BnR-Peng.Manajemen-Chap-081 Management by Objectives (MBO) Dr. Bagus Nurcahyo Program Studi Manajemen Pemasaran Direktorat Program D3 Bisnis & Kewirausahaan

BnR-Peng.Manajemen-Chap-082 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 Management by Objectives (MBO)

BnR-Peng.Manajemen-Chap-083 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?) –Does plan need to be tweaked? Appraise Performance –Rewards?

BnR-Peng.Manajemen-Chap-084 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 Contingency Plans – used to deal with dynamic situations or various scenarios

BnR-Peng.Manajemen-Chap-085 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. Make continuous improvement a way of life. Planning still starts and stops at the top.

BnR-Peng.Manajemen-Chap-086 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 Responsibility

BnR-Peng.Manajemen-Chap-087 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: –Positional and/or Personal Power Authority

BnR-Peng.Manajemen-Chap-088 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 Accountability

BnR-Peng.Manajemen-Chap-089 Improved Decision Quality Enhanced subordinate commitment Time management Job enrichment Development of subordinates –Creates learning opportunities –ID potential leaders Potential Advantages

BnR-Peng.Manajemen-Chap-0810 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 Tasks not central to the manager’s role

BnR-Peng.Manajemen-Chap-0811 Types of Change Operational Change –Efforts to improve basic work and organizational processes Improve Efficiency Improve Quality Transformational Change –Redesign/renew the entire organization Different product Complete remaking of organization

BnR-Peng.Manajemen-Chap-0812 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 Organizational Change Change can be managed, but not necessarily controlled

BnR-Peng.Manajemen-Chap-0813 Types of Change Operational Change –Efforts to improve basic work and organizational processes Improve Efficiency Improve Quality Transformational Change –Redesign/renew the entire organization Different product Complete remaking of organization

BnR-Peng.Manajemen-Chap-0814 “Learning Organization” Leadership provides vision/strategy Positive environment Good Communication flow (Share Info) Everyone involved (Empowerment) Redefine Culture: –Rethink roles, processes and values –Break old paradigms Everyone engaged in problem solving and continuous improvement

BnR-Peng.Manajemen-Chap-0815 Forces for Change ExternalInternal CustomersManagement decisions CompetitorsEmployees TechnologyProduction Inefficiencies Economic International Arena

BnR-Peng.Manajemen-Chap-0816 Idea Champions Sees need for, and champions, change within the organization Change does not occur by itself Four roles in organizational change: –Inventor –Champion –Sponsor –Critic

BnR-Peng.Manajemen-Chap-0817 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 Different assessments and goals Employees assess proposed change differently Indictment of current performance? Unmotivated employee?

BnR-Peng.Manajemen-Chap-0818 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 Negotiation - win acceptance with formal bargaining Coercion - resistors accept or suffer consequence. Only use when rapid response is urgent. Top Management Support –Support symbolizes importance –Without support, change unlikely

BnR-Peng.Manajemen-Chap-0819 Leadership Differences Transactional leaders: –Excel at management functions –Are hardworking –Are tolerant –Are fair minded. –Stress plans, schedules and budgets

BnR-Peng.Manajemen-Chap-0820 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. Shape a corporate value system for which everyone stands.

BnR-Peng.Manajemen-Chap-0821 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 Vision, shared values, ideas to build relationships –Provide common ground to enlist followers in changes.

BnR-Peng.Manajemen-Chap-0822 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 completely.Lock in our success, lockm out his alternatives. Self synchronization denies the enemy operational pause. Maintains awareness.

BnR-Peng.Manajemen-Chap-0823 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: –Effective as long as mutually beneficial –or leader present… Transactional Leadership

BnR-Peng.Manajemen-Chap-0824 Transactional Leadership Works well in stable organizations –Does military qualify? Why?Generally easier to use.Why? Transactional Leaders: –Excel at management functions –Stress plans, schedules and budgets Explain what is required/what will be received if requirements met –Initiate structure/Arms length dealings Goal = Change of behavior

BnR-Peng.Manajemen-Chap-0825 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 Cultivates strong bonds with followers –Bonds develop over time Goal = change of attitudes

BnR-Peng.Manajemen-Chap-0826 Transformational Leadership Charisma (Draw to the leader) –Vision, sense of purpose, larger meaning –Instill pride/Sense of being elite –Gain respect and trust Inspiration (Impact on followers) –Communicates high expectations –Uses symbols to focus efforts –Walks the walk: Takes calculated risks Proves belief in vision by actions