Management Theory And Practice

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. Decisionmaking 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 that decisions 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, tactical and 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 to
rank the alternatives. Two such logical approaches are discussed at Example 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.

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 your subconscious 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.

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.

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 the US, 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.

 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 of disrespect. 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, 95pm. 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 holiday per year.

 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 is extremely 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 for individual 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.

 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 company to 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.