ASSIGNMENT OF MANAGEMENT THEORY AND PRACTICE

SOLUTION 1 :- INTRODUCTION

CORPORATE CULTURE:-

Corporate culture can be defined as the pattern of shared values, beliefs,

assumptions, and working habits of people working in an organisation. It creates a
working environment in an organisation and forms the basis for interaction
between all the elements of the organisation. These elements can be employees,
different departments, processes, functions, etc. Different management scholars
have defined corporate culture differently. The following are some definitions of
corporate culture:

DEFINITION:-

Martins and Martins (2003) defines Organisational culture as a system of shared

meaning held by members, distinguishing the organisation from other
organisations.

Arnold (2005) defines Organisational culture is the distinctive norms, beliefs,

principles and ways of behaving that combine to give each organisation its distinct
character.

Hofstede et al. (1990) have defined corporate culture by presenting its seven
characteristics, which are:

1. Culture is holistic and cannot be restricted to single individuals rather

encompasses a large group of individuals.
2. Culture is historically related and is passed through the traditions and
customs of different generations.
3. Culture is stable and cannot be changed easily because it is difficult to change
the ideas, values, and traditions of people.
4. Culture is a social phenomenon and is shared by people of various groups.
Different groups have different cultures, and culture cannot be dictated by
people.
5. Culture is qualitative not quantitative because it can be implied but not
expressly defined.
6. Anthropological words like myth, ritual, symbols, etc. are generally used to
characterise the culture.
7. Culture refers to the ways of thinking, values, and ideas of people rather than
the concrete, objective, and visible part of an organisation.

Corporate culture is the main aspect of many important organisational concepts

such as employee commitment and motivation, resource allocation, competitive
advantage, and organisational change. In an organisation, culture enables
employees feel comfortable so that they can better work towards the
accomplishment of organisational goals. The following points explain the role of
corporate culture in an organisation:

 People working in an organisation interact with each other as per corporate

cultural norms; thereby developing a sense of belongingness.
  Corporate culture enables employees to relate themselves with the values,
beliefs and philosophies of the organisation, which makes them committed
towards the accomplishment of organisational goals.
 Corporate culture defines the standard code of conduct for employees in
an organisation by providing a set of norms, processes, policies, rules, and
regulations.

As per the question, Green Bell is a retail giant in India. Currently only confined to
metro cities for their giant super store outlets, they are planning to spread to
smaller cities in India. While working on the resource allocation, HR is planning on
shifting a few of the current staff to new locations while recruiting local staff at
each location in parallel. They need to engage the current staff in training for the
newer audience. We are discussing the expansion from the point of view of
Hofstede’s five dimensions to include in the training.

But firstly we have to discuss the Dimension of culture.

DIMENSIONS OF CULTURE:-

A multicultural work environment has become a trend of today's globalised

business practices. It helps organisations with a global presence to serve their
customers effectively from distant locations. However, this new trend gives rise to
cultural differences that impact the performance of employees as well as of the
organisation. The main problem that people generally face due to cultural
differences is to communicate with the other members of their teams especially
when they operate from different geographical locations.
Managing cultural differences is a significant challenge for managers. Thus,
managers should learn managerial skills required in the multicultural team
environment. To manage cultural differences effectively, it is important for
managers to consider the various aspects of corporate culture. These aspects are
called the dimensions of culture. Organisations use various models to understand
and analyse the dimensions of corporate culture. Two commonly used models are
Hofstede's five dimensions of culture and Trompenaar's seven dimensions of
culture. Let us study about these two models in detail.

HOFSTEDE'S FIVE DIMENSIONS OF CULTURE:-

This model was developed by Dr. Geert Hofstede as a result of research

performed for a decade in 40 countries. Hofstede provided the four dimensions of
corporate culture. The fifth dimension was added to this model later on. Figure
shows these five dimensions:
Power distance

Long term Cultural Individualism and

orientation Dimension collectivism

Uncertainty Masculinity/
Avoidance Feminity
Let us discuss these dimensions in detail:-

1. Power distance:- It refers to the degree of inequality exists in a particular

country and is accepted by people. In countries or societies where power
distance is high, unequal distribution of power is accepted by the people.
On the other hand, in countries having low power distance, power is shared
and well dispersed among people. In these countries, the members of a
society consider themselves as equals. As per the Hofstede model, Malaysia
scores high on power distance. In this country, organisations are
characterised by centralised structures where reporting is made directly to
the top management. Moreover, there are large gaps in compensation,
authority, and respect. On the contrary, in countries with low power
distance like Australia, organisations are characterised by decentralised
structures and close teamwork.

2. Individualism and collectivism:- Individualism refers to the tendency of

individuals to give high importance to personal achievement. In
individualistic societies, people do not form relations with anyone outside
their immediate families. As per this model, the U.S. and Germany are
individualistic countries. On the other hand, collectivism refers to the
tendency of people to treat themselves as a part of a group. In such
societies, people are empowered to make decisions. Countries like Panama
and Guatemala are highly collectivistic nations.

3. Masculinity/feminity:- According to this dimension, there is a division of

roles between genders in a society. In masculine societies, values like
achievement, power, and materialism are given priority. On the other hand,
 in feminine societies, values such as com promise, life quality, and
friendship have more importance. As per this model, Japan is a highly
masculine nation, while Sweden follows a feminine culture.

4. Uncertainty avoidance:- Uncertainty avoidance depicts the degree of

tolerance towards uncertainty and ambiguity in a society. In a country like
Germany which scores high on uncertainty avoidance, people like to be
safe and take various measures to avoid risks. Such people like to be
governed by rules and regulations. On the other hand, in societies with low
uncertainty, people willingly deal with changes and challenges. These
societies are often governed by fewer rules. An example of such society is
Denmark.

5. Long-term orientation:- This refers to the extent people are willing to value
long-term traditions. In countries, where long-term orientation is high,
people adopt those practices and values that prevail in the future too. On
the other hand, countries with low long-term orientation, people like to
stick to those traditions that have been in the past and present. Long-term
orientation is high in Japan, while African countries have low long-term
orientation.
SOLUTION 2 :- INTRODUCTION

An organisation has to make a number of decisions related to its work processes,

employees, technology, finance, sales, and production on a regular basis. Every
decision made by an organisation ultimately affects its overall business
performance. Therefore, an organization needs to be careful while making
decisions. A decision is said to be effective if it is made within the given time and
by utilising the available resources judiciously.

Decision making is a cognitive process that involves selecting the most

appropriate course of action from all available alternatives. It aims at identifying
the problem and finding out the solution to that problem. An organisation needs
to take into consideration various factors before making any decision, such as
economic factors, political factors, and social factors.

Decision making is a logical process that starts with identifying the problem for
which a decision is to be made; collecting the relevant information; developing
the possible courses of action and selecting the best one; implementing the
action; and following up.

As per the Question, Sateesh is a project manager in an IT company. He needs to

deploy some additional developers to be based on site. He has a meeting with the
HR for the same and needs to give a plan of resource deployment to the HR with
clarity on how many new members vs how many current developers can be
deployed on site. Managers have to make many decisions and Discuss various
types of decisions managers typically make based on nature of the decisions, level
of the management or capacity.
Before we discuss various types of managerial decisions, first we have to know
Concept of Managerial Decision Making.

Decision Making is a process of selecting the best course of action from all
available alternatives. It is a problem-solving method wherein a feasible solution
is identified for the prevailing problem.

According to George R. Terry, Decision making is the selection based on some

criteria from two or more possible alternative.

An organisation makes decision based on its needs and preferences. Apart, from
this, it has to make decisions within a certain time period. In case decisions are
not made within the allotted time, it may lead to the wastage of resources, which
ultimately affect organisational performance.

TYPES OF MANAGERIAL DECISIONS

In an organization, there can be different types of decisions made on a daily basis

depending on the nature of problems, requirements of the organization, and
external threats and opportunities. The types of decisions made in an
organization are categorized based on three parameters, which are:-

Based on levels of  Strategic Decisions

Management  Tactical Decisions
 Operational Decisions

Based on nature of Decisions  Programmed Decisions

 Non-programmed Decisions
 Based on the capacity of  Personal and organisational Decisions
individuals  Individual and group Decisions

Let us discuss different types of Decisions.

 Based on the level of management:- In an organization, there are three
levels of management, namely strategic level (top level). To maintain a
smooth functioning of the organization, decision are made at all three
levels. These decisions are:-

1. Strategic Decisions :-
These decisions are taken by the top management of an organisation,
which includes a board of directors. chief executive officer (CEO), and
managing director. Strategic decisions are related to the vision and mission
of the organization and its business strategy. These are the long-term
decisions of the organisation and require large investments in terms of
money and resources. In addition, these decisions are complex in nature
and involve a high degree of risk.

2. Tactical Decisions :-
These decisions are taken by the middle management of an organisation.
Tactical decisions are made for implementing the strategic decisions. In
other words, managers at middle level take decisions to ensure that the
goals established by the top management are accomplished on time.

3. Operational Decisions :-
These decisions are taken by operational managers for deciding the daily
operations of an organisation. If these decisions are ineffective, they can
 hamper the organisation's performance. Therefore, such decisions must be
in line with the organisation's overall business strategy.

 Based on the nature of decision :- In an organisation, different types of

problems are faced and cannot be solved using one technique. Therefore,
the organisation needs to understand the nature of these problems and
decide accordingly. On the basis of nature, two types of decisions are taken
which are explained as follows:
1. Programmed decisions:-
These decisions are repetitive in nature and are made on a regular basis.
For example, ordering new stocks to replenish inventory in a retail store is a
programmed decision. Such decisions are generally made for daily
activities.
2. Non-programmed decisions:-

These decisions are made only when the situation arises. Non-programmed
decisions are often made to deal with opportunities and threats, thus,
require careful analysis of all business factors. Such decisions are made by
top management. For example, the decision of expanding operations across
the border is a non-programmed decision which may be taken after
analysing opportunities in overseas markets.

 Based on the capacity of individuals:- In an organization, there are

different decisions on the basis of capacity which maintain a better
functioning of the organisation, that decision are made at all two levels.
These decisions are:-
 1. Organizational Decisions and Personal Decisions :-

When an executive takes a decision in an official capacity, on behalf of the

organization, this is an organizational decision. Such decisions can be
delegated to subordinates.

However, if the executive takes a decision in a personal capacity, that does

not relate to the organization in any way this is a personal decision.
Obviously, these decisions cannot be delegated.

2. Individual Decisions and Group Decisions :-

When talking about types of decisions, let us see individual and group
decisions. Any decision taken by an individual in an official capacity it is an
individual decision. Organizations that are smaller and have an autocratic
style of management rely on such decisions.

Group decisions are taken by a group or a collective of the firm’s employees

and management. For example, decisions taken by the board of
directors are a group decision.
Solution No- 3(a)

An organisational structure in which an organisation divided into different

independent units is called divisional organisational model. The division is made
on the basis of product, market, and geographic region of the organisation. As per
the question EarthMovers Ltd are into providing heavy vehicle services. They have
various heavy vehicles like tractors, cranes, bull dozers, mixer trucks, etc. They
have been growing increasingly and have employed a total staff of 1200. They
have divided their business in a Divisional structure. Based on this information,
features of divisional structure of organization and infer the divisions that
EarthMovers may have employed.

Firstly, we all know the EarthMovers Divisional Structure :- Divisional structure,

as the name suggests perceives an enterprise(EarthMovers) as the integration of
independent divisions. We must note that such a structure is adopted in large and
complex enterprises like EarthMovers may have Which handle diverse products.
This is because although an organisation produces a homogeneous set of
products, it can deal in a wide variety of differentiated products. Again, the
organisation does this to deal with complexity.

We must remember that in such a structure, the organisation is divided into

separate business units or divisions which are a bit independent and
multifunctional in their operations. Each unit has a divisional manager at the apex
who looks after all the operations within a division.
Further, each division performs most of the functions like R&D, Manufacturing,
Marketing, Accounting / finance, Customer service etc. to achieve a common goal.
In a nutshell, EarthMovers is divided into various heavy vehicles like tractors,
cranes, bull dozers, mixer trucks, etc which further adapt the functional structure.

Features of Divisional Structure of Organisation:-

 Here each divisional head looks after all the aspects of the division which is
his responsibility. As a result of this, instead of fixation on specialisation the
divisional head develop various skill sets which ultimately make him a
suitable candidate for higher job positions.

 Again each division is the complete responsibility of the division head.

Consequently, the division head looks after all the operations within the
division. Hence, this helps in performance measurement. Additionally, the
division head is responsible for the poor performance of a division. This also
facilitates quick remedial actions.

 Each division functions as a self-sustaining and autonomous unit. Accordingly,

it promotes flexibility, initiative and faster decision making.

 A notable advantage of the divisional structure is that it promotes expansion.

Evidently, if an enterprise tries to step into a new product’s market, it can
simply do so by adding a new division for that product line without
interfering with the existing structure.
 The divisional structure works well in market where there is a great deal of
competition, where local managers can quickly shift the direction of their
business to respond to changes in local conditions.

 This approach makes it much easier to assign responsibility for actions and
results. In particular, a division is run by its own management group, which
looks out for the best interest of the division.

 This approach tends to yield faster responses to local market conditions.

Division of EarthMovers Structure of Organisation:-

President(1)

Tractors(1) Cranes(1) Bull dozers(1) Mixer

trucks(1)

Research & Research & Research & Research &

D(43) D(43) D(43) D(43)

Manufacturing( Manufacturing( Manufacturing( Manufacturing(

140) 140) 140) 140)

Accounting/ Accounting/ Accounting/ Accounting/

Finance(45) Finance(45) Finance(45) Finance(45)

Marketing(40) Marketing(40) Marketing(40) Marketing(40)

Customer Customer Customer Customer

Service(31) Service(31) Service(31) Service(30)
Solution No- 3(b)

Designing an organisational structure requires proper attention and supervision.

This is because an inappropriate organisational structure may negatively affect
the organisation's performance. There are many factors that influence the
structure of an organisation. Some of the important factors are shown in Figure :

Environment

Technology
Factors influencing Orgainsational Size
organisational design

Organisation's
Strategy

Factors Influencing Organisational Structure:-

Let us discuss these factors in detail.

 Environment:- It is an aggregate of all the factors, conditions, events, and
influences that surround and affect the activities of an organisation. The
organisation should analyse the environment in which it operates while
designing its structure. This helps an organisation to collect information on
the latest trends and changes in the market and develop its structure
accordingly.

The environment of an organisation is divided into internal and external

environment. The internal environment includes all the factors that are
within the control of an organisation. It may be called strengths and
weaknesses of an organisation. The external environment includes all the
factors that are beyond the control of an organisation. The external
environment may either generate opportunities or pose threats for an
organisation. The four environmental influences are discussed as follows:

 Strengths:- These are basically the internal attributes of an organisation

that helps it to achieve its goals and objectives. Sound finances, low cost,
flexibility, effective marketing, efficient administration, good relationships
with suppliers, etc. are the strengths of an organisation.

 Weaknesses:- It is an inherent inadequacy that brings strategic

disadvantages for an organisation. Insufficient funds, late response to
customer requirements, limited product range, inefficient production, etc.
are the weaknesses of an organisation.

 Opportunities:- These are external conditions that are favor able for an
organisation and may strengthen the position of the organisation. Declining
performance of competitors, access to potential customers, leverage in
political and legal standards, development of new distribution channels are
the examples of opportunities.

 Threats:- These are the conditions that can cause trouble for organisations.
For instance, rise in raw material prices, high rate of attrition, improved
competitive products, etc.
EXHIBIT

SWOT Analysis

The Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis

matches organisation's strengths and weaknesses with the opportunities and
threats present in the environment. The SWOT analysis is performed with the
help of a four cell matrix, each cell representing strengths, weaknesses,
opportunities, and threats. The following table shows the SWOT matrix of an
organisation:

Strengths Weakness
list your: list your:
+ advantages + disadvantages,
+ unique and low- cost limitations
resources
+ what could you improve
+ factors mean that you
+ factors lose you sales
"get to sale"

SWOT

Opportunities Threats
list your: list your:
+ change to improve + external trouble for the
performance business
+good opportunities can + obstacles do you face
you spot +what your competitors
are doing
 Organisational size:- It is defined by a number of employees and the
businesses of an organisation. The organisational structure is largely
influenced by the size of the organisation. For example, in a small
organisation comprising about 50 people, the line organisational structure
is preferred. On the other hand, large-scale organisations generally prefer
the matrix organisational structure.

 Organisation's strategy:- The strategy of the organisation should be well

fitted with the organisation's structure. For example, if the strategy of an
organisation is to maximise overall productivity, all the departments are
required to meet the desired level of productivity. In such a case, the
functional organisational structure is followed which divides an
organisation into different departments such as marketing, finance, and
operations.

 Technology:- The advent of advanced technologies has automated the

different processes of organisations. This has created a less need for
human resources. For example, ATM machines provide banking facilities
such as money deposit and withdrawal to people without visiting banks.
This has changed the organisational structures of banks.

Assignment by :- Pratibha Yadav