Monday, February 16, 2009

Management theories 101

Management Theories

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There are thousands and one hundred and one theories out there. Here we are looking at the different management theories that could actually aid your companies to achieve the full force success if they are applied in the right place, moment, right time with the right kind of people management. Of course, there is also the element of luck involved during the process, it really takes the right kind of mentality approach in order to see the result outcome.

7 Habits of Highly Effective People
7 Habits of Highly effective people. This widely well known book was written by the famous Stephen Covey. The book was actually sold 15 million around the world. He basically talked about the principles that are actually applicable to our daily lives which could actually bring major impact to our lives and the people around us. The principle dives on the Universal and timeless nature which which thousand of companies around the world are basically applying it everyday.

Habit 1: Be Proactive: Principles of Personal Choice
Habit 2: Begin with the End in Mind: Principles of Personal Vision
Habit 3: Put First Things First: Principles of Integrity & Execution
Habit 4: Think Win/Win: Principles of Mutual Benefit
Habit 5: Seek First to Understand, Then to be Understood: Principles of Mutual Understanding Habit 6: Synergies: Principles of Creative Cooperation
Habit 7: Sharpen the Saw: Principles of Balanced Self-Renewal

The 8th Habit basically taps on your inner voice and inspire others to find it. It is about this astonishing phase which is really logical and true. With the right management skills and approach, you will basically enable another person to carve out his own and develop and grow for himself. Of course, the whole process will actually take a lot of time and effort, but the eventual payoff is tremendous.
"Give a man a fish, you will feed him for a day, teach him how to fish, you feed him for a lifetime."

Six Sigma
A
wonderful theory derived from Motorola. A great theory that emphasise on improving process and eliminating defects, thus saving major cost for companies in the long term perspective. The whole goal of this project is to actually ensure that every projects are done in the "six sigma quality" which means that every million opportunities (or products), there are only 3.4 defects, which on the other words, the process is perfectly perfect. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts" etc.) who are experts in these methods.Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase). Employees in the companies are classified under different categories:" Champion, master, black belt, green belt in the order of seniority.

Psychometrics
The
field of study in the path of educational and psychological measurements in terms of knowledge,abilities, attitudes and personality traits. The founding father of this amazing theory is Francis Galton,whose mental test are conducted among his anthropometric measures. The experiments of his studies dwells through reading, writing and mathematics. The tested domains would be Classical Test Theory, the modern Item Response Theory and Rasch measurements models. The whole concept of Psychometrics is actually about studying human behaviour, how they respond to a certain situation, how they react accordingly to it, what kind of responsive outcome do they normally desire to choose. It is very interesting to know that typical human being are very reactive to a certain flow of sequence (frequency traits), because they are thinking in the form of "herds mentality".

For example, the greatest example of psychology game would be the stock game. The whole structure of a psychology environment, where buyers and sellers are basically following the trend frequency that is acting in front of them. When the stock points drops, the whole herd would start to throw in everything to salvage the losses they made, but when the stock point moves up, people would start to massively buy in the best they could. The whole nature of flow really pinpoints that people react to situations accordingly human psychological traits like fear, greed, and temptations. In business context,the whole ball game is also about how people take up the contracts and pen down their agreements of a million dollar project based on a haunch, an intution and good feelings.

A very interesting subject that should never be left out in times of emerging opportunities and chances that will actually improve the overall capitalisation of business profits.

Tipping Point
The recent invention management is Malcom Gladwell explain that changes takes place quickly and unexpectly on a large scale. Tipping point is the moment at which previously small movements gain enough momentum to become a trend. A new idea will take hold and become successful if a few key indivduals actually endorse it, presented it well enough to become sticky and arrives in a favorable environment. The whole process of duplication will start to take place within the structure in force and multiply and evolve into something better and more powerful along the route of evolution. It's the same process of business product. The marketed product that is successful in the market force, will eventually lead to many duplication of market followers that actually follow and duplicate into something better and sellable to the consumer's market. The next point would be the pricing factor that will actually determine the market share penetrating in the market force by the strongest competitor with the right tool, right people and right system in place.



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