Qustion1: What is MBO. Discuss its importance and limitation.

How can we implement MBO efficiently in the fast changing and uncertain environment. Answer : Introduction It is a process where managers and subordinates jointly identify its common goals, define responsibility and measure and assess the contribution of each member continuously. It combines planning and organizing. Steps or process in MBO i) Define overall objectives of the organization ii). To formulate sub objectives or goals iii). Determination of individual targets iv). Periodic review and evaluation v). Performance appraisal Advantages i). It acts as a combination of planning and control ii). It integrates individual targets, departmental goals with organizational goals iii). It helps in establishing specific, operational and measurable goals iv). It is goal oriented and directed upon results, performance and contributions of employees v) It makes employees more enthusiastic and goal oriented. vi) It encourages initiative and self control among employees. Vii). It is highly objective and rational viii). It facilitates training and development of subordinates ix) It identifies key result areas and translates them into achievable results Limitations i). It is treated as a panacea for all the organizational problems ii). Since its focus is more on specific, measurable goals , it neglects long term, strategic goals of the organization iii). It takes too much of time and effort and generates too much paperwork iv)It does not provide scientific training and Implementation of MBO 1. It is important to secure top management support and commitment. Without this commitment, MBO con never really be a success. The top managers and their subordinates should all consider themselves as players of the some team. This means that the superiors must be willing to relinquish and shore the necessary authority with subordinates. 2. The objectives should be clearly formulated, should be realistic and achievable. For example, it is not realistic for the R&D department of on organization to set a goal of, say, 10 inventions per year. These goals should be set with the participation of the subordinates. They must be properly communicated, clearly understood and accepted by all. MBO works best when goals are accepted. 3. MBO should be on overall philosophy of management and the entire organization, rather than simply a divisional process or a performance appraisal technique. MBO is a major undertaking and should replace old systems rather than just being added to it. Felix M.Lopex has observed, when an organization is managed by objectives, it becomes performance oriented. It grows and it develops and it becomes socially useful. 4. The goals must be continuously reviewed and modified, as the changed conditions require. The review technique should be such that any deviations are caught early and corrected. 5. All personnel involved should be given formal training in understanding the basics as well as the contents of the programmed. Such education should include as to how to set goals, the methods to achieve these goals, methods of reviews and evaluation of performance and provisions to include any feedback that may be given. 6. Management by Objectives (MBO) system is a major undertaking based upon sound organizational and psychological principles. Hence it should be totally accepted as a style of managing and should be totally synthesized with the organizational climate. All personnel involved must have a clear

understanding of their role authority and their expectations. The system should be absorbed totally by all members of the organization.

Question2 : What is six sigma? What are the two methodologies for its implementation? Compare and contrast six sigma and TQM. The Six Sigma Methodology can be defined as one of the many highly controlled approaches in process management. It helps companies boost their profits and trim down on costs. With the use of Six Sigma Methodology, companies are able to produce the finest products and services, higher proceeds and retain more satisfied customers. The Six Sigma Methodology was originally instituted by the American telecommunications company Motorola Inc. in 1986. After a Japanese firm took over a Motorola factory that produced television sets in the United States in the late 1970s, the firm set about in effecting radical changes to the processes and ways the factory operated. Thus, under the Japanese leadership, Motorola factory began producing TV sets that had 1/20th of the original Motorola managements number of d efects. This prompted the company to commit to focusing on qualit The Six Sigma Methodology was originally intended and focused for the purpose of quality improvement, this methodology is one of the most common business improvement strategies used today. The idea of using the Six Sigma Methodology in business process improvement came about when managers and analysts recognized that there are many possible improvements that can be done as well as many ways to make processes more efficient There are two known types of methodologies applied in Six Sigma projects. The simplicity of the two methodologies makes its implementation in any organization possible. The two methodologies are DMAIC and DMADV. Both methodologies can be best described by dissecting the meaning of the acronyms. DMAIC When the aim is to improve current business processes, DMAIC is the methodology used. The letters of the acronym defines the steps that need to be done in order to implement it. Define: This phase of the methodology consists of identifying the goals and sub-goals of the project, creating a plan to achieve these goals and project-planning to enhance functioning. Measure: This phase of the methodology comprises of collection of relevant data, determination of metrics or variables based on data and other information. This phase basically entails taking measurement of vital characteristics of the current process. Analyze: In this phase, deficiencies or defects are studied closely to find out the Cause and Effect relationship. This step of the methodology ensures that any and all factors are thoroughly evaluated and establishes the root causes of the different defects in the current process. Improve: This phase utilizes the data collected and measurement analysis done in the previous phases. The current process is enhanced by eliminating the root cause of defects through the employment of better techniques. Control: In this phase continuous monitoring and control of process is done to ensure zero defects in products and services DMADV Also known as DFSS or Design for Six Sigma, DMADV is aimed and used in projects that create process or product designs. A project team uses DMADV type of Six Sigma Methodology when their goal is to produce a process or product that best suits the consumers needs. Like DMAIC, the steps and phases of DMADV can be described by defining each of the letters in the acronym.

Define: In this phase of the DMADV type of methodology, the goals that meet the business needs of the organization in conjunction with the customers needs or demands are determined. Measure: The measure phase in this Six Sigma methodology is when the team identifies and measures the characteristics or variables Critical To Quality or CTQ. This is also when customer needs, customer specifications and product capabilities, risk factors and others are determined. Analyze: Alternative processes are created and analyzed. These processes are designed to meet customer specifications and needs. After analysis, the design that best meets the requirements of the process, product, and customer specifications is selected. Design: This phase is where the best design selected from the previous phase is created, optimized and carefully planned. Verify: In this phase of this type of methodology, the process designs performance and capability to meet or answer the customer needs and specifications is verified In comparison, Six Sigma is more than just a process improvement program as it is based on concepts that focus on continuous quality improvements for achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is complementary to Statistical Process Control (SPC), which uses statistical methods for monitoring and controlling business processes. Although both SPC and TQM help in improving quality, they often reach a stage after which no further quality improvements can be made. Six Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. Comparision of SIX SIGMA & TQM The basic difference between Six Sigma and TQM is the approach. While TQM views quality as conformance to internal requirements, Six Sigma focuses on improving quality by reducing the number of defects. The end result may be the same in both the concepts (i.e. producing better quality products). Six Sigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time reduction, and cost savings. It is different from conventional cost cutting measures that may reduce value and quality. It focuses on identifying and eliminating costs that provide no value to customers such as costs incurred due to waste. TQM initiatives focus on improving individual operations within unrelated business processes whereas Six Sigma program focus on improving all the operations within a single business process. Six Sigma projects require the skills of professionals that are certified as black belts whereas TQM initiatives are usually a part-time activity that can be managed by non-dedicated managers.

Question3 : Write short note on any two of the following 1. Project Management Project A project is a [temporary] sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by specific time, within budget, and according to specification.

Project Management Project management is the process of scoping, planning, staffing, organizing, directing, and controlling the development of an acceptable system at a minimum cost within a specified time frame.

Project Management Tools & Techniques A PERT chart is a graphical network model that depicts a projects tasks and the relationships between those tasks. Program Evaluation and Review Technique A Gantt chart is a simple horizontal bar chart that depicts project tasks against a calendar. Each bar represents a named project task. The tasks are listed vertically in the left-hand column. The horizontal axis is a calendar timeline. Need for Project Management : Project management is necessary because:(a)A project requires huge investments which should not go waste (b)A loss in any project would have direct or indirect impact on the society ( c ) P r e v e n t f a i l u r e s i n p r o j e c t s (d)Scope of the project activity may undergo a change (e)Technology used may change during the course of project execution ( f ) Co nse qu enc es of ne gat i vi t y i n pr oj ect r el at ed pr obl e ms c oul d b e ver y se r i ou s (g)Changes in economic conditions may affect a project.

2. Managerial Decision Making Decision-making describes the process by which a course of action is selected to deal with a specific problem. The success of an organization depends greatly on the decisions of managers. There are two major types of models used by managers to make decisions - (1) rational model and (2) non-rational models. In the rational model, managers engage in rational decision-making processes. At the time of decision-making, they possess as well as understand all the information that is relevant to their decision. In contrast, non-rational models of managerial decision-making suggest that limitations of information-gathering and information-processing make it difficult for managers to make optimal decisions. The three non-rational models of decision-making discussed in the chapter are: satisfying, incremental, and garbage-can models. Any decision-making process contains seven basic steps: (1) identifying the problem; (2) identifying resources and constraints, (3) generating alternative solutions, (4) evaluating alternatives, (5) selecting an alternative, (6) implementing the decision, and (7) monitoring the decision. Managerial decisions are of two types - programmed decisions, and non-programmed decisions. Programmed decisions involve simple, common, frequently occurring problems. They have well-established and understood solutions. Non-programmed decisions deal with unusual or exceptional problems. Based on the degree of certainty involved, every decision-making situation falls into one of three categories: (i) certainty, (ii) risk, and (iii) uncertainty. In order to carry out managerial functions effectively, managers at all levels require vital information with speed, brevity, precision and economy. A management information system is a computer-based information system that gathers comprehensive data, analyzes and summarizes it, and provides it in a form that is of value to functional managers. A decision support system is an interactive computer system that can be easily accessed and operated by people who are not computer specialists, and who use this system to help them in planning and decision-making.