Management by Objectives
(MBO)• Managers AND employees define objectives for every department, project, and person and use them to monitor subsequent performance
• Divide problem into manageable, “bite-size” chunks
Essential Steps for MBO
• Set Goals (The most difficult step)
– What are we trying to accomplish? • Develop Action Plans
– “What do we need to do to get there?” – Groups and individuals
• Review Progress
– “How are we doing?”
– Periodically (How Often?)
Other Types of Plans
• Single-use plans - developed to achieve objectives that are not likely to be repeated
– Can be BOTH programs and projects
• Standing plans - used to provide guidance for tasks performed repeatedly
– Primary standing plans are organizational policies, rules, and procedures
The New Planning Paradigm
• Set stretch goals: Highly ambitious goals that are clear, compelling, and imaginative.
• Create an environment that encourages learning. • Design new rules for planning staff.
• Obligation to complete a task
– Assigned, assumed, or conferred
• Exists individually and at all levels of an organization
• Responsibility CAN be delegated but CANNOT be transferred
• Right to use assigned resources, including personnel, to accomplish a task or objective
– Right to issue orders and expect obedience – Power or control to act on responsibility
• CAN and should be delegated • Sources:
• Being answerable for responsibilities – Actions OR Failure to act
• Linked to responsibility
– Results NOT “intentions”
– Emphasizes necessity to consider all possible consequences
• CAN NEVER be delegated
• Improved Decision Quality
• Enhanced subordinate commitment • Time management
• Job enrichment
• Development of subordinates
– Creates learning opportunities – ID potential leaders
What to Delegate
• Tasks better done by subordinate • Urgent, not high priority tasks
• Tasks relevant to a subordinate’s career • Tasks of appropriate difficulty
• Both pleasant and unpleasant tasks
Types of Change
• Operational Change
– Efforts to improve basic work and organizational processes
• Improve Efficiency • Improve Quality
• Transformational Change
• Adoption of a new idea or behavior
• To survive/prosper organizations must
continuously adapt
• Leaders must:
– Observe trends, patterns, and needs – Identify threats/opportunities, then – Use planned change to adapt
Types of Change
• Operational Change
– Efforts to improve basic work and organizational processes
• Improve Efficiency • Improve Quality
• Transformational Change
“Learning Organization”
• Leadership provides vision/strategy • Positive environment
• Good Communication flow (Share Info) • Everyone involved (Empowerment)
• Redefine Culture:
Everyone engaged in problem
Everyone engaged in problem
solving
and
continuous
solving
and
continuous
Forces for Change
External Internal
Customers Management decisions
Competitors Employees
Technology InefcienciesProduction
Idea Champions
• Sees need for, and champions, change within the organization
• Change does not occur by itself
• Four roles in organizational change: – Inventor
Resistance to Change
• Self-interest• Perceived personal impact (Loss of something of value) • Loss of power/prestige/benefits
• Lack of understanding and trust
• Do not understand change or intentions behind it
• Uncertainty
• Lack information; Fear of unknown
• Change brings discomfort and dislocation
Implementation Tactics
to overcome resistance
• Communication/Education
– Information needed by those resisting change • Participation
– Involve resistors in designing change
– Helps identify potential problems and differences in perceptions among employees
Leadership Differences
Transactional leaders:
– Excel at management functions
– Are hardworking – Are tolerant
– Are fair minded.
Leadership Differences
Charismatic Leaders:
• Inspire/motivate people to do more, despite obstacles and personal sacrifice.
• State a vision of an imagined future with which employees identify.
Leadership Differences
Transformational Leaders:
– Bring about innovation and create significant change in followers and organization.
– Lead changes in the organization's mission, structure, and human
resource management.
– Focus on intangible qualities
Network Centric Warfare
• Speed of Command
– Information superiority – Understand vice data – Forces act with speed, precision, and reach
– Results rapidly foreclose enemy options, synergistic effects dominate
• Enables neutralization of enemy forces at outset of hostilities. Changes his strategy
• Exchanged-based relationship in which leader and followers get some (or all) of their needs met
– Reward for good performance – Discipline for poor performance
• Dependent on leader’s control of rewards and penalties
• Transitory:
Transactional Leadership
• Works well in stable organizations – Does military qualify?
• Generally easier to use. Why?Why?
• Transactional Leaders:
– Excel at management functions
– Stress plans, schedules and budgets
Transformational Leadership
• Leader has powerful vision of what organization could be
– Broadens employee interests to look past self-interest for the good of the group
– Raises standards/Challenges the status quo – Generates awareness and acceptance
Transformational Leadership
• Charisma (Draw to the leader)
– Vision, sense of purpose, larger meaning – Instill pride/Sense of being elite
– Gain respect and trust
