Sunday 18 August 2013

How to make a decision?

Making decisions is a vital part of life. Everyone has to make a decision and we talk about decision making process in organization we find that A manger's job deals with two things - deciding, doing. His task is to focus more on the deciding part, making decisions and then guide the workers in processes of implementing those decisions. It looks simple, but the reality is quite different.


Both decision making and implementation can be done in two ways:
1. Individually
2. Team Effort

Individual Decision Making
And
Individual Implementation
Individual Decision Making
And
Implementation by a Team
Team Decision Making
And
Individual Implementation
Team Decision Making
And
Implementation by a Team

Let each Quadrant in the above table be called Qij, where 'i' represent the number of row and 'j' represent the number of column, then in the above table

Q11 represents an artist or a craftsman who takes his own decisions and implements them.

Q12 represents a sports team where the captain or a coach takes a decision which is implemented by the entire team.

Q21 represents an air force mission where a team of Senior Air force personnel decide upon the targets and a pilot executes the mission by destroying the target.

Q22 represents majority of all processes in an organization. In this scenario, the top level or middle management comes to a consensus and the decision is then implemented by a team of workers.

As we move from one Quadrant to the other in the order in which each is explained, the complexity increases and the decision making process becomes difficult.

Why does the team decision making process become difficult?
A team  decision making process become difficult because it involves the following:

      1.      Situation Analysis
                      -      Valuing
                      -      Priority Setting
      2.    Problem Analysis
                      -     Information Gathering
                      -     Problem Definition
      3.  Solution Analysis
           -    Getting Ideas
           -   Decision Making
      4.  Implementation
           -  Involving Others
           -  Planning


Again the complexity increases as we move down the team decision making process with the most complex task being that of driving the team to implementing the decision effectively.  Also, decision making is a dialectical process. It has Points and Counter points. Unless it is a dialectic process it cannot be matured, enriched and improved.

Let me break a myth here, decision making does not become complex because of the problem solving required to be done to implement and complete the process. In fact, decision making is only a part of Problem Solving.


Coming to problem solving the first question that arises is what are the types of problems?

According to Sam Pitroda, problems can be classified as:

  1. Rich people's problems
  2. Poor people's problems
  3. Problems with simple solutions
  4. Problems with complex solutions

According to Sam, most of the problems and most of our efforts are in the direction of solving Rich men's problems. We tend to ignore the poor men's problems. He further adds that problems are not simple or complex; instead their solutions are. The most simple looking problem can have the most complex solution and vice-versa.

Theory X vs Theory Y

Today I would like to take my audience to a relatively very old concept in management, the concept of 1960’s.Too Old but very useful in understanding human behavior in an organization. The Concept of Theory X and Theory Y. This concept was proposed by Prof. Douglas McGregor.

Prof. Douglas McGregor was a psychologist, management consultant and author. He wrote a book entitled Human Side of Enterprise. In his book ,he described two distinct set of assumptions about people at work. McGregor labelled these set of assumptions as Theory X and Theory Y. He believed that these assumptions influence the thinking and attitude of most managers about the people at work.

If my audience are still reluctant to accept the importance of these theories, we will find out what the Theory X and Theory Y are. Theory X presents a pessimistic or negative view of human nature whereas Theory Y reflects an optimistic or positive view of human behavior. These theories of 1960’s are based upon Maslow’s hierarchy of needs. 


Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize output. In relations to Theory Y the organization is trying to create the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It can relate to Esteem when the manager is trying to promote self esteem, confidence, achievement, respect of others, and respect by others.

Theory X is about taking a pessimistic view of employees and don’t trust them. Theory X managers generally take an authoritarian stance with their employees and work better in control-oriented organizations. Theory Y states that employees may be striving for the higher level of Maslow’s hierarchy and searching for creativity and problem solving. Theory Y managers provide encouragement and trust for employees fulfillment. The end of the management course suggested that we as new managers should seek to balance between the two. Apparently, this is now considered a very old fashioned view of management and has been incorporated into other theories.

Assumptions:
The assumptions of Theory X are:

1. The average human being inherently dislike work and will avoid work, if possible.
2. Since human beings dislike work, they must be coerced, controlled or threatened with punishment to    make efforts to achieve objectives.
3. The average human being prefers to be directed.
4. The average human being wishes to avoid responsibility.
5. The average human being has relatively little ambition.
6. The average human being wants security above all other factors associated with the work.
7. The average human being is inherently self-centered and indifferent to organisational objectives.
8. The average human being by nature, resists change.
9. The average human being is gullible, not very bright. He may be duped by charlatans.

The assumptions of Theory Y are as follows :

1. The average human being does not inherently dislike work. Employees find that work is as natural as play or rest if organisational conditions are appropriate.
2. Employees will exercise self-direction and self-control if they are committed to objectives. External control and the threat of punishment are not the only means to make employees to work towards objectives.
3. Commitment to objectives, is a function of the rewards associated with their achievement.
4. The average human being can be motivated by higher-level needs i.e. esteem and self-actualization needs.
5. The average human being learns not only to accept but to seek responsibility. Avoidance of responsibility, lack of ambition and emphasis on security are generally not inherent human characteristics.
6. The average human being seeks responsibility because it allows him to satisfy higher-level needs.
7. The capacity to exercise imagination and creativity in the solution of problems is widely spreaded throughout the population. It is not the sole province of the managers.
8. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.
Theory X assumes that lower-order needs dominate individuals. Theory Y assumes that higher-order needs dominate individuals. McGregor believed that Theory Y assumptions were more valid than Theory X. Therefore, he proposed such ideas as participation in decision-making, responsible and challenging
jobs and good group relations for maximizing employee job motivation.

In these days, Managers are being more inclined to Theory Y as compared to Theory X just as we are shifted to more right-brain approaches. But a balanced approach between the two results in success of the organization.Keep Learning and keep applying was the motive of this interaction!

Skywalk: Learning from a Cartoon

This blog will discuss about the importance of Teamwork in the organization. Teamwork is defined in the dictionary as "work done by several associates with each doing a part but all subordinating personal prominence to the efficiency of the whole." But there is no universally accepted definition of teamwork.



The photo depicts the true value of teamwork for the task at hand. In order to cross the gap of more than a step, their must be a team of three. If there are any less number of members, the gap can not be crossed as the beam would not remain balanced and if there are any more number of members for the same gap, it would be an extra over the required resources. Similarly, in a team in an organization, if the number of people are less than the required, the burden on each member would be more than he can bear and the team would not succeed.

In the photo, it is also evident that even if one of the member of the team is weak and is not able to support his share of the load, then the task which is to cross the gap will not be completed. Analogous to this, if in a team any of the link is weak and is not able to deliver his responsibilities, the team will not be able to complete the task.

The best example of teamwork can be taken from the world of ants.

The ants as can be seen in the figure are very arduous workers and always work in teams to accomplish any task for the community.

While assembling a team, factors such as adaptability of individual members must be kept in mind. This will not only encourage the team members but also develop High performance team. The various steps involved in assembling a high performance team are mentioned in the following figure.


Thus, with a paradigm shift from hierarchy model to team model, it is important to determine goals mutually and build work processes around teams. This will enhance the productivity while maintaining a clarity of thought towards the organizational goal.

Culture: that's what matters

Organizations, just like individuals, have their own personalities—more typically known as organizational cultures. Understanding how culture is created, communicated, and changed will help you to be a more effective manager. But first, let’s define organizational culture          
Organizational Culture is also called Corporate Culture
Organizational Culture encompass the values and behaviours that contribute to the unique social and psychological environment of an organization.Organizational culture includes an organization'sexpectations,experiences,philosophy, andvalues that hold it together. It is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written (sometimes) and unwritten rules that have been developed over time and are considered valid. 



                   There are various types of organizational cultures. We discussed a few of them in class. I am listing them below:
1. Open Culture - One where employees are motivated to voice their values-driven concerns regarding problematic business practices. An open culture helps to counteract any occasional lapse into passivity at the board level or on the part of institutional investors.

2. Safety Culture - One where safety is  ALWAYS first no matter what the cost. A safety culture is one were all employees are proactive in ensuring safety at work place. People immediately report any perceived short comings in the work place safety and in the safety of products given to customers or clients.

3. Quality Culture - A culture where utmost importance is given to the quality of the product or service being rendered. Volume takes a back seat. So does cost. Batch recalling of cars/computers when defects are found is a good example of the quality culture. Toyota is a notable example.

4. Performance Culture - We could also call this OUTCOME ORIENTED CULTURE.  This is one that emphasize achievement, results, and action as important values. A good example of an outcome-oriented culture may be the electronics retailer Best Buy. Having a culture emphasizing sales performance, Best Buy tallies revenues and other relevant figures daily by department. Employees are trained and mentored to sell company products effectively, and they learn how much money their department made every day.

5. Ethical Culture - A culture where great importance is given to ethical business practices and this importance is seen at all levels in the organization. We see that in such organizations, ethics are given precedence even if being so may lead to a loss of business and profit. The TATA Group is a good example to note.




There are three aspects to organization culture, namely :
         (a) It is something that is practised by MOST of the people in an
              organization.
         (b) It is something that is practised MOST of the time.
         (c) It is something that is DEEPLY believed by the employees.

Many thoughts about organizational culture came out in class. I am finding it a little hard to organize them into meaningful sentences and paragraphs. Therefore, I am giving these thoughts in point-wise form without any specific order or precedence. The various point we discussed where:

1. Organizational Culture leads to enhanced performance.
2. Organizational Culture is an important motivating factor.
3. Organizational Culture is depended on the type of structure which the
    organization follow. Flat Organizations have a different structure from more
    Hierarchical ones.
4. Organizational Culture is not STATIC. It changes from time to time.
5. Organizational Culture is invisible.
6. Organizational Culture is usually inferred. There is no book from where to read
    about it.
7. Organizational Culture - usually - is not documented. It is separate from the
    rule book. In fact, we could argue that if culture were to be written down then
    it would lose its impact.
8. Organizations can have multiple cultures of sub-cultures.
9. Organizational Culture can be WEAK or STRONG.



Example of AliBaba Group-

                                      
We started the class with a discussion on the AliBaba Group. AliBaba Group is a privately owned China-based family of Internet-based eCommerce businesses that cover business-to-business online marketplaces, retail and payment platforms, shopping search engine and data-centric cloud computing services. 

The company was started by Jack Ma based on the simple realizations that he had:
    1. I don't have the money.
    2. I don't have a plan. 
    3. If you can't use the internet in this age, you are useless.

What was Jack Ma's objectives with AliBaba?
    (a) Empower SMEs through the power of the internet.
    (b) At least 80% of these SMEs who are working with AliBaba MUSTgrow unimaginably.
    (c) 0.0001% of the shares of AliBaba must be enough to support generations together.

 What was the result?
              Today AliBaba's consumer-to-consumer portal Taobao (similar to eBay) features nearly a billion products and is one of the 20 most-visited websites globally. Alibaba Group's sites account for over 60% of the parcels delivered in China.                 


Puzzled by Navrang

Navrang - means 'Of 9 colors'

Introduction of Navrang Puzzle to us by Prof. Mandi was a very good experience for us.
Here i am going to elaborate on my learning from that Navrang Puzzle

Navrang puzzle is a cube having 9 color blocks and 6 sides. Also it can be assembled and dismantled.



We were challenged to find an algorithm or method to reassemble the Puzzle in order to reach the intended objective. After a few desperately minutes of thinking a few fast thinking some people devised a plan Unfortunately, the plan didn't work too well.

But Mr. Mandi solved this puzzle in less than 2 minutes by using a 3 step algorithm approach.

Here is the video to solve navrang puzzle:



It is here we were introduced to two important concepts: Organizational Structure and Unity of Objective



                                           

An Organizational Structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. 

This of course leads us to the next idea. 
Unity of Objectives stands for the philosophy according to which every individual and every process in an organization should aim to fulfill the organization's Objectives and Mission Statement

The most important thing was to understand is that without an objective, this puzzle would never have been solved. It is the objective that determines the method in which we have to solve the problem. Any method we device, it must be capable of being easily replicated. Only then can we achieve economies of scale and get effective outputs.




Magnets: From a Business perspective

The major component of a magnet is magnetic dipoles which are randomly aligned in a magnet. Once a force is applied, they get aligned in a particular direction and show magnetism.




But our learning from magnets is constrained to above learning only?

Do magnets tell us something about business, If yes then How?

Let’s explore the behavior of magnet and try to realize it in organization structures.

Businesses and organizations have core values, mission & vision to achieve a particular goal. Often, businesses go lopsided and fall short of their goal. This is because of people in the organization trying to move in different directions.

Management thinks they are moving in the same direction as the employees to achieve a goal and in the action waste time, money & resources in yielding unfruitful results.


With time, employees begin to lose focus and the organization looks more like an amoeba and it is too late before the organization realizes it is too late to be realigned.





Organisations try to have a structure that keeps the people , process, practices aligned to the goals, vision & mission. The stronger or more the alignment the better the functioning of the business or organisation. This alignment is created by Management By Objective(MBO).  The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.



Organisational alignment is a process of achieving alignment in two domains : alignment of values & alignment of goals.
Goal Alignment
Goal alignment is clearly demarcating and defining the purpose i.e .mission and strategic goals of the organization. It is about framing the context, ensuring all employees clearly understand the strategic goals and initiatives within the organization.
Alignment of Values
Alignment of values is the process of understanding how we work together, and changing the way we understand and interpret the values of the organization.  As a right-brain activity, we need to explore the emotions and non-rational processes that have an impact on our behavior and actions.