METHODS AND MANAGEMENT TECHNIQUES - Spiru … · · 2017-02-20PARTICIPATIVE MANAGEMENT ......
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1 SPIRU HARET UNIVERSITY FACULTY OF LAW AND ECONOMICS CONSTANTA METHODS AND MANAGEMENT TECHNIQUES Associate Professor IULIANA PÂRVU PhD
Transcript of METHODS AND MANAGEMENT TECHNIQUES - Spiru … · · 2017-02-20PARTICIPATIVE MANAGEMENT ......
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SPIRU HARET UNIVERSITY
FACULTY OF LAW AND ECONOMICS CONSTANTA
METHODS AND MANAGEMENT TECHNIQUES
Associate Professor IULIANA PÂRVU PhD
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CUPRINS
INTRODUCTION ................................................................................................................................... 3
I. GENERAL SYSTEMS AND METHODS OF MANAGEMENT ................................................. 5
I.1. MANAGEMENT BY OBJECTIVES ........................................................................................... 5
I.2. MANAGEMENT BY BUDGETING ........................................................................................... 8
I.3. PRODUCT MANAGEMENT .................................................................................................... 10
I.4. MANAGEMENT BY EXCEPTIONS ........................................................................................ 13
I.5. PARTICIPATIVE MANAGEMENT ......................................................................................... 15
I.6. PROJECT MANAGEMENT ...................................................................................................... 20
II. SPECIFIC SYSTEMS AND METHODS OF MANAGEMENT ................................................ 27
II.1. SWOT ANALYSIS ................................................................................................................... 27
II.2. BUSINESS MEETING ............................................................................................................. 32
II.3. DELEGATION .......................................................................................................................... 37
II.4. THE BALANCED SCOREBOARD ......................................................................................... 41
III. METHODS AND TECHNIQUES TO STIMULATE STAFF CREATIVITY ........................ 47
III.1. BRAINSTORMING ................................................................................................................. 47
III.2. THE PHILIPS 6/6 METHOD .................................................................................................. 50
III.3. SYNECTICS ............................................................................................................................ 51
III.4. THE DELPHI TECHNIQUE ................................................................................................... 51
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INTRODUCTION
One of the most important ways of making organizations more efficient is by applying
managerial methodology, embodied in the promotion of management tools, modern and
sophisticated methodologies, as well as operation of designing/redesigning and maintenance
of the management process and its components. Its presence in the performance management
process should be mandatory, given the favorable influence on the management and economic
performance and the degree of scholastic approach of the managers’ performance.
Managerial methodology is a way of amplifying the scientific dimension, the
dynamism of management and, thus, facilitating efficient and effective execution of
management processes execution through:
• promoting and using systems, methods and appropriate management techniques;
and
• promoting and using methodologies to designing/redesigning and maintenance the process
of management.
Managers who frequently use appropriate management instruments for appropriate
methodological conditions are managers who are knowledgeable in management, who know
to lead and manage efficiently and effectively a socio-economic entity or a socio-economic
subdivision. The methodologies of designing/redesigning and maintaining management
operation could be classified in two categories:
(a) general – the methodology of designing/redesigning the overall management and
the strategic management methodology, and
(b) partial – the methodology of organizational redesign, decision, information and
human resource management.
The system of the managerial methodologies has many constructive and functional
characteristics which confer specificity and efficacy. These include:
1. High level of formalism, which is that, usually, its main components are fully and
explicitly defined, being formalized as methodologies, instructions and rules of application.
2. Pluridisciplinarity of the methodological-managerial system - in addition to
systems, methods and management techniques it includes numerous methodologies derived
from a large number of sciences: economics, law, computer science, mathematics, statistics,
sociology, psychology etc.
3. Heterogeneity of the components of the methodological managerial system
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4. Integrator character - stems primarily from the use of most of its components in
other managerial subsystems: decision making, informational and organizational.
5. The rapid obsolescence of management methods and techniques, particularly as
regards the way they are used. This feature is sustained by the more pronounced dynamism of
the endogenous and exogenous developments.
6. Strong organizational specificity - the main causes of this feature lies in the strong
dependence of the selection and use of thr management tools of the resources of each
organization and primarily of the human resources and of the organizational culture.
The functions of the methodological-managerial system of the organization are:
a) Providing logistical and methodological support to exercise overall managerial
processes and for the major subsystems through which they are operationalized.
b) Developing the potential of the managerial and executive staff in the organization
and of the other stake-holders heavily involved in the organization's activities.
c) Ensuring a scientific approach for the managerial activities - the most visible
evidence of the transition to scientific management was a widespread use of the leadership
methods and techniques used appropriately.
d) Increasing functionality and competitiveness of the organization.
Increasing management professionalisation covered all its components, but a central
role hold the methods and techniques used by managers to lead organizations. A more
analytical approach not only allows highlighting the major trends in the overall management
of the organizations, but also in its main subsystems.
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I. GENERAL SYSTEMS AND METHODS OF MANAGEMENT
I.1. MANAGEMENT BY OBJECTIVES
Management by objectives is a complex and sophisticated management tool, designed
and used for over 50 years, especially by large companies. The emergence and development,
and later its practical application and confirmation of the MBO valences are linked to the
name of Peter Drucker and his The Practice of Management. Of course, up to outline
"finished form" of MBO applied in the world today, many experts have contributed.
Management by objectives (MBO) is a management model that aims to improve
performance of an organization by clearly defining objectives that are agreed to by both
management and employees. According to the theory, having a say in goal setting and action
plans should ensure better participation and commitment among employees, as well as
alignment of objectives across the organization.
MBO aims to serve as a basis for:
- Greater efficency through systematic procedures;
- Greater employee motivation and commitment through participation in the planning
process;
- Planning for resuls insead of planning just for work.
In management by objectives practice, specific objectives are determined jointly by
managers and their subordinates, progress toward agreed-upon objecives is periodically
reviewed, end results are evaluated, and rewards are allocated on the basis of the progress.
The essence of management by objectives is trinomial: targets – results –
rewards/penalties.
OBJECTIVES – RESULTS – REWARDS/PENALTIES.
MBO calls for five steps that organizations should use to put the management
technique into practice.
1. The first step is to either determine or revise organizational objectives for the
entire company. This broad overview should be derived from the firm's mission and vision.
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2. The second step is translating the organizational objectives to employees.
Drucker used the acronym SMART (Specific, Measurable, Acceptable, Realistic, Time-
bound) to express the concept.
The objectives must meet five criteria:
- Arranged in order of their importance;
- Expressed quantitatively wherever possible;
- Realistic;
- Consistent with the organization’s policies;
- Compatible with one another.
3. Step three is stimulating the participation of employees in setting objectives.
After the organization's objected are shared with employees, from the top to the bottom,
employees should be encouraged to help set their own objectives to achieve these goals. This
gives employees greater motivation since they have greater empowerment.
4. Step four is to monitor the progress. In step 2, a key component of the
objectives was that they are measurable in order for employees and managers to determine
how well these were met.
5. Lastly – step five -, progress is evaluated and rewarded. This step includes
honest feedback on what went well and what did not.
In practice, MBO approach, varies widely, especially in regard to how formalized and
structured it is in a given organization and to what degree subordinates are allowed to set their
own goals. In some organizations, MBO is a very formal management system with precise
review scheduling, set evaluation techniques, and specific formats in which objectives and
measures must be presented for review and discussion. In other organizations, it may be so
informal as to be described simply as “we get together and decide what we’ve done and what
we’re going to do.” However, in most organizations, MBO takes the form of formal objective
setting and appraisal meetings held on a regular basis—often quarterly, semi-annually, or
annually.
Even more situational than the degree of formality and structure is the degree to which
a subordinate is allowed to set his or her own goals. In this regard, the kind of work that an
organization does plays a large part in determining how much and on what level a subordinate
will be allowed to participate in formulating his or her own goals. In some organizations a
subordinate is almost told what he or she needs to do and is simply asked if he or she will
commit to achieve that goal, while in others the subordinate is given great latitude and room
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for innovation. For example, there is a contrast between a production situation in which a
supervisor informs a subordinate that so many widgets must be made over the next six months
and simply asks which part of that production burden the subordinate is willing to shoulder
and a university situation in which a department head informs a subordinate of the need to
develop more community-oriented programs and asks how the subordinate thinks he or she
can contribute to this goal. In the latter circumstance, the subordinate has much more room for
innovation and personal contribution as well as a greater part in designing the specifics of the
program than does the production worker who is simply asked which part of a very specific
activity he or she cares to commit to.
Advantages
No matter what form the MBO approach takes in a given organization, it is essentially a
process that helps to (a) direct managers’ attention toward results, (b) force members of the
organization to commit themselves to specific achievement, and (c) facilitate their thinking in
terms of their organization’s future needs and the setting of objectives to meet those needs. In
addition, the MBO approach can supply the manager with greater measures of three of the
tools he or she needs to make the best use of the organization’s greatest resource: people. The
manager can:
1. Gain greater commitment and desire to contribute from subordinates by (a) allowing
them to feel that the objectives they are working toward were not just handed to them but are
really theirs because they played a part in formulating them, (b) giving subordinates a better
sense of where they fit in the organization by making clear how the subordinates’ objectives
fit into the overall picture, and (c) injecting a vitality into organizational life that comes with
the energy produced as a worker strives to achieve a goal to which he or she has taken the
psychological and (sometimes economic) risk to commit.
2. Gain better control and coordination toward goal accomplishment by (a) having a
clearer picture of who is doing what and how the parts all fit together, (b) having subordinates
who are more likely to control and coordinate their own activities because they know what
will help and what will hinder their goal achievement, and (c) being able to see which
subordinates consistently produce and which do not.
3. Gain an increased ability to help subordinates develop by (a) being better able to see
their strengths and weakness in operation on a specific objective and (b) using a management
approach that teaches the subordinates (and the manager, for that matter) to think in terms of
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results in the future—an approach that teaches them to try to anticipate change, to define clear
and specific objectives, and to delineate concrete measurements that will tell them when they
have achieved their goals.
MBO easily can be misused and often is. What is supposed to be a system that allows
for dialogue and growth between boss and subordinate with a view to achieving results often
degenerates into a system in which the boss puts constant pressure on the subordinate to
produce results and forgets about using MBO for commitment, desire to contribute, and
management development. Sometimes even well intentioned managers misuse MBO because
they do not have the interpersonal skills or knowledge of human needs to keep their appraisal
sessions from becoming critical, chewing-out periods. Finally, many managers have a
tendency to see MBO as a total system that, once installed, can handle all management
problems. This has led to forcing issues on the MBO system that it is not equipped to handle
and that frustrate whatever good effects it might have on the issues with which it is designed
to deal.
I.2. MANAGEMENT BY BUDGETING
Effective budgeting systems can help managers perform their major management
functions. Improperly conceived budgeting procedures, however, can be very frustrating. A
budget is defined as management's quantitative expression of plans for a forthcoming period.
Budgets are prepared at various levels of an organization. The master budget is defined as the
overall financial plan for the period, which reflects the organization's goals and objectives.
The master budget includes operating and financial budgets. Operating budgets show the
company's planned sales and operating expenses. Financial budgets reflect financing plans
such as borrowing, leasing, and cash management.
Management by budgeting is a management system that provides forecasting, controlling
and evaluating the company's activities and its main components, using budgets.
To use management by budgeting it needs to meet the following requirements:
- Objectives for each department of the firm must be predominantly financial;
- Designing organizational structures that allow clear delineation of duties,
responsibilities and organizational skills for every level of the company and alos a rigorous
planning of objectives, modalities of implementation, resources and deadlines;
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- Dividing the firm into management centers defined procedural or structural and
budgeting for each of them be set targets, expenses, revenues and results;
- Creating motivational and organizational conditions for active and effective
participation of managers and executants to budgeting;
- Designing of an informational system focused on recording, transmission and
operational analysis of deviations from the projections;
- Designing effective mechanisms for settlement between management centers to
accurately highlight the contribution of each to the objectives;
- Adaptation of the accounting system to the requirements of determination the
deviations of the actual costs from the normal costs.
Stages to implement management by budgeting
I. The delimitation and dimensioning of the management centers – according with of
procedural or structural criteria;
II. Development and substantiation budgets – for each center there are valued objectives,
costs, revenues and results.
III. Launching budgets for each center;
IV. Budget implementation, recording and streaming deviations;
V. Postoperative analysis of deviations and calculation of the actual cost of production
and products;
VI. Assessment of the centers - in order to detect causes of the main strengths and
weaknesses and to adopt the appropriate motivational behavior
Advantages of uses management by budgeting:
- Ensuring the economic discipline of the procedural and structural components of the
company and clear highlighting of their contribution to the objectives;
- Ensuring and maintaining an adequate and motivational organizational climate for
active and effective participation of employees in achieving the objectives;
- Management by budgeting appreciably enhances managerial and motivational role of
budgets.
The main limits of uses management by budgeting are determined by the
foundation, launching and execution of budgets as well as by the difficulties regarding
information system.
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I.3. PRODUCT MANAGEMENT
Product management is a managerial system characterized by assigning main tasks, and
management responsibilities on the manufacture and marketing of a product / service or
groups of similar products / services, with a significant share in the production of the
company, to a management team that deals exclusively with the decisions and actions to
maintain and increase its competitiveness. In general, the term refers to both product and
service.
The Product Manager is an important organizational role typically in a technology
company. It is similar in concept to a brand manager at a consumer packaged goods company,
industry manager, customer segment manager. The product manager is often considered the
CEO of the product and is responsible for the strategy, roadmap, and feature definition for
that product or product line. The position may also include marketing, forecasting, and profit
and loss (P&L) responsibilities.
The product manager often analyzes market and competitive conditions and lays out a
product vision that is differentiated and delivers unique value based on customer demands.
The role of the product manager spans many activities from strategic to tactical and at its best
provides cross-functional leadership—bridging gaps within the company between different
functions, most notably between engineering-oriented teams, sales and marketing, and
support. The product manager is the person responsible for defining the ‘why’, ‘what,’ and
‘when’ of the product that the engineering team will build.
Implementation of product management involves next stages:
I. Selection by the company's management of the product or group of products that
are subject to product management
Criteria for product selection are: the volume and weight of the product in total
production, the complexity and obosolescence, novelty of the product and sales prospects in
domestic and foreign markets, the company's overall development strategy. The object of the
Product Management is only products manufactured in large quantities with significant shares
in turnover, high competitiveness, with considerable sales and profit prospects domestically
and abroad.
II. Nomination of the person who will ensure the product management
It recruits usually from specialists who have rich experience in the field, middle-aged and
whose qualities, knowledge and skills guarantee for the successful completion of the tasks,
and responsibilities involved. If the product competitiveness and sales prospects depend
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largely on innovations technical, it is necessary that as product manager to be designated a
technical professionist. Where major issues of which depends the competitiveness of the
product are commercial and / or organizational nature, it is recommended entrusting this post
for an economist.
III. Preparation by each product manager of strategies on manufacturing and
marketing the product or group of products
Managerial strategies must consider the following components of a product:
- Tangibles: form, gauge, structure, volume, quality, resistance to external factors etc.;
-Intangibles: name, brand, instructions, licenses, patents price;
- Communications on product - all information about product characteristics: promotion,
how to use;
- Consumer perception - results from the three previous components<
Product Manager is responsible for developing product strategies that are largely
influenced by the stage in the life cycle (launch, growth, maturity, decline) in which is the
product.
IV. Structural and organizational changes as well as methodological and
decision changes - so as to ensure the premises to implement product management. It is
recommended changes to be reduced to a minimum.
V. Periodically assessment of the manufacture and marketing of the
product/products covered by this management system. It is recommended that evaluation
should be made in terms of life curve so that through forward-looking decisions and actions to
ensure that the product is in a economically profitable phase. This stage should result in
appropriate rewards and sanctions, to motivate staff in order to achieve the best version of the
product.
A good product manager is that who understand how a product should be improved to
meet the customer requirements. Product manager is the person who identifies existing market
opportunities in relation to the product and transmits to the company which are the market
expectations and requirements.
There are three types of product manager, namely:
1. Product Line Manager (PLM) – it is responsible for drafting and developing
the strategies related to the product lines. It is present throughout the product lifecycle.
Specifically, it performs the following:
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reveals existing problems in the current and potential market;
discover new business opportunities based on the company's strengths;
defines and quantifies market segments;
establishes optimal distribution strategy;
evaluates strategic, technical and marketing issues, of all products in the portfolio;
analyzes the profitability and success of the product;
liaises with corporate partners;
decides on positioning of the product on the market;
approves marketing plans.
2. Technical Product Manager (TPM) – it has skills and technical responsibilities.
These consist of:
technical evaluation of the product;
planning and tracking production;
monitoring and adoption of innovations;
description of the product characteristics;
prevents obsolescence of products in the portfolio.
3. Product Marketing Manager (PMM) – It has skills and responsibilities in selling
products. These consist of:
defining the characteristics of the product consumers and development of the
marketing messages;
creating the marketing plan which contains strategies to attract new customers and to
maintaining the existing ones;
measure the effectiveness of the marketing programs;
development of the launching products programs;
organization of PR, advertising, sales promotion etc.
This management system presents multiple advantages:
- Increase the rationality of the organization and manufacture of main products due to
the systemic approach focused on efficiency;
- Increase the forecast size of the management of production due to its grounding on
solid strategies and policies to promote products;
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- Unified approach of the economic and technical processes involved in the manufacture
of certain products leading to their marketing with superior results;
- Increase sales and profits obtained as a result of quantitative and qualitative adaptation
of the product offer to the requirements of different market segments.
Among the limitations of this system may be mentioned: the difficulty of ensuring
sufficient autonomy and desynchronization at the junction of product management with the
organization's management system. Potential limitations fade when the manager has the
necessary potential and prestige and company staff has been sensitized to the benefits of using
this system and ready to work actively and effectively in this management system
I.4. MANAGEMENT BY EXCEPTIONS
Management by exceptions is a managerial practice where only the information that
indicates a significant deviation of actual results from the budgeted or planned results is
brought to the management’s notice. Its objective ist o facilitate management’s focus on really
important tactica land strategical tasks. When managers are notified, they can hone in on that
specific issue and let staff handle everything else. If nothing is brought up then management
can asume that everything is going according to plan. In Management by Exceptions, the
decision that cannot be made at one level of management is passed on the next higher level.
Management by exception is a way for managers to effective save time and more
efficiently run their department or business. Management by exception usually is most
effective when managers have control over the problem areas. That way they can change
processes to improve the company.
In order to implement Management by Exceptions, it needs first to set up a basic
framework that will identify items that vary from plan to plan. So the critical aspects of
Management by Exceptions are:
1. Selection of the intermediate objectives of the organization (unit, employee), which
fundamentally determine the achievement of the final goal.
2. An appropiate budget to measure performance against – this budget must be well
designed, so that the business will meet its strategic objectives if the plan is conformed with;
3. Determination by management of the degree of acceptable deviation (failure to
achieve the target) for each of the selected intermediate objectives and define a set of possible
actions which should by taken in case of exceeding the tolerance limit.
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4. A timely and accurate reporting system – information needs to be accurately captured
and compared to the overall budget on regular basis. Exceptions need to be noted so that
information can be sent to the correct team members. Managers monitors the process and
appropriately intervene in the event of variations from objectives (exceptions
In order to implement Management by Exception, the manager needstwo important
working tools: alert scheme or requirement scheme for user intervention and the guide of
decisions.
Alert scheme highlights intervals for which the deviations from the budgeted objectives,
norms, standards etc. are considered exceptions, their solving requiring the managers’
intervention. Under this scheme there are four "zones":
I. Area of non-intervention - an area in which deviations are allowed, considered normal,
generated by the characteristics of the inputs or of the processes;
II. The attention area - deviations listed here requires the adoption of decisions by the
lower level management;
III. Alarm area - deviations recorded here are consistent and need appropriate decisions
of the mid-level managers;
IV. Serious exceptions area - "exceptions" have large dimensions, requiring the
involvement of the top level of management.
Alert scheme must be filled daily, resulting in some variation of the objectives in the
analyzed time interval.
The guide of decisions highlights the main categories of decisions that managers
involved in resolving deviations (exceptions) must adopte according to their severity.
Advantages of management by exceptions:
- Saves time, especially on senior management levels, mainly because it is informed
about the problems on lower level of organizations only in really exceptional situations,
clearly defined and exceeding the competence and capabilities of the lower level
management.
- The ability to focus on the strategic development problems and resolve only those
exceptions that can not be solved at lower levels of management.
- The ability to separate the important issues from matters of secondary importance.
- Encourages workers to exercise judgment when doing their work. As long as they are
within the guidelines that have been established, they can continue working as they see fit.
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- Management by exception is both a motivational and control techniques.
Disadvantages of management by exceptions:
- Difficulties in unambiguous and stable division of tasks between managers and
subordinates.
- Impatience of managers who try to intervene in the routine activities of their
subordinates.
- Greater tendency of managers to identify only the negative exceptions, leading to the
blindness for emerging positive opportunities and chances to grow company.
Management by exception brings the best results in the sectors of trade, finance,
manufacturing, in which the most common are repeatable, standard situations and highly
structured activities.
I.5. PARTICIPATIVE MANAGEMENT
Participative management is a type of management in which employees at all levels are
encouraged to contribute ideas towards identifying and setting organizational-goals, problem
solving and other decisions that may directly afect them. It is also called consultative
management.
Participative Management refers to as an open form of management where
employees are actively involved in organization’s decision making process. The concept is
applied by the managers who understand the importance of human intellect and seek a strong
relationship with their employees. They understand that the employees are the facilitators who
deal directly with the customers and satisfy their needs. To beat the competition in market and
to stay ahead of the competition, this form of management has been adopted by many
organizations.
The scope of participative style of management depends on the organization, its nature,
functions and processes. Though associating employees at every stage of decision-making is
not possible still regular exchange of information, ideas, consultations, thoughts, decisions
and negotiations between employer and the employees definitely is a boon to the
organization. Few of the world’s biggest organizations like Toyota, HSBC, British Airways,
Satyam, British Gas and Nokia Cellular have achieved considerable profits and value creation
by implementing the most amazing ideas of their employees. Their success witnesses the
importance of workers’ participation in the process of decision making.
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Participative management acts as a force to motivate employees to meet specific
organizational goals. The main idea behind this style of management is not only using
physical capital but also making optimum utilization of intellectual and emotional human
capital. This is the process of involving people in decision making process to ensure that
everyone’s psychological needs are met. It, in turn, increases the job satisfaction among
employees and improves the quality of their work life. Motivated employees are the biggest
assets of an organization and participative management is an effective strategy to retain the
best talents of the industry. The main objectives of the participative management are:
- To Make Best Use of Human Capital: Participative management does not restrict
organizations to exploit only physical capital of employees. Rather it makes the best use of
human intellectual and emotional capital. It gives employees an opportunity to contribute their
ideas and suggestions to improve business processes and create a better working environment.
- To Meet the Psychological Needs of Employees: When employees have a say in
decision making process, it gives them a psychological satisfaction. It is a simple force that
drives them to improve their performance, create a proper channel of communication and find
practical solutions to design better organizational processes.
- To Retain the Best Talent: Participatory management is one of the most effective
strategies to retain the best talent in the industry. It gives employees a sense of pride to have a
say in organizational decision making process. Once they are valued by their seniors, they
stick to the organization and become management’s partners in meeting specific goals and
achieving success.
- To Increase Industrial Productivity: In today’s competitive world, motivation, job
security and high pay packages are not enough to increase industrial productivity. Leadership,
flexibility, delegation of authority, industrial democracy and employee say in decision making
are important to increase annual turnover of any organization.
- To Establish Harmonious Industrial Relationship: Participatory from of
management is an unbeatable tact to establish and maintain cordial relationships with
employees and workers union. The success of an organization depends on its human
resources. Employee empowerment acts as a strong force to bind the employees and motivate
to give them their best to the organization.
- To Maintain a Proper Flow of Communication: Two-way communication plays an
important role in the success of any organization. Employee participation in decision making
ensures proper flow of communication in the organization. Everyone contributes their best
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and tries to strengthen the organization by contributing their best to improve business
processes.
Participative management is beneficial to organization as well as employees. It gives
employees a higher degree of enjoyment at work place that drives them to work harder. It is
equally rewarding for the management as it ensures tremendous improvement in work culture
within the organization as well as increase in its productivity.
There are certain prerequisites to be met before participative management can be put to
work:
Participative management first of all requires a willingness from the managers to give
up some charge to the workers and they must in turn be in a position such that the
successful participation of all is ensured. It cannot be successful in any organization unless is
carefully planned, timed and well thought upon.
Since participative management is a style of decision making, therefore its
implementation essentially requires a change in the employee’s idea of the latter. This
change also means that there is a cultural change required in the organization vis-à-vis a
change from a certain other style of decision making to participative style. It also brings with
it a certain amount of resistance from the employees specially so from the older or the long
term employees.
The resistance is a reflection of the disbelief of the employees that their participation will
not be respected and implemented. The onus here lies on the managers in putting in sincere
efforts to convince them of the usefulness of their role in the decision making. The employees
need proof that their ideas will be considered, discussed seriously and implemented finally if
found beneficial to the organization. This is precisely why participative management needs to
be implemented in phases; this way the employees are able to see proof that their ideas and
suggestions hold weight. It also encourages them to come forth in future and also keeps them
continuously engaged in thinking about the welfare of their organization.
One more prerequisite for successful participative management is attitude of the top and
middle management or those who seek employee interventions in decision making. They
must approach employee involvement with a receptive and open mindset. This encourages
participation. They must be open to new ideas and innovations. This may sound problematic
in large organizations but how the suggestion is being received decides to a large extent
whether or not the style of decision making can be successful.
Since decision making is based on inputs of one and all, therefore its success also depends
on the degree of participation of employees. In certain organizations despite obvious proofs,
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the employees decide not to participate or make contribution. In yet another organizations the
employees are not skilled enough to make meaningful contributions to the final decision
making process. This can be overcome by imparting the right kind of training and by the
manager himself by ascertaining the individual strengths of his team members and asking for
relevant contributions based upon the same.
In large organizations in order to ascertain the relevance of suggestions, managers also
need to set certain benchmarks for making inputs to various groups so that discussions are
held at levels that are consequential and the solutions are feasible economically.
We may enumerate the benefits of participative management as follows:
- Innovation and increased efficiency: The problem solving process and openness to
new ideas can result in innovation. Apart from this as mentioned above there is also
knowledge sharing amongst the workers and the managers. This means that those who are
part of a certain process at the ground level give inputs for improved efficiency of the same.
This has dual implications, helping improve the quality of product and curtailing the cost of
manufacture.
- Timeliness: There is improved communication between the managers and the workers
and between workers across different units. A loophole or flaw is reported in time.
- Employee satisfaction and Motivation: Empowering the employees increases their
ownership or stake in their work. This increases efficiency and productivity. Consequently
there is decreased absenteeism and less employee turnover. This also works in attracting more
people towards the organization and the job.
- Product quality: A say in decision making means that workers can immediately pin
point and suggest remedial measures for improving the efficiency of the process they are apart
of. This means that quality control in product or service is exercised for the lowest level.
- Less supervision requirements: There is greater focus on management of self with
due emphasis of widening one’s skill set. One of the major benefits of this is that there is a
lesser need of supervision and support staff.
- Better grievance redressal: Increased communication paves way for reduced number
of grievances and quick and effective resolution of dispute (often on the spot). Union -
management relationship is also benefited and strengthened.
- Hiring Flexibility: Hiring flexibility is increased as a result of cross training.
Increased coordination among team members also offers a comfort zone for the newly hired.
Participative management thus results in overall increase of the ownership of work of
an employee. This empowerment can lead to increased efficiency, better productivity,
19
improved morale and job satisfaction. But the fact the participative management requires an
overall change in the organizational culture, the implementation of the same, specially when
there is a bureaucratic style of decision making in place, can be a major challenge!
Participative management is undoubtedly one of the better approaches to management.
But like any other style of decision making there are certain limitations. These limitations
arise either externally or internally vis-à-vis the implementation.
The following are certain limitations of participative management:
- Complexity of Technology and Organizations: Organizations and Technology are
so complicated these days that there are specialized workers required for each job. Workers
cannot extend beyond a certain limit in participation. There are instances when a certain
department or group participates aggressively and a corresponding group acts equally
opposite. Then there are limitations at the level at which you work. Workers, for example, can
participate in matters pertaining to operations, policy matters remain outside their reach.
- Employee’s right of not participating: An employee has the right to not participate.
Certain people do not believe in the usefulness of participation and therefore opt out of the
same. Some labor unions for example question the usefulness of participation reasoning that
participation offers the management deep insights into the workers and they may then use it
against the latter.
- Manipulation: Managers may sometimes use participation to manipulate employees.
This may be both conscious and subconscious. Similarly, representatives of the labor unions
may also exploit the workers in the name of participation.
- Workers Psychology: An existent psyche amongst the employees, that they are the
workers and their primary purpose is to serve their masters (management) prevents them from
participating. It is therefore of little interest to such people.
- General Bias: Resistance to change inside the organization as mentioned earlier is the
biggest hurdle to participative management. Managers decline to share power or to delegate
apprehending that they may lose authority by doing so. Workers similarly show disinterest in
the participation presuming everything to be well in order. Further there is bias from the top
management who step back on their promises when they fail to see participation deliver
results in quick time.
- Trade Unions: Trade unions are integral to the success of participative management;
they may be equally detrimental to the success of the same. Most of the trade unions engage
in politics and are little bothered about participation. Add to it, the approach of representatives
or individuals is also not very favorable. Workers join trade unions for personal rather than
20
organizational reasons. Membership is regarded as a kind of protection against mishaps like
accidents, dismissal and other problems whereby union interventions can rescue the worker.
Naturally, the motive of participation is diluted.
Participative management cannot work in isolation. It involves each and every member of
the organization. For deriving benefits and success out of the same, no single member or
employee group can be left out. There are limitations but they arise because there either one
or the other group is left out or there is serious communication gap that needs to be taken care
of.
I.6. PROJECT MANAGEMENT
The literature offers many definitions of project management, largely similar, of which we
present the following:
a toolkit that has the advantage to have all available information for planning
and management of the development work so as to achieve the objectives, timetable, costs
and scope of the project;
a dynamic process that integrates planning and management tasks as well as
resources available to achieve the objectives with clear and transparent responsibilities;
a management system with a limited life, which facilitates solving complex
problems with innovative character by specialists with heterogeneous training, temporarily
consisted in an organizational network parallel to the formal organizational structure.
planning, coordination, management and control of the project during its life
cycle so as to achieve the project objectives within the time, cost and quality defined.
Factors leading to the increased use of project management:
o Compression of the product life cycle;
o Global competition
o Knowledge explosion
o Corporate downsizing
o Increased customer focus
o Rapid development of Third World and closed economies
o Small projects that represent big problems
A project management system provides a framework for launching and impementing
project activities within a parent organization. A good system appropriately balances the
needs of both the parent organization and the project by defining the interface between the
21
project and parent organization in terms of authority, allocation of resources, and eventual
integration of project outcomes into mainstream operations. Many business organizations
have struggled with creating a system for organizing projects while managing ongoing
operations. One of the major reasons for this struggle ist hat projects contradict fundamental
desing principles associated with traditional organizations. First, projects are unique, one-time
efforts with a distinct beginning and end. Most organizations are designed to efficiently
manage ongoing activities. Efficiency is achieved primarily by breaking down complex tasks
into simplified, repetitive activities, as symbolized by assembly – line production methods.
Projects by their very nature are not routine and are therefore an anomaly in these work
environments.
A second reason businesses fiind it difficult to effectively organize projects is that
most projects are multidisciplinary in nature because they require the coordinated efforts of a
variety of specialists to be completed. For example, a new-product development project will
likely involve the combined efforts of people from desing, marketing, manufacturing, and
finance. However, most organizations are departmentalized according to functional expetise
with specialists from desing, marketing, manufacturing and finance residing in different units.
Many researches have noted that these groupings naturally develop unique customs, norms,
values, and working styles that inhibit ”integration” across functional boundaries. Not only
are there ”departamental silos”, but managing projects poses the additional dilemma of who is
in charge of the project. In most organizations authority is distributed hierarchically across
functional lines. Because projects span across functional areas, identifying and legitimizing
project management authority is often problematic.
The theory proposes the following organizational approaches for the project management:
A. Organizing projects within the functional organization
It is the most simplified organizational formula for the project management. It means
to simply manage the project within the existing functional hierarchy of the organization.
Coordination is maintained through normal management channels. The functional
organization is commonly used when, given the nature of the project, one functional area
plays a dominant role in completing the project or has a dominant interest in the success of the
project. Under these circumstances, a high-ranking manager in that area is given the
responsability of coordinating the project.
There are advantages and disavantages for using the existing functional organization
to administer any complete projects. The major advantages are the following:
22
Advantages
1. No Change. Projects are completed whithin the basic functional structure of the parent
organization. There is no radical alteration in the desing and operation of the parent
organization.
2. Flexibility. There is maximum flexibility in the use of staff. Appropriate specialists in
different functional units can temporarily be assigned to work on the project and then return to
their normal work.
3. In-Depth Expertise. If the scope of the project is narrow and the proper functional unit
is assigned primary responsability, then in-depth expertise can be brought to bear on the most
crucial aspects of the project.
4. Easy Post-Project Transition. Normal career paths within a functional division are
maintained.
Disadvantages
1. Lack of Focus. Each functional unit has its own core routine work to do; sometimes
project responsibilities get pushed aside to meet primary obligations.
2. Poor Integration. There may be poor integration across functional units. Functional
specialists tend to be concerned only with their segment of the project and not with what is
best for the total project.
3. Slow. It generally takes longer to complete projects throught this functional
arrangement. This is in part attributable to slow response time-project information and
decisions have to be circulated throught normal management channels.
4. Lack of Ownership. The motivation of people assigned to the project can be weak.
The project may be seen as an additional burden that is not directly linked to their
professional development or advancement.
B. Organizing projects as dedicated teams
At the other end of the structural spectrum is the creation of independent project
teams. These teams operate as separate units from the rest of the parent organization. Usually
a full time project manager is designated to pull together a core group of specialists who work
full time on the project. The project manager recruits necessary pesonnel from both within
and outside parent company, The subsequent team is phisically separated from the parent
organization and given marching orders to complete the project
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As in the case of functional organization, the dedicated project team approach has
strenghts and weaknesses. The following are recognized as strenghts:
1. Simple. Other than taking away resources inthe form of secialists assigned to the
project, the functional organization remains intact with the project team operating
independently.
2. Fast. Projects tend to get done more quickly when participants devote their full
attention to the project and are not distracted by other obligations and duties. Furthermore ,
reponse time tends to be quicker under this arrangement because most decisions are made
within the team and are not deferred up the hierarchy.
3. Cohesive. A high level of motivation and cohesiveness often emerges within the
project team. Participants share a common goal and personal responsability toward the project
and the team.
4. Cross-Functional Integration. Specialists from different areas work closely
together and, with proper guidance, become committed to optimizing the project not their
respective areas of expertise.
Its weaknesses become more evident when the needs of parent organization are taken
into account:
1. Expensive. Not only have you created a new management position (project
manager), but resources are also assigned on a full-time basis. This can result in duplication
of efforts across projects and a loss of economies of scale.
2. Internal Strife. This divisiveness can undermine not only the integration of the
eventual outcomes of the project into mainstream operations but also the assimilation of
project team members back into their functional units once the project is completed.
3. Limited Technological Expertise. Creating self-contained teams inhibits
maximum technological expertise being brought to bear on problems. Technical expertise is
limited somewhat to the talents and experience of the specialists assigned to the project.
4. Difficult Post-Project Transition. Assigning full-time personnel to a project
creates the dilemma of what to do with personnel after the project is completed.
C. Organizing projects within a Matrix Arrangement
Matrix management is a hybrid organizational form in which a horizontal project
management structure is ”overlaid ” on the normal functional hierarchy. In a matrix system,
there are usually two chains of command, one along functional lines and the oter along project
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lines. Instead of delegating segments of a project to different units or creating an autonomous
team, project participants report simultaneously to both functional and project managers.
The advantages and disavantages of matrix organization, are noted below
Adavantages:
1. Efficient – Resources can be shared across multiple projects as well as within
functional divisions.
2. Strong Project Focus – A stronger project focus is provided by having a formally
designated project manager who is responsible for coordinating and integrating contributions
of different units.
3. Easier Post-Project Transition – Because the project organization is overlaid on the
functional divisions, specialists maintain ties with their functional group, so they have a home
port to return to once the project is completed.
4. Flexible – Matrix arrangements provide for flexible utilization of resoures and
expertise within the firm.
Disavantanges:
1. Dysfunctional Conflict – The matrix approach is predicated on tension between
functional managers and project managers who bring critical expertise and perspectives on the
project.
2. Infighting – Any situation in which equipment, resources and people are being shared
across projects and functional activities lends itself to conflict and competition for scarce
resources.
3. Stressful - The matrix approach violates the management principle of unity of
command. Project participants have at least two bosses – theor functional head an one or more
project managers.
4. Slow –Decision making can get bogged down as agreements hve to be forged across
multiple functional groups.
Project managers are expected to marshal resources to complete a fixed=life project on
time, on budget and withih specifications. Project managers are the direct link to the customer
and must manage the interfcae between customer expectations and what is feasible and
reasonable. They provide direction, coordination and integration to the projec team, which is
often made up of part-time participants loyal to their functional departments.Project managers
25
are responsible for performance (frequently with too little authority. They must ensure that
appropiate trade-offs are made between the time, cost and performance requirements of the
project. At the same time, unlike their functional counterparts , project managers generally
possess only rudimentary technical knowledge to make such decisions.. Instead they must
orchestrate the completion of the project by inducing the right people, at the right time, to
adress the right issues and make the right decisions.
Stages of the project management are:
1. Defining the project - involves the identification of the next elements: project scope,
project objectives, deliverables, milestones, technical requirements, limits and exceptions.
2. Designation of project manager - project manager must meet requirements of
professional and managerial competence in the sense of possessing solid expertise and
knowledge, managerial skills.
3. Establishing the project team - it will include specialists with diverse training,
recruited from outside and inside the company. The project manager must be involved
directly in its constitution;
4. Deciding on organizational approach – accordingly with the above criteria
5. Designing the budget – focusing the objectives, costs, incomes, results;
6. Designing the control techniques
7. Project implementation
8. Project completion and dissolution of the project team - the results are compared
with the project objectives and the project manager reward or punish those involved in the
project.
The major advantages of project management are as follows:
- Project management creates a system whereby workflow is measured and accounted
for, ensuring that resources are used judiciously in fulfilling the goals of the project. This type
of planning establishes expectations for staffers, provides clear directives and builds in
procedures for quickly addressing unexpected outcomes.
- Managing projects from start to finish can help control project costs and help a project
manager retain control over his budget, identifying problems or issues before they turn into
roadblocks. This can also help a business ensure on-time delivery, retain satisfied customers
and project an image of competence and professionalism.
- Effective project managers make determinations about appropriate staffing and team
formation in the early stages of project planning. This can help ensure the right people with
26
the most appropriate skill sets are assigned to tasks within the project, allowing the company
to use its human resources judiciously and effectively.
The main disadvantages of project management are:
- Project management, particularly micromanagement, has the potential to stymie
innovative thinking when all staffers are focused on a preset outcome within strict parameters.
Staffers and project managers may be heavily invested on maintaining budgets and timelines
and overlook issues such as quality control, problem-solving or different directions that could
be more effective once the project is underway.
- When miscommunication happens in project management, it can take place on a grand
scale. For example, if one phase of workflow development is misconstrued and sends a
portion of the team down the wrong path, not only does the team have to reverse direction, but
they halt progress in subsequent phases of the project as well. Clear communication
guidelines should be issued to ensure timely and accurate transmission of new, information
and project updates to protect against missteps.
- Strict project management can discourage outside the box thinking and hamper
creative efforts. Project teams that experience collective creative block can slow progress,
employ cost overages and generally take a project off-track. Intervention and creativity-
generating approaches, like brainstorming sessions, may be necessary to refocus the group.
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II. SPECIFIC SYSTEMS AND METHODS OF MANAGEMENT
II.1. SWOT ANALYSIS
SWOT analysis (alternatively SWOT matrix) is an acronym for strengths, weaknesses,
opportunities, and threats and is a structured planning method that evaluates those four
elements of a project or business venture. A SWOT analysis can be carried out for a company,
product, place or industry. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are favorable and unfavorable to
achieve that objective.
SWOT analyses are often used during strategic planning. They can serve as a precursor to
any sort of company action, such as exploring new initiatives, making decisions about new
policies, identifying possible areas for change, or refining and redirecting efforts midplan.
Strengths
Strengths are those features of the business which allow it to operate more effectively than
the competitors. For example, a strength could be your specialist technical knowledge. The
manager need to consider the strengths from the company point of view and from that of th
customers' and clients'. The manager must be realistic and honest.
In order to define the strenghts, the manager should answer the following questions:
What is it that the company does well?
What advantages does the company have over the competitors?
What makes the company different from the competitors?
Criteria examples
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
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Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
Weaknesses
Weaknesses are areas capable of improvement. Are you lacking skills or new products?
Do you have a higher cost base or lower productivity than your competitors? The manager
must face any unpleasant truths about your business and be realistic.
In order to define the strenghts, the manager should answer the following questions:
Can you do anything better?
Do you do anything badly?
What should be avoided?
What causes problems or complaints?
Criteria examples
Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
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Accreditations etc?
Processes and systems etc?
Management cover, succession?
Opportunities
Can you identify any new opportunities for the business? Are there any interesting
trends which you can take advantage of?
Examples of opportunities include:
Changes in technology and markets, eg the Internet
Changes in government policy or regulations / legislation
Local and global events
Potential new uses of products and / or services
Use of marketing or promotional techniques to boost the business
Social factors, eg population fluctuation, lifestyle changes etc.
Criteria examples
Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
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Threats
Threats can be external or internal, and are anything which can adversely affect the
business. External threats could be inflation, new legislation, or a new competitor in your
market. Internal threats could include a skill or staff shortage within your organisation.
Criteria examples
Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
Combining the components of the SWOT Analysis (strenghts, weaknesses, opportunities,
threats) resulting four strategic variants.
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Internal Factors E
xte
rnal
Fact
ors
Strenghts
Weaknesses
Opportunities
Strengths/Opportunities
obvious natural priorities
Likely to produce greatest ROI
(Return On Investment)
Likely to be quickest and easiest
to implement.
Probably justifying immediate
action-planning or feasibility
study.
Executive question: "If we are
not already looking at these
areas and prioritising them, then
why not?"
Weaknesses/Opportunities
potentially attractive options
Likely to produce good returns if
capability and implementation
are viable.
Potentially more exciting and
stimulating and rewarding than
S/O due to change, challenge,
surprise tactics, and benefits
from addressing and achieving
improvements.
Executive questions: "What's
actually stopping us doing these
things, provided they truly fit
strategically and are realistic and
substantial?"
Threats
Strengths/Threats
easy to defend and counter
Only basic awareness, planning,
and implementation required to
meet these challenges.
Investment in these issues is
generally safe and necessary.
Executive question: "Are we
properly informed and
organized to deal with these
issues, and are we certain there
are no hidden surprises?" - and -
"Since we are strong here, can
any of these threats be turned
into opportunities?"
Weaknesses/Threats
potentially high risk Assessment of risk crucial.
Where risk is low then we must
ignore these issues and not be
distracted by them.
Where risk is high we must
assess capability gaps and plan
to defend/avert in very specific
controlled ways.
Executive question: "Have we
accurately assessed the risks of
these issues, and where the risks
are high do we have specific
controlled reliable plans to
avoid/avert/defend?"
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SWOT analysis is a powerful model for many different situations. The SWOT tool is not
just for business and marketing. Here are some examples of what a SWOT analysis can be
used to assess:
a company (its position in the market, commercial viability, etc)
a method of sales distribution
a product or brand
a business idea
a strategic option, such as entering a new market or launching a new product
a opportunity to make an acquisition
a potential partnership
changing a supplier
outsourcing a service, activity or resource
project planning and project management
an investment opportunity
personal financial planning
personal career development - direction, choice, change, etc.
education and qualifications planning and decision-making
life-change - downshifting, relocation,
relationships, perhaps even family planning?..
II.2. BUSINESS MEETING
A meeting is a gathering where two or more people assemble together with a view to
taking some decisions on some preset issues though mutual discussion. Every organization,
large or small, arranges good number of meetings on certain time interval to discuss and
decide on different issues.
Meeting is one of the major media of oral communication. It is essentially important for
every organization. The basic objective of meeting is to take decisions on some predetermined
issues. It has also some other purposes. The objectives or purposes or importance of meeting
are discussed below:
Making Decisions: The foremost objective of any meeting is to take important
decisions on some predetermined issue. Decisions are taken here on consensus and it is very
crucial to take decisions on routine and non-routine business affairs.
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Exchanging Information: Meeting is arranged also to provide information to the
audience about various matters of the organization. Audience also exchange information in
meetings.
Conveying Organizational Vision, Mission and Operational Plans: Meetings are
also called to convey organizational mission, vision and operational plans to the newly
appointed employees. Managers or heads of various departments call these types of meetings
for the fresher so that they can be better acquainted with organizational culture, mission,
vision, plans etc.
Announcing Changes: Another purpose of arranging meeting is to announce the
upcoming changes brought in organizational policies, mission, vision, logo etc. before the
audience. The causes, benefits and ground of such changes are explained in the meeting so
that people understand and accept the probable changes without much resistance.
Negotiation: Meeting is also called for making negotiations between the conflicting
parties through fruitful discussion. Sometimes employers and employees or trade union
leaders sit in meeting together to reach on some agreement so that organizational activities
can be run smoothly.
Resolving Conflict: In large organizations conflict among people is most common.
Healthy conflict helps to increase productivity but unhealthy or undesirable conflict must be
resolved immediately after found. Meeting helps the conflicting parties to reach on common
understanding and thus resolving or minimizing conflict.
Solving Problems: An important purpose of meeting is to provide solution to
organizational problems. Problems that are critical and require opinions of most of the
members of a board or council must be solved by calling meeting. In meeting diverse
thoughts are found that help to face problem suitably.
Reviewing and Informing Progress: Meeting is also called for reviewing and
informing the progress of any project, plan and activity and so on. Form it the attendants of
the meeting are able to know the present status of the projects and can provide their opinions
to improve if there is any loophole.
Celebrating Success: Meetings are often called to celebrate the success of the
organization, completion of any project, achievement of any award etc. it increases the
organizational harmony and motivates employees to work united to achieve more.
Interaction with External Stakeholders: Every organization is to work with
different parties of the society and it must build a long term harmonious relationship with
34
them. Meetings are called to exchange information and to share experience with different
stakeholders of an organization so that their interaction with the firm is increased.
Preparing the meeting
A successful meeting starts well before everyone is gathered in a conference room. The
person running the meeting needs to make arrangements, gather materials, send out
invitations and coordinate the activities. Participants need to be prepared to handle any
required tasks, provide feedback, make presentations or brainstorm ideas. Doing the
groundwork ahead of time will keep the meeting running smoothly and help you meet your
goals.
- Determine if you are running the meeting or expected to participate in any fashion. If
you are in charge of arrangements, be ready to coordinate scheduling, materials and the
pacing of the meeting.
- Set a goal for the meeting. Decide if you are trying to make a sale, bring an investor on
board, train employees about company policies or brainstorm new product ideas.
- Set an agenda for the meeting. Give participants a heads up if the meeting is expected
to be particularly long. Allow time for bathroom or refreshment breaks. Prepare a schedule if
there will be multiple speakers or presenters.
- Make arrangements for a meeting room, conference call or online meeting. Book a
time that works for all key participants. Call or email the group to make sure that the chosen
time works for everyone.
- Send out time and location details to all participants. If you are dealing with
employees, let them know if attendance is mandatory or optional. Email conference call-in
numbers and codes if you are arranging a phone meeting.
- Prepare for any needed equipment. For example, if you are going to have a computer
presentation, be sure that the conference room has a screen and projector. Know how to hook
your laptop up to the projector so that you don't have to waste valuable meeting time dealing
with technical details.
- Take your presentation for a test drive before you do it in front of clients. Make sure
your sales or investment pitch is professional, concise and interesting. Endless charts
projected on a screen don't make for compelling meetings. Understand your audience, how
you can meet their needs and what goals you want to reach.
- Gather materials. Print off handouts. Make sure there are enough chairs for everyone.
Prepare refreshments or make catering arrangements if necessary.
35
- Remind participants 24 hours ahead, or on the morning of, the actual meeting. Aim to
start the meeting promptly at the given time.
Opening the meeting also requires compliance rules:
- Opening at the time the participants were notified;
- Clear presenting of the meeting targets;
- Presenting the ideas in a positive way;
- Use of an attractive language to enforce the attention of the participants to the original
ideas;
- Limitation of the introductory exposure to 1-2 minutes
- Agreeing with the participants, if there is a danger of excessively long speeches, the
total length of the meeting and the maximum duration of speeches.
Conducting the meeting requires following the rules below:
- Follow your agenda closely and do not allow meeting participants to veer off of the
order of issues to discuss. Appoint a parliamentarian--sort of a neutral mediating party when
discussing issues--to help you keep the meeting on track if necessary.
- Prohibit meeting participants from insulting, talking over, talking loudly, belittling or
raising his voice to other members at the meeting. This causes productivity to suffer. If
someone is being repeatedly violating these basic rules of conduct at your meeting, ask him to
leave.
- Transition to each new item on your agenda with finality and do not backtrack.
Moderate the meeting if necessary by giving each member the go-ahead to speak his mind on
the issue. Ask each person to limit her point to two minutes or less.
- Leave time at the end of the meeting for a short question and answer session to clarify
points of confusion during the meeting or to allow a particularly vocal participant who has a
relevant and important point to voice his thoughts briefly.
36
Ending the meeting must be done on a positive note that inspires action.
Summarizing what each member must do from this point forward to accomplish the goals and
issues discussed.
Business meetings are a necessary part of operating in a professional environment.
They allow for time to network among staff, share ideas to emphasize teamwork and inform
employees and management alike of new developments within the company or among clients.
However, despite their necessary nature, there advantages and disadvantages to business
meetings.
Advantages:
- Information Sharing - A key advantage of business meetings, from those held within
the office among staff to meetings between a company and its client, is that it provides an
opportunity to share information. This could be as simple as sharing updates on financials or
recognizing new employees to more complex issues, such as contract negotiations, new client
presentations or addressing problems with an account. An actual meeting pinpoints a time and
place to have in-depth discussions without other distractions or work getting in the way.
- Encourages Teamwork - Business meetings are the perfect environment for
encouraging teamwork, be it among staff or between client and account manager. It provides
a forum with which to set team goals and brainstorm ways to meet them, considering input
from everyone in the meeting, versus just one person. When the meeting is between client and
company rep, the teamwork may happen in the form of feedback, when the client may suggest
certain things, to which the other party may respond and go back and forth in a dialogue until
a consensus is reached.
Limits:
- Time - Business meetings can be a serious drain on company productivity. When staff
has to spend time in meetings, then that's action that is not being taken to meet company goals
and objectives. And the more staff involved in meetings, the more this lack of productivity
can affect the company's output on any given day. For this reason, many companies try to
limit the amount of time that employees spend in meetings, unless such gatherings are meant
to generate new revenue for the company -- think sales prospecting meetings or client
interactions.
37
- Lack of Leader - Another potential disadvantage of a business meeting is a lack of a
leader to run the show, so to speak. This may result in a deviation from the agenda, or a lack
of one altogether, which in turn makes the meeting run much longer than it should. Moreover,
without a clear leader to run the meeting, no one quite understands the rules of the meeting --
waiting until the end of presentations to ask questions or leaving discreetly if an immediate
need must be addressed, for example. Alternatively, there may sometimes be several leaders,
making it confusing to know who is spearheading the meeting, and leaving no one person
responsible for moving things along.
II.3. DELEGATION
Delegation is the assignment of one or more meaningful tasks or responsibilities, either
operational or managerial in nature, to a subordinate or subordinates.
Delegation is one of the most important management skills. Good delegation saves
manager’s time, develops people, grooms a successor and motivates. Poor delegation will
cause frustration, demotivates and confuses the other person and fails to achieve the task or
purpose itself.
A fundamental principle of management holds that responsibilities should be pushed
downward to the lowest practical level. By "lowest practical level" we mean the lowest level
at which employees are capable of satisfactorily fulfilling their responsibilities. To the extent
that this is done, work tends to be accomplished more efficiently. Eliminating multiple steps
in the communication and decision-making chain and minimizing the length of time that
subordinates are often required to wait for decisions or authorization will increase efficiency.
Managers who spend a significant portion of their time on responsibilities that could be
satisfactorily fulfilled by subordinates have relatively less time to spend on work that they
must do as managers. The logical outcome of this practice throughout an organization is that
more managers will be required to perform the necessary management functions. But if work
is delegated whenever it is practical, fewer managers will be necessary. The logical extension
as organizations grow larger is that fewer managers willbe required to manage other
managers. The result is fewer levels of management and a flatter organizational structure.
A simple delegation rule is the SMART acronym, or better still, SMARTER. It's a quick
checklist for proper delegation. Delegated tasks must be:
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Specific
Measurable
Agreed
Realistic
Timebound
Ethical
Recorded
In order to make an effective delegation, the manager must follow the next steps:
1. Define the task
The manager must be sure that the task is suitable to be delegated. Does it meet the
criteria for delegating?
2. Select the individual or team
What are your reasons for delegating to this person or team? What are they going to get
out of it? What are you going to get out of it?
3. Assess ability and training needs
Is the other person or team of people capable of doing the task? Do they understand what
needs to be done. If not, you can't delegate.
4. Explain the reasons
You must explain why the job or responsibility is being delegated. And why to that person
or people? What is its importance and relevance? Where does it fit in the overall scheme of
things?
5. State required results
What must be achieved? Clarify understanding by getting feedback from the other person.
How will the task be measured? Make sure they know how you intend to decide that the job is
being successfully done.
6. Consider resources required
Discuss and agree what is required to get the job done. Consider people, location,
premises, equipment, money, materials, other related activities and services.
7. Agree deadlines
When must the job be finished? Or if an ongoing duty, when are the review dates? When
are the reports due? And if the task is complex and has parts or stages, what are the priorities?
At this point you may need to confirm understanding with the other person of the previous
points, getting ideas and interpretation. As well as showing you that the job can be done, this
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helps to reinforce commitment. Methods of checking and controlling must be agreed with the
other person. Failing to agree this in advance will cause this monitoring to seem like
interference or lack of trust.
8. Support and communicate
Think about who else needs to know what's going on, and inform them. Involve the other
person in considering this so they can see beyond the issue at hand. Do not leave the person to
inform your own peers of their new responsibility. Warn the person about any awkward
matters of politics or protocol. Inform your own boss if the task is important, and of sufficient
profile.
9. Feedback on results
It is essential to let the person know how they are doing, and whether they have achieved
their aims. If not, you must review with them why things did not go to plan, and deal with the
problems. You must absorb the consequences of failure, and pass on the credit for success.
The elements of delegation are:
1. Authority - in context of a business organization, authority can be defined as the power
and right of a person to use and allocate the resources efficiently, to take decisions and to give
orders so as to achieve the organizational objectives. Authority must be well- defined. All
people who have the authority should know what is the scope of their authority is and they
shouldn’t misutilize it. Authority is the right to give commands, orders and get the things
done. The top level management has greatest authority. Authority always flows from top to
bottom. It explains how a superior gets work done from his subordinate by clearly explaining
what is expected of him and how he should go about it. Authority should be accompanied
with an equal amount of responsibility. Delegating the authority to someone else doesn’t
imply escaping from accountability. Accountability still rest with the person having the
utmost authority.
2. Responsibility - is the duty of the person to complete the task assigned to him. A
person who is given the responsibility should ensure that he accomplishes the tasks assigned
to him. If the tasks for which he was held responsible are not completed, then he should not
give explanations or excuses. Responsibility without adequate authority leads to discontent
and dissatisfaction among the person. Responsibility flows from bottom to top. The middle
level and lower level management holds more responsibility. The person held responsible for
a job is answerable for it. If he performs the tasks assigned as expected, he is bound for
praises. While if he doesn’t accomplish tasks assigned as expected, then also he is answerable
for that.
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3. Accountability - means giving explanations for any variance in the actual performance
from the expectations set. Accountability can not be delegated. For example, if ’A’ is given a
task with sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task
is done well, responsibility rest with ’B’, but accountability still rest with ’A’. The top level
management is most accountable. Being accountable means being innovative as the person
will think beyond his scope of job. Accountability, in short, means being answerable for the
end result. Accountability can’t be escaped. It arises from responsibility.
For achieving delegation, a manager has to work in a system and has to perform following
steps : -
1. Assignment of tasks and duties
2. Granting of authority
3. Creating responsibility and accountability
Delegation of authority is the base of superior-subordinate relationship, it involves
following steps:-
1. Assignment of Duties - The delegator first tries to define the task and duties to the
subordinate. He also has to define the result expected from the subordinates. Clarity of duty as
well as result expected has to be the first step in delegation.
2. Granting of authority - Subdivision of authority takes place when a superior divides
and shares his authority with the subordinate. It is for this reason, every subordinate should be
given enough independence to carry the task given to him by his superiors. The managers at
all levels delegate authority and power which is attached to their job positions. The
subdivision of powers is very important to get effective results.
3. Creating Responsibility and Accountability - The delegation process does not end
once powers are granted to the subordinates. They at the same time have to be obligatory
towards the duties assigned to them. Responsibility is said to be the factor or obligation of an
individual to carry out his duties in best of his ability as per the directions of superior.
Responsibility is very important. Therefore, it is that which gives effectiveness to authority.
At the same time, responsibility is absolute and cannot be shifted. Accountability, on the
others hand, is the obligation of the individual to carry out his duties as per the standards of
performance. Therefore, it is said that authority is delegated, responsibility is created and
accountability is imposed. Accountability arises out of responsibility and responsibility arises
out of authority. Therefore, it becomes important that with every authority position an equal
and opposite responsibility should be attached.
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Therefore every manager,i.e.,the delegator has to follow a system to finish up the
delegation process. Equally important is the delegatee’s role which means his responsibility
and accountability is attached with the authority over to here.
Differences between Authority and Responsibility
Authority Responsibility
It is the legal right of a person or a superior to
command his subordinates.
It is the obligation of subordinate to
perform the work assigned to him.
Authority is attached to the position of a
superior in concern.
Responsibility arises out of superior-
subordinate relationship in which
subordinate agrees to carry out duty
given to him.
Authority can be delegated by a superior to a
subordinate
Responsibility cannot be shifted and
is absolute
It flows from top to bottom. It flows from bottom to top.
II.4. THE BALANCED SCOREBOARD
The balanced scorecard (BSC) is a strategy performance management tool – a semi-
standard structured report, supported by design methods and automation tools, that can be
used by managers to keep track of the execution of activities by the staff within their control
and to monitor the consequences arising from these actions.
The critical characteristics that define a balanced scorecard are:
its focus on the strategic agenda of the organization concerned
the selection of a small number of data items to monitor
a mix of financial and non-financial data items.
The Balanced Scorecard translates Mission and Vision Statements into a comprehensive
set of objectives and performance measures that can be quantified and appraised. These
measures typically include several categories of performance such as financial performance
(such as revenues, earnings and return on capital) customer value performance (such as
market share and customer satisfaction measures), internal business process performance
(such as productivity rates and quality measures), innovation performance (such as percent of
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revenue from new products and rate of improvement index) and employee performance (such
as morale and best demonstrated practices)
Design of a balanced scorecard is about the identification of a small number of financial
and non-financial measures and attaching targets to them, so that when they are reviewed it is
possible to determine whether current performance 'meets expectations'. By alerting managers
to areas where performance deviates from expectations, they can be encouraged to focus their
attention on these areas, and hopefully as a result trigger improved performance within the
part of the organization they lead.
The original thinking behind a balanced scorecard was for it to be focused on information
relating to the implementation of a strategy, and over time there has been a blurring of the
boundaries between conventional strategic planning and control activities and those required
to design a balanced scorecard. This is illustrated well by the four steps required to design a
balanced scorecard included in Kaplan & Norton's writing on the subject in the late 1990s:
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual performance;
3. Business planning; index setting
4. Feedback and learning, and adjusting the strategy accordingly.
These steps go far beyond the simple task of identifying a small number of financial and
non-financial measures, but illustrate the requirement for whatever design process is used to
fit within broader thinking about how the resulting balanced scorecard will integrate with the
wider business management process.
Although it helps focus managers' attention on strategic issues and the management of the
implementation of strategy, it is important to remember that the balanced scorecard itself has
no role in the formation of strategy. In fact, balanced scorecards can co-exist with strategic
planning systems and other tool.
The BSC performs the following important functions:
a) Management information function - on the state of the organization;
b) Management warning function – on the unfavorable situations;
c) Management assessment function - in achieving results and therefore of the quality of
decisions and actions initiated to operationalize them;
d) Decision-making function - the relevant information transmitted to the various
managers allow the foundation and decision-making.
Inside an organization, there can be used different types of BSC:
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- General BSC – deployed and used by the top-management;
- Partially BSC - deployed and used by the departamental managers.
Whatever the type of BSC it must meet the following conditions:
a) to be consistent – it must include relevant information and accurate information about
the organization/department;
b) to be rigorously - to include information focused on highlighting the real economic
phenomena and real-time transmission of information necessary to complete it;
c) to be synthetic – to contain different degree of aggregation information, depending on
the hierarchical position of the manager;
d) to be accessible - to promote understanding and use of timely, complete, clear and
explicit information;
e) to be balanced - to highlight information relating to the economic, social, managerial
processes in proportions that reflect their share in the subject tracking;
f) to be expressive - to use appropriate forms of visualization (tables of values, graphs
etc.);
g) to be versatile - to be able to change depending on changes in the company or in its
management activities;
h) to be economical - to produce effects that are superior to the efforts demanded by
completing, transmission and use.
Typically, the Balanced Scorecard include the following categories of performance:
Financial performance (revenues, earnings, return on capital, cash flow)
Customer value performance (market share, customer satisfaction measures, customer
loyalty)
Internal business process performance (productivity rates, quality measures,
timeliness)
Innovation performance (percent of revenue from new products, employee
suggestions, rate of improvement index)
Employee performance (morale, knowledge, turnover, use of best demonstrated
practices)
The methodology of designing, completion, transmission and use of the BSC comprises
the next steps:
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Step 1 - The scorecard building process begins with an evaluation of the organization’s
vision and mission, enablers, values and challenges. The first step also involves developing a
change management map for the organization, and carrying out a focused communications
workshop to spot key messages, timing, messengers and media outlets.
Step 2 - In this step, the strategic aspects are broken down into strategic aims, which are
the fundamental building blocks of strategy and delineate the organization’s strategic aim.
Aims are first started and categorized on the Strategic Theme Level, sorted by Perspective,
connected in cause-effect linkages (or Strategy Maps) for each Strategic Theme. Following
this, they are joined together to create one set of Strategic Aims for the whole organization.
Step 3 - At this point, the cause and effect linkages between the enterprise-wide Strategic
Goals are made official in an enterprise-wide Strategy Map. The Strategy Maps constructed
earlier are blended into a by-and-large enterprise-wide Strategy Map that delineates how the
organization makes value for its stakeholders and customers.
Step 4 - In this step, performance measures are created for each of the enterprise-wide
strategic aims. Leading and lagging measures are spotted, expected targets and thresholds are
decided on, and benchmarking and baseline data is created.
Step 5 - Strategic Initiatives are created that support the Strategic Aims. To develop
accountability throughout the organization, ownership of Strategic Initiatives and
Performance Measures is assigned to the pertinent staff and documented in data definition
tables.
Step 6 - In this step, the process of implementation starts by applying performance
measurement software to provide the right performance data to the right people at the
appropriate time. Automation lends form and discipline to executing the Balanced Scorecard
system, assisting with changing disparate corporate data into knowledge and information, and
with communicating performance information. To put it concisely, automation helps people
with making better decisions owing to the fact that it lends speedy access to genuine
performance data.
Step 7 - Here, the enterprise-level scorecard is ‘cascaded’ down into support and business
unit scorecards. This means that the organizational level scorecard (the first Tier) is converted
into support unit or business unit scorecards (the second Tier) and then later to individual and
team scorecards (the third Tier). Cascading converts high-level tactics into lower-level aims,
operational details, and measures. Cascading is the road to organizational alignment
surrounding strategy. Individual and team scorecards connect day-to-day work with corporate
vision and department aims. Performance measures are created for all aims at organizational
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levels. With the scorecard management system cascading down across the organization, aims
become more tactical and organizational, as do the performance measures. Responsibility
follows the measures and objectives, as ownership is delineated at each level. A stress on
strategies required to produce outcomes is communicated all through the organization.
Step 8 - Here, an assessment of the completed scorecard is carried out. In the course of
this assessment, the organization endeavors to answer queries such as: ‘Are we measuring the
right things?’ ‘Are we strategically budgeting our money?’ ‘Are our strategies working?’ and
‘Did our environment change?’
Balanced Scorecard Advantages
The first advantage of using the balanced scorecard method is that by looking at four
aspects of a company's performance, you really do get a balanced view of company
performance. Unlike traditional methods of tracking the financial health of a business, the
balanced scorecard gives you a full picture as to whether your company is meeting its
objectives. While it may seem that a company is doing well financially, it may be that
customer satisfaction is down, employee training is inadequate, or that the processes are
outdated.
Second, by using a balanced scorecard approach, the immediate future isn't the only
thing being evaluated. Often, when an accountant sees the financial bottom line (perhaps the
company isn't doing well), suggestions are given that are immediate, but do not look at the
long-term. Using balanced scorecards allows for stakeholders to determine the health of short,
medium, and long term objectives at a glance.
Finally, by using a balanced scorecard, a company can be sure that any strategic action
implemented matches the desired outcomes. Will raising the price of a product help the
bottom line of the company in the long run? It might, if the customer is satisfied with that
product, or if the processes involved with creating that product make the product of a higher
quality.
Balanced Scorecard Disadvantages
While there are many advantages to using balanced scorecards in your accounting
toolbox, there are a few disadvantages to the method as well. First, the balanced scorecard
takes forethought. It is not a tool you can just think up one night to solve a problem. Instead, it
is recommended that you hold a meeting to plan out what goals you would like to see your
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company reach in each of the four above areas. Once you have clearly stated objectives, you
can then begin to break down these objectives in what you will need, financially, to bring
these objectives to fruition.
Second, while the balanced scorecard gives you an overall view of the four areas for
concern in business growth and development, these four areas do not paint the whole picture.
The financial information included on the scorecard is limited. Instead, to be successfully
implemented, the balanced scorecard must be part of a bigger strategy for company growth
that includes meticulous accounting methods.
Finally, many companies use metrics that are not applicable to their own situation. It is
vitally important when using balanced scorecards to make the information being tracked
applicable to your needs. Otherwise, the metrics will be meaningless.
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III. METHODS AND TECHNIQUES TO STIMULATE STAFF
CREATIVITY
III.1. BRAINSTORMING
Brainstorming is a method used in groups in order to support creative problem-
solving, the generation of new ideas and greater acceptance of proposed solutions.
As in any session or meeting, there are certain rules that need to be followed in order
to ensure that a brainstorming session produces good results. The session can be divided into
three phases: a preparation phase, the brainstorming session and evaluation and
implementation of the results.
I. The preparation phase
In the preparation phase, the following questions should be answered:
What is the purpose of the brainstorming session and what is the topic?
The key to good results is correct topic definition. Often, the topic chosen for the
brainstorming session limits the outcome by suggesting one of the possible solutions to the
problem. For example, the question “How can we expand the space available for production?”
produces a very different result from the formulation “How can we gain the space we need for
our work?” In the first case, the only solution expected is buying or renting new premises,
whereas in the second case, it could be found that a good cleaning policy, new storage
systems or faster processing resolve the problem.
How many people and which people should be involved?
Any brainstorming session will be richer in ideas if it is attended by people who are
not directly involved in the problem. A fresh approach can produce very different word
associations from those which have been discussed in the group many times before. A good
number of participants for a brainstorming session is between 6 and 12 people. Of course, a
smaller group can be equally productive, but the flow of ideas will probably be slower.
However, working with bigger groups is more difficult, time-consuming and requires more
effort to write down all the ideas produced.
When and where will the session take place?
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At first glance, this is a simple question, but in reality the environment, room layout
and timing play a more important role than we think by influencing the atmosphere and
working style of the session and therefore the results. A new and unknown environment
stimulates different thinking and the ideas generated will have a different value from those
influenced by the company environment.
The best arrangement for the room is a “U” shape. This means that the chairs are
arranged in a half circle around the room and a flip chart is placed in the middle, within view
of all the participants. Everybody should see the flip chart. Tables may be provided, but are
not necessary; people may sit or stand as they choose, but should be comfortable.
Brainstorming sessions can be held at practically any time of day, except after lunch,
when brain activity decreases due to biorhythms. It is likely that sessions held between 10 and
11 a.m., when brain activity is highest, and evening sessions are the most productive.
The brainstorming session should not exceed 20-30 minutes, but the time required will
depend also on the management of the meeting and the other items on the agenda.
II. Brainstorming session
For best results, the following rules for brainstorming sessions should be observed:
a) No criticism or judgement. Other people’s ideas or our own ideas should not be
criticized however foolish or outlandish they may seem. Judgement stops the creative process,
causes tensions in the group and arrests the generation of ideas;
b) During brainstorming participants are completely free to express themselves. They are
not bound by their company position or by their boss or colleagues; nothing is unwanted and
nothing is wrong;
c) The quantity and not the quality of ideas is what matters. The world’s most creative
people suggest that it is not that each of their ideas is bright, clear and new, but that some of
their many ideas are very good. In a 20 minute session, it is normally possible to produce
between 120 and 150 ideas;
d) All ideas are recorded on the flip chart. When a page of the flip chart is full, it is
posted on the wall so that all participants can see it and a new page is started. The ideas
produced for the second page may even be the same or similar. In this way, the participants
are not forced to register all the ideas and can create more freely. However, the formulations
may be condensed in order to maintain the pace of the session;
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e) The results are evaluated after a lapse of time. In order to ensure that no idea is
promoted or eliminated prior to proper consideration, the results are evaluated several days
later, the following day, or, at a minimum, after several hours have elapsed.
A well-managed brainstorming session involves several steps, as follows:
a) At the beginning of the session, the moderator should explain the objectives of the
session and describe the chosen topic.
b) The moderator should explain the rules of the brainstorming session and hang them on
the wall. If the participants are already familiar with them, it is enough to make sure that all
the participants know them well;
c) All suggestions, however outlandish, are recorded on the flip chart. The participants
should be patient and check that all their ideas are written down;
d) The moderator may help the participants with generating ideas. He or she can also try
to unlock hidden ideas by asking “What else?”, “What next?” and by making comments such
as “very good”, “thank you”, and so forth, but should not influence the participants by asking
questions supporting any of the areas of the results;
e) At the end of the session, the moderator should thank the participants for their active
approach and make sure that they know how the results will be evaluated and used.
III. Evaluation phase
The evaluation of the results of the session should be deferred for several days, overnight
or at least for several hours. During that time, the brain recovers and has time to calm down,
reflect or produce new word associations and solutions. Those can be added to the list prior to
the evaluation. The ideas are then grouped according to the topics and formal evaluative
methods can be used.
Brainstorming Benefits
The benefits of a well-organized brainstorming session are numerous. They include:
a) Solutions can be found rapidly and economically;
b) Results and ways of problem-solving that are new and unexpected;
c) A wider picture of the problem or issue can be obtained;
d) The atmosphere within the team is more open;
e) The team shares responsibility for the problem;
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f) Responsibility for the outcome is shared;
g) The implementation process is facilitated by the fact that staff shared in the decision-
making process.
III.2. THE PHILIPS 6/6 METHOD
The Philips 6/6 Method consists in the formation of six groups, which are to emit new
ideas for 6 minutes starting from a given topic. It is similar to brainstorming and to the 6/3/5
Method, its purpose being the intensification of the creative spirit. The organization of the
group consists in the determination of their responsibilities (4 members, 1 secretary, 1 group
leader guiding the discussions and drawing the conclusions).
The advantages of this method consist in facilitating communication, outlining a large
number of ideas in a short while, stimulating creativity and imagination, cooperation and
competition for all the group members.
The methodology is almost similar to that used for brainstorming:
- The first step is the preparation of the creative groups that will discuss the issue and
designation of their leaders;
- The second step is to discuss problems in two distinct sequences: the debate in groups
and plenary debate. Within group discussions, original ideas are recorded and retained by
their leaders. Plenary debate begins with the presentation of ideas raised at creativity group
level by their leaders. They are exposed without any restriction and they are the subject of
confrontations.
- The third stage is the evaluation of the developed solutions and consists in two
sequences: Evaluation by the group leaders and the plenary presentation and final evaluation
meeting assured by the leader of the creativity group; The presentation of the final ideas to the
management.
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III.3. SYNECTICS
Synectics is the method of the analogies/associations of ideas and belongs to Professor
William J. Gordon, 1961, Harvard University. The semantics of the word is “bringing
together diverse elements” (Synecticos). This method encourages the appearance of ideas, the
modification of some of them and their combination “as a result of the permitted analogy”,
the combination among the elements.
The purpose of this method is the full freedom of expression of its participants, the
development of initiatives for expressing original ideas, for associating them and for bringing
together “elements that apparently have no connection between them” The evaluation of the
result obtained will take into account the “following indicators: ideas emitted during the stage
of the synectic itinerary, classification of the solutions proposed, experimentation and
application of the summative model”
By means of synectics, the unknown becomes known, the incubation stage is covered,
the “emergence of new ideas is favored” (concerning the proposed problem), the accent falls
on psychological conditions, on unreal, euphoric feelings that in their turn trigger the
appearance of new solutions.
Synectics has advantages and disadvantages, just like brainstorming, but the teacher,
as a good discussion manager has to be a good psychologist and must possess special
empathic qualities.
III.4. THE DELPHI TECHNIQUE
The Delphi technique is a widely used and accepted method for achieving
convergence of opinion concerning real-world knowledge solicited from experts within
certain topic areas. The Delphi technique is designed as a group communication process that
aims at conducting detailed examinations and discussions of a specific issue for the purpose
of goal setting, policy investigation, or predicting the occurrence of future events.
Delphi technique can be used for achieving the following objectives:
1. To determine or develop a range of possible program alternatives;
2. To explore or expose underlying assumptions or information leading to different
judgments;
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3. To seek out information which may generate a consensus on the part of the
respondent group;
4. To correlate informed judgments on a topic spanning a wide range of disciplines;
5. To educate the respondent group as to the diverse and interrelated aspects of the
topic.
The Delphi process involves the next steps:
1. In the first round, the Delphi process traditionally begins with an open-ended questionnaire.
The open-ended questionnaire serves as the cornerstone of soliciting specific information about a
content area from the Delphi subjects. After receiving subjects’ responses, investigators need to
convert the collected information into a well-structured questionnaire. This questionnaire is used as the
survey instrument for the second round of data collection.
2. In the second round, each Delphi participant receives a second questionnaire and is asked to
review the items summarized by the investigators based on the information provided in the first round.
Accordingly, Delphi panelists may be required to rate or “rank-order items to establish preliminary
priorities among items. As a result of round two, areas of disagreement and agreement are identified”
(Ludwig, 1994, p. 54-55). In some cases, Delphi panelists are asked to state the rationale concerning
rating priorities among items (Jacobs, 1996). In this round, consensus begins forming and the actual
outcomes can be presented among the participants’ responses.
3. In the third round, each Delphi panelist receives a questionnaire that includes the items and
ratings summarized by the investigators in the previous round and are asked to revise his/her
judgments or “to specify the reasons for remaining outside the consensus” (Pfeiffer, 1968, p. 152).
This round gives Delphi panelists an opportunity to make further clarifications of both the information
and their judgments of the relative importance of the items.
4. In the fourth and often final round, the list of remaining items, their ratings, minority
opinions, and items achieving consensus are distributed to the panelists. This round provides a final
opportunity for participants to revise their judgments. It should be remembered that the number of
Delphi iterations depends largely on the degree of consensus sought by the investigators and can vary
from three to five.
.
