negotiation.)

5. CHANGE PROCESS
Change management is a process that should be included in the planning and delivery of
a project from the very beginning. Often times change is not taken into consideration in
the development of project plans. It is for this reason that change management has been
addressed as separate component to the usual project methodology that you maybe
currently using. Once the change management plan has been developed it should be
integrated with the project plan and can be included at any point after start up.

This change management plan template provides the necessary flexibility required and is
designed to meet the needs of the project irrelevant to the phase of the project.

The change management process has three stages, and should be considered alongside the
nature and magnitude of the change.

Some researchers place the failure rate of organizational change at as much as 70 percent,
an unacceptable high. Consequently, it is not surprising that leaders are looking for ways
to reduce the risk and curtail failure.

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Unfortunately, many leaders believe that simply by using a change management
methodology they are ‘doing’ change management. A change management methodology
helps a company prepare for planned and unplanned changes. A methodology also helps
mitigate risks by creating a blueprint of how to proactively deal with opposition or any
other problems that may arise during and after the implementation. The biggest risk is
acceptance - Acceptance by employees, staff, management, and stakeholders should be
the topmost priority when initiating change.

Prosci’s Change Management Methodology

In 2002, following their third change management benchmarking study, Prosci developed
an organizational change management process. It was developed based on research with
over 1600 participants over ten years. It is the amalgamation of collective lessons learned
by those introducing change around the globe. It is built in steps that a project team can
complete for a particular change or initiative supported.

Phase 1 Preparing for change

Aimed at getting ready.
Answers the question, “How much change management does this specific project need?”

Provides situational awareness that is critical for effective change management.

Focuses on creating plans that are integrated into the project activities – what people
typically associate with change management.

Phase 2 Managing change

Provides five plans that should be created to help individuals move through the ADKAR
model (individual change).

Phase 3 Reinforcing change

Reinforcement is most often overlooked

Helps project teams create specific action plans for ensuring that the change is sustained.

Project teams develop measures and mechanisms to see if the change has been
implemented, if employees are doing their jobs the new way, and to celebrate success.
(Prosci's Change Management Methodology)

Prosci’s methodology integrates individual change management and organizational

change management to ensure the achievement of business results. This link between
individual change management and organizational change management is a key
differentiator from most change management methodologies.

Organizational Change Management Components

Organizational change management objective is to provide an infrastructure to support
and sustain change throughout the program’s multiple phases while embracing and

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focusing on the organization’s transformative strategies. Implementing new processes
and changing the organizational culture can be challenging because it requires
transforming how people work and interact. We have designed activities to minimize the
resistance to change by engaging users in the change program from the outset and
securing their commitment to delivering a successful outcome by taking them along the
user journey which will be unique to each employee

Managing Change
The range of possible change management activities is broad. The key here is to identify
the tasks that are necessary to give change the greatest chance of success. The key
activities involved in managing change include:
1. Ensure clear expression of the reasons for change and help the sponsor
communicate.
2. Identify change agents for specific change activities, such as design, test, and
problem solving.
3. Assess all the stakeholders and define the nature of sponsorship, involvement,
and communication.
4. Plan the involvement and project activities for the change sponsor or agents.
5. Plan how and when the changes will be communicated and delivered.
6. Assess the impact of the changes on people and the organization's structure.
7. Plan activities needed to address the impact of the change.
8. Ensure that people involved and affected by the change understand the change
process.
9. Ensure those involved or affected have help and support during times of
uncertainty or upheaval.
10. Assess training needs driven by the change and plan when and how this will be
implemented.
11. Identify and agree on the success indicators for change, and ensure they are
regularly measured and reported.

How do I Manage People through Times of Change?

HEFCE (2003) suggest that, when leaders or managers are planning to manage change,
the following key principles should be kept in mind:
1. Different people react differently to change
2. Everyone has fundamental needs that have to be met
3. Change often involves a loss, and people go through the “loss curve”
4. Expectations need to be managed realistically
5. Fears have to be dealt with
6. There are no easy solutions
7. Adapt processes to suit the change intended
8. Change requires teamwork and leadership (and the two are related)
9. Work with the culture (even when you want to change it)
10. Communicate, communicate, and communicate

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Failure of Change
The range of possible change management activities is broad. The key here is to identify
the tasks that are necessary to give change the greatest chance of success. The key
activities involved in managing change include:

The overall success of an organization's change is influenced by activities that include

finding executive sponsorship for organizational change, developing a clear vision of the
desired organizational change, creating an integrated communication and change
management strategy, and creating strong employee motivation for making
organizational change.

When approached with managing change, it is important to bear in mind that change
management focuses on people and is about ensuring that change is systematically and
lastingly implemented.

There is no denying that change is tough. When planning change, while most people look
for how-to tips, it is equally important to look at why change fails to complete the
solution. A discussion forum on ecademy.com identified seven key reasons why change
fails, similar to those identified by Kotter at Harvard 15 years ago. These reasons and
their impacts are indicated as under:
1. The organization is not clear about the reasons for the change and the overall
objectives
Plays into the hands of vested interests
2. The organization fails to move quickly from speech to action
Leads to mixed messages and gives resistance a better opportunity to focus
3. Leaders are not prepared for the change in management style required to manage
a changed business or one where change is the norm Mentality of "now we are
going to change and then we will get back to normal" causes failure
Change is a constant; so a one-off program, which presumably has a start and a
finish, does not address the long-term change in management style
4. The chosen change methodology or approach did not suit the business
Pile methodology upon methodology and program upon program
For example, an organization implements Six Sigma, balanced scorecard, and IIP
methodology all at the same time
5. The organization has not been prepared and the internal culture 'pushed back'
against change
6. The business 'rammed' certain functions with little regard to the overall
objectives
Change one part of the process and not considered the impact up or downstream
Causes panic and the organization look for a quick win or tries to declare victory
too soon
7. Leaders set strategic direction for the change and then they remained remote
from the change, leaving the actual change to less motivated people

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This list is an invaluable diagnostic tool for identifying why and where resistance is
taking place, giving an opportunity to defuse resistance through correction. Even one
occurrence in isolation will make the change program inconsistent and aggravate
resistance. Advance planning and stakeholder management will avoid some of these
pitfalls. It is hard work to change an organization successfully. With careful planning and
building the proper foundation, implementing change can be much easier and improve
the chances of success.

Generally speaking, there is no single change management strategy. You can adopt a
general or grand strategy (say, a Power-Coercive one) but, for any given initiative (and
there will always be multiple initiatives), you are best served by some mix of strategies
and tactics. A useful exercise is to queue up the change initiatives and examine each of
them in relation to the various strategies and selection considerations listed below. Your
mix of strategies will emerge from this examination.

1. Degree of Change: Radical change or transformation argues for an

Environmental-Adaptive strategy (i.e., “wall off” the existing organization and
build a new one instead of trying to transform the old one). Less radical changes
argue against this strategy.
2. Degree of Resistance: Strong resistance argues for a coupling of Power-
Coercive and Environmental-Adaptive strategies. Weak resistance or
concurrence argues for a combination of Rational-Empirical and Normative-
Reeducative strategies.
3. Population: Large populations argue for a mix of all four strategies, something
for everyone so to speak. Diverse populations also call for a mix of strategies.
This implies careful segmentation.
4. Stakes: High stakes argue for a mix of all four strategies. When the stakes are
high, nothing can be left to chance. Moderate stakes argue against a Power-
Coercive strategy because there is no grand payoff that will offset the high costs
of using the Power-Coercive strategy. There are no low-stakes change problems.
If the stakes are low, no one cares, and resistance levels will be low. Avoid
Power-Coercive strategies in low stakes situations.
5. Time Frame: Short time frames argue for a Power-Coercive strategy. Longer
time frames argue for a mix of Rational-Empirical, Normative-Reeducative, and
Environmental-Adaptive strategies.
6. Expertise: Having available adequate expertise at making change argues for
some mix of the strategies outlined above. Not having it available argues for
reliance on the Power-Coercive strategy.
7. Dependency: This is a classic double-edged sword. If the organization is
dependent on its people, its ability to command and demand is limited. On the
other hand, if the people are dependent on the organization, their ability to
oppose is limited. (Mutual dependency almost always signals a requirement to
negotiate.)

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5.1 Change Management during Process of Change

Process:
a. Diagnosis, which is the first step of change process, helps us to understand
external and internal drivers which force organizations to change. Possible
resistance sources should also be taken into consideration while diagnosing.
b. Selecting change agents: In accordance with the type of change that has been
necessary, appropriate change agents should be selected in order to implement
change programs. Change agents can be internal, who are members of the
organization; or external, who can be hired as consultants. At the same time,
change agents should also be compatible to manage resistance.

evaluation diagnosis

strategy selecting
implementation change agents

strategy
building

c. Strategy building: In this step, by considering the needs for change, a proper
plan for change, which will transform organization from its existing situation to a
desired position, is expected to be developed
d. Strategy implementation: Implementation of change strategies necessitates
managerial and leadership skills. Time, cost, responsibility and ethical issues
should be taken into consideration while implementing change programs.
e. Evaluation: Overall progress and effectiveness of implementation should be
evaluated in order to determine success of change in reaching targeted goals. The
important point is not to ignore that change is an ongoing process in the shape of
a circle; and therefore strategies should be adaptable enough to upcoming change
forces and resistance factors that might arise from employees.

Institutionalize Change: The change process and management are expected to be

transferred to the long-term improvements by developing and introducing functional
mechanisms like learning organizations. The important point that should be mentioned

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here is that change is the ongoing process, which is not directional. The process should be
thought as a circular that the outputs of processes can be the inputs or sources of change
processes. In other words, the process can be considered as a flow action in which every
step is supported by the previous one.

5.2 Sources of Change

The question of where change comes from is another dimension of change that needs to
be analyzed in order to see the whole picture of change management. In general, it can be
said that there are two main sources that change stems from: internal and external. The
internal forces of change refer to any kind of change forces that have their roots in the
organization itself. The external forces can be expressed as the changes coming from the
outer world of an organization, which force the organization to adapt. Market or industry
that an organization belonging to, general financial environment of world, the country
where an organization operates its business, official or non official associations, and are
the examples of possible external sources that have potential to force an organization to
change its way of doing business. As we can analyze from the drivers that are
demonstrated on the table, there are also interactional and reason-result relationship
between internal and external drivers. For example, shifting demands of societys can
create a need for change in internal structure of a company, such as the need to improve
product and service. Reversely, the improvement in operational efficiency can give rise to
possible market competition.

External Drivers
 Society requirements
 Demand from other stakeholders
 Government
 Regulatory demand
 Market competition

Internal Drivers
 Improving operational efficiency
 Need to improve the quality of products and services
 Process improvement External and Internal Drivers (Oakland & Tanner, 2007)

5.3 Levels of Change

As human beings, we have lived in social organism where we have confronted to the
different level of change in everyday life. Individuals could be assumed as the core part
of change; that is, change in individual is the starting point of the change of all systems.
But individuals are not isolated from the environment. They are also part of different
groups at different levels. There have been intense webs of communications between
individuals and groups. (Cameron & Green, 2004). Therefore, in this part, we will
analyze three different levels of change, which will give us a comprehensive
understanding about how change should be managed:

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 Individual level of change
 Team level of change
 Organizational level of change

We put more emphasis on the level analysis compared to the other dimensions of change,
because it contains important elements which will prepare the ground for the discussion
of resistance management. We believe that for successful change implementation and
resistance management, key elements of these three levels needs to be understood by
manager/change initiators.

5.3.1 Individual Change

Even change has been coming from the external world, the perception and reactions
toward change arises internally, and therefore this puts to individual to a central position
in explaining the level of change. The external world, which individual are a part of it,
has not been stable. It has been dynamic and subject to constant changes. The individuals,
as a part of the environment, also encounter these changes and need to adopt themselves.
From this point, individuals constitute the one of the most important levels which the idea
if change needs to be analyzed and understood. We will revisit for different perspectives
offered by Cameron and Green (2004) to explain individual level change.
 Behavioral approach
 Cognitive Approach
 Psychodynamic Approach
 Humanistic Psychological Approach

5.3.2 Behavioral Approach

Behavioral approach focuses on change by looking at individual behaviors when they are
striving to reach their goals and their effects on other individuals’ behaviors. The failure
or success of reaching intended results can be analyzed in the behaviors of individuals
and the conditions that shape them (Cameron and Green, 2004). This issue has been
initially discussed by psychologist like Pavlov (1928) and Skinner (1953) in order to
understand the relation between behaviors and conditions and the effects of rewards and
punishment systems to the behaviors of individuals. Pavlov (1928) mainly analyzed the
behavior itself under classical conditioning; however Skinner (1953) has furthered the
issue to analyze the possible effects of the behaviors. He proposed that there could be
also the learning behavior with the positive and negative effects of rewards and
punishments.

5.3.3 Cognitive Approach

In contrast to behavioral approach, which focuses only to observable behaviors, cognitive
approach has analyzed the behaviors in the frame of internal process of brain and emotions.
Cognitive approach has the basis of behavioral approach, but furthered it by focusing on the
way of thinking to reach the intended results and the emotions that affect our way of thinking.
Individuals‘ reactions to the situations are influenced by the emotional situation of individuals
that they are in, and the way of thinking is shaped by emotions and the internal process of

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brain. In order to change the reactions of individuals to the situations, the thought process of
individuals should be changed (Cameron & Green, 2004).

Cognitive approach has introduced some techniques for individuals in order to achieve
intended results. These techniques have been used in organizations nowadays mainly in
terms of coaching activities (Cameron & Green, 2004). These are:
 positive listings
 affirmations
 visualizations
 reframing
 pattern braking
 detachment
 anchoring and resource states
 rational analysis (Cameron and Green, 2004).

5.3.4 Psychodynamic Approach

This approach has been constructed by Kubbler-Ross (1969) and explained by the
following model. The model has been based on the idea of ―psychodynamic‖, which
means when individuals confronts change from external world; some internal
psychological stages can be experienced by individuals,- These are described as the five
stages of change process and adjustment: denial, anger, bargaining, depression, and
acceptance (Kubbler-Ross, 1969). When people confront unexpected and revolutionary
change that has a big impact on their current situation, they begin to experience these
stages of change process and adjustment consecutively.

5.3.5 Humanistic Psychological Approach

Although it has many similarities with behavioral, cognitive and psychodynamic
approaches, humanistic psychological approach has specially focused on self-awareness,
taking responsibilities and emotional intelligences. The concept of change has been
interpreted in terms of achieving personal growth. The self-awareness of individual and
their ability to understand the emotional situation of the others have been discussed as a
way for the managers to manage the change. Maslow‘s hierarchy of needs (1970),
Roger‘s paths for personal growth (1967) and Perls’s Gestalt Approach (1976) have been
the main contributors of humanistic approach, which is started to be discussed in United
States after 1960s. Roger (1967) has discussed how personal growth and learning can be
achieved by creating a facilitating environment and an emphatic understanding.
Facilitating environment, which is described as the suitable environment for greater
acceptance of change, could be created under three conditions; called authenticity,
positive regard and empathic understanding (Roger, 1967). The change agent should built
and manage facilitating environment in order to decrease the time of acceptance process.
In contrast to psychodynamic approach dealing with the illness, another researcher
Maslow (1970) has based his theory on the lives and needs of people. In order to be
motivated and to reach intended results, the hierarchical order of human needs should be
compensated (Maslow, 1970).

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5.4 Team Change
Organizations consist of different types working groups. Individuals, different from
individual level change, also encounter the team level change forces in organizations. In
this part, we will analyze the way working teams tend to respond change initiatives.

In the literature, team is defined in different ways- Morgan (1986) sees team as the
collection of people who come together for a common objective and share certain values
objectives. Cohen and Bailey (1997) furthered the definition that a team is s collection of
individuals who are aware of their responsibility for the results under larger social
entities, such as corporations and companies. Also, there have been distinctions between
the definition of group and team in the literature. In contrast to the definition of team as
mentioned above, groups have been defined as the number of individuals that are aware
of themselves and draw a boundary around in order to perceive themselves as a group
under common interests different from the outsiders (Cameron and Green, 2004). For
example in the organizations, the workers who are the members of union can be thought
as a group; on the other hand, the departments, change management teams etc. can be
considered as the examples of teams in organizations.

Organizational Change
Organizations are the places where change has a substantial impact. Therefore, the analysis of
organizational level change has constituted the core part of change management analysis of
researchers. In this part, we will examine the theories about how organizations can be
investigated as a starting point to understand organizational level change. Afterwards, we will
give five organizational change models that we have chosen from literature. Those theories
are essential to understand the basis of organizational change practically. In general,
organizational change efforts are classified into three different approaches in the literature to
investigate organizations (Hamburger & Yitzchayak, 1998). The first approach comes from
classical management theory that focuses on the empirical facts and practical results by
describing organizations as the formal unit. The second is the sociological approach that
analyzed the sociology of organizations by focusing on the different identities and classes
within the organizations, which create conflicts with the basis of socio-economic differences.
The third approach that we will also use for our description comes from the psychological
approach, which focuses on the individuals and their psychological conditions in order to
describe the organizations. Metaphors are used for investigation and description units by the
psychological approach, which represent the general perception - the images - of
organizations by individuals (Hamburger & Yitzchayak, 1998).

According to Morgan (1986), organizational metaphors‘ metaphors are the essential way
of analyzing the organizational level change because of their helps in clarifying the
complex change drivers and process. Metaphors represent the image how organization is
perceived by individuals and open a new way for determining appropriate change
programs. Since there is not only one model or theory for solution; it will be beneficial
for change agents to describe the variety of metaphors before starting to implement
change programs. To describe the organization within the image of one metaphor can
constrain applicability of the framework for change implementation; therefore variety of

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the descriptions for the image of organizations can be helpful for reaching a
comprehensive understanding of change strategy. From this point of view, organizations
have been classified into eight different metaphors by Morgan (1986) as follows:

Organization as a machine; consists of different functioning part to common goal.

Organization as a biological organism; aims to adapt to change
Organization as a central brain; predicts and responds to change
Organization as a culture; consists of shared values and beliefs
Organization as a political system; consists of power relations and conflicts among the
self-interested individuals.
Organization as a physic prison; consists of sets of norms for the behaviors of individuals
Organization as flux and transformation; consists of complex systems, chaos and
paradox.
Organization as an instrument for domination.

The metaphors do not only represent the abstract perception of organizations, but also
explain the way how organizations function and perceive the things. For example,
Morgan (1968) explains the metaphor that views organization as machine and he defines
it as rational enterprises designed and structured to achieve predetermined ends.
Organizations in machine metaphor consist of operational parts, which functioning in a
structure, with determined role and responsibility of employees in the light of intended
target. Efficiency, maximization, inputs and outputs, production, standardization can be
the key words for machine metaphor used in the organization.

Self Assessment Questions

Q.1 What are the main drivers for change in your organization?
Q.2 What have been some of the actual impacts on your business as a result of
change?
Q.3 What do you think could be some of the potential impacts on your business as a
result of change in the future?

Key Considerations for Managing Change

As a manager looking to bring about a change, the following are key areas to think about:

What is the nature and the scope of the change? This is the first thing to think about
because it influences all your subsequent actions. Who is the change going to impact?
How are you going to keep people informed, get their feedback and get a meaningful plan
for the change?

What are the priorities for action in your environment?

Managing change involves a lot of different activities: once the options have been
considered some difficult choices need to be made about what to focus on in your
particular area/department. This applies whether this is a change imposed from elsewhere

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or a change that you are introducing. What needs to be worked on first? What must be put
in place as soon as possible?

What is the nature of your team/department/other areas impacted by the change?

It is crucial to understand how ready your team/department is to engage with the change.
If you manage change in a way that is not congruent with your environment it will at best
produce more conflict than necessary and at worse not produce the results that you want.
Do a systematic analysis of the factors that will support progress and those that might
hinder it. This enables you to draw up a sensible action plan based on the real
environment in which you work.

Dimensions of Change
Change occurs along several dimensions:
 Leader driven change
 Process driven change
 Improvement driven change
 Organizational renewal
Leader driven change may be seen where:
 An organization gets a new leader who brings with them new ideas and
approaches to the business.
 The leader of the organization realizes that change is crucial to survival and
pushes it through the organization.
In both of these cases it is vital that the leader ‘walks the talk’ in relation to the change.

Process driven change is focused primarily on the processes where:

 Innovation is required to upgrade the process and efficiency requirements are
increased.
 Society requirements mean that current processes are no longer capable.
 Best practice has emerged and needs to be introduced to the process.

Improvement driven change has an emphasis to improve areas within the organization
such as:
 Development of new skills in the workforce through cross-training.
 Implementation of findings from benchmarking activity.
 Implementation of best practice.
 Implementation of findings from continuous improvement activity.

Organizational renewal is the most radical in that it looks at the whole organization in
terms of:
 Maximizing benefits from synergistic activity.
 Business process re engineering.
 Adjustment of business activity due to market forces.

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Self Assessment Questions

Q.1 What is the type of change most often seen in your organization?
Q.2 Is one dimension of change favoured in your organization over others?
Q.3 How successful is this type of change in introducing and sustaining the required
change?

REFERENCES
 http://www.tcs.com/SiteCollectionDocuments/White%20Papers/EntSol-
Whitepaper-Change-Management-Theories-Methodologies-0213-1.pdf

 http://www.andrewneang.com/research/2008-GTP/ChangeManagement_v5.pdf

 https://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ca
d=rja&uact=8&ved=0ahUKEwjjt8-
xmK3QAhVHMhoKHcJeC78QFggxMAQ&url=http%3A%2F%2Fwww.vutube.
edu.pk%2Fforum%2Fattachment%2F344%2Fpost%2F153%2Fformat%2Ffile&u
sg=AFQjCNFPLp0VKJCeATq8fWRDuTfSEq2fvg&bvm=bv.138493631,d.d2s

 http://www.apubb.ro/wp-
content/uploads/2011/02/OD_Suport_de_curs_masterat.pdf

 http://www.mfnco.com/e-
library/books/Change%20Management%20Masterclass.pdf

 http://otgo.tehran.ir/Portals/0/pdf/organization%20development%20and%20chan
ge.pdf

 http://www.ryerson.ca/content/dam/hr/manager-resources/docs/change-
management-leadership-guide.pdf

 http://www.bms.lk/download/GDM_Tutorials/e-
books/Making_Sense_of_Change_Management.pdf

 http://openarchive.cbs.dk/bitstream/handle/10398/8008/Rex_Degnegaard_endeli
g.pdf

 http://www.taosinstitute.net/Websites/taos/images/PublicationsWorldShare/Mana
gementandOrganization.pdf

 http://www.speakerbook.com.au/files/21_LM-Change-Management-601.pdf

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UNIT-8

DATA DRIVEN INSTRUCTIONAL

MANAGEMENT

Written by: Dr. Afshan Huma

Reviewed by: Dr. Azhar Mumtaz Saadi
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 CONTENTS

Introduction ..................................................................................................... 175

Objectives......................................................................................................... 177
1. Assessment ......................................................................................... 178
1.1 Sources of Data ................................................................ 179
1.2 Informal Data Collection ................................................. 180
1.3 Difference between Formative & summative Assessment .... 180
1.4 Balanced Assessment ....................................................... 181
2. Analysis.............................................................................................. 183
3. Forecasting Achievement................................................................... 186
4. Benchmarking .................................................................................... 188
5. Action ................................................................................................. 189
6. References .......................................................................................... 194

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INTRODUCTION
Instructional management is a process of decision making process, which helps to
execute the teaching and learning as well as to create an effective learning environment,
so that much the goals of education are achieved. Instructional management is defined as
“those events and procedures involved in the decision to initiate a specific activity for an
individual student”( Paul and Donald, 1972). Today it is not just the responsibility of the
school head to manage all internal and external execution of planned activities, rather it is
a shared responsibility. It is evident that in the schools of twenty first century a school
head and teachers as well as other managerial personnel and administrative staff is
playing multiple roles at a time. A school system asks every single person involved in
school management to take full responsibility of Instructional management and each one
of them is made accountable for any deficiency and deficit. Instructional leadership
pushes beyond the debates between instructional, managerial and transformational
practice to a new conception of creating accountable learning systems in schools
(Halverson, Grigg, Prichett, and Thomas 2005). Such accountability systems began to
develop with the emphasis on Good Governance in all sectors and especially health and
education. With accountability comes the phenomenon of transparency. In the well
established systems during the age of information technology the first and foremost
requirement is public information sharing and informed decision making on the bases of
data. At the beginning of new millennium we witnessed an urge towards result based
management that builds upon the theory of distributed management and requires schools
to collect, share and analyze data for improving their instructional as well as over all
school management. In this
unit we shall focus more on Once armed with key summative indicators of
Data Driven Instructional classroom success, educators can use those baseline
management which directly data to identify mastery levels and learning needs of
involves teachers, academic classes, demographic subgroups, and individual
coordinators and school heads. students. Data driven educators then use that
Data-driven instruction was information to set measurable year-end instructional
one of the themes that emerged goals, which serve as meaningful targets to guide
in a study funded by the Ohio their pedagogical strategies. These goals are often
Department of Education. In referred to as SMART goals. The acronym stands for
Specific, Measurable, Attainable, Results-Oriented,
that study, Kercheval and
and Time-Bound.
Newbill (2002) examined An example SMART goal might look something like
practices in fifty Ohio school the following:
districts that had improved The percentage of third grade students scoring at
their rating on Ohio’s Local Level 3 or higher on the state mathematics test will
Report Card, which is an increase from 64% in Spring 2004 to 82% in Spring
annual report of students’ 2005.
performance on standardized Focus areas for improvement
statewide tests which 1. Number sense
documented rates of 2. Computation
improvement on those tests, 3. Measurement
student attendance and

175
graduation rates. Further research and experimentation developed this area into a
practicable approach.

When we hear the word data we get to

visualize it in a specific way. What comes Data-driven educators recognize that
formalized goal-setting can lead to
to mind is the images of spreadsheets, bar
improved student learning outcomes. All
graphs and statistical analysis. But in case SMART goals created by teachers and
of schools and classroom certain kinds of administrators should have the following
data might not be documented in these six components (with example language
from the SMART goal above):
manners; because it might not be recorded 1. A measurable baseline ;
in a numerical format. For example, 2. A measurable target;
norm-referenced reading assessments, 3. A specific time frame (e.g. Spring
informal reading inventories, 2014 to Spring 2015;
4. Specificity about what is being
observational checklists of student assessed (percentage of third grade
behavior, anecdotal notes, or students’ students scoring at Level 3 or higher);
self assessments over time can generate 5. Specificity about the method of
data that is richer than numbers and can assessment (the state mathematics test);
and
inform much more for decision making 6. Focus areas that guide future action
and instructional management. Similarly needed to reach the learning target
school heads can generate data describing (number sense, computation, and
measurement).
the number of minutes per day devoted to (CASTLE PARK MIDDLE SCHOOL,
reading instruction, mathematics and California, USA)
other school subjects; thus not mere time
-tabling but rather output in the form of time periods and slots used in several
instructional activities. School managers can also have information regarding teacher
attributes on an observation checklist of classroom instruction. In short, a broad use of the
term, data, is essential in this regard. Data-driven instructional management comprises of
certain kinds of systems of practice committed to making formative and summative data
on learning and instructional practices useful for improving teaching and learning in
schools, considering data-driven decision making from a distributed leadership approach
(Halverson, Grigg, Prichett, and Thomas 2005).

This implies that first of all we need to understand the goals, structure, functions and
outcomes of DDIM.

176
OBJECTIVES
At the end of this unit, you will be able to:
1. Describe and explain the basic concept and theory behind DDIM
2. Set goals for data collection, analysis and decision making
3. Apply various assessment techniques to generate useful data about learners
4. Analyze the data for future improvements in curriculum and instruction
5. Develop action plans for individual, group and classroom instruction in the light
of evidence

Goals Setting in DDIM

The larger goal of DDIM is to provide the information regarding learning and
instructional practices for informed decision making at school, district, province and
national level. The schools and academic coordinators as well as teachers should always
develop their sub-goals and specific objectives must be set for effective implementation
of DDIM. For instance as adopted by a school following can be a good example:

Activity 1:
You may discuss the concept of DDIM with your colleagues at school and then draft
the Sub Goals and Objectives for English, mathematics and Science at Elementary
Level.

Now think further how these objectives will lead towards collection of data and what
procedures are to be followed for reaching the decisions of instructional management. If
you become a data driven educator you are able to access, analyze and solve the problems
even faster and better. In the United States the push for data-driven instruction was
initiated with the implementation of the No Child Left Behind Act, which was signed into
law in year 2002. The slow rate of adoption of DDIM is the “fear of data”. People tend to
believe that it is only the work of researchers and teachers do not see themselves as
researchers. Actually every teacher is an action researcher and always keep working with
data without realizing. The teachers do continuous assessments and they also make
reports. The only missing link is analysis and data driven decision making.

Jason Lange (2014) has elaborated a few factors that have slowed the implementation of
DDI:

 Collecting good, reliable data takes discipline. Properly collecting data requires a
level of discipline that most people aren’t inherently comfortable with. Consider
how many people actually write down their personal goals — like a New Year’s
resolution or an exercise plan — and track their progress over time. The answer:
not many. Simply put, we’re not wired to gather data without a great deal of
intentional focus, and teachers have plenty on their plates as it is.

177
 Making sense of data can be a full-time job. Even if you manage to collect great
data, interpreting it in an actionable manner is not only time consuming, but it
also requires some pretty advanced analytical skills. It can be an enormous task
for a single teacher. Many schools simply lack the tools, resources, time, and
training to aptly utilize data that’s been collected for each classroom.
 Sometimes there’s too much data. Schools generally gather more data than they
can use. An overabundance of data and conflicting results can make it difficult to
prioritize information and create worthwhile curriculum changes.

Jason (2014) further elaborates on how to make it work:

1. Keep it simple. Use simple tools and techniques to collect data, such as clickers,
response sticks, or exit tickets. They’ll provide a straightforward process for
understanding learning outcomes.
2. Think small. Start with one class, and scale your efforts with the progress. For
example, if you want to improve your questioning strategies, track the times you
require students in one class to justify their responses. Once you find
instructional techniques that work, slowly apply them to all your classes.
3. Analyze your efforts. Based on the data, reflect on whether the steps you’ve
taken have had an impact. When you begin to see a difference in the students and
their work, the extra effort will seem valuable.
4. Engage students. Involve students in setting goals and tracking progress to
invest them in the process. This might be as simple as improving an opening
routine or as complex as meeting large assessment goals. Likewise, encourage
students to reflect upon their progress to help them determine what worked, what
didn’t, and what should be done differently next time.
5. Make progress visible. Track progress daily using a graph or chart. This will
help students see their progress and, ultimately, be empowered. The size of the
goal doesn’t matter; students need to see what they’re working toward and what
they’ve accomplished.
6. Be transparent with class-wide results. Follow pre-assessments tests, and
communicate the results to students. You don’t have to single them out. Simply
relay the outcomes, and explain how instruction will be adjusted based on the
new information.

1. ASSESSMENT
Assessment in its traditional meaning is to collect data for the purpose of evaluation.
Serafini (2000) has rightly mentioned that different philosophical views of teachers and
administration affect classroom practice because teachers are influenced by these
assessment paradigms when they collect and analyze data about student performance.
Administration have a pure positivist approach to education requires quantitative data
mainly and asks for judgments based on quantitative evidence. While a more
constructivist approach to education would lead teachers to collect more of minute details
in qualitative assessment and then develop daily , weekly, monthly and term reports. No

178
matter the type of data one collects, it’s one thing to collect data and another thing to use
the data to inform instruction. Mokhtari, Rosemary, and Edwards, (2007) argue that
“collecting, organizing, analyzing and using data for instructional and curriculum
improvement is a new way of work for many educators” (p. 354). Effective use of data is
the key to Data Driven Instructional Management.

1.1 Sources of Data

There can be many sources of assessment data. Such as:
i. Teacher made tests and activity sheets
Many of the school systems have already adopted the method of regular
assessment through weekly quizzes, tests and activity sheets. These tools of
formative assessment provide rich data about each child’s regular performance in
the given classroom tasks and activities.
ii. Observation sheets of Classroom Participation
Along with the tests and activity sheets some qualitative data is to be collected
about children participation during teaching learning process inside the
classroom and school. The subject teachers as well as class teacher can keep a
shared folder of each child to keep adding information regarding his/her
strengths, weaknesses, and other qualitative aspects such as social interaction,
group behavior and etc. Such observational sheets can be made into a form of
checklist but there should always be some space for details where teacher can
note the feedback in descriptive form.
iii. Home Observation Sheets For Parents
Teachers give various homework assignments to the students and once they bring
it back only then it is evaluated. Parents are partners in student learn and in the
process of assessment they are also to be involved. Home assignments can be
designed in a way that the parents will fill up an observation form and the teacher
will evaluate the assignment submitted by the student.
iv. Homework Assessment Rubrics
Rubrics are not very commonly used in the schools of Pakistan. A rubric is a spread
sheet that elaborates condition of grading against each criterion. This spread sheet is
used to evaluate the assignments submitted to the teachers. The rubric makes it
possible that more than one person may grade the same assignment for more reliable
grading. Some schools also use it for peer evaluation practices.
v. Online profiles and Analytics
Technological support and blended learning models have made it easier for us to
collect relevant data in a clean and organized form. Most of the Learning
Management Systems have inbuilt mechanism of developing student profiles. It
helps teachers as well as parents to see when and how the child is performing in
the given online tasks. These tasks range from reading, writing to quizzes and
using interactive simulations.
vi. Final Examination and Evaluation
Final examination of a term, a semester or a year can be administered in the form
of written tests, projects, or in any other form decided as per evaluation policy of
the institution. Teachers usually grade these tests and then a decision is made

179
 about successful completion of the course of study. It is to be highlighted that
adopting the Data Driven Instructional Management. Teachers decide upon the
type and contents of tests and tasks on the bases of previous formative
assessments throughout the term, semester or the year.

All the outcome data that is generated from a variety of assessments: teacher made tests,
observations, and surveys, is analyzed to learn about individual and group performance in
relation to the demographic data that is collected at the time of admission/enrolment and
is utilized for bringing change into instructional strategies as well as in developing
learning resources and content selection.

Activity 2:
Develop some observation sheets for home assignments and ask parents of your
students to fill up these sheets then have a parent teacher meeting to decide what kind
of help and support the students need in home work.

1.2 Informal Data Collection

In addition to demographic and outcome data, another category in Fox’s (2001) mode of
data collection is the “process data”. This kind of data is collected in informal ways and
settings. This kind of data includes attitudes and practices. Process data are noted and
analyzed with the outcome and demographic data. Process data arise from many sources,
including but not limited to curriculum organization, materials purchases, instructional
time, instructional strategies formative assessments, and even classroom management.

1.3 Difference of Formative and Summative Assessment Data

Stiggens (2004) refer to formative assessment as assessment for learning and summative
assessments as assessments of learning. Unit tests, semester exams, final performance
assessment, and standardized tests all fall under the category of summative assessments.
Educators use data from these assessments to judge the quality of a student’s
achievement or performance in relation to pre-established criteria or in comparison to a
peer group. Popham (2008) emphasizes that formative assessment should be thought of
as a multi-step planned process not a test or a particular assessment tool (p.6).
Consequently, paper and pencil assessments, observations, rubrics, conversations, can all
be part of the formative cycle. Hence Summative assessments will naturally influence
decisions in a way that is far different than data emerging from formative assessments,
particularly when this is to be used for decision making that leads to significant
consequences such as success and failure of course. The chart below captures the
distinctions between the two.

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The table shows how the two forms of data are different with respect to purpose and all
other dimensions. Both are equally significant in Instructional Management process but
both serve different purposes.

1.4 Balanced Assessment

Balanced assessment generally refers to an approach in which various forms of data are
produced regularly. Only achievement scores do not give complete information about a
learner and do not provide complete picture of teaching-learning progress. Afflerbach
(2007) mentions in explaining the balanced assessment that “formative assessment that
informs our efforts to teach students so that they experience success is more valuable than
summative assessment that makes after the fact determinations.” According to Afflerbach
an array of data sources helps more in understanding the current status and in planning
the future strategies in a comprehensive manner.

A balanced assessment also includes involvement of teachers, students, parents and even
the head teachers in the process of assessment and decision making. Following are the
significant features of Balanced Assessment:
 Start with what students know
 Involve students in their own learning and enhance their understanding of their
own development.
 Include individual and group assessment
 Include multiple tasks, assignments, tests and activities
 Use multiple data sources
 Involve parents in assessment process instead of only reporting to them
 Focus on students strengths rather than just reveal their weaknesses.
 Use criteria and standards that are public, so that students, teacher, parents, and
others know what is expected.

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In DDIM summative and formative assessment exist in tandem and lead towards the
same purpose. One most important feature that emerges with this kind of assessment is
“portfolio process” in which the teachers are required to maintain each child’s portfolio
through daily records. Students and parents can add to these portfolios if these are
maintained and shared with them. In every decision making the information recorded in
the form of portfolio serves as the baseline information for further instructional planning.

Self Assessment Questions

Q.1 Develop an assessment for classroom and a relevant activity for home:
Class: Subject: Topic:

Group Activity for Classroom:

Individual Activity for Home:

Q.2 Develop an assessment tool for parents to assess home activity:

Class: Subject:
Topic Activity:

Grading Criterion Marks Assigned

 Time Spent
 Independent work
 Asked for help
 Used internet/books/resources
Total: 25

Q.3 Develop an assessment tool for classroom and activity

Class: Subject:
Topic: Activity:
Grading Criterion Marks Assigned:
 Participation
 Understanding and knowledge
 Application and Analysis
 Creativity
Total 25

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2. ANALYSIS
In Data driven Instructional Management procedures, data analysis goes parallel with
data collection and assessments. As a result of any formative assessment process, a
teacher may analyze the information and immediately adjust a current lesson, or may
decide to refine the next lesson, or decide to plan different experiences for different
students. Ideally, the data will prompt some actions on the part of student, and parents
too. Students and parents who are a part of the process continually receive feedback from
a formative assessment (as opposed to grades) therefore they can self-assess the progress,
adjust the learning tactics and set improvement goals. In today’s high-stakes educational
environment which is getting more n more competitive it is essential to be cognizant of
self learning and needs of improvement. Summative data or a final report may inform
additional instruction for the group of students who took the assessment or, for future
groups of students. Hence the data analysis is done for two major purposes one is to
provide evidence about the status of the learning that is in progress, and the other is to set
a degree to which progress is being made toward achieving a pre-identified learning
target or learning objective.

The word “Data Analytics” refers to the field of examining raw data with the purpose of
inferring about certain aspects of required information. Data analytics was used initially
in the business management to allow companies and organizations to make informed
decisions and to verify the utility of current strategies or to disapprove the existing
management strategies. Similarly in the field of DDIM educators opted for data analytics
to make informed decisions about teaching-learning mechanisms at the educational
institutions. The traditional data analysis was supported by various softwares such as
statistical packages and qualitative data analysis protocols yet the web 2.0 is thought of as
one very large database, with information distributed in loosely-connected nodes across a
wide array of systems. This is comparable with the historically structured world of the
relational database management system (RDBMS), where data is neatly managed in
tables and columns in a relatively closed environment. the newer web-based approaches,
such as RDF (Resource Description Framework) can be considered a data model for
information on the World Wide Web. In any case- traditional or web based Data analysis
is used to determine whether the systems in place operate efficiently and succeed in
accomplishing overall goals.

The process of analysis involves many stages and steps:

1. Data profiling or data archeology in which data is organized one the bases of
consistency, uniqueness and logic. The
2. Exploratory Data Analysis (EDA) where the new features in data are discovered
and
3. Confirmatory Data Analysis (CDA) where existing hypothesis are proven true or
falso
4. Qualitative Data Analysis (QDA) where conclusions are to be drawn from words,
pictures and visuals etc.

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Not all analytics are relevant to all users. If you are a teacher, you’re probably thinking
about getting information that can allow you to teach better. If you are a manager at an
institution, you will be more concerned to know how successful your teachers are with
their students. Bet let’s not forget the students and parents as well; there is information
and analysis that can help them also. If the DDIM is based on a learning management
system (LMS) it helps teachers, management, parents and students to take advantage of
the analytics as per their own needs. An LMS analytics help in showing the following:

Progress: With an LMS, it is possible to achieve regular assessment within a course

based on a rich set of finely chunked multi-modal activities, and while this can lead to
deep learning, it can also be overwhelming for students. It is, therefore, useful for a
student to know where they are up to in a course and what they have to do next. Students
who use short-term planning tend to be more successful; they just need a quick snapshot
of their progress.

Relative success: Deep learners are more successful and deep learners are characterized
by meta-cognition about their learning. Providing analytics about their relative success
can allow students to know whether they are on track of if they need further exposure to a
topic. Relative success can also be used to introduce a competitive element into a cohort,
which some educationalists recommend.

Opportunities to interact: If students are studying in isolation, it may not always be

apparent when there are chances for them to interact with peers or teachers. Determining
the level at which a student is interacting could be seen as an analytic that can be used to
direct them to opportunities for communication and collaboration.

Student participation: In an online world, it is more difficult for a teacher to know

which students are participating and those needing a push. Students can fail to participate
for numerous reasons, usually valid ones. Sometimes a student may need to be
encouraged to withdraw from a course and re-enrol later. Where analytics can help is in
the determination of the timing of when such decisions need to be made. That’s not to say
that such information needs to be complex; it could be as simple as “traffic light”
coloured icons next to a list of names of students, ordered by risk.

Student success: Assuming a student is involved, a teacher also wants to know how
successful they are. This could be the product of assessment and views of resources. If
students are progressing through the course with unsuccessful results, then they may need
to be encouraged to re-expose themselves to a topic within the course before progressing
further.

Student exposures: Moving away from a course modality where “one size fits all”, it is
useful to know how many times a student was exposed to a topic before they were
successful. This is a differentiating factor among students in a cohort. If students are
progressing with few exposures, perhaps they are finding the course too easy, perhaps
even boring, and may need to be challenged further. If students are requiring numerous

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exposures before they are successful, then perhaps alternate presentations of a topic need
to be created to suit the learning preference of particular learners. Such an analytical tool
can assist a teacher to deliver learning at an individual level.

Student difficulty in understanding: Through an analysis of exposures and assessment

results, it may be possible to determine which topics, or areas within a topic, students are
finding difficult. This may indicate areas that need to be revisited in the current delivery
or enhanced in a future delivery of the course. When students are undertaking learning,
the last thing they want is to be stifled by an inability to express their understanding
because of by the way a course is set up within the LMS. Students patterns of use within
the LMS may indicate they are having such difficulties, and a teacher can be alerted to
take action.

Feedback attention: Teachers take time and spend effort creating feedback for students as a
reflection of their understanding. It is useful to know which students have paid attention to
such feedback, and which students may need to be encouraged to do so. Going beyond this it
may be possible to deliver information to a teacher about the effectiveness of their feedback
on students’ understandings as reflected in subsequent assessment.

Course quality: In several institutions that I know of, part of the measurement of a
teacher’s effectiveness is judged by the quality of the courses they are producing within
the LMS, based on a set of metrics. Such measurements can be used for promotions and
to drive the development of PD activities. If such metrics can be automated, then
analytics can be produced for teachers that encourage them to improve their course by
increasing the richness of their resources, improving the quality of their activities,
including more activities of different kinds, providing more opportunities for students to
interact or collaborate.

Student Teacher Involvement: Analytics can provide more information about students than
simple pass/fail rates. Analytics can help determine when students may be at risk of failing
and in which courses this is more likely to happen. Such analytics can help an institution to
send resources to where they are needed most and to plan resources for the future.

There is information in an LMS that can be presented in a useful way in relation to

training and promotions. It might also be useful to anonymously tie in a teacher
involvement analytic with other analytics to find correlations. As well as looking at
success in terms of pass and fail, it may also be possible to determine where teacher
interventions have encouraged students to achieve beyond their expected outcomes.

Activity:
Design an analytical framework for your class. What will you measure? How will you
measure? And then what will you analyze?
Make a table in excel and keep pouring data at least for three terms.
Then analyze at least three of the features that you selected.
Use LMS if it is available at your institution.

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3. FORECASTING ACHIEVEMENT
First of all, remember that the purpose of assessment and data collection as well as data
analysis in DDIM is to understand the relationship between achievement and instruction
in light of the decision-making process in each case. This process is usually done through
applying various predictive models in educational data mining method. In order to build
the predictive modeling, there are several tasks used, which are classification, regression
and categorization. The most popular task to predict students performance is
classification. There are several algorithms under classification task that have been
applied to predict students performance. Among the algorithms used are Decision tree,
Artificial Neural Networks, Naive Bayes, K-Nearest Neighbor and Support Vector
Machine.

3.1 Decision Tree

Decision Tree is one of a popular technique for prediction. Most of researchers have used
this technique because of its simplicity and comprehensibility to uncover small or large
data structure and predict the value. Romero et al. (2008) said that the decision tree
models are easily understood because of their reasoning process and can be directly
converted into set of IF-THEN rules. Examples of previous studies using Decision Tree
method are predicting drop out features of students data for academic performance,
predicting farther semester performance of students and also predicting the suitable
career for a student through their behavioral patterns. The students performance
evaluation is based on features extracted from logged data in an education on web-based
system.

3.2 Neural Network

Neural network is another popular technique used in educational data mining. The
advantage of neural network is that it has the ability to detect all possible interactions
between predictors variables. Neural network could also do a complete detection without
having any doubt even in complex nonlinear relationship between dependent and
independent variables. Therefore, neural network technique is selected as one of the best
prediction method. The studies using this technique present an Artificial Neural Network
model to predict students performance. The attributes analyzed by Neural Network are
admission data, students attitude towards self-regulated learning and academic
performance.

3.3 K-Nearest Neighbor

K-Nearest Neighbor depicts, all three papers studied in this research showed that K-
Nearest Neighbor gave the best performance with the good accuracy. According to
Bigdoli et al. (2003), K-Nearest Neighbor method takes less time to identify the students
performance as a slow learner, average learner, good learner and excellent learner . K-
Nearest Neighbor gives a good accuracy in estimating the detailed pattern for learner’s
progression in tertiary education.

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3.4 Naive Bayes algorithm
Naive Bayes algorithm is also an option for analysts to make a prediction. The objective
this analysis is to find the most effective prediction technique in predicting students
performance by making comparisons. Their researches show that Naive Bayes uses all of
attributes contained in the data. Then, it analyzes each one of them to show the
importance and independency of each attributes.

3.5 Support Vector Machine

Support Vector Machine is a supervised learning method used for classification.
Hamalainen et al. (2006) maintain that Support Vector Machine is a useful prediction
technique in classrooms because it suited well in small datasets. Sembiring et al. (2011)
stated that Support Vector Machine has a good generalization ability and faster than other
methods. Meanwhile, the study done by Gray et al (2014) demonstrated that Support
Vector Machine method has acquired the highest prediction accuracy in identifying
students at risk of failing.

Self Assessment Questions

Fill in the Blanks

1. Instructional management is a process of ___________________

2. Assessment means collection of data for the purpose of _________________

3. A ___________ is a spreadsheet that elaborates condition of grading.

4. The purpose of formative assessment is to ___________________

5. Data analytics refers to the field of _________________________

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4. BENCHMARKING
In education, benchmarking means the process of assortment of evaluation tests and
observations administered throughout the school year in order to find out whether or not
students are meeting specified academic standards. Benchmarking is regarded as the most
sophisticated way in measuring students academic growth and in designing customized
curriculum plans to reach each student's learning needs. There are three types of
benchmark assessments in a school setting:

Vertical scheme administered within one subject area to measure consistency between
different grade levels.
Horizontal Scheme and evaluation is applied to ensure consistency between all members
of a certain classroom taking a given subject.
Common benchmark evaluations is administered to all students in the same grade level
and course.

Benchmark assessments are used to measure proficiency in areas such as writing, oral
reports and even mathematics. The process of benchmarking goes along following
procedures:

4.1 Developing Baseline Chart

Usually a baseline chart is developed by inserting the scores of a student across the grade
levels within various subject areas. The baseline charts are developed through software
that allows cross sectional analysis and follow up analysis, in other words vertical and
horizontal representation is possible. During a year or semester the baseline chart shows
task bars that indicate the start and end date as well as achievement of a student across
the assigned period of time for a task. Multiple tasks are shown with different colors.
Active, overdue and completed tasks are shown through different colored bars

4.2 Generating Performance Chart

Performance chart shows performance within each activity. Student, teacher and parent
evaluation is aggregated and shown in the form of line graphs. The graphs are showing
actual time frame with target time as well as the scores/ badges achieved so far. Each
completed task has a final grade point. Performance charts show individual profile
independently. Analytics on the other hand show performance with reference to standards
and performance of other students.

4.3 Placing Benchmarks

First of all identify the standards and benchmarks from the national curriculum
framework. Once those national standards and benchmarks are identified for the specific
grade and subject, relate these with the school’s standards if these are not the same. Then
enlist these benchmarks in the performance chart. Regular review of each students profile
may be made against each benchmark and color coding may be used.

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4.4 Building Milestones
Developing upon the baseline and performance charts against benchmarks; further
milestones are set for each child. This graph clearly indicates the chances of achieving
goals within a given time frame ore any delays expected. The chart is to made
realistically based on the available data and realistic targets and milestones must be set
for the child. The student should neither get into procrastination nor into an
overwhelming state. The goal is to provide the teacher, student and parents a real picture
and realistic roadmap to achieve learning outcomes.

5. ACTION
In DDIM multiple data sources guide the teachers and management at all levels. School
level data describes position of each classroom over all and it is mainly a source of
building teachers profile; while class level data provides information regarding each
student across various subject areas. It also maintains student profile (Taylor & Pearson,
2005). A school reform-effort is directly related to increases in students’ achievement
score. The school management approves or disapproves certain action plans on the bases
of evidence provided by the teachers.

DDIM is designed for continuous improvement in teaching and learning. The continuous
improvement process includes the following steps:
 Disaggregate the data by individual student and classroom and identify strengths
and weaknesses.
 Establish an instructional timeline which states what will be taught, when it will
be taught and when it will be assessed
 Create an instructional calendar based on the timeline. Use the calendar to
prioritize deficient skills, and target skills to be repeated throughout the year
 Establish an instructional focus as a school wide priority (i.e., if summarization is
the skill to be taught, then discuss it in reading, science, and even summarize
how to play a game.)
 Assess students for mastery and analyze the results to determine patterns in their
responses. Log results and use them to make instructional decisions over a three-
week period.
 Provide tutoring for struggling students and administer assessments to track the
students response to instruction
 Provide enrichment for students who have demonstrated mastery.
 Provide maintenance activities so that skills are retained.
 Collaboration with parents is an important part of this process.
 Progress is reported by the principal at the local and district level.

5.1 Significant Questions for Developing Action Plan

Once the profiles are made, benchmarks and milestones are marked then the teachers
need to do a group effort for preparing further action plans. The action plan also needs

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cyclical review and reform. Following are the significant questions to be answered at
each review which can be monthly, quarterly or once a semester (Taylor et al., 2005).
1. Specifying what we were focusing on?
2. What needs to be done?
3. What activities were identified and how far they were implemented?
4. How the achievement is measured
5. What else is required?
Reviewing on these lines is recommended at least three times a year at school level. Such
review will help teachers, parents and management to help learners move forward and in
a better speed.

5.2 Learning Activities

Here are some of the ideas that are developed by various teachers and teacher educators.
The activities themselves help in learning as well as collecting data:

Entry/Exit Tickets
Entry & Exit tickets are short prompts that provide instructors with a quick student diagnostic.
These exercises can be collected on 3”x5” cards, small pieces of paper, or online through a
survey or course management system.
 Entry tickets focus student attention on the day’s topic or ask students to recall background
knowledge relevant to the day’s lesson: e.g., “Based on the readings for class today, what is
your understanding of ___________?”
 Exit tickets collect feedback on students’ understanding at the end of a class and provide
the students with an opportunity to reflect on what they have learned. They can be helpful
in prompting the student to begin to synthesize and integrate the information gained during
a class period. For example, a muddiest point prompt: “What was the muddiest point in
today’s class?” or “What questions do you still have about today’s lecture?”.
Advantages of entrance and exit tickets include: participation of each student, prompt for
students to focus on key concepts and ideas, a high return of information for the amount of time
invested, important feedback for the instructor that can be useful to guide teaching decisions
(e.g., course pacing, quick clarification of small misunderstandings, identification of student
interests and questions).

Jigsaw
A Jigsaw is a cooperative active learning exercise where students are grouped into teams to
solve a problem or analyze a reading. These can be done in one of two ways – either each team
works on completing a different portion of the assignment and then contributes their knowledge
to the class as a whole, or within each group, one student is assigned to a portion of the
assignment (the jigsaw comes from the bringing together the various ideas at the end of the
activity to produce a solution to the problem). In a jigsaw the activity must be divided into
several equal parts, each of which is necessary to solving a problem, or answering a question.
Example activities include implementing experiments, small research projects, analyzing and
comparing datasets, and working with professional literature. The advantages of the jigsaw
include the ability to explore substantive problems or readings, the engagement of all students
with the material and in the process of working together, learning from each other, and sharing
and critical analyzing a diversity of ideas.

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 Interactive Demonstrations

Interactive demonstrations can be used in lectures to demonstrate the application of a concept, a

skill, or to act out a process. The exercise should not be passive; you should plan and structure
your demonstration to incorporate opportunities for students to reflect and analyze the process.
1. Introduce the goal and description of the demonstration.
2. Have students think-pair-share (see above) to discuss what they predict may happen, or to
analyze the situation at hand (“pre-demonstration” state or situation).
3. Conduct the demonstration.
4. Students discuss and analyze the outcome (either in pairs/small groups, or as a whole
class), based on their initial predictions/interpretations.
Advantages of interactive demonstrations include novel visualizations of the material and
allowing students to probe their own understanding by asking if they can predict the outcome of
the demo. They are also a venue for providing applications of ideas or concepts.

Free Writing/Minute Paper/Question of the Day Exercise

These are activities that prompt students to write a response to an open question and can be
done at any time during a class. Writing activities are usually 1-2 minutes, and can focus on
key questions and ideas or ask students to make predictions. These activities give students the
opportunity to organize their own thoughts, or can be collected by the teacher to gain feedback
from the students. Advantages include developing students’ abilities to think holistically and
critically, and improving their writing skills.

Case studies are scenarios that apply concepts learned in class to a “real-life” situation. They
are usually presented in narrative form and often involve problem-solving, links to course
readings or source materials, and discussions by groups of students, or the entire class. Usually,
case studies are most effective if they are presented sequentially, so that students receive
additional information as the case unfolds, and can continue to analyze or critique the
situation/problem.
Problem-based learning activities are similar to case studies but usually focus on quantitative
problems. In some cases the problems are designed to introduce the material as well as provide
students with a deeper learning opportunity.

5.3 Individualized Educational Plans

Grouping and Clustering of Students

Cluster grouping has been defined as the intentional placement of a group of high
achieving or gifted students in an otherwise heterogeneous classroom with a teacher who
has both the background and willingness to provide appropriate challenges for these
students (McInerney, 1983). Research indicates three major benefits exist to cluster
grouping (Rogers 1991. Hoover, Sayler, & Feldhusen, 1993)
 gifted students interact with their intellectual peers as well as their age peers on a
regular basis.
 cluster grouping provides services for gifted students without additional cost to
the school district.

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 cluster grouping facilitates ongoing programming for gifted or high achieving
students in the regular classroom.

Based on these assumptions “Schoolwide Cluster Grouping Model” was introduced in the
schools to enable students learn in a more collaborative learning environment (Dina
Brulles 2010). In the Schoolwide Cluster Grouping Model first of all the focus remained
on gifted students and teachers were specifically chosen and given trainings to help these
bright stars move forward on their own pace. In this process gifted students are clustered
into a mixed-ability classrooms at each grade level. If there are more than eight gifted
students in the grade level, two or more clusters may be formed. Slowly the model was
expanded to mixed ability grouping and clusters of special need students are also made.
The teachers are provided professional development training in understanding, planning
for, and instructing gifted students, mixed ability students, and students with special
needs. This system provides opportunities for teachers to more readily respond to the
needs of all their students.

5.4 Individualized Educational Plans

An Individualized Education Program (commonly referred to as IEP) is a document,
which is based upon the data driven needs identification and setting of the individual
goal and objectives set for a child with special needs. These programs are written
documentation of the special educational program, instructional plan and academic
modifications required to meet the child’s individual needs in a classroom setting. The
two main purposes of a student’s IEP are to:
1. set reasonable learning goals for the student, and
2. state the required services that the school district needs to provide for said child.

IEPs are developed by a team including the child’s teacher(s), parents, and supporting
school staff, while in some cases it involves health practitioners and psychologists too.
This team meets at least once or twice a year to assess the academic and developmental
progress of the student, design appropriate educational plans, and suggest changes if they
see any issues and challenges not being met.

5.5 Differentiated Curriculum and Instruction

Differentiated Curriculum and Instruction is the process of planning and revisiting the
curriculum as well as instructional design to meet the differentiated needs of a diverse
student population. Whenever the evidence based analysis is made about individual
learner or groups the teachers and management plans according to the specific trends of a
class as well as for smaller groups or individuals. On the bases of data analysis we can
differentiate at least four classroom elements based on student ability, readiness, interest,
or learning profile (Tomlinson 2015)
 Content – what the student needs to learn or how the student will get access to
the information;
 Process – activities in which the student engages in order to make sense of or
master the content;

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 Products – culminating projects that ask the student to rehearse, apply, and
extend what he or she has learned in a unit; and
 Learning environment – the way the classroom works and feels.

Self Assessment Questions

Select the appropriate options for the following:

1. ______________ chart is developed by inserting the scores of student across the
grade levels
a. Bar chart
b. Performance chart
c. Baseline chart
2. ______________ are short prompts that provide instructors with a quick student
diagnostic.
a. Entry Tickets
b. Exit Tickets
c. Both
3. _______________ can be used in lectures to demonstrate the application of a
concept or a skill.
a. participative demonstration
b. Interactive
c. Pure demonstration
4. ______________prompt students to write a response to an open question
a. case studies
b. free writing
c. benchmark
5. _______________ assessment are used to measure proficiency in areas such as
writing, oral reports and even mathematics
a. formative
b. summative
c. benchmark

Correct answers
Self Assessment Exercise 1:
1. Decision making
2. Evaluation
3. Rubric
4. Promote better learning
5. Examining raw data
Self Assessment Exercise 2
1. Baseline chart
2. Both
3. Interactive demonstration
4. Free Writing
5. Benchmark

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REFERENCES
 The New Instructional Leadership: Creating Data-Driven Instructional Systems
in Schools Richard Halverson, Jeffrey Grigg, Reid Prichett, Chris Thomas
School of Education Department of Educational Leadership and Policy Analysis
University of Wisconsin-Madison
http://www.academiccolab.org/resources/documents/HalversonGriggPrichettTho
mas%20NCPEA.pdf

 Amirah Mohamed Shahiri , [email protected], Wahidah

Husain, Nur’ainiAbdul Rashid Procedia Computer Science Volume 72, 2015,
Pages 414-422
http://www.sciencedirect.com/science/article/pii/S1877050915036182

ADDITIONAL READING FOR YOU

“When you think about it, education is really all about data.”
By: Jason Lange(2014) http://www.scholastic.com/browse/article.jsp?id=423

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UNIT-9

APPLICATION OF TECHNOLOGICAL
TOOLS OF MANAGEMENT

Written by: Arshad Mehmood Qamar

Reviewed by: Ms. Tahira Bibi
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 CONTENTS

Introduction ..................................................................................................... 197

Objectives......................................................................................................... 197
1. Management Information System ...................................................... 198
1.1 Learning Management System ........................................ 200
2. Organizational Communication System ............................................ 202
3. Accounting and Budgeting System .................................................... 207
4. Web Based Management System....................................................... 207
5. References .......................................................................................... 211

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INTRODUCTION
Since managers have to use information during the process of planning and organizing
organizational activities, they have to use technology to manage this information and
access it at any time. Using technological systems like (MIS) management information
systems, managers will be in position to execute important decisions and actions required
in business growth and development. By definition, a management information system
(MIS) is a system that provides periodic, predetermined, and ad-hoc reporting
capabilities. Reports generated by MIS systems summarize information to support
decision making tasks. MIS’s can provide reports to a manager in various ways. These
reports can be periodic, summarized, exceptions, comparative and ad-hoc. MIS, generate
these reports from a database of transaction processing systems (TPS) and customer
integration system (CIS), the information delivered is always summarized for easy
interpretation and this helps managers in creating plans basing on verified data. After the
planning process, the managers will have to execute their goals. During this process,
they will need human resource which will help in accomplishing specific tasks. Some of
this labor can be skilled labor or semi-skilled labor. The manager or business owner can
use technological tools like the internet to post jobs on online job portals.

OBJECTIVES
After studying, this course, you will be able to:
1. Describe concept of Management Information System
2. Elaborate process of Organizational Communication System
3. Explain Accounting and Budgeting System with the perspectives of education
4. Discuss different tools and techniques of Web based Management System

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1. MANAGEMENT INFORMATION SYSTEM
Management Information Systems (MIS) is the study of people, technology, and
organizations.

If you enjoy technology like iPhones, iPodS, you have what it takes to major in
information systems. All you need is an interest in technology and the desire to use
technology to improve people's lives. Many people think that MIS is all programming.
However, programming is just a small part of our curriculum and there are many, many
jobs in MIS where you do not program.

Management information system (MIS) provides information that organizations require

to manage themselves efficiently and effectively. Management information systems are
typically computer systems used for managing the organizations. The five primary
components of MIS are: 1) Hardware 2) Software 3) Data (information for decision
making), 4) Procedures (design, development and documentation), and 5) People
(individuals, groups, or organizations). Management information systems are distinct
from other information systems because they are used to analyze and facilitate strategic
and operational activities. Academically, the term is commonly used to refer to the study
of how individuals, groups, and organizations evaluate, design, implement, manage, and
utilize systems to generate information to improve efficiency and effectiveness of
decision making, including systems termed decision support systems, expert systems, and
executive information systems.

History of MIS
Kenneth C. Laudon and Jane Laudon identify five eras of Management Information
System evolution corresponding to the five phases in the development of computing
technology: 1) Mainframe and minicomputer computing, 2) Personal computers, 3)
Client/server networks, 4) Enterprise computing, and 5) Cloud computing. The first era
(mainframe and minicomputer) was ruled by IBM and their mainframe computers. These
computers would often take up whole rooms and require teams to run them - IBM
supplied the hardware and the software. As technology advanced, these computers were
able to handle greater capacities and therefore reduce their cost.. The second era
(personal computer) began in 1965 as microprocessors started to compete with
mainframes and minicomputers and accelerated the process of decentralizing computing
power from large data centers to smaller offices. In the late 1970s minicomputer
technology gave way to personal computers and relatively low cost computers were
becoming mass market commodities, allowing businesses to provide their employees
access to computing power that ten years before would have cost lakhs of rupees. As
technological complexity increased and costs decreased, the need to share information
within an enterprise also grew, giving rise to the third era (client/server), in which
computers on a common network access shared information on a server. This lets
thousands and even millions of people access data simultaneously. The fourth era
(enterprise) enabled by high speed networks, tied all aspects of the business enterprise
together offering rich information access encompassing the complete management

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structure. Every computer is utilized. The fifth era (cloud computing) is the latest and
employs networking technology to deliver applications as well as data storage
independent of the configuration, location or nature of the hardware. This, along with
high speed cell phone and Wi-Fi networks, led to new levels of mobility in which
managers access the MIS remotely with laptop and tablet computers, plus smart phones.

Role of Management Information Systems in an Organization

The role of the MIS in an organization can be compared to the role of heart in the body.
The information is the blood and MIS is the heart. In the body the heart plays the role of
supplying pure blood to all the elements of the body including the brain. The heart works
faster and supplies more blood when needed. It regulates and controls the incoming
impure blood, processes it and sends it to the destination in the quantity needed. It fulfills
the needs of blood supply to human body in normal course and also in crisis. MIS plays
exactly the same role in the organization. The system ensures that an appropriate data is
collected from the various sources, processed, and sent further to all the needy
destinations. The system is expected to fulfill the information needs of an individual, a
group of individuals, the management functionaries, the managers and the top
management. MIS satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems, MIS
helps in Strategic Planning, Management Control, Operational Control and Transaction
Processing. MIS helps the clerical personnel in the transaction processing and answers
their queries on the data pertaining to the transaction, the status of a particular record and
references on a variety of documents. MIS helps the junior management personnel by
providing the operational data for planning, scheduling and control, and helps them
further in decision making at the operations level to correct an out of control situation.
MIS helps the middle management in short them planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control. MIS helps the top management in goal setting, strategic planning and evolving
the business plans and their implementation. MIS plays the role of information
generation, communication, problem identification and helps in the process of decision
making. MIS, therefore, plays a vital role in the management, administration and
operations of an organization.

Factors contributing to the success of an MIS

If an MIS has to become successful then it should have all the features listed as follows.
MIS is integrated into the managerial functions. It sets clear objectives to ensure that the
MIS focuses on the major issues of the business. Adequate development resources are
provided and the human & organizational barriers to progress are removed.
An appropriate information processing technology required to meet the data processing
and analysis needs of the users of the MIS is selected.
 MIS is oriented, defined and designed in terms of the user’s requirements and its
operational viability is ensured.
 MIS is kept under continuous surveillance, so that its open system design is
modified according to the changing information needs.

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 MIS focuses on the results and goals, and highlights the factors and reasons for
non-achievement.
 MIS is not allowed to end up into an information generation mill avoiding the
noise in the information and the communication system.
 MIS recognizes that a manager is a human being and therefore, the systems must
consider all the human behavioral factors in the process of the management.
 MIS recognizes that the different information needs for different objectives must
be met with. The globalization of information in isolation from the different
objectives leads to too much information and its non-use.
 MIS is easy to operate and, therefore, the design of the MIS has such features
which make up a user-friendly design.
 MIS recognizes that the information needs become obsolete and new needs
emerge. MIS design, therefore, has a basic potential capability to quickly meet
new needs of information.
 MIS concentrates on developing the information support to manage critical
success factors. It concentrates on the mission critical applications serving the
needs of top management.

Factors contribution to MIS failure

Many a times MIS is a failure in PSUs. The common factors which are responsible for
this are listed as follows.
 MIS is conceived as a data processing tool and not as an information processing
tool and MIS does not provide that information which is needed by the managers
but it tends to provide the information generally the function calls for. In this
case MIS becomes an impersonal system.
 Underestimating the complexity in the business systems and not recognizing it in
the MIS design leads to problems during implementation.
 Adequate attention is not given to the quality control aspects of the inputs, the
process and the outputs leading to insufficient checks and controls in the MIS.
 MIS is developed without streamlining the transaction processing systems in the
organization and lack of training on MIS to stakeholders. Failing to appreciate
that the users of the information and the generators of the data are different and
not identifying that both of them have to play an important & responsible role in
the MIS.
 MIS does not meet certain critical and key factors of its users such as, response to
the query on the database, inability to get the processing done in a particular
manner, lack of user-friendly system and dependence on the system personnel.

1.1 Learning Management System

Learning Management Systems (LMS) are currently one of the popular e-learning tools.
Similarly to other technological fields, there is no standardization of terminology in LMS
and conflict between the usage of terms continues. In the United States of America, LMS
and CMS-Course Management system are commonly used. In the UK and Europe, the

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terms VLE Virtual Learning Environment and MLE-Managed Learning Environment are
used (Martin-Blas & Serrano-Fernandez, 2009). These systems are web-based software
that is designed to support teaching and learning activities. Typically, they provide a
combination of functions that can be carried out online, such as evaluation,
communication, content submission, gathering students’ works, management of student
groups, questionnaires, monitoring tools, wiki, blog, chat, and discussion forums. When
ICT applications are mentioned in technology and design education, mostly CAD
(Computer Aided Design), CAM (Computer Aided Manufacture) and general drafting
software comes to mind (McCormick, 2004). In web-based tools, web-based online
design tools are commonly used (Karakaya & Şenyapılı, 2006). These tools are used at
certain phases of student design projects in technology and design education. Learning
Management Systems (LMS) can be used to manage, monitor and appraise a design
process as a whole.

Technologies and their use have made big changes in education, since is changing its
paradigms, from a closed model, and teacher-centered classroom to a model more open
and student-centered, where the teacher moves from one holder of knowledge for a
learning mentor, able to manage diverse discourses and performs as well as stimulate the
intellectual capacities of students in the treatment of information and include online
learning, hybrid learning and collaborative models . Some authors such as Martin, Parker,
& Deale are of the opinion that a number of the characteristics of online education have
their roots in distance education and there are four types of interaction: student–content,
student–instructor, student–student and student–interface. Park emphasised that
instructors need to be aware that the standardised formats available in the LMS may
disciplinary characteristics and pedagogical development become generalized. In the web
there is considerable valuable information, but there are also several mistakes and
controversies instead of teaching possibly will confuse the students. Therefore, they
usually have access to information, but do not always know how to do with it. Quite a lot
of tools can promote knowledge and learning; many practices were developed, such as
audiovisual resources that were once closely tied to the television and video. All were
grouped in the same medium that is the Internet. On the other hand, Internet is a
wonderful tool for use in the classroom because it permits extension of horizons, so that
students learn to communicate and collaborate, encouraging, consequently, learning.
According to Phillips, McNaught, & Kennedy the key to success in transformed models
of online learning and teaching is to facilitate active participation and collaboration by
students in problem solving and knowledge production. However you also need to know
how to use the Internet, or else the student will spend time to visit all the links, without
holding any information, because some of its features are the infinite sum of information
available. Deprived of proper caution, the experiences in the classroom will be not
successful. There are several environments that meet a set of features for creating and
structuring of courses in the distance. These environments are also known as LMS. Some
of these environments used for creating and managing these online courses are:
Moodle,TelEduc, BlackBoard, WebCT, Toolbook, TopClass Server, among others.
These environments differ in many ways is the language they were developed, either in
features and features each offers. LMS has the principal objective, to centralize and

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simplify administration and management of teaching and learning through e-learning.
This system covers the entire process of distance learning, possessing interface and
student teachers, tutors, to administrators and the administrative part. In this sense, helps
employees and students to plan their learning processes, and let’s work together, through
the exchange of knowledge and information. Amongst the main features of e-learning
platforms we can refer to the flexibility, accessibility, focusing on the student, the
economy or rationalization of resources, interactivity and enhancement of the student.
The courses that are developed on the web have the advantage of providing the content
for students anywhere in the world, faster than the other conventional methods distance
education. In addition, the communications resources of the web may make it more
efficient to communication between teacher and students, when compared with other
conventional methods.

The Learning Management System or popularly known as LMS in the community of

higher institutions is an online portal that connects lecturers and students. It provides an
avenue for classroom materials or activities to be shared easily. It is also a portal that
enables lecturers and students to interact out of the classroom, having discussions through
forums that could otherwise take up too much of the time supposed to be spent learning
in the classroom. In this era of information technology, the internet is easily available and
accessible by urban areas, which is where most universities are situated. The internet is
defined as a vast computer network linking smaller computer networks worldwide, and it
includes commercial, educational, governmental, and other networks, all of which use the
same set of communications protocols. Most university students nowadays also have
access to the internet as their university provides internet access, and usually there are
internet cafes within a walking distance from the university’s campus, catering to
students. Some also have internet access within their own home as they subscribe to an
internet service provider. University students are mostly independent in their learning as
lecturers usually give out lecture notes, and further information are left for the students to
discover on their own, as it is not a one-way learning process which is practiced in the
primary and secondary school system. The learning process at the university level is a
two-way process, lecturers share their knowledge and students give their opinions or
thoughts in return a topic in a class discussion. Therefore, university students need to
constantly broaden their knowledge by searching for information.

2. ORGANIZATIONAL COMMUNICATION SYSTEM

Organizational communication is a subfield of the larger discipline of communication
studies. Organizational communication, as a field, is the consideration, analysis, and
criticism of the role of communication in organizational contexts. Its main function is to
inform, persuade and promote goodwill.

Organizational Communication System

In any institution reports and responses flow from lower level managers to higher level
managers. Managers have to communicate with their peers. Therefore functionary
structure of any institution need vertical and horizontal communication. The success of

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institution depends upon the quality of communication. Quality of communication
depends upon the type of tool used for communication. Organizational Communication
system comprise network and management of information communicated among lower
level management and higher level management. It also include the organized system
among same members of organization (Horizontal Communication). System of pathways
through which messages flow Patterns of interaction among people who comprise the
organization

Technology, software, software developers, software operations, institution managers and

other workers etc are part of communication system. All the resourses like energy,
gadgets are also part of communication system.

Need of Organizational Communication

1. Organizational communication provides the basis for understanding virtually
every human process that occurs in organizations.
2. To be aware of communication skills necessary to meet organizational
expectation.
3. May start you down the path to a career as a communication professional in an
organization or as an academic scholar in the field.

Technological Tools as Communication Tools

There are a number of technological tools which are used for communications tools. The
type of tool depends upon the need and nature of communication. Institutions in Pakistan
are not able to employ all the tools for communication purposes. Even then there are
some very reliable tools for this purpose. Description of some important communication
tools is as under.

1. Email
Email is a method originally intended to imitate physical mail. Messages are delivered
from one specific address to one or more specific addresses. Users are alerted to the
presence of new messages in their inboxes by email clients that display the content and
offer an opportunity to reply. Messages are primarily text but may include file
attachments of various types including images and short movies. Unlike instant
messages, emails are generally not expected to be read immediately upon receipt. Most
email readers keep track of conversations that include multiple people through the use of
threads. Thus email is ideally suited for long, involved conversations between two people
or among small groups of people.

Email is the most reliable communication tool .this is widely used channel among the
organizational members. This channel is the most reliable and durable channel. In this
channel email adresses of all the sub- managers are arranged. Now in one click the
message of meeting can be sent in one click. It is beneficial in context of money, time and
human resource. Further it saves other resources as well. Emails are also a source of
instant responses. It is reliable in a sense that any manager can find the date and time of
message delivery . It is also easy to retrieve the messages at any time. Now a days email

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sharing is also a new feature which is helpful for sharing the information not only among
the members of an organization but also among the members of other organizations
working under the management. For example if Directorate of education has to
communicate a message, it will have to manage email system.

Now a days email boxes has options of screening the messages and managing the
messages, which can be further transferred in information management systems.

2. Skype
To get instant information from any manager , skype can be used as a channel. It donot
require a fone call.
It can be used due to some extra benefits over email. Like
a) It is much faster interaction than email. One can see the actions of others and get
the answer at right time.
b) Through skype one can share desktop. This means one can extend the
conversation to groups , add in voice, and even perform video conferencing.
c) Skype can be available on all devices including Androids and iOSes. So you can
stay connected regardless of location.
d) Skype is also reliable.

3. Mobile Communication System.

Best example can be found from the AIOU instant messaging system. Mobile messages
are sent from the office of the admission. When a student has submitted the admission
fee, and the admission form has been received by the admission office, a message is
generated and sent to the mobile number of the student. If there is some anomaly
regarding documents or fee that is also sent on the mobile number of the student. This
communication system saves the students from lot of problems.

4. Forums
Conversations that go on indefinitely, involve large numbers of people or need to be
archived are not well suited to email. Forums, often hosted on the Web, provide an
alternative that combines many of the aspects of email and Web pages. They involve
discussions around a single, limited topic but can take place over months or years and
involve dozens or even hundreds of participants. Most use a treelike structure that allows
participants to jump in at whatever level their comments are most appropriate.

5. Text and Instant Messaging

Text messaging uses cellular airwaves and protocols to deliver textual messages from one
cellular phone to another or from one phone to a group of other phones. Text messaging
is usually intended as near-instant communication and can be quicker than a phone call
because the sender doesn't have to wait for the recipiant to answer before delivering a
message. Because text messaging is informal and easy, it's sometimes called chatting.
Text messaging can also facilitate private discussions when there is a chance that a phone
call could be overheard. Instant messaging is similar to text messaging but is carried over
the Internet rather than over cell phone airwaves.

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6. Social Networking
Social networking sites facilitate communication among people with common interests or
affiliations. Sites such as Facebook and LinkedIn provide places for people to interact,
sometimes in real time. Microblogging services like Twitter, allow short textual messages
of no more than 140 characters to be broadcast to a large audience. Unlike text messages,
which are delivered to only small groups, microblog posts are intended to be seen by all
of a user's followers. Microblog users can repost messages that they want to share with
their own followers, so a microblog post can spread quickly. A widely reposted message
is called a viral post.

6. Blogs
Blogs are collections of articles, ideas, news, facts, opinions or inspirations that are
“posted” on the internet. They are usually structured, organized by category and are
updated often, if not daily. The owner of the blog is able to control the content. It is used
to communicate with colleagues, managers and other clientals.any institution can show
its future progarmmms and improve efficiency.

7. Video Chat
Like instant messaging, most video chatting is conducted over Internet protocols that
stream images from one device to another. At times, nothing beats a face-to-face
conversation. Video chats provide an immediacy to a conversation.

8. Electronic Meeting System

An electronic meeting system (EMS) is a type of computer software that facilitates
creative problem solving and decision-making of groups within or across organizations.
The term was coined by Alan R. Dennis et al. in 1988
Below is a checklist of types of electronic communication.
1. Auto responders
2. Bookmarking
3. Calendars
4. Collaborative software in the workspace
5. Computer screen messages
6. Data conferencing
7. E-books
8. Electronic and web chat shows
9. Electronic bookmarking
10. Electronic brochures
11. Electronic content on CDS and DVDS
12. Electronic flash teaser
13. Electronic games
14. Electronic meeting system
15. Electronic newsletter
16. Electronic questionnaires and surveys
17. Electronic vote line
18. Email campaigns with links to intranet

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19. Email able audiovisuals
20. Enterprize bookmarking
21. Extranet
22. Eye witness news electronic broadcasts
23. Faxing
24. Flash mailer
25. Forums
26. Instant messaging
27. Intranet
28. Online chat
29. Online consultation
30. Personalized urls (Purls)
31. Pop up electronic teasers
32. Radio or voice clips sent or broadcast electronically
33. Screensavers
34. SMS campaign
35. Sound clips
36. Special code to web page as part of bigger campaign
37. Synchronous conferencing
38. Telephone campaign with electronic aspects
39. Telephony
40. Text chat
41. Voice mail
42. Wall of fame on intranet
43. Web conferencing
44. Web publishing
45. Webcam
46. Website
47. White boarding
48. Wikis

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3. ACCOUNTING AND BUDGETING SYSTEM
Accounting and budgeting system deals with the issues related to development,
implementation and operations of computerization of accounting system of any
Organization.

Need and Scope of Accounting and Budgeting System

Old accounting and Budgeting systems were manual, and the chances of error were
maximum. Apart from it accounting and Budgeting process was much hectic. Lot of HR
was required to perform the operations of accounting and Budgeting. A lot of time was
required. Excessive amount of papers was used in old system. The search of any old
budgetary record remain doubtful. Lack of technological tools caused significant delays
in solution of problems.

With the increased socio-economic activities and shortage of time and considerating
reliability issues the use of Technological Tools for Accounting and Budgeting System
have become mandatory.

4. WEB BASED MANAGEMENT SYSTEM

In the information age that we live in, rapid changes in information and communication
technologies (ICT) have become common in every field of our lives. The tools and
materials that we use in our daily lives are renewed almost daily. In paralleled with these
changes, ICT applications have inevitably entered into learning and teaching activities.
The use of computers in education, which are among the main ICT devices, dates back to
the 1950s. Applications in this field have been defined using many different terms, such
as Computer Aided Education– CAE, and Computer Based Teaching (CBT) (Watson &
Watson, 2007). With the introduction of the internet and its use in education, many other
terms such as Web Based Training, Web Based Instruction, Web Based Learning, and
Internet Based Instruction were added to the terms mentioned above. All of these terms
define the same thing, more or less. The term e-learning includes all the terms mentioned
in terms of web-based electronic tools generally and the use of software in education.

Web Pages
World Wide Web users post content on websites for others to view. The content may be
simple text, but it might also contain multimedia files including images, sounds, videos or
streaming content. Unlike many other forms of electronic communication, most Web
content is pulled from the Web by users who are seeking information, rather than pushed
to subscribers. While not as permanent as traditional media like paper, Web pages can
archive information for extended periods

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Web-based Management Systems
Facilities Management Web (FM Web) and Cleaning Web (Web Clean) are internet-
based systems that translate property management data into whole-of-government
performance reporting for improved use of resources.
Data includes:
a) operational and maintenance costs
b) cleaning costs
c) asset usage
d) asset utilisation and condition.

FM Web
FM Web assists the maintenance and management of assets and services. It works as an
active management tool for some clients and a reporting mechanism for others.
Functions include:
a) call log
b) inspections
c) maintenance requests
d) condition assessments
e) servicing of equipment.

Web Clean
Web Clean manages the cleaning of government assets. It can track inspections and
includes quality monitoring to aid in reporting the cleaning quality of assets.
Web Clean’s asset register can include:
a) property, building and room details
b) equipment details, with servicing schedules
c) material register

Creating a Blog
There are numerous online tools that can be used to create a blog. You can use an html
editor, such as Dreamweaver to create your posts. The content is then sent via FTP to a
web server.

If you are unfamiliar with html editors and using FTP programs, then there is free
software on the Internet to create and post your blog. A couple of popular web-based
tools are Blogger at www.blogger.com or Silkware at www.silkblogs.com.

When you set up a Blog you select a template that will house your information. Once you
have the Blog set up, you can post whatever information you like.

Reading a Blog
 Use your standard browser and post comments on the content of the Blog.
 Use a RSS (real simple syndication) reader program. You can subscribe to
whichever blogs that you want to and they are available immediately in the reader. Using
an RSS reader allows you to have all of the blogs that interest you in one place and you

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don't have surf all over the Internet to read them. A free reader can be downloaded
at: www.rsspublisher.com/.

Benefits and Advantages of Blogs

1. Easy to maintain and easy to start

If you don’t know html to set it up, using a template from one of the many tools
available online makes it easy to start. You just post your info into the template.
2. Post as often as you like
Post as much and as often as you like.
3. Highly interactive
Posters get to see the results of a post immediately as the post appears
simultaneously after posting. Blogs may also use a “TrackBack” system that
allows the visitor to see who has written the original post and any other entry
concerning it. The system works by sending a 'ping' between the blogs, and
therefore providing the alert. Blogs can also alert you when new or updated
content is added.
Track back typically appears below a blog entry and shows a summary of what
has been written on the target blog, together with a URL and the name of the
blog.
4. No lists to maintain, or spam filters
Email spam filters do not block Blogs because they are not an email
communication. E-mail delivery of newsletters and e-zines has become difficult
with the advent of spam filters. Blogs are not delivered, and therefore, no
methods of defeating filters are needed, and no "non-deliverables" occur.
5. Number of blogs you create is limitless
You can make as many Blogs as you like on any subject.
6. Search Engine Friendly
Search Engines are constantly "searching" for new content and blogs fit this
perfectly because of the constantly changing content that appears daily on blogs.
There are numerous websites that act as "blog search engines". Be sure to submit
your sites to these websites to increase your exposure. This will also help with
your page rank.
7. Economical
Since no lists are maintained, there are no list server costs. Blogging software
and blogging services are also very reasonably priced. Some blogging services
charge others to "read", while others charge writers to "write", but overall the
monthly charges are rather minimal either way.
8. Educational
There are such a variety of informative and educational blogs available now that
a search for any subject usually turns up hundreds of offerings. For a view into
popular blogs of many categories, just visit: www.blogit.com.
9. Syndication
Syndication is a great way to ensure that your writing and your views are
exposed to as much of the general public as possible. Syndication is many times

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 included in blogging services now, and this has drawn individuals to the art of
blogging continuously. For an example of a blog service that features
syndication, please visit: www.typepad.com.

Elements to be Successful
To be successful, Blogs need to contain the following elements:
 Compelling, well-written content. No one, either online or Offline, wants to
read material that is poorly written, difficult or boring to read.
 Updated material. Just as in newsletters or e-zines, if material is not updated
continually, then the audience eventually dies.
 Rousing topics. Topics of interest to a wide range of readers succeed more than
topics that appeal to very few, or are rather dull topics.
 A nice layout and visual appeal. A blog is akin to a Web site for written
materials, and just like in the design of a Web site, every care should be made to
have the blog be visually appealing and friendly to visitors.

Self assessment Questions

1. Describe concept of Management Information System

2. Elaborate process of Organizational Communication System
3. Explain Accounting and Budgeting System with the perspectives of education
4. Discuss different tools and techniques of Web based Management System

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REFERENCES
 https://en.wikipedia.org/wiki/Organizational_communication

 http://scsonline.georgetown.edu/programs/masters-technology-
management/resources/tools-for-managing-tech

 http://mashable.com/2011/09/21/tech-tools-business/#zAKuvNznTuqO

 http://www.sciencedirect.com/science/article/pii/S0166497205000477

 https://community.pepperdine.edu/it/tools/

 http://itcon.org/papers/itcon.paper.2002-8.pdf

 https://en.wikipedia.org/wiki/Educational_technology

 http://www.educationworld.com/a_tech/archives/tools.shtml

 http://people.math.sfu.ca/~vjungic/shadi.pdf

ADDITIONAL READINGS
 http://www.referenceforbusiness.com/management/Str-Ti/Technology-
Management.html

 http://www.useoftechnology.com/technology-management/
https://www.linkedin.com/pulse/20141208111749-6038885-impact-of-
technology-on-management-and-organizations

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