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Management Theory

And Practice

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1. Explain Decision Making Process and various types of Decision with examples?

Purposeful selection from among a set of alternatives in light of a given objective. Decision-

making is not a separate function of management. In fact, decision-making is intertwined with the other

functions, such as Planning, Coordinating, and Controlling. These functions all require thatdecisions be made. For example, at the outset, management must make a critical decision as to which of

several strategies would be followed. Such a decision is often called a strategic decision because of its

long-term impact on the organization. Also, managers must make scores of lesser decisions, tacticaland

operational, all of which are important to the organization's well-being.

It can be defined in following six steps.

1. State The Problem: The first and arguably the most important step in the decision making model in five

steps is to identifying the problem. Until you have a clear understanding of the problem or decision to be

made, it is meaningless to proceed. If the problem is stated incorrectly or unclearly then your decisions will

be wrong.

2. Identify Alternatives: Sometimes your only alternatives are to do it or don't do it. Most of the time you

will have several feasible alternatives. It is worth doing research to ensure you have as many good

alternatives as possible.

3.Evaluate The Alternatives: This is where the analysis begins. You must have some logical approach torank the alternatives. Two such logical approaches are discussed atExample Of A Decision Matrix and

at Sample SWOT Analysis. It is important to realize that these analysis methods are only one of the five

steps in the decision making model.

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4. Make A Decision: You have evaluated your alternatives. Two or more of your high ranked alternatives may

be very close in the evaluations. You should eliminate all of the alternatives that were low ranked.

Now it is time to go back and examine the inputs you made to evaluation criteria for the close high ranked

alternatives. Do you still feel comfortable with the inputs you made? When you have made any changes it is time for

some subjection. You have eliminated the alternatives that do not make logical sense. Now it is time to let yoursubconscious work. Review all the details of the remaining high ranked close alternatives, so they are completely

clear in your mind. Completely leave the project alone for a few days. When you return to the project, the decision

will likely be very clear in your head. This only works if you have done your homework!

5. Implement Your Decision: A decision has no value unless you implement it. If you are not good with

implementation, then find someone that is. Part of the implementation phase is the follow up. The follow up

ensures that the implementation sticks.

6. Monitor your Solution: It is very important to monitor your decision regularly. At this stage, you have to

keep a close eye on the progress of the solution taken and also whether it has led to the results you

expected.

Types of decision making: There are various types of decision making.

Programmed decision: is a repetitive decision that can be handled by a routine approach and is

not new. In this decision making process you have set procedure, rules and policies to follow.

For example, In any organization there is preset HR policy and structured employment program.

If any employee query comes or any types of adjustment needed in case of any individual then an

organization is well aware of what to do.

Non-programmed decision: It is a unique decision that needs a custom made solution. In this you

mostly deal with unstructured problem which are new or unusual and for which information is

incomplete. This type of decision making does not need rules or guidelines to be followed because

the situation is unexpected or uncertain.

For example, If mc Donald's plans to launch a new line of menu, they will have to make decision

base on their intuition and reasoned judgments.

Proactive decisions: Proactive decisions are those which made in anticipation of certain changes

happened in environment.

For example, to meet market trend and competition all TV news channels started 24 hours news

channel .

Reactive decisions: Reactive decisions are those which has taken in changes happened in

environment.

For example, any food providing company get bad review or negative review of their food packets then

immediately action had taken to replace those food packets in market.

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Basic decision: Basic decision are those that require a good deal of deliberation, new principles

through conscious thought process.

For example, for any organization's canteen which all amenities will be there or which caterer

should be contacted etc.

Routine decisions: Routine decisions are of repetitive nature and they involve the application of

familiar principles to a situation.

For example, purchase of stationary for any organization.

Intuitive decision: Intuition based decision are more flexible and simple to use. This type of

decision are based on our sixth sense , past experience , guts feeling , situation etc.

For example, decision about an education . As a student people always think which course to do , which career path

to follow. Which obviously require research and interest but major part works here is person's intuition based

decision.

Systematic decision: In systematic decision individual approaches the problem by dividing the it

into number of steps and components. All the components are then evaluated independently to

make final decision.

For example, In organization before launching of any products all the market survey , research need to be done.

Various figures need to be calculated . So that proper sale can be done and demand- supply chain can be very clear.

Policy decision: Policy decisions are those which make changes in current planning or procedure.

Generally it is taken by top management or any authorized person.

For example, Due to recession many organization have to forcefully change the employment

program and HR policy. Like they removed medical reimbursement , joining bonus etc.

Operative decision: Operative decisions are taken by the lower management in the process of

executing policy decision.

For example, Due to recession many organization have to forcefully release many employees. In absent of them

their work will be handed over to whom or who will look after their part of work etc. decision are called Operative

decision.

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2. Take any International Country of your choice and list down their Social, Cultural,

Lifestyle,Business Etiquette and Trade Practices in detail?

Country Name: United State of America ( USA )

Fact file

Official name United States of America

Population 307,212,123 *

Languages English, Spanish (spoken by a sizable minority)

Currency US Dollar (USD)

Capital city Washington, DC

GDP purchasing power parity $14.29 trillion*

GDP Per Capital purchasing power parity $47,000*

Overview

The United States, a nation founded on the fundamental belief in equality, is today a

multicultural mosaic of over 290 million people of varying race and cultural heritage. American culture

portrays a strong sense of regional and ethnic identity, which is represented by a number of subcultures and

influenced by the countrys vast geographical and regional differences. Americas influence on business

culture across the globe is unmistakable. However,understanding the cultural concepts behind the surface

appearance is just as important for your company when doing business in the US as in any other country.

American Culture Key Concepts and Values

Individualism: The concept of individualism in the US plays a significant role in the lives of any

Americans. American culture emphasizes individual initiative and personal achievement.

independence and self-reliance are highly valued and also extends to the workplace where

business is frequently carried out autonomously. Consequently, ones position in US society is

determined by ones own achievements as oppose to status or age.

Low context culture: Generally speaking, those cultures described as low context tend to

communicate meaning and information explicitly through words. Americans are task centered and

thus the primary purpose of communication is to exchange information, facts, and opinions. In theUS, conflict is dealt with directly and openly, and for this reason, Americans will not hesitate to

say no or criticize others in public. This direct style of speech is often interpreted by foreign

visitors as rude and may cause embarrassment to business people who are unaccustomed to such

explicit communication. However, it is important to remember that in a business context it bears

no relation to personal feelings and should not be taken as such.

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Egalitarianism: An important element of American culture is the concept of equality. Despite the

many differences within American society, there is a collective understanding of the notion of

equality that underlines many social relationships in the US. Americans believe in having equal

rights, equal social obligations, and equal opportunities based on the concept of individual merit.

Consequently, there is a general lack of deference in the US to people of greater wealth, age,

higher social status or authority. This is evident in the way in which titles are seldom used in

business environments and how Americans call each other by their first names almost

immediately. Egalitarianism also contributes to the system of merit frequently referred to as the

American Dream, whereby hard work deserves success and financial prosperity. This in turn can

often cause a dichotomy in the workplace and office hierarchy displaying a clear distinction

between management and their subordinates.

Doing Business in the US

The worlds third largest country both in size and population, the United States is a nation

moving forward rapidly and successfully with its unique cultural diversity. Throughout the years, America

has experienced waves of immigration from virtually every corner of the world molding the country into

what it is today. After establishing its independence in 1776, the United States has endured civil war, the

Great Depression, and two World Wars to become the richest and most powerful nation state in the world.

Today, the US is considered to have the strongest and most technologically powerful economy. For those

wishing to conduct business in the US, gaining a professional insight into the cultural design of this

distinctive country is essential to your success.

US Business Part 1 Working in the United States (Pre-departure)

Working practices in the United States

In the US, punctuality is an essential part of business etiquette and as such, scheduled

appointments or meetings must be attended on time. Americans perceive lateness as a sign ofdisrespect. Therefore, in situations where you know you will be late, a call should be made to

inform your American colleagues of your delay.

Deadlines are strictly adhered to in American business culture. Americans place great

emphasis on getting the best results in the quickest time. Your American counterparts

may appear to be hasty in their decision-making. This, however, is due to the fact that the

concept time is money is taken extremely seriously in the US.

Generally speaking, in the United States the working week consists of Monday to Friday, 9-

5pm. However, due to the strong American work ethic the majority of Americans work long

hours and overtime is common practice. It is also customary to take as few as ten days holidayper year.

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Structure and hierarchy in American companies.

In a country famous for its individualism and diversity, the organization and structure of

companies within the US may differ according to the industry, region or company history.

However, you will generally find that office hierarchy within an American company isextremely important. Therefore, it is advised to learn the rank and titles of all members of the

organization.

Negotiations and final decisions in the US are frequently made by one person who has chief

authority. Team negotiations are rarely carried out in American companies.

In accordance with American business culture, the hierarchical chain of command often

supersedes personal relationships.

Working relationships in the US

Personal competence, professionalism, and accountability forindividual performance are highly valued in American business

culture. As a result, managers are only approached for help in

essential situations. These concepts also contribute to the highly

competitive work ethic often experienced in the US.

Developing personal relationships are not as significant in US business culture as they are in

some Asian countries. In the United States, the overall goal of business is to secure the best

deal, therefore forming company relationships are of greater value.

It is common for Americans to make clear distinctions between work colleagues and friends in

their social life. In the US, meetings tend to be rather formal and little time is spent on

cultivating social relationships.

US Business Part 2 - Doing Business in the United States

Business practices in the United States

It is customary to begin and end business meetings with a brief but

firm handshake. Maintaining direct eye contact during this initial

greeting and whenever in conversation is also essential, as it

demonstrates to your American colleagues your interest and

sincerity.

The exchanging of business cards is a casual affair in the US and as such demands no clear

ritual or set of rules. Americans regard business cards as a resource for future information. On

the occasions when they are exchanged, it may be done either during introductions or when

leaving.

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During negotiations, it is important to remember that the aim of most business discussions in

the US is to arrive at a signed contract. Americans consider negotiations as problem-solving

situations based on mutual benefit and personal strengths. Therefore, emphasis is placed on

ones financial position and power.

When doing business in the US, you will be expected to adhere to rules and guidelines that

your US business counterparts must also follow. Company policy and business procedures

such as legally binding contracts, are aspects of American business culture that require strict

compliancy.

US Business Etiquette (Do's and Don'ts)

DO address your American business colleagues with a title, such as

Dr, Ms, Mr, or Mrs, and their last name when meeting

someone for the first time. You may find that,your American

counterparts will insist on using first names almost immediately;

this is not a sign of familiarity but simply reflects the casual

business style of Americans and their emphasis on equality.

DO say please and thank you to everyone for even the smallest kindness. Politeness is

highly valued in the United States and Americans will expect you to be as polite as they are.

DO be prepared to partake in preliminary small talk with your American counterparts at the

beginning of a business meeting. This will often include topics such as sport or the weather

and is seen as a way to lessen apprehension and create a comfortable environment before

entering into business affairs.

DONT expect all companies to be the same. Business culture in the US differs from companyto company on many levels, including industry, region and business structure. It is advised to

research as much as possible about the individual business culture of your American

associates before meeting with them.

DONT make any other form of physical contact such as hugging when greeting your

American counterpart for the first time. Americans respect their privacy and personal space.

DONT be offended or surprised if your American colleagues cannot accept a gift. Gift giving

is often discouraged or limited by many US companies and therefore most employees are

unable to accept them.

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