Thứ Bảy, 12 tháng 11, 2016

A Few Conceptual of Management Effectively by Some Different Standpoints

The preamble
In the moment, on the internet there are so many criticized on the economic development of Vietnam, is developing slower than in the neighboring countries. Namely often blamed on the government for tax policies, which is overlapping management and administrative harassment, but the problem here is that: “if not a lot of studied and performing on economic management in Viet Nam by seriously, so will not be able to have a feasible plan, perhaps it will suitable to improve the situation of the Management in Viet Nam”, While Enterprises are waiting to be adjust the suitable policies from the state.
Government and economic experts frequently encouraging to Small and Medium Sized Enterprises to expanding on trading and in production based on the improvement in their product quality and using advanced technology, and of course in with the big capital.
To do that, they must be cooperated with other, and persuaded some investors and proving have to a feasible plan to bank loans. So, the Enterprises will have to prove the project plan is managed effectively. That’s the weakest point of Small and Medium Sized Enterprises of Viet Nam. Standpoint of mine on these issues presently for enterprises in Viet Nam is whether suggesting to business owners should be created conditions for managers and employees to work more efficiently.
By the way I would like to introduce to all of you a few different standpoints on the concept of managing organizations efficiently.
Generalized on Conceptual
Management is very popular concept in the organization, almost small and medium enterprises are manipulating a lot of models, the aim is to create a suitable and convenience to operate in production and trade on their business.
As You May Know in reality, even if they have trained abroad on management to level a Doctor of Economics at the most prestigious in universities nor solved the efficient management of model in VN, until they could be able to make some practical research on this issue in the seriously. People usually a lot of spending on advertising, promotions and higher commissions to agents and supermarkets in order to increase sales, but it also increases the cost burden in distribution. The Costs of production or components of services cannot reduce because of the input of raw materials and components of products and services have to trending to increasingly.
Of course, the quality and price of products, goods or services corresponding on the customer demand will be decided the profit and development of the organization.
Everybody always shout in slogans to enhance productivity, improved process, improve product quality - service to reduce the costs, "but it seems the most of results are less optimistic when the issue related to some method and the cost to implement it ".
A business organization of production or service operations effectively when that effective administration organization.
By the way, I would like to quote the speech on quality management of professor Nguyen Quang Toan was presented on Quality Management in the university curriculum (professor was contributing in the build quality systems of Vietnam and contributing in narrow the gap between theory and practices quality).
Kaoru Ishikawa Professor (the Japanese Quality Management) said: "Quality Management without a result clearly, it is not a quality management"
Professor Nguyen Quang Toan introduced four mistakes on the quality management in some countries:
  • The Mistake on Conceptual "about problem Quality - Cost - Scheduling, the majority of businessman do not must have not know on it, which was in their think they've known on it clearly", when discussing on quality, we are facing a problem on quality resources of human. The primary concept on quality and Quality - Cost - Scheduling is based on conceptual on human resources quality.
  • The second mistake is "the quality cannot be measured?" In the Quality - Cost - Scheduling , the losses caused by the negligence is considered by the hidden costs of production (Shadow Costs of production).
  • The third mistake is "the quality requires a lot of money?" do it right, do a good job from the beginning, it is always the least expensive.
  • The fourth mistake is "Who is responsible for the quality?" Many people, especially leaders, think "Workers associated with production are responsible for any quality problems”. The French economist assigned on responsibility for the losses caused by poor quality, as follows: 50% belongs to the leaders, 25% belong to education, and 25% belong to the executor.

The summary of the research process and work
Undergoing practices of economic management and financial administration by public administration area since 1985. Luckily were being reference more than 40 organizations: such as cooperatives and cooperative groups and a few firm of state owned.
Learned the theory of management (1993 - 1996 business administration faculty of The Open University of HCM City) and then was studying the application of theory on the lot of practice fields, was undergoing through the process of working in 10 private institutions specializing in production - sales and services.
In the process of economic management I was being directly discussions with business owners, I was accumulating a lot of experience while was doing responsible for statistical report, was reflecting the difficulties and advantages in during operation of organizes as above-mentioned (such as: Production of building materials, paper production, food processing, wood processing, mechanical, handicrafts, garment, textile dyeing and services etc.).
Concurrently, was associating to Financial department to check a few organizations has losses annually  (from 1985 to 1995), then I was doing in the private sector, the tasks as: general accounting, financial monitoring, studying market demand, product design proposals, set of new product distribution chains, product distribution, sales, managing (position as: general accountant, group leader, financial supervision, manager for distributing , marketing manager, manager of sales, vice director, managing director) since 1996 – 2009, specialized in production and supply of: production of melamine resin and plastic household, printed on food package by plastic PP, Pe, Al, Ag, Metalize, production of handicrafts exports , developing on distribution chain of decorative ceramic tiles, produce and assembly in the insulation cold storages, training services for foreign language.

The contents
Influenced on The Management Theory Jungle (the theoretical forest in management)  Author: Harold Koontz, Deming's 14 Points, Organizational Behavior - Robert Kreitner PhD. also learning a lot of the experience of the private enterprise, but I also discovered some drawbacks involved in inefficient management; Such as increasing hidden costs every year from 15 to 25%, virtual inventory value(too many raw materials, goods and products are not eligible for inventory and also no longer as high value as the inventory report), the debts is difficult to reclaim (partly due to the product does not meet the customer's standards requirement), administrative costs (mainly communication, the costs of under-the-table to resolve violations), damaged products and raw materials beyond the norm in production.
The main reason according to my opinion is the weakness in management has increased the burden in the management costs and the direct production costs
I am always looking for a method somehow, it could be approached in operating management for making a leverage temporary in transitional period of the organization, in which operating become efficiently and the lowest cost possible.
Therefore, the purpose of this studying is to find the solution to reduce cost in the lowest level possible, and concurrently could be improved the quality of products and services.
I am suggested to apply an organizational management method is tentatively called   "approaching management method based on the concept in used flexibility in the theories by managerial experts".
This management method requires in a higher level of responsibility in the management by implementing criticism and self-criticism systematically, from the workers to the management level. Mainly is proposed the listening to the feedbacks of the workers directly(proposed to behave friendly to employees and workers directly as in family member to get the truthful comments of themselves), the aim is to step by step to motivate in the production line forward from in small defect on production process towards to production in zero defect, so is the improvement of the quality management must be researched directly on the production lines or services, and being the following up and monitoring at all levels managed must be updated constantly, rather than merely administrative orders and the statistical results when is making plan.
The second is set up an evaluation system, including management experts in the fields of finance, planning, marketing research, technical expertise, some senior executive management...ect, the system applies the same as method approached of Dephi method, will be able to help senior leaders reducing errors in the decision making (will present in additional headers).
The concept of criticism and self-criticism is probably not new in the operator, the different here is the method to apply flexibility in this concept
Let me set out here are a few common examples that the Directors, the General Director is created pressure for lower level management responsibilities, such as: 

Ø  severely reprimanded when subordinates mistake
Ø  criticized harshly when the head of parts has done a few resolve arisen wrongly to his discretion
Ø  intervention deep into the internal organization of the lower level management while they have delegated the responsibility of managed
Seemingly, this happens more often in each management level, and most of the criticism reprimanded only made from the top down, without the contribution criticized honestly from the bottom up and being receptive a true way seriously reason by the following:
The majority of the lower-level managers does not want to comment the shortcomings in the system of business owner, and consciously that it must be obeyed absolutely, if they not themselves blocked long-term careers or at risk being fired, who skillfully is never criticized of business owner.
I think this is the taboos in the private sector, although some big businesses also encouraging feedbacks, but I supposed it is only form properties, not effective for improving according to trend reduce costs and improve quality.
Consequence "the situation of long-term activities according to this trend will lead to the result as follow":
From top level management to the management of each level, according to the model of the ladder from the top down, will not see the errors in the system over time, on the growing scale compares to system formed from the initial operation. Consequently, the costs in burden more increasingly.
The board of director, chief executive officer said that, the most of problems do not reach the profit target has set out are explained as:
The workers directly produced or services are to be responsible for causing the majority of the product is damaged or poor quality leads to increased costs, the next person who is responsible for this problems is the level lower operating management
Besides, the insignificant fault section is responsible from the top-level managers, who will be responsible for due the not supervised closely for the management staff and the parts belong to department below
ISO certified systems have only value when organized signing with partners, and in the practice apparently is the less effective in the error correction (in my thought could be that, the leaders seemingly underestimated some opinion of worker directly, due to implied that, it is the fault of the workers directly making).
In view of my argument then, being achieved the goals of organization, in addition the commitment of the department team of the goals, linking closely between the parts from the top down and to the bottom up, during the process of operation will be able to occur the unfavorable matters, and not be estimated in the plan.
Created pressure for managers, by raising responsible based on the concept on self-criticism from the regular work of manager, purpose is increased the fast reactive for the changing to accordant any circumstance, and especially to listen to the feedbacks, concurrently the system must be facilitated to contributions from the bottom up and to the top down through the formal system between the managers and the parts, the professionals, technicians and people directly work, criticism and self-criticism is constructive would be useful for the improvement in the operation working and reaching the highest efficient in the management, and also the lowest cost and so, the superior management could be linked to information smoothly the process of organizational operation, and so on they will not need to intervene into the internal affairs of each department, those being decentralized management
But the most important to an organizational development as according to my opinion, as should be or not should  be with respect to the decisions of the most senior leaders include in the long term strategy and the short term plans, can be consulted by the professional experts, and being assessed through on the total marks of result marks in the each item of the score board, has being approved in each item before that(from minimum score to maximum score), this result will be reflected the insight on the level of risk and favorable in the project , and will be done on the secret ballots in the meeting of experts, according to method be done is based on flexible manipulation of Delphi method theory .
Demonstrated the part of the theoretical point, that I care in the way of operating managers in the management system, let me give a few citations of  experts as follow :
Professor William Edwards Deming (October 14, 1900 – December 20, 1993) was an American statistician, professor, author, lecturer, and consultant.
“Placing blame on workforces who are only responsible for 15% of mistakes where the system designed by management is responsible for 85% of (mistakes) the unintended consequences” (cited in the eight lesser categories of obstacles of Deming’s 14 points)
Explain the managerial significance of Deming’s 85-15 rule

Deming claimed that about 85 percent of organizational failures are due to system breakdowns involving factors such as management, machinery, or work rules. He believed the workers themselves are responsible for failures only about 15 percent of the time consequently, Deming criticized the standard practice of blaming and punishing individuals for what are typically system failures beyond their immediate control
Therefore, in a manner of speaking to improve the effective management is mentioned to the role of managerial leadership

also I quoted by Professor Robert Kreitner and colleagues on principle of total quality management
Principle of Total Quality Management

Despite variations in the language and scope of TQM programs, it is possible to identify four common TQM principle

·          Do it right the first time to eliminate costly rework
·          Listen to and learn from customers and employees
·          Make continuous improvement an everyday matter
Build teamwork, trust, and mutual respect

Delphi method summaries

Definition of businessdictionary: Collaborative estimating or forecasting technique that combines independent analysis with maximum use of feedback, for building consensus among experts who interact anonymously. The topic under discussion is circulated (in a series of rounds) among participating experts who comment on it and modify the opinions reached up to that point ... and so on until some degree of mutual agreement is reached. Also called Delphi forecasting

Referring to The Delphi Technique: Making Sense Of Consensus  from http://essentialsofmedicine.com/

The Delphi technique, mainly developed by Dalkey and Helmer (1963) at the Rand Corporation in the 1950s, is a widely used and accepted method for achieving convergence of opinion concerning real-world knowledge solicited from experts within certain topic areas. Predicated on the rationale that, “two heads are better than one, or...n heads are better than one” (Dalkey, 1972, p. 15), the Delphi technique is designed as a group communication process that aims at conducting detailed examinations and discussions of a specific issue for the purpose of goal setting, policy investigation, or predicting the occurrence of future events (Ulschak, 1983; Turoff & Hiltz, 1996; Ludwig, 1997). Common surveys try to identify “what is,” whereas the Delphi technique attempts to address “what could/should be” (Miller, 2006).

In the literature, Delphi has been applied in various fields such as program planning, needs assessment, policy determination, and resource utilization. Delbecq, Van de Ven, and Gustafson (1975) specifically indicate that the Delphi technique can be used for achieving the following objectives: 

  1. To determine or develop a range of possible program alternatives;
  2. To explore or expose underlying assumptions or information leading to different judgments;
  3. To seek out information which may generate a consensus on the part of the respondent group;
  4. To correlate informed judgments on a topic spanning a wide range of disciplines, and;
  5. To educate the respondent group as to the diverse and interrelated aspects of the topic (p. 11).



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