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Index Page » Business & Commerce » Business Administration
 

Dynamic Management

 
Author: G Ram Kumar

Traditional management techniques are based on the model 'Plan->Execute->Control'. This approach has certain difficulties in the implementation of all the three stages. The question of reliability of basic facts and forecasts for needed planning, effect of external influences on its execution and influence of time factor in control measures are problems faced by many. These problems emanate from the assumption that business criteria are static. I real life situations everything in business is dyanimc and ever changing. It is important to adapt all our management techniques to the changing circumstances. By radically changing our approach to devising of management techniques we can evolve a 'dynamic management.'

Difficulties in Traditional Management Techniques:

Planning:

  • Nobody is sure what will happen in future. This makes plan and forecasts very difficult to make.

  • Dependance on any survey and analysis is not fully reliable. Nobody knows whether the basis of plan is correct.

    Nobody knows whether the plan is optimal.

  • It is very difficult to optimize the plans scale and time frame which invariably change during the course of their execution.

Execution:

  • How to ensure the success of the execution?

  • How to correlate the human and impersonal elements?

  • How to manage the influence of external and unforeseen forces?

Control:

  • iAre you able to monitor the flow of tasks?

  • Can you control something before it is too late or do a post mortem?

  • Does controls hinder the smooth flow and processing of tasks?

We are tempted to set targets and achieve it. We call it a success if the target is achieved and explore the reasons if we fail. What we should do, infact, is set the direction and not ' limit ' the progress by setting the targets. Should we target to a preconceived imaginary state of affairs at a future date? Only top management has to worry about target if any and all below will do something ancillary to or incidental to that target. Even top management can do away with setting a target limit and instead set the direction of progress.

We devise all management structures based on some preconceived notions and situations. When we encounter variations in real life situations we resort to crisis management or atleast to a revision of the original plan. What confusion and mess these variations create is known to everybody.

Many are obsessed with perfection and meticulous adherence to the rules. One need to be perfect in the completion of the tasks not necessarily in the procedures and processes.

What we need?

The purpose of management techniques is to simplify tasks and not complicate them. There has to be automatic delegation of tasks. The work has to proceed unhindered to infinite levels. Nobody need to be stressed about the outcome. If we proceed on a definite path and the guidelines are flexible enough to adjust to change, the results are bound to be desirable.

Let's study the management atmosphere in the fields of Science and Technology especially Research and Development, Government Operations, Religious Activities, Family Affairs, Traffic Management, Disaster Management, War Tactics. etc. There is no real Target in these areas but only guidelines to go about because the end is not predictable. We should adopt the same approach in business management also. We have to only set the direction of progress and nothing else.

The management techniques should automatically optimize all tasks and results. It has to minimise, maximise or change the affairs as and when required and optimise the time and scale of operations.

All business activities are carried out by, after all, humans. It can not be just abstract and impersonal. We have to accept the human element in all business affairs. You may observe that in many companies discretionary decisions are taken by two or three persons on a regular basis and they are indispensable for the functioning of the business. If they exit the business mostly fails.

What is Dynamic Management?

What we actually need is simple - a Management Plan and Management Guidelines. It comprises of five major guidelines to be adopted at every level from top to bottom. They are:

  • Direct
  • Change
  • Minimise
  • Maximise
  • Humanise

The individual requirements of each business will vary and I can only suggesst broad framework for such a dynamic approach.

Direct:

Top management sets the direction towards which the whole organisation has to proceed. It may include the future vision, values, preferences, infrastructure, aspirations, status, image and anything but no goals. Simply state what you like and what you don't like. What should be in the plan is up to the top management to decide. The plan is some sort of a mission statement. Define the powers and limits for each task not for each person, wherever that person may be in the organisation. In the guidelines for the accomplishment of each major task state what can be done without any further query, what should not be done whatsoever, what need to be authorized by someone.

Change:

Give guidelines for change. What can be modified, altered, enlarged or reduced, reset, etc. have to be clearly defined. What should not be changed should also be stated. By change we mean elimination, substitution, and alteration also. If something can be changed it should be changeable by the person doing the task and should not require the approval of another. There should be proper and clearcut guidelines about when and only when something can be changed. Again, the emphasis is on the completion of the task and not on who is empowered to authorize the change.

Minimise:

Big is small. Only a handful of criteria is really important. Rest are all less important and ancillary. Concentrate on the few important aspects of any activity and leave the rest to their own course. Minimise all resource utilisation, whether manpower or money or anything. Minimise documentation, paperwork or anywork! Avoid duplication. Allow the tasks to be completed at as low a level as possible. Make systems as simple as possible. Divise the tasks so that they can be done by as simple a worker as possible.

Maximise:

Small is also big. Everything can evolve and grow to its own maximum. Allow it. Maximise the use of men, materials, machine and money. Allow freedom of growth so that everyone does his maximum. Maximise profits, productivity, quality, market, speed, efficiency, information exchange, inter-personal relationships, everything.

Humanise:

Emphasise on human element. No customer likes an automated mail or ready made FAQ. They like to chat or email or talk. Employees also need recognition. In all businesses everything is oriented to serving the human beings ultimately. Everybody should have job satisfaction. They should feel that they have accomplished something not just completed somebody's instruictions. This is possible only when they excercise some amount of discretion. Each task, because it has an element of discretion, would be satisfying to the person doing it. They benefits accruing to the business from a satisfied employee cannot be underestimated.

Summary:

Business conditions are not static and every task has to be adapted to the changing scenario. Regular organisational structure is prone to delays and bottlenecks and constricts freedom of action. Setting targets limits progress. Management techniques have to be as simple as possible to be used by everybody. A Management Plan and Management Guidelines are only required for successful management and growth. They should clearly state the prefered direction, what is acceptable and what is not acceptable. Embed the possiblility of change and how to change in all tasks. Minimise all resources and maximise all outputs. Remove all unnecessary constratints on human beings in the accomplishment of their tasks. Emphasis is laid only on tasks and not on persons accomplishing them. These principles are universal and can be applied to any business anywhere in the world.

Author Bio:

G Ram Kumar

The author is a Business Consultant for small businesses in India. He has 30 years business and management experience. He offers advice and consultancy for usual 'problems' in any organised business. He is presently serving the fashion and apparel industry at Tirupur, India.

You can search for this article using: project management, risk management, small business administration, performance management
 
 
 

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