CONCEPT OF MANAGEMENT

• Key Group • Set of functions

• In-charge of organizational affairs • Including POSDC which are inter-related
• to make purposeful and productive entity. • Starts from planning
• Ensure to achieve what is planned

• Management is an influence process

• To make things happen
• To gain command over phenomena
• To induce and direct events and people in a particular manner

• Management is backed by power, competence, knowledge and resources

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 CONCEPT OF STRATEGY
• Long term blue print • Strategy
• Of desired image (what it wants to be) • No substitute for sound, alert and
• Direction (how it wants to do things) responsible management
• Destination (where it wants to be) • Can never by perfect, flawless and optimal

• It is used to • William F. Glueck

• Conduct its operations • A unified, comprehensive and integrated
• Attract and satisfy customer plan designed to assure that the basic
• Compete successfully objectives of the enterprise are achieved

• It game plan or ways

• To respond to dynamic and hostile external forces
• By top management
• To pursue vision, mission and objectives

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CONCEPT OF STRATEGY

Improve market
position and financial
performance
Strategy
Partly Proactive

It is planned strategy

To unanticipated
developments and
fresh market conditions
Partly Reactive

It is adaptive reaction

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 CONCEPT OF STRATEGIC MANAGEMENT
• Managerial Process of
• Developing strategic vision
• Setting objectives
• Crafting a strategy
• Implementing and evaluating the strategy
• Initiating corrective adjustments wherever required

• It does not end • It emphasizes

• Keeps going on in cyclical manner • Monitoring and evaluation of external opportunities and
threats
• w.r.t. own strength & weakness
• & designing strategy to survival and growth

OBJECTIVES OF STRATEGIC MANAGEMENT

• To Create competitive advantage + outperform competitors
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• Guide the company successfully to changes in environment
 IMPORTANCE/ADVANTAGES/BENEFITS OF SM
• Gives direction to define goal, mission and objectives
• Proactive instead of just being reactive
• Framework for major decisions
• To face the future
• Defense mechanism against mistakes and pitfalls
• Develop core competencies
• Enhance the longevity

LIMITATIONS OF SM
• Highly complex and turbulent
• Time consuming process
• Costly process
• Difficult to estimate competitor reaction or response

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 STRATEGIC INTENT
• Purpose of what the organization strives for
• Senior manager must define
• What they want to do and
• Why they want to do (Strategic intent)
• Clarity is important for future success and growth

• Components
• Vision
• Mission
• Goals & Objectives
• Values

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 VISION
• By Top Management
• Tells “Where we want to be”
• Blueprint of the future position
• Define directional path to take in product, customer, market, technology
• Communicates management aspirations to stakeholders

ESSENTIALS OF VISION
• Think creatively
• Intelligent entrepreneurship
• Creates enthusiasm
• Illuminates direction

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 MSSION
• Tells us ‘What business are we in and what we do’
• States what customers it serves
• what need it satisfies
• what type of product in offers
• Way to get to the vision

POINTS TO CONSIDER WHILE WRITING MISSION

• Own special identity
• Unique
• Target customer group
• Technology and Competencies it uses
• Activities it performs

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 WHY ORGANISATION SHOULD HAVE MSSION?
• Unanimity of purpose
• Basis for allocating resources
• Motivating use of resources
• Establish organizational climate
• Serve as Focal point
• Translation of objective and goals
• Translation of purpose into goals

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 WHAT IS OUR MISSION AND WHAT BUSINESS ARE WE IN?
• Peter Drucker and Theodore Levitt
• Co. should raise basic questions
• What is our mission?
• What is out ultimate purpose?
• What do we want to become?
• What kind of growth do we seek?
• What business are we in?
• Do we understand our business correctly?
• Whom do we intent to serve?
• What human need do we intend to serve?
• What brings us to this particular business?
• What would be the nature of business in future?
• In what business would we like to be in future?

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 Difference between Vision and Mission

Vision Mission

It is ongoing and time

It describes future identity.
independent

It is success It is a key to success

It tells us ’where we want It tells us ‘what we are and

to be’ what we do’

It is specific in terms of If crafted will can remain in

future and time frame. existence for a very long
time.

It motivates the people to It provides path to release CA Sunil Keswani

achieve defined objectives the vision.
 GOALS
• Open-ended attributes
• Denotes the future states or outcomes

OBJECTIVES
• Close-ended attributes
• Precise and expressed in specific terms
• Organization’s performance targets
• Yardstick (or benchmark) for tacking organization’s performance
• Translate goats to long and short term perspective

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 CHARACTERISTICS OF OBJECTIVES
• Concrete and specific
• Measurable & controllable
• Challenging
• Standard for performance appraisal
• Related to a time frame
• Co-relate with each other
• Relationship with environment
• Helps in achievement to mission and purpose.
• Basis for strategic decision making
• Within the constraints of organizational resources & external environment

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 LONG TERM OBJECTIVES
• Profitability
• Productivity
• Public Responsibility
• Employee development
• Employee relations
• Competitive position
• Technological leadership

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 VALUES
• Sets the tone for how
• People think and behave in situation of dilemma
• Creates sense of shared purpose to build a strong foundation
• Focus on longevity of company’s success
• Have internal and external implications
• Remain the core of vision, mission, goals, objectives & putting them into action
• E.g. integrity, trust, accountability, innovation and diversity

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INTENT Vs VALUES

Intent Vs Values
Purpose of doing
business
Intent

Driven by values

Principles that guides

decision making
Values

Broader than intent

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 STRATEGIC LEVELS IN ORGANIZATION
• Corporate Level
• Includes CEO, BOD, other senior executives & Corporate staff
• Participate in strategic decision making
• Oversee development of strategies

• Tasks includes:
• Define mission & goals
• Determining what business it should be in
• Allocating resources
• Providing leadership
• Link between management and shareholders

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 STRATEGIC LEVELS IN ORGANIZATION
• Business or Divisional Level
• Includes divisional level managers and staff
• Head of division
• Report to corporate level

• Responsible for:
• Working of division or particular business
• Translate direction of corporate level into concrete business plans
• Should listen to functional level managers

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 STRATEGIC LEVELS IN ORGANIZATION
• Functional Level
• Includes functional managers
• Closer to customer

• Responsible for:
• Specific business function or operation
• Develop strategies to achieve objectives set by business & corporate level
• Implementing strategies of corporate & business level
• Provide info to formulate realistic and attainable strategies

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 NETWORK OF RELATIONSHIP BETWEEN THREE LEVELS
• Functional and Divisional Relationship • Horizontal Relationship
• Each function run independently • All positions in same hierarchy
• Headed by function/division head • Flat structure
• Reporting to business head (corporate level • Leads to openness and transparency
manager) • Focus on idea sharing and innovation
• More suitable for startups

• Matrix Relationship
• Grid like structure
• Teams formed with people from various departments
• Helps huge conglomerate to manage work
• Where it is impossible to track each team independently
• More than one business level managers for each team
• Complex for small organizations
• Useful for large organizations
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CA Sunil Keswani