February 28, 2018

February - Management Knowledge Revision


Frank Gilbreth
Picture Source:

Febuary 1st Week  1 - 5 , 2016

The Nature of Organizing - Review Notes
Departmentation in Organizations - Review Notes

Line-Staff Authority and Decentralization - Review Notes
Effective Organizing and Organizational Culture - Review Notes

Summary - Principles - Organizing
Human Resource Management and Selection

Performance Appraisal and Career Strategy
Manager and Organization Development

Summary - Principles - Staffing
Resourcing; A Function of Management

February 2nd week,  8 to 12  (2016)

Human Factors and Motivation
Leadership - Koontz and O'Donnell - Review Notes

Supervision - Introduction - Public Administration Point of View
Committes and Group Decision Making - Review Notes

Communication - Koontz and O'Donnell - Review Notes
Summary of Principles - Directing - Leading

The System and Process of Controlling - Review Notes
Control Techniques and Information Technology

Productivity Control
Overall Control and Preventive Control - Review Notes

February 3rd Week  (15 - 19, 2016)

Summary - Principles of Controlling
Global and Comparative Management

Organizing - Global Management Issues - Review Notes
Staffing - Global Management Issues

Leading - Global Management Challenges
Controlling - Global Management Challenges - Review Notes

Management and Entrepreneurship: Science, Theory and Practice
Managerial Skills

Principles of Management - List
Principles of Management - Subject Update Articles Recent Years

February 4th Week  (22 to 26, 2016)

Marketing Management Revision Articles

The Marketing Concept Kotler
Marketing Strategy - Marketing Process - Kotler's Description

Scanning of Environment for Marketing Ideas and Decisions
Marketing Strategy - Differentiating and Positioning the Market Offering

Management of Marketing Department and Function
Marketing Research and Market Demand Forecasting

Consumer Behavior
Analysis of Consumer Markets

Organizational Buying Processes and Buying Behavior
Market Segmentation and Selection of Target Segments

To March - Management Knowledge Revision

Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

Updated 2018 - 24 February

  1 Februry 2017, 16 Feb 2016, 22 Feb 2016

February 25, 2018

Market Segmentation and Selection of Target Segments

Marketing Management Revision Article Series

Buyers for a generic product constitute a market. Market can be segmented in a number of ways.

Target Market

Buyers for a generic product constitute a market. But different buyers may have different preferences for attributes of a generic product. A marketer may have to focus on a particular group of potential buyers for a product with specific attributes. This focus is termed as targeting. Market segmentation is the effort to isolate groups of potential buyers having similar preferences for attributes of a product. Instead of mass marketing a single product, segmented marketing is done at four levels: segments, niches, local areas and individuals and companies if they want to, offer different products for different segments.

Targeted marketing also referred to as differentiated marketing. It means that the firm  may differentiate some aspect of marketing (offering, promotion, price) for different groups of customers selected. Mass marketing, or undifferentiated marketing involves selling the same product to everybody. Automaker Henry Ford was very successful at mass production and mass marketing. Ford pioneered the  assembly line early in the twentieth century, which helped him to produce large number of identical Model T automobiles and allowed him to realize cost reduction year after year. They came in only one color: black. “Any customer can have a car painted any color he wants, so long as it is black,” Ford used to joke. The affordable Ford car, was bought by large number of Amercans. By 1918, half of all cars on America’s roads were Model Ts.

Then Alfred P. Sloan, the head of General Motors (GM) changed the game. Sloan began to segment consumers in the automobile market—and find the prices different groups of customers wanted to pay and the different cars they wanted to buy. The idea was to offer different car for every target market as per their desires. His efforts were successful, Ford had problems and in the 1950s, GM overtook Ford as the nation’s top automaker.

Markets can be segmented in a number of ways.

Market Segmentation

Two broad groups of variables are used to segment consumer markets. One group of variables is consumer characteristics. The other group of variables is behavioral characteristics. Behavior is consumer response in terms of  benefits sought or  occasions when the product is used.

Consumer characteristics used for market segmentation include geographic, demographic and psychographic characteristics.

Geographic segmentation

Geographic segmentation divides the market into different geographic units such as nations, states, regions, cities and neighbor hood etc.

Demographic segmentation

In this segmentation approach, the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, or social class.

Psychographic segmentation

In this approach to segmentation, buyers are divided into different groups on the basis of lifestyle and/or personality.


Active lifestyle, country lifestyle, latenighters etc. are some of the segments under this classification


Markets are being segmented on the basis of personality. Personality is a group of traits exhibited persistently by a person. For example, Ford buyers were identified as independent, impulsive, masculine, alert to change, and self confident, while Chevrolet owners were conservative, thrifty, prestige conscious, less masculine, and seeking to avoid extremes.

Behavioral segmentation

In this approach buyers are classified into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Some behavioral variables can be usage rate, readiness for buying the product, attitude toward the product, loyalty to the product, and occasions on which the product is used etc.

Multi-attribute segmentation (Geoclustering)

Some marketers are using multiple variables to define target groups. For example using socioeconomic status and lifestyle variables may be combined and market segmentation is done.

Effective Segmentation

To be useful, market segments identified in a segmentation exercise have to be:
  • Differentiable: the segments must have a conceptual basis and they have to respond differently to different marketing mix variable and attribute mix of the product.
  • Measurable: The size and purchasing power of the segments have to be measurable.
  • Substantial: The segments have  to be large enough to serve them with a separate market mix profitably.
  • Accessible: The segments must be accessible to the marketer.
  • Actionable: The company in consideration must be able to create marketing programs for the segments.

Market Targeting

After the doing the market segmentation, the firm has to evaluate the segments for their market potential. Then the company has to decide which and how many segments to serve and how to serve them. The decision alternatives available to the firm are:

Single segment concentration

In the simplest case, the company selects a single segment.

Selective specialization

The firm selects a number of segments, each objectively attractive and appropriate, for the firms objectives and resources. There may be little or no synergy among the segments, but each segment is a money maker on its own.

Full market cover

The firm may attempt to serve all customer groups

Philip Kotler, Marketing Management , Ninth Edition (Main text for revision articles)


Migration from Knol

Marketing articles are available under the label http://nraomtr.blogspot.com/search/label/Marketing%20Management
Article on differentiating and positioning http://nraomtr.blogspot.com/2011/11/marketing-strategy-differentiating-and.html

Planned Revision schedule for marketing chapters is in February and March

Originally posted by me in Knol

Updated 2018 - 27 February 2018
26 February 2017, 3 December 2011 (First posted in the blog)

February 23, 2018

Popular Posts of the Blog Management Theory Review

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December


Business Ethics – Introduction

Moral Standards and Moral Judgments – Approaches

Financial, Cost and Management Accounting - Review Notes List

Kaizen Costing and Kaizen Cost Management

Role of Costing and Cost Accounting in the Organization

Variance Analysis, Flexible Budget and Management Control

Economic Theory of Production and Production Cost

Principles of Efficiency - Harrington Emerson

Engineering Economy or Engineering Economics: Economic Decision Making by Engineers

The Role of Accounting in Organizations

Accounting: The Language of Business - Review Notes

Valuation of Bonds and Equity Shares - Basic Principles and Models

Human Resource Management - Review Articles

Human Resource Management - Introduction - A Revision Article

The Role of Globalization in HR Policy and Practice - Review Notes

The Legal Environment of HRM - Review Notes

Work Analysis and Design -Bernardin HRM Chapter - Review Notes

Human Resource Planning and Recruitment - Review Notes of Bernardin's Chapter

Performance Management and Appraisal - Bernardin - Review Notes

Training and Development - Bernardin - Review Notes

Direct and Indirect Compensation - Review Notes

Managing the Employee Relationship - Review Notes

Employee Health and Safety - Review Notes

Value Engineering - Introduction

Plant Layout - Efficiency

Organizing for Industrial Engineering Department and Function

System Improvement Process

Total Industrial Engineering - H. Yamashina

Inspection Methods Efficiency Engineering

Operations Research - An Efficiency Improvement Tool for Industrial Engineers

Industrial Engineering - Introduction

Principles of Motion Economy

Motion Study - Human Effort Engineering

Ergonomics - Introduction

Predetermined Motion Time Systems (PMTS)

Statistical Quality Control – Industrial Engineering

Shigeo Shingo - The Japanese Industrial Engineer

Peter Drucker on Scientific Management - Industrial Engineering

Theories of Leadership

The concepts of Leadership and Management

Leadership Styles, Roles, Activities, Skills and Development - Review Notes

Political Strategies in Use for Acquiring and Using Power in Organizations

Lean Thinking - James Womack and Daniel Jones - Book Summary

Budget, Budgeting and Budgetary Control

Value Chain Analysis - IMA Guideline

Managerial Economics of Profit - Economics for CEO - Review Notes

Economics of Capital Budgeting - Joel Dean - Managerial Economics - Review Notes

Selling Process - 10 Steps

Selling Process – Prospecting

Sales Process – Call Planning

Interacting with the Prospect – Customer

Trial Close

Sales Closing Techniques

Service to Customer: Follow Up After The Sale

The Marketing Concept - Kotler

Marketing Strategy - Marketing Process - Kotler's Description

Marketing Strategy - Differentiating and Positioning the Market Offering

Marketing and New Product Development - Kotler and Keller's Book Chapter Summary

Philip Kotler - Keller Definition and Explanation of Marketing Management for 21st Century - 14th Edition

Marketing Channel Management – Important Issues

Sales Promotion

Organizational Buying Processes and Buying Behavior
Analyzing Competitors
Market Segmentation and Selection of Target Segments

Marketing Public Relations

Scanning of Environment for Marketing Ideas and Decisions

Operations Strategy and Competitiveness - Review Notes

Process Analysis

Optimizing the Use of Resources with Linear Programming - Review Notes

Forecasting - Operations Management Review Notes

Job Design and Work Measurement - Review Notes

Product Design and Process Selection—Services - Review Notes

Total Quality Management: Focus on Six Sigma - Review Notes

Strategic Capacity Management - Operations Management Review Notes

Organizational Behavior

Organizational Behavior Book by Fred Luthans - Review Notes

Introduction to Organizational Behavior

Organization Behavior – History of Development of The Discipline

Organizational Behavior – Theoretical Frameworks

Globalization and Technology - Impact on Organizational Behavior - Review Notes

Reward Systems and Organizational Behavior - Review Notes

Perception and Attribution - Review Notes

Personality and Attitudes

Communication: Importance and Definition

Stress, Conflict and Negotiation Skills


Power - The Concept and Theory in Organizational Behavior

Principles of Management

Principles of Management Revision/Review Articles - List

Management - Definition and Process

Evolution of Management Thought and Theory - Review Notes

Principles of Management – Koontz and O’Donnell

Planning - A Management Process

The Nature and Purpose of Planning - Review Notes

Leadership - Koontz and O'Donnell - Review Notes

Human Factors and Motivation - Koontz and O'Donnell

Managerial Skills

Supply Chain Management

Tailoring Strategy to Fit Specific Company - Industry Situation - Review Notes

Building Resource Strengths and Organizational Capabilities - Review Notes

Corporate Culture and Leadership - Keys to Effective Strategy Execution - Review Notes

Supply Chain Management: Review Notes Based on Chopra and Meindl's Book

Understanding the Supply Chain - Review Notes

Supply Chain Drivers and Obstacles - Review Notes

Supply Chain Performance: Achieving Strategic Fit and Scope - Review Notes
Facility Decisions: Network Design in the Supply Chain - Review Notes

Supply Chain Management - Coordination

Demand Forecasting in a Supply Chain - Review Notes

Determining Optimal Level of Product Availability - Review Notes

Aggregate Planning in the Supply Chain - Review Notes

Managing Economies of Scale in the Supply Chain: Cycle Inventory

Managing Uncertainty in the Supply Chain: Safety Inventory - Review Notes

Network Design in an Uncertain Environment

Designing the Distribution Network in a Supply Chain


Updated 2018 - 24 February,  10 February 2018, 

2 April 2016

Management of Marketing Department and Function

Marketing Management Revision Article Series

In the 13th Edition Kotler explained this topic under the chapter heading 'Managing A Holistic Marketing Organization for the Long Run"

While CEO is the ultimate head of all departments, there is a Chief Marketing Officer to provide full time attention to the management of marketing department as well as marketing function.

Marketing is a function of business and many persons of the organization participate in marketing activities. But there is a department termed as marketing department that has specialists whose main focus is marketing. While CEO is the ultimate head of all departments, there is a Chief Marketing Officer to provide full time attention to the management of marketing department as well as marketing function.

Marketing Management Department Organization

There are various types of organizations in existence. Functional organization, geographical area organization, product based organization, customer segment based organization and some form of hybrids can be observed.

Functional marketing organization: The important functional areas can be marketing research, new product marketing, advertising and sales promotion, sales management, physical distribution (marketing logistics), and marketing administration. As organizations become big more specialized functions within marketing can be organized as independent sections.

Geographical Area Based Organization: Companies selling across the nation generally set up branch sales offices and regional sales offices.

Product Based Organization (Brand Management): In product based organization each product or brand has a manager who looks after its marketing activities. The sales staff can be common staff and they report to a sales manager.

Coordination Between Marketing and Other Departments

Kotler highlighted the fact that each business function has a potential impact on customer satisfaction. All departments need to think of customer satisfaction and work together to fulfill customer needs and expectations. The chief marketing man in the organization has two tasks: One is to manage the marketing department and other is to coordinate marketing specialist activities with marketing related activities of operations, finance, and other functions in the organization.

Research and Development and Marketing

R&D and marketing have to coordinate their activities for successful market-oriented research, development and new product introduction. Gupta,Raj,and Wilemon in their paper "A Model for Studying R&D-Marketing Interface in the Product Innovation Process" (Journal of Marketing, April 1986, pp. 7-17) found that R&D-Marketing coordination had a strong correlation with innovation success.

Engineering and Marketing

Engineering is responsible for details of design and manufacturing that provide the products with quality and profit potential. Marketing is also concerned with profits for the company. The view points of marketing and engineering are to be coordinated with good engineering economy analysis combined with demand analysis of marketers.

Manufacturing and Marketing

Balance and harmony in the company demand that manufacturing and marketing jointly determine what is in the company's best interests whenever a dispute arises between the departments. Solutions include joint seminars of issues of common interest and joint analytical problem solving. Company profitability is greatly affected by marketing-manufacturing coordination which is another name for customer service - profit analysis. Marketing can't take credit for revenue and blame manufacturing for costs. Marketing itself may be responsible for the costs and it may be recovering lower prices from customers. This is bad marketing decision making.

Finance and Marketing

Finance persons have to concur with economic analysis of marketing persons. The long term implications of marketing expenditures may not be understood by finance persons. Both finance and marketing department personnel need cross training and joining training to develop common or share understanding.

Marketing Practices and Management Practice Innovations and Developments

Many new developments in management were embraced by practitioners.

Supplier partnering
Customer partnering
Mergers and Acquisitions
Flat organization
Agile organization
Lean organization

Marketing departments also implemented these concepts.

Industrial Engineering of Marketing System

Marketing System Efficiency Engineering

Companies today are striving to make their marketing operations more efficient and their return on marketing investment more measurable. Marketing costs can amount to as much as a quarter of a company’s total operating budget. Marketers need better templates for marketing processes, better management of marketing assets, and better allocation of marketing resources.

More Details on marketing system efficiency engineering

Evaluation and Control of Marketing Activities, Investments and Expenditures

Originally posted by me in
Knol Number  3388

Updated 2018 - 24 February
 14 Mar 2016, 12 Nov 2012

February 15, 2018

Developing Lean Leaders and Managers

Published on February 7, 2018 on Linkedin
George Trachilis, P.Eng.
CEO and co-Founder (with Jeff Liker) at Lean Leadership Institute

Leadership Skills at Different Levels within a Lean Organization

Developing Lean Leaders at All Levels - Chapter 1 - Jeff Liker
Published on 14 Jul 2016



Videos on other chapters also available

February 7, 2018

Leadership - Subject Update


Be selfless - Be compassionate

Become Better Leader – Human Relations First Perspective



Servant Leadership for 21st Century



Leadership is not wielding authority; it's empowering others.

6 Mantras That Will Set You Apart as a Genuine Leader

To create the right climate, you need leadership, not GREEDership.



December 2017

If You Aspire to Be a Great Leader, Be Present
Rasmus Hougaard and Jacqueline Carter
HBR, DECEMBER 13, 2017

Nov 11, 2016 Accenture Veterans Day Keynote







The Potential Project Upload

August 2017

 Leadership Instincts: Listen, Amplify, Include
General Martin E. Dempsey
August 25, 2017

22 Qualities That Make a Great Leader

June 2017

The 10 (and a Half) Commandments of Leadership

10 Questions Great Bosses ask periodically

The Dynamics of 8 Different Styles of Leadership
April 11, 2017 - by  Paul E. Fein

Four Behaviors That Define Successful Leaders
Elena Lytkina Botelho

May 2017

45 Questions Every Leader Should Answer

By Frank Sonnenberg

Good Bosses Switch Between Two Leadership Styles

Jon Maner
Jon Maner is a professor of management and organizations at Kellogg School of Management, Northwestern University.
DECEMBER 05, 2016, HBR Article

The two styles are termed Dominance and Prestige. They could have been termed Single Person Dominance (Lone Boxer) and Team Decision Making (Foot Ball Team).






Leadership Freak - A popular blog on leadership      https://leadershipfreak.blog/

What Great Managers Do Daily

Ryan Fuller & Nina Shikaloff
DECEMBER 14, 2016

Decoding Leadership: What really matters

Our most recent research, however, suggests that a small subset of leadership skills closely correlates with leadership success, particularly among frontline leaders. Using our own practical experience and searching the relevant academic literature, we came up with a comprehensive list of 20 distinct leadership traits. We did a survey and  found  that leaders in organizations with high-quality leadership teams typically displayed 4 of the 20 possible types of behavior; these 4, indeed, explained 89 percent of the variance between strong and weak organizations in terms of leadership effectiveness .

• Solving problems effectively: The process that precedes decision making is problem solving, when information is gathered, analyzed, and considered.

• Operating with a strong results orientation: Leadership is about not only developing and communicating a vision and setting objectives but also following through to achieve results. Leaders with a strong results orientation tend to emphasize the importance of efficiency and productivity and to prioritize the highest-value work.

• Seeking different perspectives: This trait is conspicuous in managers who monitor trends affecting organizations, grasp changes in the environment, encourage employees to contribute ideas that could improve performance, accurately differentiate between important and unimportant issues, and give the appropriate weight to stakeholder concerns. Leaders who do well on this dimension typically base their decisions on sound analysis and avoid the many biases to which decisions are prone.


The Art of Giving and Receiving Advice.

By: Garvin, David A.; Margolis, Joshua D. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p60-71.

Seeking and giving advice are central to effective leadership and decision making, and they require emotional intelligence, self-awareness, restraint, diplomacy, and patience on both sides. In this article, the authors argue that they are practical skills one  can learn and apply to great effect. The most common obstacles to effectively seeking and giving advice are  thinking one already has the answers, defining the problem poorly, and overstepping boundaries.  They  offer practical guidelines for getting past them.

Five stages of advising are identified: (1) finding the right fit; (2) developing a shared understanding; (3) crafting alternatives; (4) converging on a decision; and (5) putting advice into action. Each stage includes suggestions for seekers and for advisers.

The Authenticity Paradox. 

By: Ibarra, Herminia. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p52-59.

INSEAD professor Herminia Ibarra argues, a simplistic understanding of what authenticity means can limit leaders' growth and impact.  In this article, Ibarra explains how leaders can develop an "adaptively authentic" style.  It's OK to change tactics from one day to the next, she says by figuring  out what's right for the challenges and circumstances we face.



The Skills Leaders Need at Every Level

by Jack Zenger and Joseph Folkman
HBR Blog Post
16 Skills are listed in order of importance. Top 7 are said to be important.

1. Inspires and motivates others.
2. Displays high integrity and honesty
3. Solves problems and analyzes issues
4. Drives for results
5. Communicates powerfully and prolifically
6. Collaborates and promotes teamwork
7. Builds relationships

Leadership Development Beyond Competencies: Moving to a Holistic Approach
Marian N. Ruderman, Cathleen Klerkin, and Carol Connelly
Center for Creative Leadership - White Paper

Book review of Jane Dutton and Gretchen Spreitzer, How to Be a Positive Leader: Small Actions, Big Impact.



How to be a better boss?

Ask a person whether he wants to recommend his boss to his friends as the ideal boss to work under.

Knowledge@Wharton article
Social Technology and the Changing Context of Leadership
Social technology is changing the way leaders do conversations with their group members especially in large organizations. The article presents ideas on this issue

Sloan Management Review Article Spring, March 2012

How to Become a Better Leader

The article describes Big 5 Personality factors and use of them in developing oneself as a better leader.

Leadership Basic Articles

Organizational Behavior Articles

Theories of Leadership 
Cognitive Resources Theory of Leadership
Leadership Styles, Roles, Activities, Skills and Development

Principles of Management Articles

Updated  2018 - 8 February,  28 January

22 December 2017,  22 August 2017,  24 June 2017,  6 June 2017,  29 May 2017,  22 February 2017, 6 December 2016, 12 October 2016, 10 December 2015

February 6, 2018

Leadership - Koontz and O'Donnell - Review Notes

4th Edition of Koontz and O'Donnell

Along with motivation and communication activities, leadership is a means of directing.

Carter identifies five approaches to leadership definition:
(1) polarization of members of a group around some central person.
(2) the person able to direct a group toward its goals
(3) the person selected by group members to lead them
(4) the person able to move a group along a specific dimension, such as sociability or integration and
(5) the person possessing certain behavior.

Groups require a common sense of authority. According to Bronislaw Malinowski, authority means the privilege and the duty of making decisions, of pronouncing in cases of dispute or disagreement, and also the power of enforcing such decisions. Authority is the very essence of social organization.

A leader is given authority by his group. They accept him voluntarily as the common center of authority.

People also seem to require frequent reminders of group goals to overcome forgetfulness and indifference. The leaders have long view and foresight to overcome boredom and limited vision.

Leadership is the ability of a manager or in general a person to induce subordinates (followers) to work with confidence and zeal. Zeal reflects ardor, earnestness, and intensity in the execution of assignments; confidence reflects experience and technical ability.

No doubt subordinates of a manager are driven by the need for a job and income. If they are guided only by rules and requirements enforced by the organization structure through managerial authority, they tend to work at abut 60 or 65 per cent of capacity. To raise output toward total capacity, the manager must induce zealous response on the part of subordinates by exercising leadership. He does this based on the needs of subordinates, especially their ego and self-development needs.

The sociological view of leadership:

Selznick is an important contributor.
The leader has the task of building goals and policies into the social structure of the enterprise.

Confidence Building

The confidence exhibited by a subordinate manager rests upon the quality of his knowledge and his sense of security.

Orientation of a subordinate comes first. Second is follow up supervision. Third is providing job security to the subordinate.

Zeal Building

Koontz and O'Donnell write that zeal building escapes scientific analysis. They provide two idea for this activity.

1. Inspiration

2. Stregthening personal qualities


From a different edition

The essence of leadership is followship.

A person has to attract followers to become a leader and practice leadership.

Koontz and O'Donnell defined leadership as influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals.


Presentation Based on Recent HBR Article

Be selfless - Be compassionate
Become Better Leader – Human Relations First Perspective



Updated 2018 - 8 February 
10 Feb 2015, 11 Dec 2011