SUPERVISORY MANAGEMENT

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SUPERVISORY MANAGEMENT

• WELCOME TO
• SUPERVISORY MANAGEMENT
• WORKSHOP
• BRITISH VIRGIN ISLANDS
• January 16 17 2006
• Supervisory Management - Improving Behavioral
  Skills and Attitudes

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SUPERVISORY MANAGEMENT

• INTRODUCTION
• Besides their technical skills all employees
  including supervisors must be equipped with the
  Behavioral Skills and Attitudes needed to
  function in Organisations which command high
  Public Importance
• It is within this context that this Workshop on
  Supervisory Management is being conducted under
  the theme
• Supervisory Management - Improving Behavioral
  Skills and Attitudes

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SUPERVISORY MANAGEMENT

• Course Objectives
• Examine the main theories which have accompanied
  the development of organizational management
• Explore the relationship between the supervisor,
  employees and the organisation
• Introduce concepts of strategic planning
• 4. Define measures for effective management of
  employees.

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SUPERVISORY MANAGEMENT

• Course Outline
• DAY 1
• Am
• 900 - 930 Introduction to Course
• 930 - 1015 Organisational Management
  Theories
• 1015 - 1030 Break
• 1030 - 1230 Globalisation and The 21 st
  Century Organisation
• pm
• 130 - 230 Organisational Culture and
  Strategy
• 230 - 245 Break
• 245 - 4 00 Management, Leadership and
  Performance
• DAY 2
• am
• 900 - 1030 Assessing Management Styles
• 1030 1045 Break
• 1045 - 1230 Motivating People at Work
• pm
• 130 - 215 Case Study
• 215 - 300 Case Study (Group Reports)

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Factory System
• Adam Smith an industrialist The Wealth of
  Nations (1776) led to Production Systems which
  split work processes into separate units of
  workers performing one task with each unit
  controlled by a supervisor
• The first use of the term supervisor
• Role of the supervisor was to ensure that workers
  performed the task assigned to them (period)
• Workers still possessed knowledge of the work
  process and control over it

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Factory System
• The advantages, according to Smith, of this
  system were that
• Constant performance of a single simple task
  endowed a worker with greater dexterity
• Time was saved by avoiding movement between tasks
• Concentration of effort on one task leads to the
  invention of machines to aid productivity

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Factory System
• As far back as those days workers objected to the
  factory system and sought ways to undermine the
  work processes
• Factory system still progressed and permeated all
  levels of industrial life and commerce in general
• Feelings of antagonism towards new methods of
  working and the introduction of new technology
  still seen in the behaviour of some groups of
  workers today

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Fast Forward to early 1900
• Frederick Winslow Taylor Principle of
  Scientific Management
• Three central elements
• A systematic collection of knowledge about work
  processes by supervisors
• The removal of worker discretion and control over
  their activities
• The creation of standard procedures and times for
  performing certain tasks

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Frederick Winslow Taylor
• Principle of Scientific Management applied to
  the workplace as
• Work process under the strict control of
  supervisors who told workers
• What to do
• When to do it
• How long it should be done
• Compared to Adam Smith Role of the supervisor
  was to ensure that workers performed the task
  assigned to them
• Contd

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• The position of workers transformed
• from
• Monopoly of knowledge about the work process
  and control over it
• To
• Limited amount of knowledge and little or no
  control over the work process

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SUPERVISORY MANAGEMENT

• At the same time as TaylorFayol in France,
  Principles of Management
• Division of Work More and better work from the
  same effort, through the advantages of
  specialisation
• Authority and Responsibility Authority brings
  responsibility. Sanctions are required to
  generate useful actions
• Discipline Is essential for the efficient
  operation of the organisation
• Unity of Command Employees should receive
  orders from only one supervisor
• Contd

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SUPERVISORY MANAGEMENT

• Principles of Management
• Unity of Direction Effective co-ordination
  requires that there should be only one leader
  GM, CEO, MD
• Subordination of Individual/Group interests
  The interests of the organisation take precedence
  over those of the individual
• Remuneration Methods of payment should be fair
  and reward well-directed effort
• Centralisation Varies across the organisation
• Scalar Chain A chain of superiors from
  ultimate authority to the lowest ranks. Respect
  for line authority.
• Order A place for everything and everything in
  its place
• Contd

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SUPERVISORY MANAGEMENT

• Principles of Management
• Equity Fairness in dealing with all employees
  at all levels throughout the scalar chain
• Stability Prosperous organisations have stable
  managerial personnel
• Initiative A source of strength which should
  be encouraged
• Esprit de corps Harmony and unity are a great
  strength for the organisation
• Only these last four retained as valid
  Principles of Management? Discuss

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SUPERVISORY MANAGEMENT

• Principles of Management
• According to Fayol, Management has the
  responsibility of implementing these principles
  and therefore the duties of management were as
  follows
• Planning
• Organising
• Command and Control
• Co-ordination

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Human Relations Approach
• Two Central Concepts
• THE ORGANISATION
• Organisations are complex social systems and not
  mechanical. They require more than just simple
  close supervision, rigid rules and purely
  economic considerations and incentives for
  effective control ethics, the environment
• THE PERSON
• People are emotional beings as well as economic,
  they have both emotional and economic needs to
  satisfy. The work environment has to be
  structured so that it allows people to meet these
  important needs

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SUPERVISORY MANAGEMENT

• Organisation Management Theories
• Human Relations Approach has led to the
  Rationalistic approach to Human Resources which
  matches the Human Resource to the Business
  Strategy of the Organisation in treating the
  employee as a strategic resource that possesses
  skills and expertise that can be harnessed
  for the organisations competitive advantage

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SUPERVISORY MANAGEMENT

• Reflection
• Where are we today in BVI?

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• The Twentieth- and Twenty-first Century
  Organization Compared
• Twentieth Century Twenty-First Century
• Structure Structure
• Bureaucratic - Non-bureaucratic, with
  fewer rules and employees
• Multileveled - Limited to fewer levels
• Organized with the expectation that -
  Organized with the expectation expectation
  that senior management will manage
  management will lead and lower- level
  employees will manage
• Characterized by policies and - Characterized
  by policies and
• procedures that create many
  complicated procedures that produce the
• internal interdependencies minimal
  internal interdependence
• needed to serve customers
• 
  

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• The Twentieth- and Twenty-first Century
  Organization Compared
• Twentieth Century Twenty-First Century
• Systems Systems
• Depend on few performance information -
  Depend on many performance
• systems information systems,
  providing
• data on customers especially
• - Distribute performance data to executives -
  Distribute performance data
• only widely
• Offer management training and support
  systems - Offer management training and
• to senior people only support systems
  to many people

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• The Twentieth- and Twenty-first Century
  Organization Compared
• Twentieth Century Twenty-First Century
• Culture Culture
• Inwardly focused - Externally oriented
• Centralized - Empowering
• Slow to make decisions - Quick to make
  decisions
• Political - Open and candid
• Risk averse - More risk tolerant

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Economic and Social Forces Driving the need
for Major Change in Organizations Technological
Change International Maturation of Markets Fall
of Economic in Developed and
Socialist Integration Countries Regimes ---
--------------------------------------------------
--------------------------------------------------
---------------------------------------- Faster
and better com- Fewer tariffs Slower domestic
growth More coun- munication (GATT/WTO) trie
s linked to the capitalist syste
m Faster and better Currencies linked More
aggressive exporters More Transportation via
floating ex- privatization change
rates More information networks More global
capital More deregulation Connecting people
globally flows


THE GLOBALIZATION OF MARKETS and COMPETITION
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THE GLOBALIZATION OF MARKETS and COMPETITION

• More Hazards More Opportunities
• More competition - Bigger Markets
• Increased speed - Fewer Barriers
• More Large-scale change in organizations
• To avoid hazards and/or capitalize on
  opportunities, firms must become stronger
• competitors. Typical transformation methods
  include
• - Reengineering - Mergers and acquisitions
• - Restructuring - Strategic change
• - Quality programs - Cultural change

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SUPERVISORY MANAGEMENT

• ORGANISATIONAL CULTURE - Definitions
• The Pattern of basic assumptions that a group
  has invented, discovered or developed in learning
  to cope with the problems of external adaptation
  and integration, and that have worked well enough
  to be considered valid, and, therefore to be
  taught to new members as the correct way to
  perceive think and feel in relation to these
  problems
• A system of shared values (what is important)
  and beliefs (how things work) that interact with
  a companys people organisational system to
  produce norms (the way we do things around here)
• The deeper level of assumptions and beliefs that
  are shared by members of an organisation, that
  operate sub-consciously, and that define in a
  basic taken for granted fashion an
  organisations view of itself and its environment
• Organisational Culture is influenced to a large
  extent by the behaviour of the Chief Executive
  especially where such a person has been with the
  organisation for a long time

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SUPERVISORY MANAGEMENT

• ORGANISATIONAL CULTURE
• Organisational Culture influences behaviour in
  three areas
• Organisational Values Beliefs in what is best
  or good for the organisation and what should or
  ought to happen. They are expressed by reference
  to both goals and the means of achieving such
  goals
• Organisational Climate The working atmosphere
  of the organisation as perceived and experienced
  by its members. This will encompass how people
  feel about and react to the characteristics and
  quality of the organisational culture and its
  values
• Management Style The way in which managers
  behave and exercise authority. They may be
  autocratic or democratic, tough or easygoing,
  formal or informal. It also describes the way in
  which managers behave.

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SUPERVISORY MANAGEMENT

• ORGANISATIONAL CULTURE
• Getting the Basics right a Culture for success
• Clive Lloyds successful West Indies cricket
  team vs Current The West Indies Cricket Team????

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ORGANIZATIONAL CULTURE AND MINDSET

• Company Focus on doing the BASICS very well. 
• Its amazing how many departments have great
  visions yet fail to achieve their full potential
  - all the potential in the world but with no
  focus on executing the basics
• Many historic, recurring day-to-day problems
  (perhaps the same problems that plague your
  operation) can be permanently eliminated by a
  tenacious execution of the crucial basics.  The
  mastering of these basics can help you and your
  department reach full growth and potential.

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ORGANIZATIONAL CULTURE AND MINDSET

• 8 Basics for Organisational Success
• Customer Connectivity
• Information Integrity
• Performance Management
• Quality Management
• Teamwork Organisation
• Knowledge of Value
• Business Process Management
• Resource Planning

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CULTURE AND MINDSET
Basic 1 Customer Connectivity The reality
of customer responsiveness is in the eyes of the
beholder - the customer. The sooner we realize
and accept our customers' perceptions of our
services as reality, and accept it as our
challenge, the sooner we will earn their
confidence. Customer responsiveness and
satisfaction strategies must be developed
together with tactical plans that reduce customer
complaints and provide world class customer
service. In our line of business most delinquent
customers are dissatisfied with the service
received (???)
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CULTURE AND MINDSET
Basic 2 Information Integrity It is not
uncommon for supervisors to become disenchanted
with operating systems which fail to deliver on
time schedules and promised paybacks. Truism
acceptable systems results cannot be achieved
when systems are driven by inaccurate data and
untimely, uncontrolled documentation. For most
systems a key requisite to optimizing operational
performance is through the collection of accurate
and timely information.
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CULTURE AND MINDSET
Basic 3 Performance Management Measurement
systems can be motivational or de-motivational.
The individual goal setting of the 80s is a good
example of de-motivational measurement - it
tested one individual or group against the other
and while satisfying some individual egos, it
provided little contribution to overall company
growth and profit. Organisations must develop a
performance scorecard that will stimulate
innovation and increase the participation and
contribution of all employees.
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CULTURE AND MINDSET
Basic 4 Quality Management QUALITY is a
crucial business basics. For businesses to master
customer quality requirements, they need to
address quality as a total company change
initiative strategy. A formalize proven quality
management system is the preferred approach.   
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CULTURE AND MINDSET
Basic 5 Teamwork All employees in an
organisation must work as a team. Team dynamics
is predicated on the effectiveness of their
members to communicate  and share knowledge. As
with any organizational innovation, the
successful introduction of team dynamics requires
that ability to assimilate significant change.
Hierarchies must be flattened, employees must be
empowered to make and then implement decisions,
and new and at times unfamiliar technologies must
be adopted, various sources of resistance must be
addressed, plans must be clearly communicated,
and ownership of the new model of teamwork must
be widely deployed. 
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CULTURE AND MINDSET
Basic 6 Knowledge of what brings value to
the Organisation Developing  a visual map of the
value stream allows everyone to fully understand
and agree on how value is produced in the
organisation and where waste occurs. Analysis
of the processes which the maps represent will
help increase customer satisfaction by
identifying actions to decrease system
breakdowns, reduce costs, establish
customer-driven process performance measures,
reduce non-value-added steps, and increase
productivity.
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CULTURE AND MINDSET
The 8-Basics? Basic 7 Business Process
Management   Companies must develop strategies
to gain speed, quality and reduce costs by
reviewing their business processes.
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CULTURE AND MINDSET
The 8-Basics? Basic 8 Resource Planning
One of the major challenges in industry today
is the timely right sizing of operations. Profit
margins can be eroded by not taking timely
downsizing actions and market windows can be
missed and customer confidence lost by not
upsizing the direct labor force in a timely
manner. These actions demand timely, tough
decisions that require accurate, well-timed and
reliable resource information (Basic 2).
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BALANCED SCORECARDS

• Strategic Planning

• Strategic planning is a business process that
  many companies employ to identify their critical
  success targets that set the course for future
  growth and profits.
• Strategic Planning is an essential process in
  mastering the 8 Basics for Organisational
  Success.
• Lewis Carroll in Alice in Wonderland makes a
  good case for it Would you tell me, please,
  which way I ought to go from here? said Alice.
  That depends a good deal on where you want to
  get to, said the Cat. I dont much care
  where, said Alice. Then it doesnt matter
  which way you go, said the Cat.

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BALANCED SCORECARDS

• Strategic Planning

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BALANCED SCORECARDS

• Strategic Planning

In developing a strategic plan three key
questions are considered 1. Where are we
today? 2. Where do we want to go, and when?
and 3. How do we get from here to there?

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BALANCED SCORECARDS

• Strategic Planning

Like most business processes, the key to
success is in the effective implementation of the
plan. Companies that do a good job of developing
and executing their strategies can create a
competitive edge. Organizations that turn their
plan into a "dust collector" sitting on an
executive bookshelf, will never achieve their
full potential. The key to success is the design
and implementation of a balanced scorecard.

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• STRATEGIC PLANNING

• The Management Process
• Situation analysis
• Objectives and strategies
• Critical success targets
• Implementation
• Benefits
• An understanding of the Utilitys vision
• A focus on critical success targets
• Team commitment and empowerment
• Foundation for the Balanced Scorecard

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SITUATION ANALYSIS

• As part of So Called SWOT Analysis
• Identifying and Evaluating Internal Factors
• Strengths
• Customer Service
• Product Innovation
• Staff Knowledge
• ?
• Weaknesses
• A weak Dollar
• Long Delivery Cycle Time
• Poor on-time delivery performance
• ?

Where are we today?
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SITUATION ANALYSIS

• Identifying and Evaluating External Factors
• Opportunities
• Poor Distribution
• Marginal field service support
• ?
• Threats
• Metric products
• Aggressive new competitors
• ?

Where are we today?
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SITUATION ANALYSIS

• Developing the Mission Statement

MISSION STATEMENT
THE COMPANY
THE CUSTOMER
THE MARKETPLACE
What business are we in? How do we
describe our customer?
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OBJECTIVES AND STRATEGIES

• Objectives
• Categories
• Financial
• Customers
• Internal Business Processes
• Innovation and Learning
• Criteria
• Single theme for each
• Results oriented and quantified
• Ownership identified
• All objectives in concert with each other
• Challenging and achievable

Where do we wish to arrive, and when?
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OBJECTIVES AND STRATEGIES

• Defensive Strategies
• Solve internal weaknesses which make the
  organization vulnerable to external threats

DEFENSIVE STRATEGIES
INTERNAL WEAKNESSES
EXTENAL THREATS
How do we get there from here?
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OBJECTIVES AND STRATEGIES

• Competitive Strategies
• Utilize internal strengths to take advantage of
  external opportunities

STRATEGIES TO BUILD ON STRENGTHS
INTERNAL STRENGTHS
EXTERNAL OPPORTUNITIES
How do we get there from here?
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• Technology Leadership
• Value Delivery Systems
• Operations Effectiveness

CRITICAL SUCCESS TARGETS
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• Technology Leadership
• The best use of available technology

CRITICAL SUCCESS TARGETS
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CRITICAL SUCCESS TARGETS

• Value Delivery System
• Quality
• The ISO-9000 System
• The Baldrige System
• The home grown system
• Customer perception is reality
• Service
• Request-for-system expansion responsiveness
• Technical assistance
• Service call responsiveness
• Price
• Cost-of-services
• Tariff

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CRITICAL SUCCESS TARGETS

• Operations Effectiveness
• Productivity
• Management performance monitoring
• Best-in-class housekeeping
• Speed
• An assault on turnaround times
• Continuous improvement - elimination of waste
• Quality
• Customer quality service reports
• No status quo mind-set

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IMPLEMENTATION
Lessons Learned

• Success Criteria

CORPORATE VISION

• Must Dos
• Demo executive commitment
• Encourage participation
• Select the right staff to join team
• Easy access to information
• Focus on critical success targets
• Set well-defined objectives
• Consider available resources
• Communicate plan
• Include balanced scorecards as your integrated
  performance measurement system

STRATEGIC PLAN
ACTION PLAN-A2
ACTION PLAN-A3
ACTION PLAN-A1
ANNUAL BUSINESS PLAN
PLANS BUDGETS
PLANS BUDGETS
PLANS BUDGETS
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IMPLEMENTATION

• Obtaining Required Commitment
• Pre-planning steps
• Demonstrate managerial commitment
• Selecting the right planning team and
  information
• Soliciting input from employees
• Execution steps
• Encouraging participation
• Focusing on Critical Success Targets
• Setting well-balanced, qualified objectives
• Considering available resources
• Developing a balanced scorecard
• Post-planning steps
• Communicating and deploying the plan
• Linking strategic to tactical planning
• Fine tuning the planning process

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IMPLEMENTATION

• The Action Plan
• State the objective of the plan. Is it relevant?
• Identify the individual who has overall ownership
  for the success of the plan.
• Identify the individuals who have responsibility
  for the success of each action step in the plan.
• Indicate the due date of completion of each step.
• List results oriented steps. . . Using action
  verbs to describe each.
• Identify the resources (human, capital and
  facilities) required to perform the action steps.

Lessons Learned
RESPONSIBLE INDIVIDUAL
DATE COMPLETE
DUE DATE
ACTION STEPS
COMMENTS
RESOURCE REQUIREMENTS
TIME PERIOD
COMMENTS
PEOPLE
FINANCIAL
EQUIPMENT
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THE MANAGEMENT PROCESS

• 1.Situation Analysis
• Identifying and evaluating internal factors
• Identifying and evaluating external factors
• Developing the mission statement
• 2.Objectives and Strategies
• Strategic objectives
• Defensive strategies
• Competitive strategies
• 3.Critical Success Targets
• Technology Leadership
• Value Delivery System
• Operational Effectiveness
• 4.Implementation
• Success Criteria
• Resource Management
• The Action Plan

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STRATEGIC PLANNING BALANCED SCORECARDS

• Purpose
• Improve results from strategic planning
• Articulate the Utilitys business vision
• Communicate the Utilitys critical success
  targets
• Achieve utility-wide understanding and commitment
  to the strategic plan
• Develop and execute tactical plans in support of
  critical success targets
• Create a work environment that fosters
  performance measurement, recognition and reward

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STRATEGIC PLANNING BALANCED SCORECARDS

• BSC can be used for first time strategy
  development or for an institution which already
  has a strategy to up-date its strategy
• Up-dating strategy Process
• Assessment of Strategy
• Revise Strategy
• Selection of Metrics

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STRATEGIC PLANNING BALANCED SCORECARDS

• Process
• Assessment of Strategy
• Strategy is assessed from 4 Perspectives
• Financial
• What are the organisations financial goals
• Customer
• What value propositions are offered to customers
• Internal Business Processes
• What key Business Processes will enable delivery
• on value propositions
• Learning and Growth
• What skills and infrastructure are necessary for
• maintaining long-term growth of the organisation

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STRATEGIC PLANNING BALANCED SCORECARDS

• Process
• Revise Strategy
• Revise the strategy in the light of answers to
  questions posed and select strategic objectives
  for each of the 4 Perspectives

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STRATEGIC PLANNING BALANCED SCORECARDS

• Process
• Selection of Performance Metrics
• Select meaningful Performance metrics that gauge
  whether the Objectives are being met for each of
  the 4 Perspectives
• A good mix of lag and lead metrics is required

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STRATEGIC PLANNINGSTRATEGY MANAGEMENT SYSTEM

• A Strategy Management System (SMS) is a framework
  within which a company could keep under constant
  review documented plans developed to address the
  major issues facing the institution, taking into
  consideration the interest of its owners,
  customers and changes in the internal and
  external environments.
• The major output of a SMS development exercise is
  a strategy matrix. The strategy matrix combines
  the analytical thoroughness of the Logical
  Framework Method with the performance measurement
  driven approach of the Balanced Scorecard method
  of strategy formulation.

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STRATEGIC PLANNINGSTRATEGY MANAGEMENT SYSTEM

• The strategic matrix gives a concise description
  and performance metrics for
• Management vision for the organization
• Strategic objectives to be adopted in order to
  keep the vision in focus
• Specific outputs critical to the achievement of
  the objectives and
• Activities to be undertaken to produce the
  identified outputs.
• The concept of the strategy matrix was
  developed by CBWMP and used by this organization
  in its own strategic planning.

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STRATEGIC PLANNINGSTRATEGY MANAGEMENT SYSTEM
Central Water and Sewerage Strategy Matrix
63

• OVERCOMING OBJECTIONS

• Objections
• We know it all already
• Its too labor intensive
• We have limited control over results
• The results will be used against us
• Management will misuse the results
• They will score us by unfair standards
• Too much complexity
• Too expensive to deploy

64

• OVERCOMING OBJECTIONS

• Overcoming Objections
• Overcome objections by commitment in particular a
  commitment to performance measurement
• Commitment should be built early in the planning
  process by getting everyone involved and
  encouraging suggestions and comments at all
  levels especially from those who have to
  implement the action plans
• The strategic plan should be widely circulated
  and sold to employees at all levels of the
  organisation
• During implementation plans should be
  periodically reviewed and lessons learned

65

• Performance Measurement

Financial numbers may tell us were winning the
war, but it takes complete performance
measurements to focus our energy and efforts to
win each of the battles along the
way. Supervisory Management - Improving
Behavioral Skills and Attitudes

66
MAINTAINING SYSTEM CREDIBILITY

• Establishing a Measurement Mindset

THERE IS NO STATUS QUO!
YOURE EITHER WINNING OR YOURE
LOSING
There is no effective control without
measurements!
67

• PERFORMANCE MEASUREMENT

• Issues To be Addressed
• Why performance measurements
• Benchmarking
• Benefits
• Proactive motivation
• Participative goal setting
• Process ownership

68

• PERFORMANCE MEASUREMENT

Performance measurement has a special role in
Strategic Planning and Implementation Performance
measurement also necessary in operational
management
69
BALANCED SCORECARDS

• Performance Measurement

• Performance measurements provide the foundation
  for organisational success and is a Critical
  Element of Supervision
• Without metrics to establish and track where we
  are and where we want to go, there is little
  incentive to make positive changes happen.
• If we are to be successful in our pursuit of
  aggressive change we must develop a rational
  performance measurement methodology that achieves
  total company commitment.
• An important element in a performance measurement
  system is the ability to capture relevant data
  that will provide a valid assessment of how the
  process is being performed. To this end, we need
  to establish ownership of the process, then get
  the process owner involved in establishing an
  appropriate method of performance measurement.
  Without this happening, there will be no
  worthwhile commitment to goal attainment.

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WHY PERFORMANCE MEASUREMENT

• Performance Measurement FOR Strategic Alignment

Credible Sales Forecasting
Efficient Prodn and Distribution
As Received Quality
Timely Infrastructure Development
Yes
Yes
Yes
Yes
Project Mang. Function Review
Forecast Commercial Operations Review
Materials and Scheduling Process Review
Quality Standards Review
No
No
No
No
Bottom Line Results
Total Customer Satisfaction
Inventory Effectiveness
Profit Margins
Yes
Yes
Yes
Balanced Scorecard Process Review
Feedback and Proactive Process Review
Days of Supply Process Review
Cost vs Revenue Review
No
No
No
No
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WHY PERFORMANCE MEASUREMENT

• Management By Facts

Without data, you're just another opinion.
SELECT PROBLEM
PARETO DIAGRAM
HISTORGRAM
SCRAP
REWORK
ANALIZE PROBLEM
DATA COLLECTION
ID ROOT CAUSE
CHECK SHEET
CONTROL CHARTS
GRAPH
SCATTER DIAGRAM
PLAN X ACTIONS
CONFIRM RESULTS
AFTER
BEFORE
FINE TUNE
ACTION 1
ACTION 2
TIME
2-3
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MAINTAINING SYSTEM CREDIBILITY

• Establishing a Measurement Mindset

THERE IS NO STATUS QUO!
YOURE EITHER WINNING OR YOURE
LOSING
There is no effective control without
measurements!
73
MAINTAINING SYSTEM CREDIBILITY

• Establishing a Measurement Mindset

Reflection Establishing a performance measurement
mindset is the responsibility of management?
There is no effective control without
measurements!
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MAINTAINING SYSTEM CREDIBILITY

• Databases, Ownership and Maintenance
• Simple Department Processes
• User process owner
• Database chalk board, tick chart and hand plot
  graphs
• Maintenance process customer
• Complicated Processes - Service Delivery
• Users process owner or team
• Database Excel spreadsheet and computer graphs
• Maintenance assigned team member
• Intradepartmental Processes - Cost of Quality
• User functional manager or self-directed process
  team
• Databases computerized business systems down
  loaded to Access for additional input forms and
  graphs
• Maintenance MIS and/or team data specialist
• Remember, Without data, you're just another
  opinion.

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MAINTAINING SYSTEM CREDIBILITY

• Some Requisites for Success
• Management acceptance and support Commitment
• A few good champions
• Trust and understanding
• Valid, timely and consistent measurements
• Need to review and adjust range of metrics
• Demonstrated benefits from use of system
• A want to succeed business culture
• A true sense of accomplishment
• Change in Behavioral Skills and
• attitudes

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BENCHMARKING

• Internal - A Good Starting Place
• Define critical company success factors
• Identify relevant work processes and prioritize
  by importance
• Identify process owners and internal customers
• Agree on current performance levels and establish
  data measurements
• Negotiate improvement goals - celebrate the goal
  achievements and reset the marks

77
BENCHMARKING

• External - Some of the Options

• Customers
• Non-Competitive Businesses
• Competitors
• World Bank
• CBWMP
• Institute of Quality and Productivity -SDSU
• Your Best Option Industry Week
• The Benchmarking Tool Kit - www.cbwmp.tzo.org

78
Performance Measurement Recap

• Why Performance Measurements
• Management by facts
• Strategic Alignment
• Maintaining System Credibility
• Establishing a measurement mindset
• Databases, ownership and maintenance
• Some requisites for success
• Benchmarking
• Internal - a good starting place
• External - some of the options
• Supervisory Management - Improving Behavioral
  Skills and Attitudes

79
A Straight From the Internet Story
I rarely open joke e-mail messages. Not that I
don't enjoy a good joke but rather because I am
not usually in the mood for a joke when I am on
the Internet. However, once in awhile, I will
open one and on this occasion it was worth
it. On June 20th 1969, Neil Armstrong, commander
of the Apollo -11 Lunar Module, stepped onto the
moon and said, "That's one small step for man,
one giant leap for mankind." When reentering the
module, he made a brief statement, "Good luck, Mr
Gorsky." When back in the USA many reporters kept
asking him what was the significance of the
Gorsky statement. He never responded with an
answer. Many speculated that it was a message to
a Soviet astronaut. On July 5th, 1995, when
once again he was asked the 26 year-old question,
he finally replied. In 1938 when I was a kid in a
small Midwestern town, we used to play baseball
in a field in the back of my house. One day, one
of my friends hit a ball over the fence into my
neighbor's yard. I jumped the fence to retrieve
the ball that had landed up against Mr. and Mrs.
Gorsky's house directly under their bedroom
window. When I stooped to pick up the ball, I
could hear Mrs. Gorsky yelling at Mr. Gorsky, "
Sex! You say you want sex! You'll get sex when
the kid next door walks on the moon!"
80
SUPERVISORY MANAGEMENTQUALITY

• Buzz Words
• Quality System
• Quality Assurance System
• Quality Management System
• Customer Satisfaction System
• Total Quality Management
• What do all these terms really mean?

81
SUPERVISORY MANAGEMENTQUALITY

• What is Quality?
• We associate the term quality with
• Degree of excellence
• Superiority of some kind
• A desired characteristic or feature
• For example Rolls Royce car
• But there are more Toyotas on the road than
  Rolls Royces. We therefore know that quality is
  notoriety, and quality could come at a price.
  But Toyotas have are popular and the Toyota
  Company is successful because, to some measure,
  they produce cheap, quality cars. So therefore
  what exactly is Quality.

82
SUPERVISORY MANAGEMENTQUALITY

• For the Public Sector
• Quality is associated with
• What the public wants eg clean water
• When it wants it eg 24 hour supply of water,
  daily garbage collection
• At a price customers are prepared to pay (produce
  and supply at as low cost as possible)
• For the Private Sector, the bottom-line to
  quality is profit The Business primary goal or
  Success
• SuccessBusiness GoalProfitQuality

83
SUPERVISORY MANAGEMENTQUALITY

• Therefore
• A Quality system can be defined as the
  organisational structure, responsibilities,
  procedures, processes and resources required to
  achieve the organisations goals and objectives
• As the quality system is about management of
  the business it is also referred to as a Quality
  Management System
• And where it provides assurance for customers
  and managers it is called a Quality Assurance
  System

84
SUPERVISORY MANAGEMENTQUALITY

• Organisations that possess a Quality system have
  documented their system in writing in the form of
  Manuals, Procedures and Instructions.
• One such system is called Total Quality
  Management
• Do BVI Gov. Depts. have Quality Systems?

85
SUPERVISORY MANAGEMENTPRINCIPLES OF MANAGEMENT

• Management had the sole responsibility of
  implementing the Principles of Management and
  therefore the duties of Management were as
  follows
• Planning
• Organizing and Co-ordinating
• Command and Control
• More or less Supervisors are called upon to
  perform the Same duties today

86
SUPERVISORY MANAGEMENTPRINCIPLES OF MANAGEMENT

• Planning
• Agreeing on departmental/unit/section/division
  goals
• Clarification of tasks to be performed by
  employees under his/her control
• Making sure that employees have the resources to
  function
• Ensuring that systems for record keeping and
  communications are set up and meet the section
  goals
• Setting of standards and performance benchmarks

87
SUPERVISORY MANAGEMENTPRINCIPLES OF MANAGEMENT

• Organising and Coordinating
• Ensuring work on tasks is taken forward in a
  rational manner
• Ensuring a smooth flow of resources to employees
• Devolving responsibilities and sub-tasks to
  employees
• Ensuring coordination of activities in the
  section
• Keeping in focus the results expected and not
  being side-tracked
• Arranging for evaluation of results achieved
• Arranging for employee evaluation and feedback
• Arranging for employee training
• Making sure liaison and communication take place
  with management who are expecting results

88
SUPERVISORY MANAGEMENTPRINCIPLES OF MANAGEMENT

• Controlling
• Ensuring that standards are adhered to, deadlines
  are met and decisions are made
• Checking on feedback from management on
  achievement of results to date
• Making sure that all contribute to the units
  efforts
• Making sure that evaluation of sections work
  takes place and what is learned is integrated
  into future work
• Making sure that employee performance is rewarded
• Directing workers on how to perform tasks???

89
SUPERVISORY MANAGEMENTLEADERSHIP

• In most organizations a strain exists between the
  individual and management especially in the area
  of organization and individual goals
• This strain is played out in the workplace in the
  attempts by the organization, through its
  management, to exercise control over its
  employees
• The power of an organizations management to
  control its employees rests either in specific
  positions, a person or a combination of both
• An individual whose power is chiefly derived from
  his/her organizational position is referred to as
  an official (manager)
• An individual whose ability to control others is
  chiefly personal is referred to as an informal
  leader.
• One who commands both is a formal leader
• Modern organizations thrive on formal leadership
  

90
LEADERSHIP

• The Twelve Major Attributes Of Leadership are
• A Willingness To Try The Untried
• Self Motivation
• A Keen Sense Of What Is Fair
• Definitive Plans
• Decision Stickability
• The Habit Of Going The Extra Mile
• A Positive Personality
• Empathy
• Mastery Of Detail
• Willingness To Assume Full Responsibility
• Duplication
• A Deep Belief In Their Principles

91
LEADERSHIP

• A Willingness To Try The Untried
• No employee wishes to be led by a supervisor who
  lacks courage and self confidence
• It is a positive leadership style that takes on
  challenging tasks or takes opportunities that
  have not been tried before
• A supervisor knows in taking certain actions
  he/she might be unsuccessful, but by leading by
  example, will maintain the motivation of
  employees.

92
LEADERSHIP

• 2. Self Motivation
• The supervisor who cannot motivate himself has
  not the slightest chance of being able to
  motivate others

93
LEADERSHIP

• A Keen Sense Of What Is Fair
• In order to retain the respect of employees a
  manager must be sensitive to what is fair and
  just
• A leadership style whereby all people are treated
  justly and equally always creates a feeling of
  security

94
LEADERSHIP

• Definitive Plans
• A good leader plans the work and then works the
  plan

95
LEADERSHIP

• Decision Stickability
• The supervisor who waivers in the decision-making
  process shows that he/she is unsure of
  him/herself, whereas an effective leader makes a
  decision after giving sufficient thought to the
  problem
• However, a good leader does not stick
  unreasonably to a bad decision

96
LEADERSHIP

• The Habit Of Going The Extra Mile
• Leaders are willing to do whatever and more than
  they ask of employees
• The supervisor who arrives before the employee
  and leaves a little bit later is one example of
  this attribute of leadership

97
LEADERSHIP

• 7. A Positive Personality
• Employees respect this quality, it not only
  inspires confidence but also builds and maintains
  an enthusiastic team sprit

98
LEADERSHIP

• Empathy
• The successful leader must have the ability to
  put himself in the shoes of his employees to be
  able to see the world from their side
• He does not have to agree with others but must be
  able to see how they feel and understand their
  viewpoint

99
LEADERSHIP

• 9. Mastery Of Detail
• The successful leader understands and carries out
  every detail of his job and has the knowledge and
  the skill to master the responsibilities that go
  with the position

100
LEADERSHIP

• Willingness To Assume Full Responsibility
• A good leader must be willing to take full
  responsibility for the mistakes of followers
• Should a follower make a mistake, perhaps through
  incompetence, the leader must consider that it is
  he, himself who has failed
• The effective leader accepts the cliché The
  buck stops here

101
LEADERSHIP

• 11. Duplication
• The effective leader is always looking for ways
  of duplicating the skills in other people. In
  this way, he develops others.

102
LEADERSHIP

• A Deep Belief In Their Principles
• The effective leader has a determination to
  achieve goals, no matter what obstacles come
  along, and believes in what he or she is doing
  with a determination to fight for it.
• Unless we stand for something we will fall for
  anything

103
Management versus Leadership


104
Management versus Leadership
105
Management versus Leadership
106
Self-Evaluation Characteristics of Effective
Leadership The questions below relate to
characteristics of effective leaders. Use the
questions to evaluate whether you possess these
characteristics. Use the results to see where
you might focus to strengthen your leadership
skills.
107



108

109
MOTIVATION

• Definition
• Motivation is getting somebody to do something
  because they want to do it. Motivation is
  charcterised by a set of internal and external
  driving forces which activate, channel and
  sustain behaviour towards some individual, group
  and organisational and societal goals
• Analyse this definition considering the following
  questions
• Activate (does this mean create?)
• Channel (is the implication that the forces
  colour the individuals personality?)
• Sustain (do the driving forces provide
  consistency and continuity?)
• Behaviour (What is behaviour?)
• Organisational goals (are they contingent on
  organisational culture?)
• Societal goals (what is the impact of the social
  system on the driving forces?)

110
MOTIVATION

• MOTIVATION
• MANAGEMENT FUNCTION TO ENSURE THAT ALL EMPLOYEES
  ARE MOTIVATED
• EMPLOYEES MUST ALSO ACCEPT RESPONSIBILITY FOR
  SELF-MOTIVATION

111
MOTIVATION

• Theories of Motivation
• From the earliest records of time men have been
  trying to motivate themselves and others
• Recall Friends Romans country men lend me your
  ear etc. one of the greatest motivational
  speeches ever recorded.
• For those who read the Bible
• For God so loved the world that he gave his
  only begotten son so whosoever believeth in him
  shall not perish but have everlasting life

112
MOTIVATION

• THEORIES OF MOTIVATION
• Frederick Taylor who could be described as the
  father of motivational theory postulated that
  managers should concentrate on one over-riding
  need which provided the reason why people work
• THE NEED FOR MONEY!
• Taylors approach called Scientific Management
  was simple
• Organise the work to produce the most efficient
  method of operation
• Ensure that payment was dependent on productivity
  so that there was a financial incentive for
  employees to work hard
• INCENTIVE MOTIVATION

113
MOTIVATION

• THEORIES OF MOTIVATION
• Hawthorne studies drew attention to the
  socio-psychological aspects of behaviour at work
• Simply put
• Peoples motivation for work extends way beyond
  THE NEED FOR MONEY
• OTHER ELEMENTS
• ATTITUDE MOTIVATION
• THE RIGHT ENVIRONMENT

114
MOTIVATION

• THEORIES OF MOTIVATION
• Mc Gregor
• Theory X and Theory Y
• Under Theory X managers assume
• Employees inherently dislike work and wherever
  possible attempt to avoid it
• Since employees dislike work, they must be
  coerced, controlled or threatened with punishment
  to achieve management ends
• Employees will shirk responsibilities and seek
  direction wherever possible (shun autonomy)
• Most workers place job security above all other
  factors associated with work and will display
  little ambition

115
MOTIVATION

• THEORIES OF MOTIVATION
• Mc Gregor
• Under Theory Y managers assume
• Employees can view work as being as natural as
  rest or play
• People will exercise self-direction and
  self-control if the feel committed to the
  objectives of the company. Employee
  participation in decision making will lead to
  commitment to decisions
• The average person can learn to accept, even
  seek, responsibility. Thus he or she should be
  given greater opportunity to experience both more
  autonomy and more participation
• Creativity in problem solving is widely dispersed
  throughout the population. Judgment in decision
  making is not necessarily in the sole possession
  of those in management positions

116
MOTIVATION

• THEORIES OF MOTIVATION
• Self Test Philosophy of Management
  Questionnaire

117
Philosophy of Management INTERPRETATION

• Directions The following descriptions gives an
  indication of your management philosophy and how
  strongly you hold the assumptions associated with
  it.
• ? If your score falls between 144 and 0, your
  management philosophy is based on Theory Y
  assumptions. The closer you fall to 144, the
  more strongly you hold these assumptions and the
  fewer Theory X assumptions you hold. The closer
  your score is to 0, the more your management
  philosophy reflects a mix of Theory Y and Theory
  X assumptions.

118
Philosophy of Management INTERPRETATION

• ? If your score falls between 0 and -144, your
  management philosophy is based on Theory X
  assumptions, The closer you fall to -144, the
  more strongly you hold these assumptions, and the
  fewer Theory Y assumptions you hold. The closer
  your score is to 0, the more your management
  philosophy reflects a mix of Theory X and Theory
  Y assumptions.
• Theory Y
• You believe that
• ? Management should create conditions that
  enable and encourage employees to attain their
  own goals by working towards the goals of the
  organization
• ? Employees are inherently ready to accept
  responsibility, do a good job, and work in the
  best interest of the company
• ? It is managements responsibility to create
  the conditions that will allow
• employees to develop their fullest potential

119
Philosophy of Management INTERPRETATION

• Theory X
• You believe that
• ? Managements only responsibility is to
  improve the companys bottom line.
• ? The employees of an organization are tools to
  be used to meet this goal
• People are basically unwilling to work
  in the best interests of the company, cannot
  handle responsibility, and must be tightly
• controlled, prodded, and punished to get their
  work done.

120
Philosophy of Management INTERPRETATION

• What do the results of this questionnaire tell
  you about your philosophy of management?

121
MOTIVATION

• THEORIES OF MOTIVATION
• Mc Gregor

122
MOTIVATION

• THEORIES OF MOTIVATION
• Maslows theory (1950s) was an attempt to set
  out a pattern in the range of needs and to
  indicate whether some needs are more important
  than others.
• Maslows hierarchy of pre-potency is explained
  as
• Needs higher up the hierarchy (lower
  pre-protency) do not motivate behaviour unless
  there is some degree of satisfaction of the lower
  order needs.

123
MOTIVATION

• THEORIES OF MOTIVATION
• Maslows Hierarchy of needs
• Self-actualisation Our own standards and
  values which are the motivating force of our need
  for autonomy
• Esteem To be valued, liked or esteemed by the
  group around us
• Social Contact with others in search of
  friendship, affection and a sense of belonging to
  a group
• Safety Protection against threat, danger and
  deprivation
• Physiological Food, water, shelter and
  reproduction

124
MOTIVATION

• THEORIES OF MOTIVATION
• REFLECTION
• In some ways people everywhere are similar to
  one another. We want to be loved, we care about
  the respect of other people and of ourselves, and
  we do not like to feel taken advantage of.
• Do you agree?

125
MOTIVATION

• THEORIES OF MOTIVATION
• Principle of Management By Objectives Approach
  Peter Drucker
• Clear goals and Targets with incentives for
  achievement and corrective action (not sanctions)
  for failure are motivating and enable people to
  channel their energies in a focused way.
• MBO combines elements of Taylor and Maslow and
  is the basis for many modern Performance
  Management Systems

126
MOTIVATION

• THEORIES OF MOTIVATION
• Management By Objectives
• Major drawbacks
• The effect of goal setting may reduce with time,
  the initial enthusiasm wears off and motivation
  declines
• Problems in harmonising individual and
  organisational goals
• Demotivating where system is corrupt

127
MOTIVATION

• THEORIES OF MOTIVATION
• Herzberg Two-Factor Theory
• Sought to provide an explanation about what gave