Category: Decision Making

Read this essay on “Planning” (408 Words)Planning is a critical managerial activity. It is the process of determining how the organization can get where it wants to go. It is a primary function of management because all other functions depend upon how the organization plans to achieve its objectives. Image Source: stlouis-mo.gov ADVERTISEMENTS: Planning is a decision making activity requiring, the process of ascertaining objectives” and deciding on activities to attain these objectives. In planning, managers assess the future, determine the goals of the organization and develop the overall strategies to achieve these goals.The extent and complexity of planning would depend upon the complexity and multiplicity of objectives. Consider, for example, the planning undertaken by the Atlanta Committee for the Olympic Games (ACOG) held in Atlanta, Georgia in 1996, While…

Essay on Ethical Decisions Making in Business !Ethics can be defined as, “the code of moral principles that sets standards of good or bad or right or wrong in one’s conduct and thereby guides the behaviour of a person or a group”(1). The “code of moral principles” is very subjective in nature and depends much upon the value system of the individual. Image Source: buildablog.co ADVERTISEMENTS: But how do you determine the validity of the value system or make an objective judgement about ethical behaviour? R. Baumhartasks a number of questions related to ethical behaviour. For example, is there a set standard against which the ethical standards can be measured?Is there a “situational code” of ethics according to which the ethical merits of an activity can be evaluated? Is the…

Managers use several different types of communication in their work. The choice of the method of communication would depend upon such factors as the physical presence of the receiver of the message, the nature of the message as to whether it is urgent or confidential and the costs involved in the transmission of the message. Image Source: 1.bp.blogspot.comVarious means of communication fall into four categories: (1) oral, (2) written, (3) nonverbal, and (4) information technology. These means are not mutually exclusive and very often some of these methods are combined to increase the emphasis or clarity of information. 1) Oral communication: ADVERTISEMENTS: The most prevalent form of organizational communication is oral. It could be face-to-face communication which is in the form of direct talk and conversation between the speaker and…

Essay on the Main Theories of Situational or Contingency Approaches!The leadership approaches discussed so far attributes leadership performance on the basis of certain traits or in terms of leader’s behaviour. The contingency theories propose that an analysis of leadership involves not only the individual traits and behaviour but also a focus on the given situation. Image Source: i.ytimg.com ADVERTISEMENTS: The effectiveness of leader behaviour is contingent upon the demands imposed by the situation. The focus is on the situation and not on the leader. Different types of situations demand different characteristics and behaviours because each type of leader faces different situations. A successful leader under one set of circumstances may be a failure under a different set of circumstances. For example, Winston Churchill was considered a successful prime minister and…

Various Factors that describe the Macro-Environment of an Organization!The external environment can be divided into two levels, namely, the “macro-environment” and the “task environment”. The macro- environment of an organization consists of such broad dimensions and forces in the surrounding environment which provides opportunities and poses threats to the organization. Image Source: i.ytimg.com ADVERTISEMENTS: These elements are general in nature and influence the organizations in an indirect way. These factors are shown as follows:These factors and their influences are described in more detail. 1. Economic Factors: The economic environment is the overall health of the economic system in which the organizations operate. Key economic influences include factors such as inflation, interest rates, unemployment, disposable income, balance of payments, stage of the economic cycle and so on.These influences are very strong…

Since the importance of the right decision cannot be overemphasized enough, it is imperative that all factors affecting the decision be properly looked at and fully investigated because the quality of the decision can make the difference between success and failure. Image Source: savingforsomeday.comIn addition to technical and operational factors which can be quantified and analyzed, other factors such as personal values, personality traits, psychological assessment of the decision maker, perception of the environment, intuitional and judgmental capabilities and emotional interference must also be understood and credited in the decision making process. ADVERTISEMENTS: Some researchers have pin-pointed some areas where managerial thinking needs to be re-assessed and where some common mistakes are made that affect the decision making process as well as the efficiency of the decision, and these mistakes…

The managers today face an increasingly complex and dynamic environment. The forces of change, from both within and outside the organization, are constantly providing new challenges for management. Image Source: enfongspeaks.comAs the twenty first century approaches, the complexity of managerial environment would require a complete overhaul of management functions, roles and skills in order to successfully meet the challenges that such complexity will pose. Elizabeth Kanter has suggested five key elements that are expected to be an integral part of the change process. These are: ADVERTISEMENTS: 1. Greater number and variety of channels for taking action and exerting influence.2. Relationships shifting from the vertical to horizontal, from chain of command to peer network.3. The distinction between emanagers and those managed is diminishing.4. External relationships are increasingly important as sources of…

Management as a Problem Solving Process – EssayMany management thinkers have defined management in their own ways. For example, Van Fleet and Peterson define management, “as a set of activities directed at the efficient and effective utilization of resources in the pursuit of one or more goals.” This concept is shown in the following diagram. Image Source: margenia.com ADVERTISEMENTS: Kreitner considers management as a problem solving process. He defines management as follows:“Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.”Some of the integral elements of this definition can be separated and briefly explained as follows: a) Problem solving process: ADVERTISEMENTS: One of the most important functions of a manager is to make decisions and solve problems. Some…

The management is responsible and accountable to many groups. Sometimes, the interests of these groups conflict with each other. Hence management must conduct its affairs in such a manner as to be fair and equitable to all parties who have a vested interest and claim on management. Image Source: ar2011.outokumpu.comThe management is answerable to the following groups. Stockholders: ADVERTISEMENTS: The stockholders are the owners of the company who have invested capital in the organization. Their primary purpose in investing funds is to make a reasonable profit on their investment.Accordingly, management must direct its resources at its command in such a manner as to yield a satisfactory rate of return for its investors in the long run. The stockholders are not so much interested in quick profits as they are in…

Difference between Hybrid Structure and Matrix Structure of Departmentalization are described below: Hybrid Structure: This structure is a form of departmentalization, which combines both functional and divisional structure. Particularly large organizations adopt this structure to gain the advantages of both functional and divisional structures. ADVERTISEMENTS: Functional structure gives the benefits of economies of scale, in-depth expertise and resource utilization efficiencies, whereas, divisional structure gives the benefits of specialization of products, services and markets. In India, the most of the public sector units and departmental undertaking like railways, etc., follow this structure. A typical hybrid structure of an organization is illustrated below:Hybrid structure gives the benefit of specialized expertise and economies of scale in prime functional areas. It facilitates adaptability and flexibility in handling diverse product or service lines, territories, differing…