Page 105 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 6: Management by Objectives and Styles of Management

Notes
The reason for the excellence of Microsoft goes to the leadership of Mr Bill Gates and his
policies in which he propagates MBO
1. Eliminate politics, by giving everybody the same message.
2. Keep a flat organisation in which all issues are discussed openly.
3. Insist on clear and direct communication.

4. Prevent competing missions or objectives.
5. Eliminate rivalry between different parts of the organisation.
6. Empower teams to do their own things.
Questions
1. What is the prime reason for the success of Microsoft?
Ans. The foresightedness and MBO techniques of the senior management.
2. Analysing the caselet above, state whether the following are true or false.
(a) Round table conferences involving the concerned authorities are the best way
to solve an issue.
(b) Competition among different teams within the organisaion increases their
productivity.
(c) The teams should have independence as long as it doesn't hamper their
performances.
Ans. (a) True (b) False (c) True

6.5 Management by Exception

Management by Exception is a practice in which only the information that indicates a significant
deviation of actual results from the budgeted or planned results is brought to the management’s
notice. Its objective is to facilitate management’s focus on really important tactical and strategic
tasks. In this, the decision that cannot be made at one level of management is passed on to the
next higher level.
All organisations can use management by exception. When routine work results in acceptable
performance, no management attention is required. Managers who have properly trained their
subordinates should have no problems delegating authority and allowing people to manage
their own work. Managers are then able to devote their expertise and attention to non-routine
problems. Some managers have trouble allowing their subordinates to make decisions because
of control issues, but this psychological barrier will hamper their careers.

6.6 Styles of Management

Different styles of management exist in different parts of the world. We will discuss the American,
Japanese and Indian styles in brief.

6.6.1 American Style of Management

American management style can be described as individualistic in approach, in so far as managers
are accountable for the decisions made within their areas of responsibility. Although important
decisions might be discussed in open forum, the ultimate responsibility for the consequences of
the decision lies with the boss and every other supporter will vanish when things go wrong. But

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