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MANAGEMENT
CASE STUDIES
CONTENTS
PAGE
I EXECUTIVE
SUMMARY
II CASE STUDIES 1-35
II.1 CHAPTER 1 THE CHALLENGE OF 1
MANAGEMENT
II.1.1 CASE STUDY 1 “A DAY IN 1
THE LIFE OF A BANK
MANAGER “
II.1.1.1 SUMMARY 1
II.1.1.2 QUESTIONS 1
II.1.1.3 CRITICAL 4
ANALYSIS
Planning Guide
III.2.3 MY ANALYSIS 46
III.3.1 IMPLICATION 47
III.2.1 EXPERT VIEWS 47
III.2.1.1 Published 47
Articles by
David Balovich
III.2.1.2 Joe Ellis and Todd 48
Mauldin
III.3.3 MY ANALYSIS 53
III.4.1 IMPLICATION 54
III.4.2 EXPERT VIEWS 54
III.4.2.1 Timothy R. 54
Barry
III.4.2.2 Marc Pfefferle 57
III.4.3 MY ANALYSIS 58
III.5.1 IMPLICATION 61
III.5.2 EXPERT VIEWS 61
III.5.2.1Carter 61
McCanara,
MBA, PHD in
Human and
Organization
Development
III.5.2.2 SHRM 63
manual
(society
for human
resource
development)
III.5.3 MY ANALYSIS 65
IV OVERALL 67
ANALYSIS
V FINDINGS 70
VI RECOMMENDATIONS 73
REFERENCES
II CASE STUDIES
The case study aims at providing a close view of the life of a bank manager. The
activities performed by the bank manager and their management. How a bank manager
does all this? The name of the bank manager is Marjorie Wong Gill-more.
Her over all busy routine, her relationships with her customers, her staff people and
outsiders. It discusses the managerial roles played by her, her technical, conceptual and
human skills, her managerial work agendas and methods. It gives us a description of the
way she is doing these things. The way she is implementing all these.
II.1.1.2 QUESTIONS
Q1 To what extent does Wong Gill-more’s day coincide with the managerial work
methods identified by Mintzberg? What roles are evident in her activities?
A) UNRELENTING PACE
She arrives at the bank at 8 am. She is busy in many activities. Starting from meeting
customers, staff meetings, follow-up phone calls, loan applications and viewing her
circulation file. Her tasks include report reviewing and decision making. She is busy
doing these things for the entire day.
She is handling a variety of issues daily. These things are a part of her daily job. Meeting
customers, managing meetings, making phone calls, handling the breakdown of an ATM,
holding staff meetings and many more. These show the variety of activities, in which she
is engaged with for the whole day.
C) NETWORKS
It involves the relationships she has kept with different people outside the bank in order
to run her bank business effectively. She keeps a contact with her customers, local CPA
firms and different business clients.
The roles evident in her activities are:
Inter personal and decisional:
Her interpersonal roles include leader and liaison. Since, she has a relationship with her
staff people and coaching them. She plays the role of a liaison since keeps a network of
relationships with people outside the bank. She keeps relationship with her customers.
Her decisional roles include entrepreneur. She initiates new procedures at the branch and
the information about the new promotions. She might be considered as a resource
allocator. It is not mentioned whether she is going to hire a new employee or the head
office is responsible for it. If it is assumed that she will be arranging for it, then her role
can be considered as a resource allocator as well. A partial informational (spokesperson)
role, that she is playing, is that she tells outsiders or customers about the bank and its
services. She is transmitting the information about the bank to the clients.
Marjorie Wong Gill-more performs her management function in the following ways:
A) PLANNING
Her planning involves her goal of getting more and more customers for the bank and
expanding the bank’s business. As her planning activities are concerned, she has kept a 3
page list of things to be done next day, after a weekend. She will be visiting a Chinese
Restaurant whose owner is installing a new credit card printer that will deposit credit
slips into a Bank of America acceptance account. There is a new customer campaign that
aims at CPA’s (Certified Public Accounts).
B) ORGANIZING
One of her junior assistant managers has been promoted and sent to the larger branch.
She thinks to hire one person as an assistant manager. The current situation is making her
job more hectic and tiresome. She will soon be making arrangements for a new
employee.
C) LEADING
She keeps a track of the activities of her assistant managers. She leads them in way that
on weekdays, except Monday, she holds staff meetings with her subordinates at 9. am to
review the bank’s various products such as seven types of checking accounts. She directs
and informs her staff members about these so that they are able to explain these account
types to the customers.
D) CONTROLLING
It would include that she is making use of rules and regulations stated by the Head office
to meet the performance criteria. This includes the rules and regulations regarding
acceptance and rejection of cheques and loan applications.
She decides whether to accept a check or reject it. It comes in the rules and regulations
implemented by the Head office. Why a cheque should be rejected? Why a loan
application should be rejected? A customer’s check is rejected due to any of the
following reasons:-
Q3 What work agendas does she seem to have? How do technical, human, and
conceptual skills come into play in her job?
The work agendas she is having include the goal of expanding the branch and ensure
good customer service. It further has:
A) UNRELENTING PACE
She arrives at the bank at 8 am. She is busy in many activities. Starting from meeting
customers, staff meetings, follow-up phone calls, loan applications and viewing her
circulation file. Her tasks include report reviewing and decision making. She is busy
doing these things for the entire day.
She is handling a variety of issues daily. These things are a part of her daily job. Meeting
customers, managing meetings, making and attending phone calls, handling the
breakdown of an ATM, holding staff meetings and many more. These show the variety of
activities, in which she is engaged with for the whole day.
C) NETWORKS
It involves the relationships she has kept with different people outside the bank in order
to run her bank business effectively. She keeps a contact with her customers, local CPA
firms and different business clients.
As far as her skills are concerned, she possesses all the three skills.
Her technical skills include her area of specialization she pitches, reviews loan
applications. She accepts them or rejects them according to the decision implied by the
main branch and the customer’s account history. She has good product knowledge. She
implements her managerial knowledge in decision making. She knows about the types of
checking accounts. All these qualities reflect her technical skills.
She likes to work with her juniors. She possesses almost all the qualities of a good leader.
She keeps a relationship network with the customers and outsiders. She often leaves the
operations of the branch to her assistant managers in order to save her time. She likes to
work as a senior, as well as a part of the group with her subordinates. She takes pride in
their achievements and considers their accomplishments hers. She is able to maintain a
CRM (Customer Relationship Management). All these qualities reflect her human skills.
Her conceptual skills comprise her long term goals. Her priority is customer service. Her
goal is to expand the bank business by making more and more customers, and keeping
the current ones satisfied.
A) MANAGEMENT FUNCTIONS
She is performing all the functions of management. Those are planning, organizing,
leading and controlling. She keeps a 3 page list of all the things to be done. She keeps a
relationship with her customers and outsiders to expand her bank business. She might
arrange for another employee at the branch. She holds staff meetings to instruct her
juniors updated and well informed. She likes to work with them. She keeps a track of her
staff people’s activities. (These have been discussed in detail in answer to Question 1).
Her work methods include unrelenting pace, brevity, variety and fragmentation. It
further includes the network of contacts she has with different people. She is busy the
moment she enters the bank. She starts early in the morning and keeps on switching
between varieties of activities all over the day. She is busy in pitching, reviewing
applications and handling different issues.
C) HER SKILLS
She has all the three types of managerial skills. She uses her technical skills for reviewing
loan applications and managing other things. She has managerial knowledge. She has
knowledge about the bank strategies and policies. She likes to work with her juniors or
staff people. She communicates with them, directs and motivates them. She has a goal to
expand the bank’s business and providing good customer service. Her objective is to get
more and more customers for the bank, keeping the current ones satisfied. These reflect
her key skills.
D) MANAGERIAL ROLES
She is a unit or Bank (branch) manager. She comes in the category of middle level
managers, as she is responsible for the work of other staff members. She is a function
manager as her responsibility area is concerned.
These are the things or duties which can not be compromised. These must be performed
by her at any cost. These are the parts of her job which ought to be performed. For
example, getting customers, meeting people and expanding the business of the bank.
These can not be ignored at any cost.
These are the things which restrict her. These are the factors which limit her. She can not
go beyond these. For example, if there is a criterion that she has to reject a cheque,
because the customer has insufficient funds left in his account, she has to reject it.
I) OVER WORKED
People at the bank, including Wong Gill-More, are over burdened and overworked.
She manages to keep the paper records of whole day’s transactions ready for the courier
.by 3.30pm. It is a pressure, though she finds it difficult to manage.
The no. of people working at bank is less. As stated in the case study, Wong Gill-More is
doing the work of an assistant manager, who was promoted and left. Instead of doing his
work, some people with expertise in banking should be hired.
Handling an ATM problem is not Gillmore’s duty. It is the duty of some IT department
person. She is a manager. She doesn’t have to deal with the technical issues. This implies
that she is managing technical things because she has less or no technical support at the
branch.
The CRM level at the bank is operational and collaborative. Making telephone calls to
customers reflects an operational CRM. Collaborative CRM is implemented via meetings
and appointments. If brochures of bank’s latest issues and procedures are rendered to the
customer, it also shows a collaborative CRM.
The case study aims at describing the role of the CEO in making the company
prosperous. It further includes his management skills, his agendas, and his work methods.
His marketing plan, the innovation he has brought, the way Kodak has changed its
culture. It identifies different managerial roles played by Fisher. It also discusses the
efforts he has made. His over all contributions in making the company prosperous. What
motivation he has offered to his employees. How his efforts will work?
II.1.2.2 QUESTIONS
Q1 Categorize each of Fisher’s activities according to the four function of
management: planning, organizing, leading and controlling.
A) PLANNING
He plans to design a strategy for Kodak Company which was in the recession stage.
Fisher‘s objective is to bring the company into a prosperous stage. He wants his company
to be a world class leader in digital imaging and processing. He is trying to set tough
goals and then letting his managers how to achieve them.
B) ORGANIZING
Fisher has set up a new digital division composed of digital resources. He has hired an
executive from Digital Equipment Corporation (DEC) to lead it. This way, he has
allocated a human and non-human resource.
C) LEADING
He gives a tough time to his managers. He has set tough goals and expects his managers
to achieve them. He holds conversations with his employees at the café and instructs
them. He does not behave as the top level person, but as a lower level person and makes
himself accessible. He chats with his employees in order to guide them properly. He
welcomes their queries and mails them back. Different meetings are held with the
employees. Compensation systems are being adjusted to reward those who are showing a
good performance.
D) CONTROLLING
Fisher has set up realistic goals and expects his managers to cope up with them. He tracks
their progress in meeting their goals. He checks to see whether they are meeting the right
criterion.
Informational
Monitor
Fisher tends to seek information about issues that can affect the Kodak Company. These
issues include declining earnings, slow growth, heavy debt and deflated employees.
When he became the CEO of the company, these issues were prevailing and affecting the
company to a great extent.
Decisional
Entrepreneur
Fisher believes in innovations and taking risks. From photographic imaging, he plans to
deal in digital imaging. He believes in replacing old techniques and adopting the new
ones. Digital imaging lets people take pictures, crop them and print them electronically.
Disturbance Handler
He has taken up the right decisions when the company was in a horrible condition. Heavy
loans, less net income, non motivated employees. These were the difficulties being faced
by Kodak. Fisher tried to solve all these problems by prioritizing them and then resolving
them.
Resource Allocator
He has hired an expert from DEC to be the unit head of the new digital division, which
comprises different digital resources.
Q3 Point to evidence that Fisher possesses technical, human and conceptual skills.
To what extent do you believe Fisher’s efforts at Kodak will be successful? Give
your reasoning.
Fisher is a specialized person in the field of applied sciences. He knows the value of
photographic business in the forthcoming years. He is well aware of the fact that this
industry will flourish a lot in the coming years. He conducts an 18 hours study to see how
to develop a better version of the technology. He is using his technical skills to beat the
company’s competitors. He considers the company’s expansion in international markets
as well, from a marketer point of view. He spends his time daily in studying each
segment of the Kodak business.
As far as his conceptual skills are concerned, Fisher has a long term goal of changing the
photographic technology to a digital one. He wants his company to be a world class
performer in digital imaging. He has set certain goals and expects his managers to
achieve them. His plans also include taking the company out of trouble.
As the CEO’s are not that much concerned with such issues, as Fisher is concerned with.
His efforts will bear fruit in the future. But it might take a long time.
Fisher is performing all the management functions. Those are planning, organizing,
leading and controlling. (These are discussed in detail in answer to question 1).
C) HIS SKILLS
Fisher has all the three types of skills. Those include technical, human and conceptual.
(These are discussed in detail in answer to question3).
As being the Chief Executive officer of Kodak, he is considered as a top level manager.
From a functional point of view, he is a general manager, since he is presiding over a
major division.
His job demands include the things he must do. For example, taking the company out of
financial and other problems is his job demand. Making the company recognized in the
world of digital imaging is his job demand. Beating his competitors and entering a market
is another job demand.
Kodak has formed joint alliances for products and services with companies like IBM,
Microsoft and Sprint. It has to face a competition with 599 competitors allover the globe.
Positioning refers to how a company has managed to make an image in the eyes of its
customers and competitors. Kodak has repositioned itself from a premature to a much
positioned company with better managerial control and a motivated workforce. But it will
take some time to get Kodak repositioned in terms of price.
Since becoming the CEO of a new company, Fisher over all performance and efforts are
good enough to encourage and initiate innovations.
J) EXPERTS
However, there are fewer experts at the company. For making innovations, a research &
Development department must be established. The way Fisher encourages suggestions
form his employees, he must welcome different suggestions from different experts.
K) MARKETING APPROACH
The marketing approach adopted by them is product oriented. Fisher aims at improving
the technology at Kodak, but there is no element of customer satisfaction involved in it.
L) TARGET MARKETS
Fisher thinks that Kodak business has significant growth potential. He wants to expand
the company to Asia. A target market already exists in India, Russia and Brazil. In USA,
it has a subsidiary named Qualex, which handles photo finishing for large retailers.
The time Fisher joined the company, it was in recession stage. After moving from a
recession –recovery, Kodak has entered a prosperity stage.
N) TQM AT KODAK
Since Fisher considers each employee to work to achieve goals set by him. Each member
of the company is responsible for providing the quality. Each of them has to make an
individual effort to globalize the company.
II.2 CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT
The case study aims at focusing the changes that have taken place at ford Motor. It
further gives a snapshot of the stages it has gone through during the past 200 years. It
gives an evolutionary viewpoint of different things, which have taken place in terms of
management style, organizational structures, technological changes and a much informal
control. The way they have provided a security to its employees by making them
involved in decision making. It specifies the way company has proved itself, made
advancements and tired to get a market share. What are their future aims and objectives?
II.2.1.2 QUESTIONS
Q1 Identify influences from the classical, behavioral and quantitative view points in
the way Ford Motor Company is managed today.
The Company has adopted certain classical, behavioral influences. We see all the aspects
of scientific management at Ford Company. Certain professional workers are found there.
The Company has moved from a centralized decision making to a decentralized one.
They have launched an Employee Involvement Program that enables decision making at
the lower levels as well. First line managers are also encouraged to stop the work if they
see a problem. Ideas from the bottom of the company are encouraged in the same way.
We find white- collar (professional) workers there who are responsible for carrying their
task decided by the management. There is division of work in 5 centers. The European
center is responsible for adaptive designing, whereas, other centers are responsible for
basic designing. Also, we find order in the company. There is a little concept of
bureaucratic management as well. It says that go for rational decision making. A first line
supervisor has an access to stop something, which he feels is going wrong. Also we find
team concept in areas like design, manufacturing, engineering & development. Ford
encourages innovative ideas from the bottom as well. There is autonomy at the company.
He encourages creative ideas from designers, manufacturers and developers. The
influence it has adopted from Quantitative management is operational management, in
which a field of expertise is primarily responsible for managing the production and
delivery of the company’s products. The departments responsible for production at Ford
are manufacturing department, engineering department, design department. The
department responsible for delivery to the markets is marketing department. Since Ford
wants its business to be expanded to China, India Indonesia, Thailand and Vietnam. The
company is expending efforts to marketize the products in Latin America, Brazil,
Argentina and Venezuela as well
Q2 Use Systems Theory to contrast the way Ford Motor Company operated at the
time the Edsel was introduced with the way the company is currently operating,
including its world-wide emphasis.
In systems theory, the company is considered as a system. In systems theory, there are
inputs, processing on inputs, outputs and a feedback. When Edsel was introduced, the
company wasn't that much open. Ford did not fall in the line of an open system their sales
diminished and kept on declining and the company faced a loss of $200 million. The
reason was that the company was following the two steps of systems theory. It was
producing vehicles using human and other resources. They were getting an output in form
of services. But there was no profit. It was facing a big loss. But they lacked managerial
planning. Ford relied on initial marketing data instead of conducting a market survey.
There was a stock market collapse which badly affected purchase of medium sized cars.
In other words, there was less demand for medium sized cars. They interacted with the
environment by advertising and marketing. But they ignored the feedback from their
customers. They did not study the demand of the cars. Small sized, fuel efficient cars
were more in demand that year. The first Edsels were prone to problems like oil leakage,
faulty brake system and starting problem. These problems needed to be solved before
they advertised in the newspapers. They ignored the negative marketing information. The
information which they got or neglected badly affected the growth of the company and its
status.
The way, Ford is being managed today, reveals aspects of systems theory to a much
better extent. It is using its human, materials equipment, financial and informational
resources in a much better way to produce its products (cars). When Edsel was
introduced, the top management decision was considered. But today, Ford supports ideas
from lower level as well. The managerial functions and activities are performed in a
much better way. They are handling technology in a better manner. Ford supports
innovation and novelty. They are earning much profit and expanding their business to
international markets. The last thing which Ford focuses on is customer satisfaction. They
also aim to be more efficient i-e they want to develop more products with a smaller group
of engineers and personnel. They aim to generate a much higher output in future.
The impacts of Japanese Theory, a concept which states positive points of Japanese and
American management, are visible in the management style at Ford. There is consensual
decision making and a concept of individual responsibility at Ford. It has adopted a
decentralized structure and eliminated a pyramid type structure. An assembly line worker
is granted access to stop the line if some problem is encountered. Many parts of the
organization work together. It has adopted the Japanese Theory view that higher quality
ultimately means lower costs. Even the bottom level workers are given some authority in
decision making. Ford believes in team work and shows greater concern for employees’
work.
A) MANAGEMENT FUNCTIONS
Consequently, all the management functions are being performed at Ford Motor. Ford has
a long term goal to get a market share, expand its market business and globalize the
company. He has split up the company into five centers, each one responsible for its own
tasks. He is obviously instructing his lower staff and other employees.
A concept of scientific management is found at Ford Motor. Different parts are divided
into more tasks. Ford Motor has white-collar, high class professionals in every field.
different tasks are divided. For example, design department has a task of designing the
cars. Marketing staff is responsible for selling the products. R&D department is
responsible for making innovations. Each of these units is performing its own tasks as
specified.
Workers are satisfied with their jobs. Ford likes to have ideas from his entry level staff.
Many parts of the company are working together but retaining their autonomy.
It involves the units or departments which are responsible for product management and
delivery. These include engineering, design, development, manufacturing and marketing.
Though quality assurance department is also responsible, but nothing is mentioned in the
case study about QA department.
Ford Motor can be considered as an open system. It is using its informational, human,
technical, financial and other resources to produce its products. Then all the managerial
and technologies abilities are being implemented by the company people. The outcome
they are getting is really appreciable. They are willing to attain their goals, which include
entering new markets, ensuring customer satisfaction, and being more efficient.
F) ENTROPY
Entropy means, tendency of systems to vanish over time. Ford Motor has proved itself
from the times Edsel was introduced. It has managed to sustain itself and tried to get a
position in the global market. These imitate negative entropy.
G) SYNERGY
Different units of the company are working together. This shows synergy.
At the time Edsel was introduced, the company was following a sales oriented strategy.
Ford Motor was interested in making sales & selling their products through
advertisements and sales people, but there was no concern of customer satisfaction. Now
Ford Motor has started moving towards market oriented strategy, where customer
satisfaction is considered.
The impacts of Japanese Theory, a concept which states positive points of Japanese and
American management, are visible in the management style at Ford. There is consensual
decision making and a concept of individual responsibility at Ford. It has adopted a
decentralized structure and eliminated a pyramid type structure. An assembly line worker
is granted access to stop the line if some problem is encountered. Many parts of the
organization work together. It has adopted the Japanese Theory view that higher quality
ultimately means lower costs. Even the bottom level workers are given some authority in
decision making. Ford believes in team work and shows greater concern for employees’
work.
The Ford Motor has started following a new approach in internal management. The old
highly hierarchal structure has been eliminated and replaced by a more informal
structure.
The whole case study aims at giving a look of the way Siemens has entered the world of
electronics business. It portrays a picture of how Siemens is evolving into an open
system. The way it is hiring new and fresh people to carry out business tasks and enter
the new markets. The selection and the training given to new batch of mangers, the way
they go through different tests, all is given in the case study. The role of CEO of the
company in making it a world class leader. Siemens has a goal to enter and dominate
electrics business market. The way they are behaving flexibly to give more output.
II.2.2.2 QUESTIONS
Q1 Explain how siemens is changing to an open system.
Siemens’s long term goal is to dominate the global market for electronic systems.
Siemens is a place where there is high competition among individuals. Siemens is going
for those managers who are more aggressive and robust in developing new products and
markets. Siemens wants people with extra high potential to make innovations and
increase business. Siemens want such managers who can interact effectively and
efficiently with the outer world, and are able to beat their competitors. The company is
moving towards a much flexible and modernized way. Full time tough training is being
given to the managers, which includes appropriate product knowledge, creativity and
problem solving abilities. Though the company was making a lot of sales, but wasn’t
satisfied with the output generated. They have started hiring fresh, young and energetic
people for the posts of managers. Most of them are in their twenties and thirties. The
company expects them to give an exceptional performance and provides an attractive
salary package. The tough training includes press & media handling, psychological
assessment and crisis management. The managers have to prove themselves to stay at the
company and deliver an outstanding performance. Through its managers, who are taught
proper product know-how and media handling, Siemens is able to get a feedback from its
environment.
They can manage to have a status of the organization by training the managers to handle
media. They aim at being more efficient and effective. They aim to manufacture world
class electronic products. They are utilizing all the inputs i.e. human, financial, materials,
informational and equipment. The managers will be operating in foreign countries. They
would be assigned specific job designations to interact more and more with the system.
Q2 To what extent are the Theory X & Theory Y Concepts relevant to the changes
being made at Siemens?
Theory X and Theory Y concepts are found at changing Siemens. The effects of Theory
Y are visible in the new Siemens. It is being assumed that managers should be highly
efficient and effective. They should use their potential and skills. They are highly
motivated. Siemens expects its managers to work well and put efforts. Siemens ensures
that the new managers possess self control and high working capacity. It is believed in
Theory Y that managers should exhibit greater commitment to organizational goals.
Siemens believes in hiring highly motivated and ambitious new generation people for
managerial jobs. It also expects its managers to be extremely creative and innovative.
These managers will be working in foreign countries and will be given an attractive
salary. However, the performance expected out of them is very high. Siemens assumes its
managers to possess intellectual, extrinsic and intrinsic skills as well. Their training
includes practical exercises, risk handling abilities and management tests.
Q3 How could Siemens effectively use contingency theory to help train its new
group of managers?
Contingency theory can be used at Siemens to training its new batch of managers. It says
that these managers are being given tough training to handle different types of situations
effectively. Some of them will be operating in foreign markets where things would be
different. How to resolve a particular dilemma in what situation? Right managerial action
depends on the situation. These managers are given hard training. The coaching includes
a full week taking tests. These managers are rated by top level managers to judge their
performance. They are being taught how to handle different dilemma in different
situations. A place where universal principles would not work. They are taught to cope
with disastrous management.
Siemens believes that there can different situations in different foreign markets which
need to be handled in an efficient manner. Different managers operating in foreign
market can be subjected to different situations. Therefore, they must know how to tackle
the situation. A universal viewpoint would not work there.
There is fast pace career at Siemens. Nothing is mentioned about the employment term.
The chosen candidates might be sent to foreign countries. They are being offered a good
salary but the competition they have to go through is really high.
D) NO CHAIN OF COMMAND
The CEO of the company can call a lower level manager to his office to get information
directly, instead of going through a chain of command.
E) ENTROPY
Though Siemens has been able to lead itself in the world of electronic things, this depicts
negative entropy. Negative entropy is the ability of a system to bring new energy, inputs
and feed back and sustain itself.
F) SYNERGY
The system (Siemens) as a whole is able to achieve its goals more effectively than if the
units were working separately. This gives a picture of synergy of the system. But now it
has decided to create smaller business units to be headed by talented managers. This
reduces the synergy of the system.
G) BEHAVIORAL SCIENCE APPROACH
Since managers are being tested and their behavior too in almost four to five aspects of
life. A useful outcome is that siemens assumes that managers perform better with
challenging and attainable goals than they do without goals. Siemens has outlined
specific and accomplishable goals and expects its managers to go on with.
Since managers are selected on their own qualification. They are promoted on their
performance. There is no class consciousness or nepotism at Siemens.
I) NO SOLDIERING
Since the managers are motivated, there are no soldiering practices at Siemens.
II.3 CHAPTER 3 UNDERSTANDINCOMPETITIVE
ENVIRONMENTS AND
ORGANIZATIOANAL CULTURES
The case study aims at showing different stages through which Xerox went through.
Different people like Joseph C, Wilson, Peter McCullough, David Kearns and Paul
Allaire worked as the CEO’s for the company. The way they made changes, encouraged
innovations and technology is shown in the case study. The roles they have played in
getting a market share and making the company prominent. The way they have worked
out on new things and emerged new cultures at Xerox. How the company kept on
improving its products and services during the eras of these four CEO’s. The major
elements of task and mega environment of the company. The external micro, macro and
internal environment the company inclines to have.
II.3.1.2 QUESTIONS
The major elements of mega and task environment seen at Xerox are:
1) TECHNOLOGICAL ELEMENTS
The Xerox started its business with a photocopier business and to an innovative graphic
processing company in 1947. Yet Xerox Palo Alto Research center played a major role in
developing the basic technology used in PC’s. Xerox moved to color copiers and
document processing sector from a photocopier business. When Allaire became the CEO
of the company, DocuTech machine was introduced that could produce documents
electronically from PC’s. After 4 years a new software DucuSP was introduced which
allowed tying digital printers to PC’s, scanners and data storage devices anywhere in the
world.
2) ECONOMIC ELEMENTS
Xerox, in the times of McCullough retained to get a market share of about 40 percent.
When David Kearns became the CEO of the company, deflation occurred which lowered
the costs. The company gave up the market shares and the net income of the company
declined to 50 percent. After this, Kearns focused at cost cutting and dedication to
customer services. As a result of this, Xerox received the Malcolm Bald ridge National
Quality award in 1989. The market share of the company in copiers began to increase. As
the U.S economy was lethargic and based on a Capitalistic approach, Xerox faced such
economic problems.
The legal political elements Xerox faced were patent laws, Trade controls and
deregulation of financial service industry. There was a problem when Xerox was
importing a low column copy machine from Fuji Xerox. But they were unable to develop
the product, so they imported the machine from Fuji.
4) SOCIO-CULTURAL ELEMENTS
The Xerox in the times of Kearns shifted towards employee involvement culture. Greater
authority was delegated to lower levels and employees became more involved in
decisions and activities. There was demographic towards old customers and workers.
However, the Xerox at east coast and Xerox west coast. The two headquarters were
having different cultures. The east coast headquarter culture was bureaucratic while the
west coast culture was highly entrepreneurial. Since the internal cultures wee different, a
cold war was developed between the two headquarters.
5) INTERNATIONAL ELEMENTS
The international factor, which Xerox had to go through were Fuji-Xerox (Japan), Xerox
Canada and the global competition. The competitors they had were IBM and Kodak.
Then a Japanese competitor was Canon, which had the most market value at that time.
The case study reveals little about the clients and customers that Xerox was having. But
as the Personal computers are mentioned, it is assumed that personal computer users were
the clients & customers of Xerox. As reference to page 75 of the book, the customers
include AT&T, Du- Pont, Sun Microsystems and defense department.
2) COMPETITORS
The Competitors Xerox had at that time included IBM, Kodak, Canon and Ricoh. The
type of competition is brand competition.
3) SUPPLIERS
Nothing is mentioned about the suppliers of Xerox in in the case study, as reference to
page 75 of book, the suppliers were Reeli Precision Manufacturing Co., AMPLACO,
Rogers Corporation and Nationwide Precision.
4) LABOR SUPPLY
Nothing is mentioned about the labor supply in the case study. As reference to page 75,
the labor supply include unions, varying labor markets and combined clothing and textile
workers.
5) GOVERNMENT AGENCIES
The case study reveals nothing about the Government agencies, tax authorities, and local
content law bodies. As reference to page 75, government agencies include Internal
Revenue, EEC Commission (Europe), SEC (Securities & Exchange Commission) and
Environmental Protection Agency.
The major methods that Xerox has used in managing environment elements are
adaptation. This approach involves changing internal operations and activities to make
the organization more compatible with its environment. The methods Xerox is using
include forecasting and smoothing. Smoothing include making a good quality product
with a low cost. Xerox aims at improving its products with a better customer service and
a better delivery system in the times of Kearns, he began emphasizing on cost cutting,
dedicated customer service and ensuring high quality. . They aim to create the value of
their products and hence try to make their product available (Product Utility). Allaire
forecasts the future in the way that he thinks data in future will be largely stored
electronically and be printed directly to printers. Based on this prediction, he is moving
ahead. Nothing is mentioned about stockpiling products or rationing the products. To
some extent, Xerox has adopted a domain shift in its product. It has moved from a
photocopier business to a DocuTech machines.
In the times of McCullough, IBM, Canon and Kodak were the major competitors.
McCullough made efforts in beating these competitors. McCullough immensely believed
in Research & development. Xerox Palo Alto research center was developed in his times.
The organizational culture in the times of McCullough was highly entreprenral. Since
there was bureaucracy involved at the company, which affected the product development.
By the time David Kearns became the CEO of Xerox, the company was facing economic
problems like giving up market share. Kearns more emphasis was on cost cutting,
dedicated customer service and high quality. Kearns followed the entrepreneurial culture
and was interested in maintaining it. The culture became a little more flexible by giving
lower level staff an authority in decision making and activities. They realized the
importance of customer satisfaction and quality. In the Kearns’ times, Xerox won a
Malcolm Bald ridge National Quality award for its services. In Kearns’ era, the market
share of the company increased.
In the era of Paul Allaire, exposing its first entry in digital image market. DocuTech
machine and DocuSP software were introduced. High technological improvements were
made in the times of Allaire. The culture found is even more flexible and more
entrepreneurial, than it used to be in the times of Kearns, where product decisions can be
made by the lower levels. Some part of authority is assigned to lower level recruits as
well. Moving from centralized to decentralized decision making.
o Technological Element
o International element
o Socio-cultural element
o Legal political element
o Economic element
Xerox has been able to survive due to its entrepreneurial approach, decentralized decision
making and developing new internal organizational cultures. . These factors let Xerox
survive in the competiting world of business till the date.
C) HIGH UNCERTAINTY
As the technology is constantly changing and beating competitors is a difficult job. The
company comes in the category of “high uncertainty”.
The techniques used by Xerox in the times of these 4 CEO’s include smoothing and
forecasting. But Today, Xerox is somewhat involved in advertising (on net), recruiting,
making strategic alliances ad many more. But the case study does not reveal these.
The organizational culture has been changing since the times of Joseph Wilson. Under
the 4 CEO’s, the company flourished a lot and expanded its business. The cultures kept
on changing from entrepreneurial to bureaucratic.
F) THEIR GOAL
Their goal is to make the company a world class leader in handling electronic documents.
G) POSITIONING
They have introduced a new logo” THE DOCUMENT COMPNAY” in order to crate a
better image in the eyes of its clients and competitors. (Image utility)
H) ECONOMIC CYCLE
The economic cycle that Xerox went through were prosperity, recession & recovery (in
the times of Kearns), and now a prosperity one again.
The case study aims at telling how Software AG rated itself, what management team is
running it. It tells about the internal organizational cultures of the two groups. It tells that
the two groups, German Headquarter and US subsidiary, have totally different cultures.
They have cultural differences among themselves. They are following two different
approaches towards their services and customers. Due to these clashes, a senior person of
the company resigned.
II.3.2.2 QUESTIONS
Q2 Compare and contrast the organizational cultures in the German and US parts
of Software AG. Where would you place them on the entrepreneurial Vs
administrative continuum?
There is a lot of difference between the two cultures. The managers at US subsidiary aim
at pursuing the latest trends in marketing and computing. They are more aggressive in
marketing their products. They believe more in keeping the customers happy. They
design the products while keeping the customers in mind, though the product may not be
that much good enough to meet their needs. It is only presentable. They believe in a way
that the American customers are attracted by fancy things. In contrast, the German
Software AG believes in making a product that will completely satisfy the needs of the
customers. Their behavior is more cautious. It is argued by an industry analyst that
German Software AG ignores US customer’s considerations. The approach being
followed by German Software AG is highly evolutionary, whereas the US Software AG
is following the revolutionary approach.
The Software AG organizational culture at Germany is very relaxing. People set up their
own working hours, dress the way they like, take breaks and accept the responsibility of
developing software which is highly progressive. People from different parts of the world
are working there.
The atmosphere at Germany is administrative. Their approach is evolutionary. In
Contrast, the organizational culture at US subsidiary is entrepreneurial. Their approach is
radical and revolutionary.
Q3 What advice would you give Page’s successor regarding the handling of two
cultures?
Since the two cultures seem to have serious conflicts, it becomes to work and make the
company established under such situations. Page resigned due to these cultural clashes.
The Page successor either should introduce a hybrid approach. The approach should be
both revolutionary and evolutionary. A combination should be used. That means such an
approach should be followed which keeps the US customers happy, plus it should deliver
a product which is efficient and meets all the customer needs. With a German approach,
it would be difficult to cope with American market. If only US marketing approach are
followed, then product principles can not be completely satisfied.
A) SOCIO-CULTURAL ELEMENT
The socio cultural element is being followed by one group, not the other.
C) RATING
Due to factors like international elements and technological elements, the company has
been able to sustain itself. This shows that company has shown negative entropy.
The managers at Germany are more precautious. They ignore the marketing consideration
factor for US market. They aim to deliver a service which meets the entire needs of the
customer. They are not using fast pace approach.
G) HYBRID APPROACH
A combination approach should be adopted. The focus should be customer satisfaction
and improved quality. The make the company more successful, the internal conflicts need
to be resolved. This cultural conflict can be a barrier in the company’s success. Since
Page resigned from the company due to these differences, these disagreements must be
settled down.
II.4 CHAPTER 4 SOCIAL RESPONSIBILITY AND ETHICS IN
MANAGEMENT
The whole case study shows the way a 39 year old manager went throughout his career.
The ethical issues he faced in his overall employment career. The problems he faced at
different companies and showing a picture of the one, he faced at the company he worked
most recently. The pricing problem, which he thought was illegal and unethical. His
discussions with other people, and the way he retaliated to all these dilemmas.
The company, at which Tony is working currently, seems to have little moral
management. They are just concerned about making profits and generating revenue. The
Top executives take negative decisions by fooling people. According to most of the
sociologists, each organization is fooling people for selling its products. At times,
sociologists treat the terms “advertising” and “fooling” synonymously. But talking about
business world, this is a part of it. All these things, marketing, planning & advertising are
associated with an organization. Tony was asked to collect information about a
competitor by pretending to be an executive recruiter. In my opinion, this was unethical.
Disguising you and getting information in a wrong manner. Then in order to beat the
competitor, the company developed a fake price list, which was again unethical. They
were not following the truth. The company is not following any code of conduct or any
code of ethics.
Q2 What steps would you recommend that Tony take to clarify his own values and
protect himself in this situation?
Well, Tony is facing an ethical career issue. He should go for a reputable company and
leave this job. Since he is not engaged in any of the illegal activates, he can manage to do
it. He should consult experts from the marketing field and make an analysis. This would
help him clarify his own values on the issue. Tony has tried a lot to convince his
superiors, but still it did not work. If Tony attempt to tell people that he was behaving
unethically because he was trying to fulfill the orders, won’t work. He should maintain a
memo or a record of the things he was asked to do. He should put everything rightly in
the memos and ask for the opinion of others. He should record the conservations held
with different consultants and other employees and get their views as well. In this way,
he can protect himself. If he still thinks that he is not happy with the nature of his job, he
should straight away resign and look for a new job.
Q3 How might Tony try to avoid getting into a similar situation if he seeks a new
job?
Well, Tony can avoid such a situation at the new place. When he goes for a new job, he
should see what direction the company is moving a head. He should see whether the
company is following some code of ethics or not. If that code of ethics satisfies him and
he finds them valid, then he should go for a new job. Different big companies have
defined their own code of ethics that an employee has to follow. The company Tony is
working at seems to have no code of ethics.
Since this is a small company, individual’s executives can be used to handle such
problems. If it were a big company, then temporary task forces cloud have been
appointed.
The top level is interested in making the profit. They are not telling the truth.
C) IMMORAL MANAGEMENT
The top level management is immoral. They deceive people by creating a fake price list
to beat their competitors in the market. They asked Tony to conduct an informational
survey to gather information about their competitors. This was again, unethical, not
illegal. But all this is an attitude which is opposed to ethical behaviors.
Tony should go for a new job. Where he is satisfied with his work, and where he is not
asked to do something unethical. Tony thinks that he is being treated like a commodity.
F) ETHICS COMMITTEE
If it is feasible, an ethical committee should be formed. This would help people in the
company to resolve ethical issues.
G) ENVIRONMENTAL COMPETITION
The main reason for the company to indulge in such behavior is environmental
competitiveness. The company wants to get a market share as soon as possible and has a
pressure for high performance.
H) CODE OF ETHICS
The whole case study aims at predicting how Rochester Company went through different
stages. Its evolution in its products. It has encountered an unethical situation. The waste
left after product manufacturings are hazardous. The owner has got a view of it. He tries
to solve this problem by engaging two of his executives. He discusses the problem with
them and asks for their opinions as well.
A) SHAREHOLDERS
These are the people who have a share in the Rochester Company. Al Canales is a major
stock holder in Rochester Company. Since it is corporation, it can be assumed that there
can be many owners.
B) EMPLOYEES
These include the people who work for the company. It includes Al Canales, Dennis
Ehrhart, (V.P controller) and Earnie Fascett (V.P manufacturing).
C) CUSTOMERS
Q2 What are the options available to Al Canales and the Rochester Corporation?
As Al Canales had a long discussion with two of his top executives, one of them is of the
view that waste clean up is against the rules. their ancestors did not do it. Why should
they be doing it? Al Canales is of the view to go for “Superfund”; a top executive is ready
for the company’s self financing program. Al Canales listens to him asks what to do next.
One of the executives thinks that this is mega project. It would costs them a million
dollars to get rid of the waste materials.
Al Canales should arrange for a temporary task force for relatively short period. The
people at the task force should do the following:-
The output of all these activities should come in form of a feasibility report. The report
should tell in detail whether this cleanup project is implement able or not. After the
conduction of feasibility studies and report, the temporary task force should be
disbanded.
A) EVOLUTION AT ROCHESTER
From a rope making company in 1700’s, Rochester has gone through evolutionary stages.
From rope making to wire ropes, wire ropes to signal carrying cables and in the end, fiber
optic cables.
B) THEIR STAKEHOLDERS
Rochester should perform opinion based surveys to check what people and the general
society think about this “waste” issue.
A temporary task force should be made in order to carry out the proper feasibility studies.
The dilemma is whether the issue is unethical or illegal. At this stage the issue is
unethical. It will enter into an illegal stage when certain alert messages are given to
people at Rochester from different environmental firms.
If Al Canales finds it feasible to implement the waste cleanup problem, the company is
moving from amoral to moral management. An amoral management is neutral; a moral
management is the one which strives to follow the ethical principles.
II.5 CHAPTER 5 MANAGERIAL DECISION MAKING
The whole case study aims at showing the birth of USA Today and the problems it had
to go through its entire life cycle. It was launched. It was successful for a period of time
but went into recession. It started getting negligible profits. There were clashes among
the top level executives. Due to poor leadership and ineffective decision making process,
USA Today wasn’t able to protract itself.
Q1 Which model of decision making best matches the situation involving the birth
of USA Today?
USA today was evolved after very tough work and efforts. It was in heavy loss in its
early 1980’s. A book was published by the owner of the Gannett, in which he has
described the initial problems and difficulties relating to the launch of the newspaper. The
CFO of the company is not in the favor of the way the project was launched. The major
procedures like planning expenditures were neglected. The management and staff of
ASA Today were free to spend large amounts of money when the project was in a weak
stage. They lacked good managerial decision making and planning. No rational decision
making process was followed. They were following a non rational decision making
model. They were going for an average solution. They were not going for an optimal
solution. There was no proper planning and effective decision making.
Q2 Evaluate the extent to which Gannet top level executives used an effective
decision making approach in deciding to launch USA Today and in dealing with the
subsequent problems. What was the impact?
The way Gannet top level people used an effective decision making approach, was not
that well. They knew that the company has faced problems in its launch. The top level
executives had clashes among themselves. One of them was of the view that the there
was no proper planning at the time of its launch. They went through the first step of
decision making, “identifying the problem”, but forgot about the rest three steps. They
did not go for any alternative solution. They did not encourage questions and alternative
solutions. They top executives were criticizing other’s ideas for improvement. They did
not check out the feasibility & other costs related to the problem. They came up with a
solution that was an average one. The impact was that the company did well for some of
the time period, but started losing and making little profits in the end due to ineffective
decision making.
Q3 Evaluate the extent to which the USA Today situation presented an escalation
situation (between the time the paper was launched and the time it began to take
money).
An escalation situation is where you think that there is a possibility of rising loyalty and
making speedy losses. USA today presented an escalation situation between the time it
was launched and the time it started making money. The chairman of the company made
it clear it everyone the employees could have a future with the newspaper. He might have
spent a lot on his employees. It is mentioned that the management and staff of USA
Today were allowed to spend large amounts of money. When the paper was in a non
profitable stage. The amount of money spent on the employees was a sunk one. These
were the sunk costs as they weren’t to be returned. It is stated by the chairman “why
should we kill ourselves in Idaho to make money when they will just waste it over there
(USA Today)”. The company had operating losses of more than $230 million in 5 years
after its launch. All this was a sunk cost. This was not returnable. The Chairman made it
clear to employees that have a bright future in the company. But he wasn’t able to sustain
it.
B) POOR LEADERSHIP
Instead of compromising on relevant issues, the leaders are having clashes among
themselves.
c) BIASED STAFF
The staff is somewhat biased against the chairman of the company. They showed disgust
for his book and thought that it criticized them.
D) ECONOMIC CONDITION
The company moved from recession to prosperity and from prosperity to secession again.
The people at USA Today do not go for the best solution. They go for a satisfactory one.
F) NO BRAINSTORMING
I) NO ALTERNATIVE GENERATION
When a problem is there, USA Today staff does not go for alternative solutions. They
do not want to raise and ask any questions.
The case study aims at demonstrating the ways shell is dealing with different types of
crisis, non crisis and opportunity problems. The way it is making profit and generating
revenue. What mechanisms it is following in order to tackle the types of problems. To
what extent these approaches are helpful. How they are dealing with uncertainties and
risks? How Scenarios analysis helps them in decision making? The way they are dealing
with the typical types of risks that are subject to oil companies.
Q1 To what extent does shell appear to emphasize the handling of crisis, non-crisis
and opportunities problems?
An opportunity problem that Shell was able to solve was passing Exxon to become the
world’s largest oil company. The company is able to handle most of its capital and
generating revenue more than $100 billion. After passing Exxon, it became the world’s
largest oil company.
A crisis problem which Shell might be facing is the rapid change in price of raw
materials. This can happen any time, and Shell is handling it effectively. A change in cost
from $4 to $40 is not negligible, and can have an effect on the company’s profit. But still
the company is making big profits and adopted a growth strategy.
A non-crisis problem for the company is gas prices. Since gas prices are much lower than
oil, this is an issue which needs to be resolved. Shell has adopted a cost cutting strategy
to enhance profit levels. This strategy worked well and had a positive impact on the
company’s profit levels.
Hence, Shell is capable of handling all types of problems i.e crisis, non-crisis and
opportunity as well.
Q2 What evidence exists that Shell uses an effective decision making process in
making various decisions? What evidence exists regarding problems with decision
making?
Shell is using an effective decision making process by following almost all the steps
involved in decision making.
The first case where they faced a problem was getting less operating profits. They
classified it as a problem and tried to find out what were the reasons (causes) for it. They
discovered that the problem was due to weak oils and lower gas rates. They checked out
the rest and offered low oil prices. This was how they implemented and monitored the
solution. The result was an improved profit.
Shell is using three approaches for crisis handling:
o Geographic Diversification
o Concentric Product Diversification
o Speedy adaptation to change
Shell is explores its products in 50 countries and sells them in 100 countries. Economic
disorder cannot affect the company
Secondly, it does business only in the countries where it expects high returns.
Thirdly, Speed is also another factor which Shell considers. When Spain discontinued the
problem of gas stations, Shell was there to provide the service.
These are the careful and planned steps that Shell has taken to run its business.
Shell is using scenario based analysis to address its environmental variables. Scenarios
are outlines of possible future conditions which include the path the company could take.
The scenario analysis is done by the planning department at Shell. The managing
directors identify changes by studying these scenarios. The Shell at geographic locations
uses these scenarios to give their own strategies and act according to the plan. In addition
to scenario process, wars help Shell out. During the gulf War, supplies were interrupted
from Middle East; Shell was able to provide the supplies. These scenarios help Shell
people in divergent way of thinking to a grate extent. These give a future prediction of
10 years in the world. The managers are able to handle different problems and have
different solutions for them. They know if a problem is encountered, they have multiple
solutions for it.
Such an approach is not applicable where there has to be a certain specific solution for a
given problem. There are certain situations where a divergent thinking would not work.
For example, Shell is being criticized by activitists for polluting the area in Nigeria and
continuing to work in some parts of the country. They do not want to leave the country.
They want to stay there and form some sort of agreement.
A) PROBLEM HANDLING
o Crisis problems
o non-crisis problems
o opportunity problems
Shell is good at handling all types of these problems and coping with them. these
problems are subject to every oil company. Shell has been successful in dealing with
these.
Shell is more dealing with programmed decisions like cost cutting, and how to do what
when such things happen? Most of their decisions are planned and well defined. They
have to deal with the uncertainties but they know that these uncertainties will happen in
future. They have designed different strategies for them.
People at Shell have adopted a rational decision making model. They are not following
any non rational model. Since they are using scenarios, their decisions are well planned.
D) NO SATISFICING MODELING
There is no satisficing model followed at Shell. They go for the best solution and do not
compromise on an average one.
There is no garbage can modeling at Shell. It strives to improve its quality and products,
instead of changing the product.
They are using scenario based analysis which helps them a lot in managerial decision
making. This job is performed by the planning department. The Managers make a study
of these and try to get help out of these.
G) INELASTIC DEMANDS
The demand for oil & petroleum is elastic. It can vary from $4 to $40.
H) RATING
The Shell has shown a remarkable performance and got significant rewards. In 1990, the
company passed Exxon to become the world’s largest oil company.
Their marketing activities like quality, delivery and performance are in well coordination.
They know how to improve the quality of their product, how to deliver the product and
over all performance.
J) PLACE & TIME UTILITY
The Shell stations serve their customers at their best, anywhere, anytime.
The 260 units were free to make their own decisions. The managers of operating units
used to consider local conditions, and shift rapidly to handle customer needs. But now a
more centralized approach is followed where senior managers administer divisions like
production & exploration.
NOTE: I have not changed the words and writings of the experts. These are their
exact views and opinions on certain topics. Rather, “…..” are used.
III.1.1 IMPLICATION
functional role
decisional support role
performance monitoring role
strategic support role
Projected job growth stems primarily from rapid growth among computer-related
occupations. Employers prefer managers with formal education and advanced technical
knowledge acquired through computer-related work experience. Job opportunities should
be best for applicants with a master’s degree in business administration or management
information systems with technology as a core component. The need for organizations to
incorporate existing and future technologies in order to remain competitive has become a
more pressing issue over the last several years. As electronic commerce becomes more
common, how and when companies use technology are critical issues. Computer and
information systems managers play a vital role in the technological direction of their
organizations. They do everything from constructing the business plan to overseeing
network security to directing Internet operations.
The Chief technology officers, for example, evaluate the newest and most innovative
technologies and determine how these can help their organization. The chief technology
officer, who often reports to the organization’s chief information officer, manages and
plans Management information systems (MIS) directors manage information systems and
computing resources for their entire organization. They may also work under the chief
information officer and plan and direct the work of subordinate information technology
employees. These managers oversee a variety of user services such as an organization’s
help desk, which employees can call with questions or problems. MIS directors also may
make hardware and software upgrade recommendations based on their experience with
an organization’s technology. Project managers develop requirements, budgets, and
schedules for their firm’s information technology projects. They coordinate such projects
from development through implementation, working with internal and external clients,
vendors, consultants, and computer specialists. These managers are increasingly involved
in projects that upgrade the information security of an organization.
Network administrators (managers) provide a variety of services, from design to
administration, of an organization’s local area network, which connects staff within an
organization. These managers direct the network, and its related computing environment,
including hardware, systems software, applications software, and all other computer-
related configurations.
“An information system is comprised of all the components that collect, manipulate, and
disseminate data or information. It usually includes hardware, software, people,
communications systems such as telephone lines, and the data itself. The activities
involved include inputting data, processing of data into information, storage of data and
information, and the production of outputs such as management reports.
It is thought that the open systems theory (Bertalanffy, 1950; Boulding, 1956) as one
possible tool for organizational MIS research and practice, using the issues of
environmental change, organizational structure and organizational interdependence to
illustrate its use. The area of environmental change and organizational IT response is an
especially appropriate application area for the open systems theory.”
III.1.2.3 Researchers (Bakos and Treacy, 1986; Cash and Konsynski, 1985; Kling, 1980;
Kriebel and Moore, 1982)
”The increasing global interdependencies and the accelerating pace of change demand
more flexible and adaptive organizations (Malone and Crowston, 1991). Malone and
Smith (1984) have defined organizational flexibility in terms of "vulnerability" and
"adaptability." Effective implementation of IT would decrease vulnerability by reducing
the cost of expected failures and enhance adaptability by reducing the cost of adjustment.
Rockart and Short (1989) attribute the everincreasing need for managing interdependence
to competitive pressures that included globalization, time-based competition, increased
market risk, and a greater emphasis on customer service and cost reduction. Bennis
(1974: 22) notes that "the organization's response to the environment will continue to be
the crucial determinant for its effectiveness." Since postindustrial organizations will be
faced with increasing environmental complexity and turbulence, organizations' needs to
process information and make decisions will be substantially increased (Huber, 1984).
The capabilities and flexibilities of computer-communication systems make them
increasingly relevant to organizations by being able to respond to any specific
information or communication requirement.
IT is becoming all pervasive and is having impact on all industries – in service as well as
in manufacturing. It is affecting workers at all levels of organizations. From executives to
assembly hands and clerks. IT is increasingly becoming an integral component of all
types of technologies – craft, engineering, routine, and no routine. “
III.1.3 MY ANALYSIS
Within companies and large organizations, the department responsible for computer
systems is sometimes called the MIS department. Other names for MIS include IS
(Information Services) and IT (Information Technology).
Software include:
Hypertext
DBMS
III.2.1 IMPLICATION
The Diversity in Management evolves when different groups or operating unite come to
some other place for performing their operations. The term “diversity” encompasses a
number of factors. These factors include workplace diversity, ethnic groups, genders,
demographics, age, cultures, traditions and norms. Diversity refers to the ways that
people in organizations differ. That sounds simple, but defining it more specifically is a
challenge because people in organizations differ in a great many ways race, gender,
ethnic group, age, personality, cognitive style, tenure, organizational function, and more.
There is also the fact that diversity not only involves how people think of others and how
this affects their interaction but how they conceive of themselves.
In today's competitive business climate, managers must be aware that racio-ethnic and
gender diversity in a project team has the potential to either hinder or expedite problem-
solving. A diverse team has a wide range of useful viewpoints to draw upon when
completing a task. Unfortunately, the creativity and functionality of the team can be
impaired if stereotyping results in women and people of color being marginalized. To be
effective, team members must not allow stereotypes to prevent them from accessing and
utilizing each member's strengths and weaknesses.
The research of Graves and Elsass suggests several strategies a project manager could use
to get John's team back on track. All of the strategies encourage team members to see
past stereotypes to the unique qualities of each individual team member. The project
manager could
Make each team member responsible for a specific set of tasks, thus
preventing any one member from being overburdened.
Establish rules for decision-making that require the input of each team
member.
Provide relevant personal information about team members that will help
them be seen as individuals.
Make sure that resources and time allotted for the task are comfortably
adequate. The ability of people to move beyond stereotypes can be hampered
by stressful working conditions.
On first meeting, people tend to categorize each other on the basis of gender, race or
ethnic group. Those categorizations are frequently accompanied by assumptions about
how a person will behave or should be treated. If those stereotypes are not challenged,
they can negatively affect both social and task-related behaviors in the work group,
forcing women or people of color into unproductive or inappropriate roles.
He suggests that there are four patterns of behavior that can occur in a diverse work
group:
Exclusion. This is the least productive scenario, in which stereotypes have not
been challenged. As a result, there is a low level of both social and task
exchange. Women or persons of color are marginalized; their input is not
solicited or supported and their contributions are ignored.
"Internal because you have staff and chances are good that people will differ from each
other in some way, such as educational level, age, parental status or physical attributes. If
people don't feel included and that their concerns are germane, Rowe warns, "the cost to
your company can be high - in terms of commitment, satisfaction and high turnover (it's
costly to recruit and train).
A comprehensive 1993 study of U.S. workers' attitudes bears out Rowe’s assertions.
The first installment of a planned quadrennial survey, the privately funded National
Study of the Changing Workforce found that perceptions of discrimination take a heavy
toll on job performance. More than one-fifth of minority workers reported they had been
discriminated against by their current employers. Those beliefs correlated with a higher
Tendency to feel "burned out," a reduced willingness to take initiative on the job and a
greater likelihood of planning to change jobs. From an external perspective, a diverse
workforce can also provide a distinct competitive advantage for your firm and enhance its
success in today's increasingly global marketplace.
Conversely, if you don't understand the nuances of different cultures, you may be
inadvertently slighting potential customers and missing out on new markets, your lack of
understanding can also affect existing relationships. Diversity is both a customer service
and a business development issue.
A) COMMITTED LEADERSHIP
Firms that have already recognized the value of a diverse work force and made a sincere
effort to maximize its contributions have learned that changing hiring policies will not in
and of itself ensure success. A strong commitment from company leaders is also critical.
The correct question today is not `How are we doing on race relations?' or `Are we
promoting enough minority people and women?' Rather, it is `Given the diverse work
force I've got, am I getting the productivity, does it work as smoothly, and is morale as
high, as if every person in the company was the same sex, race and nationality? When
you seek to attract talented employees of diverse backgrounds, one of their considerations
will be whether your firm offers a reasonable opportunity to develop to their fullest
potential.
B) OPEN COMMUNICATION
Once people form a personal relationship, their entire outlook changes, one-on-one
relationships remove mistrust and fear and increase opportunities for people to feel
comfortable talking with others who may be different from them in some regard.
If you don't feel comfortable undertaking some of these programs on your own, you may
want to hire a diversity consultant to work with you and your staff. However, a word of
caution. Diversity training has become an industry in itself, replete with its own share of
charlatans. So choose trainers and consultants carefully, and be sure to ask for - and
check -references. If you can't afford outside help, another option is turning to the many
publications and newsletters available today which are filled with helpful exercises. Or
contact your local university or community college about classes and workshops.
Smaller firms have the best chance of establishing a truly diverse culture and managing it
successfully, many experts agree. Typically not burdened by a large, entrenched
bureaucracy, it is easier for them to make changes while the business owner maintains
greater control of the process.
In smaller organizations, people are often less threatened by diversity, they develop trust
more quickly and are more open, and there tends to be a greater level of confidentiality.
In addition, smaller companies have fewer candidates competing for job. Since their
choice of potential employees can be limited, small firms must think about using the most
qualified people available, regardless of their backgrounds.
Customers have their own expectations as well. Diversity has competitive implications.
Customers expect small businesses to be more mindful of differences and to better serve
their needs. In a country seeking competitive advantage in a global economy, the goal of
managing diversity is to develop our capacity to accept, incorporate and empower the
diverse human talents of the most diverse nation on earth. It's our reality. We need to
make tour strength."
III.2.3 MY ANALYSIS
My own analysis is that different organization when come to other countries must be able
in diversity management. They must be able to know the needs of their customers. They
must be familiar with the norms and values of different cultures. An organizational
internal culture is as important as external culture. The variations to be performed should
be in a flexible way. Diversity management involves being considerate to a very high
level. It means that treating others in way, you would expect others to treat you. In case
of gender, diversity management varies. For example, handicapped lady working at a
bank should be given more preference in terms of location. There are certain
organizations which give an equal opportunity to the disabled employees. One way to
handle diversity is to have a keen study of the organization and its external environment.
The other way is to study the past events. Another way is to build personal relationships
with people outside the community to know what is wrong and right. Diversity in
management comes for ethics, gender, age, values, culture and a lot more factors.
Diversity in management is a very vast topic, and can not be discussed in general.
III.3 CENTRALIZATION VERSUS DECENTRALIZATION
III.3.1 IMPLICATION
The centralized system is ineffective in the position where rapid decision making is
involved. For example, a certain problem has encountered. One of the employees had a
car accident and out of an extremely busy day, he had to be taken to the hospital. It
involves a rapid decision making process. The senior manager might cancel some of the
important meetings due to his accident. Here a decentralized approach would work.
Informing the top level person and getting a response from him will take too long.
In contrast, a decentralized approach is good for decision making, but seems to ignore the
long term objectives of the company. People working in one division are operating
according to their own procedures and policies with little or no regard for company goals
and objectives. Where standards are to be met, a centralized approach should be
followed. Where innovations, decision making and learning are involved, a decentralized
approach should be used.
“The dilemma many large organizations have anguished over is whether to centralize or
decentralize key operating functions such as sales, credit, accounts payable, etc. In the
past it has been common for companies to decentralize sales, credit and other offices
scattered about the country responsible for customers and activities in their respective
region.
However, decentralization is no longer being restricted within our continental boundaries.
Major U.S. companies. including IBM, Procter & Gamble, Dell, Microsoft and Oracle,
too name just a few, are decentralizing their operations to other countries including India,
Cost Rica, Ireland and China. We are not talking about manufacturing jobs but rather
professional jobs that include financial analysts, accountants, human resources, payroll,
collectors, customer service and others at higher levels in the labor pool.
Employer’s say moving jobs to foreign countries makes them more competitive because
they can realize enormous savings in labor costs. According to A.T. Kearney, a
management consulting firm, an MBA with three years experience in India will make
about $12,000 a year, compared with $100,000 in the U.S. A debt collector will make
$5,000 compared with $50,000.
Over the next five years financial service companies plan to move more than 500,000
jobs to countries such as India. Proctor and Gamble currently handles payroll, accounts
payable and invoice processing in the United Kingdom, Costa Rica and the Philippines.
In addition to lower wages, major companies are able to work around the clock because
of their presence in other countries. For example, Oracle, which has two large R&D
centers in India, plans to have 4000 employees in place by year’s end. Programmers there
will pick up projects when their American counterparts leave for the day, and vice versa.
Oracle will be able to operate 24 hours a day at a third of the cost it would pay to operate
24 hours in the U.S.
Another consulting firm recently surveyed 38 large companies about moving white-collar
jobs overseas. While only seven companies admitted to seriously considering moving
jobs overseas, they all said they were evaluating it.
Dell has operated a customer service and technical support center in India for several
years, where the deregulation of the telephone industry has caused rates for international
calls to fall as much as 30%. Many of their employees assume an American name and
take training in U.S. customs, making it hard to distinguish between a call from Austin or
Mumbai (formerly called Bombay).
Joe Ellis is the founder and CEO of TEDS – a CBM Company. Todd Mauldin is TEDS’
vice president for customer relations. TEDS is one of the world’s leading learning
management and human capital development software systems, serving millions of users
in more than 100 countries
“The debate over the centralization versus decentralization of operations within a large
enterprise is a never-ending one. It is an age-old battle of standardization versus
autonomy, corporate efficiency versus local effectiveness and pressure on costs and
resources versus accommodation of specific local needs. A popular theory states that
organizations vacillate between a strong centralization philosophy and a strong
decentralization philosophy in roughly three-year cycles. The scenario works like this:
Some three years later, a group of centralization proponents will analyze this
decentralized operation and discover gross inefficiencies. The decentralized operation is
perceived as fragmented and inconsistent. The employees in one division are operating
according to their own procedures and policies with little or no regard for company goals
and objectives. Company headquarters can’t even get any consistent organization-wide
reporting, for goodness sake. The obvious solution is centralization.
While certain learning challenges are similar among virtually all organizations, other
specific challenges are special or unique to a particular enterprise. Obviously, the basic
characteristics of an organization, including size, domestic or international scope and the
diversity of products and services provided, must be considered in the development of
any corporate learning and human capital development strategy.
These are but a few of the many questions and organizational characteristics to be
considered as a part of the decision-making process that leads to the successful
implementation of a learning management and human capital development system. But
they also point toward the process involved in answering the initial question: For my
organization, which is better, centralized or decentralized learning? Let’s begin by
examining the benefits of each methodology.
Obviously, the advantages of each model for corporate learning management are, in
essence, the disadvantages of the other.
Based on TEDS’ years of working with large corporations, we feel that the best model is
one that captures the strengths of both models while effectively managing the relationship
between corporate and local training functions. In order to reap the benefits of a strong
centralized learning management and human capital development system as well as the
advantages of localized learning, two challenges must be addressed: the technical
infrastructure of the system and the execution of the plan.
The learning management system (LMS) a company selects must be robust enough,
through its technical infrastructure (architecture) and depth of functionality, to centrally
manage reporting and record keeping while pushing out content for localization and
management. For example, our LMS uses four-tier architecture, which allows for
centralizing the database while decentralizing the Web servers that store course content.
Online content puts the largest demands on servers and pipelines. Once that content is
pushed out to local management via localized content servers, two problems are solved.
Content no longer flows from a single central server through restricting pipelines, and
control of content is where it should be, at the local level. Having the ability to control
the content locally permits the accommodation of local culture issues, languages and
customs—a great advantage to global enterprises.
The LMS should be capable of managing multiple courses on multiple servers. It should
allow users to choose what server they want to launch from and what language they want
the course to be delivered in. And it should be able to recognize, track and record
localized courses via a global course name and number. That is, it must have the
capability of assigning a global number to a course or learning event that is delivered in
multiple locations and in multiple languages.
Centralized systems tend to force dialogues, or the sharing of similar data, in regard to
skills, competencies and certifications. Therefore, standardization of employees’ skills,
competencies and certifications is much more likely to happen in a centralized
management system. In a true human capital LMS, courses and other learning events can
be local, but competencies can be tracked and measured against global standards.
Several TEDS’ customers follow this “local content/global competency standards”
model. They push their content out to users in various countries in several languages
from many servers, but they use a centralized server for tracking, record keeping and
certifications. They also realize huge time and cost savings by upgrading one centralized
learning and human capital development system versus upgrading many systems at
multiple global locations. The reduction of cycle times for software version upgrades is
significant.
The most critical issues in this combined model are the continual management of
expectations and the relationship between corporate and local. There is a tendency for
corporate to take away more control than necessary from local groups at the outset to
establish dominance, which can lead to resentment from local training managers. Such
resentment is difficult to overcome once it has occurred. If not careful, corporate may
alienate local groups by not including them in the design and implementation of the new
learning management model. It is critical that corporate include the needs of local groups
in the final solution before implementation begins. The mission and focus should be
clearly established so that the movement to the new model is perceived as corporate and
local groups working together for a common goal—the good of the company and of its
employees. The importance of open communication and buy-in from all affected groups
cannot be understated.
From the local side, there is a tendency to agree with the corporate initiative on the
surface, but to undermine the desired efficiency gains through noncompliance with the
implementation plan. Local groups will see the solution as giving up power if they are not
actively involved in the new plan and its implementation. Even with local involvement
and communication, the loss of local power may still be perceived. Local groups may
begin to erode efficiencies by taking on their own versions of corporate courses to
manage. To be sure, there are courses and learning events that should be managed locally
to meet specific goals. However, once the local group assumes management of these
courses, it is tempting to move into unauthorized management of corporate courses. A
telling sign that the model is breaking down is often the creation of local spreadsheets to
capture completion data, thus defeating the purpose of centralized reporting.
E) MAKING IT WORK
The suggested hybrid model can be very effective and highly productive when the proper
infrastructure is in place and when both corporate and local groups have agreed upon
common learning management and human capital development goals and continually
work together to meet those goals. In today’s cost-sensitive environment, there isn’t room
for the inefficiencies produced by multiple systems or even multiple autonomous
administrators in one system. The inability to get accurate completion data quickly and
therefore impact the learning paths across a company are simply not options any more. “
III.3.3 MY ANALYSIS
Since, it is a dilemma. One can never say either to go for a completely centralized or a
completely decentralized approach. For some organizations, a decentralized approach
would work. For many organizations, a decentralized approach would work. It depends
on the structure of the company. Some parts of the company such as operations activities
may follow a centralized approach, whereas some parts of the company may be going for
a decentralized approach. Again, it depends on the geographic area, location, the
demographics of the country in which the organization is working. Some parts like
decisions like settlement of employee salary, his working hours, and his working location
are centralized. In Pakistan, most of the companies are following a centralized approach.
Pakistan Army, Federal Public Service Commission, public sector banks, institutions and
many more. While some of the organizations like “Voxel” give some compromise to their
employees by asking them about their working hours, their salaries (Would they go for a
commission based job or a non commission based job?). What working times suit them?
They are allowed to dress informally.
The centralized system is ineffective in the position where rapid decision making is
involved. For example, a certain problem has encountered. One of the employees had a
car accident and out of an extremely busy day, he had to be taken to the hospital. It
involves a rapid decision making process. The senior manager might cancel some of the
important meetings due to his accident. Here a decentralized approach would work.
Informing the top level person and getting a response from him will take too long.
In contrast, a decentralized approach is good for decision making, but seems to ignore the
long term objectives of the company. People working in one division are operating
according to their own procedures and policies with little or no regard for company goals
and objectives. Where standards are to be met, a centralized approach should be
followed. Where innovations, decision making and learning are involved, a decentralized
approach should be used.
Centralized versus decentralized? The most effective enterprise learning management and
human capital development system is the right combination of both.
III.4 QUALITIES OF AN EFFECTIVE MANAGER
III.4.1 IMPLICATION
A manager is someone skilled in knowing how to analyze and improve the ability of an
organization to survive and grow in a complex and changing world. This means that
managers have a set of tools that enable them to grasp the complexity of the
organization's environment. A main person for running the organization and its
operations is a manager. Nevertheless, what level of manager he is at. But managerial
skills are required at each level of an organization. A bad manager can cause damage
himself as well as to his company. If a manager does possess efficient problem solving
capacity, he is not able to handle uncertainties. A company might go through many
problems, a manager must be able to solve and sort them out. If he lacks leadership skills,
he is not able to interact with the people inside as well as outside the organization. There
are certain companies in Pakistan which have such problems. If he does not treat people
well, his clients may not come back to him. If he does not keep his mind cool under
intense pressure, he might lose his temper and take such an action which affects the
company in the long run. If he is not authoritative, no subordinate would be listening to
him. If he does not have a vision before him, he is going to attain nothing. In contrast, an
effective manager is able to make rapid decision making, communicating effectively and
having a vision. For example, many organizations went for quick decision making when
earth quakes disaster took place in Pakistan. Their manager and top level people went for
quick decision making. A good manager will possess all the qualities and can be an asset
to his organization.
Timothy R. Barry is a trainer and consultant for ESI International with more than 20
years of experience in management. He has worked with over 40 major organizations
worldwide.
According to Timothy R. Barry, the following qualities are important for being an
effective manager they are:
B) GOOD COMMUNICATOR
The ability to communicate with people at all levels is almost always named as the
second most important skill by project managers and team members. Project leadership
calls for clear communication about goals, responsibility, performance, expectations and
feedback.
There is a great deal of value placed on openness and directness. The manager is also the
team's link to the larger organization. The leader must have the ability to effectively
negotiate and use persuasion when necessary to ensure the success of the team and
project. Through effective communication, project leaders support individual and team
achievements by creating explicit guidelines for accomplishing results and for the career
advancement of team members.
C) INTEGRITY
One of the most important things a manager must remember is that his or her actions, and
not words, set the modus operandi for the team. Good leadership demands commitment
to, and demonstration of, ethical practices. Creating standards for ethical behavior for
oneself and living by these standards, as well as rewarding those who exemplify these
practices, are responsibilities of project leaders. Leadership motivated by self-interest
does not serve the well being of the team. Leadership based on integrity represents
nothing less than a set of values others share, behavior consistent with values and
dedication to honesty with self and team members. In other words the leader "walks the
talk" and in the process earns trust.
D) ENTHUSIASM
Plain and simple, we don't like leaders who are negative - they bring us down. We want
leaders with enthusiasm, with a bounce in their step, with a can-do attitude. We want to
believe that we are part of an invigorating journey - we want to feel alive. We tend to
follow people with a can-do attitude, not those who give us 200 reasons why something
can't be done. Enthusiastic leaders are committed to their goals and express this
commitment through optimism. Leadership emerges as someone expresses such
confident commitment to a project that others want to share his or her optimistic
expectations. Enthusiasm is contagious and effective leaders know it.
E) EMPATHY
What is the difference between empathy and sympathy? Although the words are similar,
they are, in fact, mutually exclusive. According to Norman Paul, in sympathy the subject
is principally absorbed in his or her own feelings as they are projected into the object and
has little concern for the reality and validity of the object's special experience. Empathy,
on the other hand, presupposes the existence of the object as a separate individual,
entitled to his or her own feelings, ideas and emotional history (Paul, 1970). As one
student so eloquently put it, "It's nice when a project leader acknowledges that we all
have a life outside of work."
F) COMPETENCE
Simply put, to enlist in another's cause, we must believe that that person knows what he
or she is doing. Leadership competence does not however necessarily refer to the project
leader's technical abilities in the core technology of the business. As project management
continues to be recognized as a field in and of itself, project leaders will be chosen based
on their ability to successfully lead others rather than on technical expertise, as in the
past. Having a winning track record is the surest way to be considered competent.
Expertise in leadership skills is another dimension in competence. The ability to
challenge, inspire, enable, model and encourage must be demonstrated if leaders are to be
seen as capable and competent.
Trust is an essential element in the relationship of a project leader and his or her team.
You demonstrate your trust in others through your actions - how much you check and
control their work, how much you delegate and how much you allow people to
participate. Individuals who are unable to trust other people often fail as leaders and
forever remain little more that micro-managers, or end up doing all of the work
themselves. As one project management student put it, "A good leader is a little lazy." An
interesting perspective!
In a perfect world, projects would be delivered on time, under budget and with no major
problems or obstacles to overcome. But we don't live in a perfect world - projects have
problems. A leader with a hardy attitude will take these problems in stride. When leaders
encounter a stressful event, they consider it interesting, they feel they can influence the
outcome and they see it as an opportunity. "Out of the uncertainty and chaos of change,
leaders rise up and articulate a new image of the future that pulls the project together."
(Bennis 1997) And remember - never let them see you sweat.
I) TEAM-BUILDING SKILLS
A team builder can best be defined as a strong person who provides the substance that
holds the team together in common purpose toward the right objective. In order for a
team to progress from a group of strangers to a single cohesive unit, the leader must
understand the process and dynamics required for this transformation. He or she must
also know the appropriate leadership style to use during each stage of team development.
The manager must also have an understanding of the different team players styles and
how to capitalize on each at the proper time, for the problem at hand.
This article was written by Marc Pfefferle, a partner at Carl Marks Consulting
Group LLC and appeared in The Deal. Marc Pfefferle, CTP, is a Partner with the Carl
Marks Consulting Group LLC. He has more than 20 years of consulting experience
focused on strategic planning, corporate restructuring, profit improvement, and
operational reviews. He is a Certified Turnaround Professional and a Certified Fellow
introduction and Inventory Management.
”A good manager must be honest, ethical and able to develop and maintain the trust and
confidence of all constituents. It's not in the job description, but a good manager knows
he is the custodian of everyone's money. The best manager in a turnaround situation will
understand he owes allegiance to all constituents and that sometimes his role is to deliver
bad news to the CEO—even if it means risking his job—because it will benefit the
stakeholders.
The best managers can think strategically, help create and execute business plans and
demonstrate strong leadership within the financial departments and with the management
team as a whole. He can’t just be a "numbers guy"; he's got to be a
negotiator. Managers, who stay in their offices all day, demonstrate no executive
presence, hoard information or are arrogant or condescending are generally ineffective.
E) PROBLEM-SOLVING ABILITIES
A manager's knowledge of the company, its resources and the numbers is critical in
formulating a plan to secure a company's future. Good managers look for "win-win"
situations, rather than trying to get a "good deal."
F) COMMUNICATION SKILLS
To gain and keep the trust of all constituents in a turnaround, including the company's
employees, the manager must be self-confident without being arrogant. That means the
ability to transmit appropriate messages to appropriate audiences, a willingness to admit
mistakes and the ability to offer input without insisting on being right.
I) RESULTS-ORIENTED MINDSET
J) RELIABILITY
A manager who works reliably under pressure to produce timely, accurate information
and is willing to do whatever is necessary to bring about results is invaluable. The right
manager not only wants change, but also can help set the ball in motion. “
III.4.4 MY ANALYSIS
A) SKILLS
A manager should posses the basic key knowledge skills like conceptual, technical and
human skills to be more effective.
A manager must have excellent leadership qualities in order to motivate his staff. He
must have leadership qualities to work wit the team members, and also behave like their
senior.
A manager must be bale to solve all the types of problems. Whether crisis, non-crisis or
opportunity. A manager must be able to handle disastrous events.
D) PRESENTIBILITY
A manager must be presentable and pleasant looking. Most of the advertisements in the
newspapers give an advertisement like “Person with a present personality….”
E) WRITING SKILLS
A manager must be able to explain a problem, if not orally. However, this requirement is
optional. Since, managers are involved in day-to-day operations and are less concerned
with writing documents.
A manager at any level in the organization needs to have excellent communication skills.
He has to communicate upwards (his boss), lateral (people at his level) and downwards
(his juniors). So he must be a good communicator.
G) HONEST
An effective manger must be honest enough to tell the truth and obey the laws.
H) STATIC STATE OF MIND
A manager must be able to work under tough pressures. There are situations where
environment is intolerable, things are not suitable.
I) ETHICS
A manager must behave ethically. He should not be involved in illegal practices, which
either harm him or his company in the long run.
A manager must be bold enough to take a stand and able to convey his views in a
confident manner.
III.5 ETHICAL MANAGEMENT PRACTICES
III.5.1 IMPLICATION
A manager must prefer the company’s benefit over his individual benefit. He should be
of the view that his interests are less important than the company’s interests. A company
should believe in ethics in order to run its business. Companies with poor ethical
management practices lose their business as well as their position.
“Business Ethics Literature is Often Far Too Simplistic -- So Many Leaders and
Managers Think Business Ethics is Irrelevant
So What is "Business Ethics"? The concept has come to mean various things to various
people, but generally it's coming to know what it right or wrong in the workplace and
doing what's right -- this is in regard to effects of products/services and in relationships
with stakeholders. Wallace and Pekel explain that attention to business ethics is critical
during times of fundamental change -- times much like those faced now by businesses,
both nonprofit and for-profit. In times of fundamental change, values that were
previously taken for granted are now strongly questioned. Many of these values are no
longer followed. Consequently, there is no clear moral compass to guide leaders through
complex dilemmas about what is right or wrong. Attention to ethics in the workplace
sensitizes leaders and staff to how they should act. Perhaps most important, attention to
ethics in the workplaces helps ensure that when leaders and managers are struggling in
times of crises and confusion, they retain a strong moral compass.
Many people react that business ethics, with its continuing attention to "doing the right
thing," only asserts the obvious ("be good," "don't lie," etc.), and so these people don't
take business ethics seriously. For many of us, these principles of the obvious can go
right out the door during times of stress. Consequently, business ethics can be strong
preventative medicine. Anyway, there are many other benefits of managing ethics in the
workplace.
B) Moral mazes. The other broad area of business ethics is "moral mazes of
management" and includes the numerous ethical problems that managers must deal with
on a daily basis, such as potential conflicts of interest, wrongful use of resources,
mismanagement of contracts and agreements.
o Business ethics and social responsibility is the same thing. The social
responsibility movement is one aspect of the overall discipline of business ethics.
Madsen and Shafritz refine the definition of business ethics to be: 1) an
application of ethics to the corporate community, 2) a way to determine
responsibility in business dealings, 3) the identification of important business and
social issues, and 4) a critique of business. Items 3 and 4 are often matters of
social responsibility
o Our organization is not in trouble with the law, so we're ethical. One can often
be unethical, yet operate within the limits of the law, e.g., withhold information
from superiors, fudge on budgets, constantly complain about others, etc.
However, breaking the law often starts with unethical behavior that has gone
unnoticed. The "boil the frog" phenomenon is a useful parable here: If you put a
frog in hot water, it immediately jumps out. If you put a frog in cool water and
slowly heat up the water, you can eventually boil the frog. The frog doesn't seem
to notice the adverse change in its environment.
B) PROFESIOANL DEVELOPMENT
C) ETHICAL LEADERSHIP
D) USE OF INFORMATION
III.5.3 MY ANALYSIS
Show respect for juniors, seniors and the people outside the organization.
D) SHOWING RESPONSIBILITY
Being responsible and not taking things for granted is the best ethical management
practice.
E) EQUITY
A manger must treat the people (outsider) and his juniors with equity and justice. He
should believe in fair compensation.
F) ETHICS
A manager must behave ethically. He should not be involved in illegal practices, which
either harm him or his company in the long run.
These describe the job constraints of a manager. A manager must not disobey the policies
laid down by the upper level people. If he is having some problems, he can straightway
go to any of his seniors or bring the matter into their notice.
H) NO NEPOTISMS
A manager must be non partial. He should not favor any employee on a friendship basis.
He must mot hire people on the basis of relationships.
I) UNBIASED APPROACH
A manager must show an unbiased attitude towards different employees, whether his
juniors or seniors.
A manager must prefer the company’s benefit over his individual benefit. He should be
of the view that his interests are less important than the company’s interests.
IV MY OVERALL ANALYSIS
The case study 1 shows the management functions like planning, organizing, leading and
controlling, performed by a banker. She is committed to her work. She takes pride in
doing her work. She is following some managerial work methods and agendas to carry on
her work. She is playing different managerial roles (Mintzberg).She is engaged in day to
day activities, her day is really hectic. She starts early in the morning and keeps doing her
job till the end. The case study aims at providing a close view of the life of a bank
manager. The activities performed by the bank manager and their management. How a
bank manager does all this? The name of the bank manager is Marjorie Wong Gill-more.
Her over all busy routine, her relationships with her customers, her staff people and
outsiders. It discusses the managerial roles played by her, her technical, conceptual and
human skills, her managerial work agendas and methods. It gives us a description of the
way she is doing these things. The way she is implementing all these.
The second case study tells the managerial functions performed by George Fisher and his
efforts towards making Kodak a remarkable company. The case study aims at describing
the role of the CEO in making the company prosperous. It further includes his
management skills, his agendas, and his work methods. His marketing plan, the
innovation he has brought, the way Kodak has changed its culture. It identifies different
managerial roles played by Fisher. It also discusses the efforts he has made. His over all
contributions in making the company prosperous. What motivation he has offered to his
employees. How his efforts will work?
The third case study pictures different viewpoints regarding management. It discusses
different management theories found at Ford Motor Co. It discusses how the company is
moving from a closed system to an open system. It provides a comparison of the eras
when EDSEL was introduced and the way Ford Motor is operating today. The case study
aims at focusing the changes that have taken place at ford Motor. It further gives a
snapshot of the stages it has gone through during the past 200 years. It gives an
evolutionary viewpoint of different things, which have taken place in terms of
management style, organizational structures, technological changes and a much informal
control. The way they have provided a security to its employees by making them
involved in decision making. It specifies the way company has proved itself, made
advancements and tired to get a market share. What are their future aims and objectives?
The fourth case study is about Siemens. It gives an idea of hoe the company is moving
into a new generation. The way different people are hired and trained at Siemens. The
whole case study aims at giving a look of the way Siemens has entered the world of
electronics business. It portrays a picture of how Siemens is evolving into an open
system. The way it is hiring new and fresh people to carry out business tasks and enter
the new markets. The selection and the training given to new batch of mangers, the way
they go through different tests, all is given in the case study. The role of CEO of the
company in making it a world class leader. Siemens has a goal to enter and dominate
electrics business market. The way they are behaving flexibly to give more output.
The fifth case study is about Xerox Company. The case study aims at showing different
stages through which Xerox went through. Different people like Joseph C, Wilson, Peter
McCullough, David Kearns and Paul Allaire worked as the CEO’s for the company. The
way they made changes, encouraged innovations and technology is shown in the case
study. The roles they have played in getting a market share and making the company
prominent. The way they have worked out on new things and emerged new cultures at
Xerox. How the company kept on improving its products and services during the eras of
these four CEO’s. The major elements of task and mega environment of the company.
The external micro, macro and internal environment the company inclines to have.
The sixth case study is about Software AG. It is a software house providing IT based
solutions to its customers. It was caught in a trap of cultural conflicts. The case study
aims at telling how Software AG rated itself, what management team is running it. It tells
about the internal organizational cultures of the two groups. It tells that the two groups,
German Headquarter and US subsidiary, have totally different cultures. The approach
followed by German Software AG was static, evolutionary and less customer oriented.
The approach followed by the US Software AG was highly revolutionary and customer
oriented. They have cultural differences among themselves. They are following two
different approaches towards their services and customers. Due to these clashes, a senior
person of the company resigned.
IV.1.7 CASE STUDY 7
The seventh case study is about a manager’s career dilemma. The way he tried to make
up his future and avoided some of the practices, he thought were unethical at the
company he worked. The way he got himself into many things and thought that he was
doing wrong and was being treated like a commodity. The whole case study shows the
way a 39 year old manager went throughout his career. The ethical issues he faced in his
overall employment career. The problems he faced at different companies and showing a
picture of the one, he faced at the company he worked most recently. The pricing
problem, which he thought was illegal and unethical. His discussions with other people,
and the way he retaliated to all these dilemmas.
The eighth case study is about Rochester Corporation. The way a person pointed out to a
hill of waste materials left after manufacturing. The owner got a view of it. He noticed it
and called up two of his senior employees to get their viewpoint about the waste hill. The
whole case study aims at predicting how Rochester Company went through different
stages. Its evolution in its products. It has encountered an unethical situation. The waste
left after product manufacturings are hazardous. The owner has got a view of it. He tries
to solve this problem by engaging two of his executives. He discusses the problem with
them and asks for their opinions as well.
The ninth case study is about the launch of USA Today. The problems they had to go
through during the launch of the paper. The whole case study aims at showing the birth of
USA Today and the problems it had to go through its entire life cycle. It was launched. It
was successful for a period of time but went into recession. It started getting negligible
profits. There were clashes among the top level executives. Due to poor leadership and
ineffective decision making process, USA Today wasn’t able to protract itself.
The tenth case study is about Shell. The way Shell is handling crisis, non crisis and
opportunity problems. The way they are managing to get to a divergent way of thinking.
The case study aims at demonstrating the ways shell is dealing with different types of
crisis, non crisis and opportunity problems. The way it is making profit and generating
revenue. What mechanisms it is following in order to tackle the types of problems. To
what extent these approaches are helpful. How they are dealing with uncertainties and
risks? How Scenarios analysis helps them in decision making? The way they are dealing
with the typical types of risks that are subject to oil companies.
The analysis regarding “MANAGEMENT & ROLE OF IT” is that during the past few
years, IT has played major role in the management and business. The result is the
evolution of MIS management information systems. These systems help managers
provide managers with the tools for organizing, evaluating and efficiently running their
departments. An MIS may play a strategic or a decisional role inside an organization.
This is one of the major roles that Information Technology has played in management.
Those employees who have IT knowledge get better jobs. In most places of business, a
computer is standard. In banks, computers are to look up the account information.
Customer accounts are computerized. Databases used are computerized. At universities,
an online form submission or network is maintained. About ninety percent of the
companies or organizations go for a computer literate staff in order to perform day-to-day
operations efficiently and effectively. Managers who have more IT knowledge get a
better job. With the evolution in technology, companies like to hire staff which is in-
touch with IT. Some new forms of managers in the past few years include DBA Data
base Admin manager, Network administrator, IT manager and so forth. Well, IT is a very
vast topic to be discussed. It includes databases, networks, hardware, telecom,
development and many more. Within companies and large organizations, the department
responsible for computer systems is sometimes called the MIS department. Other
names for MIS include IS (Information Services) and IT (Information Technology).
The analysis about “DIVERSITY IN MANAGEMENT’ is that it covers a large area. The
term “diversity” has several meanings. Diversity in management includes diversity for
gender, workplace, location, age, demographics, culture, norms, values and shared
beliefs. When most of the companies come to Pakistan, they have to diffuse themselves
(to some extent) in order to be successful. From a marketing point of view, diversity in
management is important because a firm has to do a business in a market. It has to know
the psychology, beliefs and values of the customers they have in that culture. If they fail
to do so, they will not be able to carry with their business in that particular area. A main
reason for joint ventures and acquisitions to fail is lack of good management. Poor
leadership is followed and companies fail in their projects. Diversity in management can
be applied to minorities as well. There are certain companies in Pakistan where Christian
workers are preferred. The management cares more for their values and norms. There are
certain places in Pakistan where non Muslims are not allowed. For example, a non-
Muslim wishing to work at KRL laboratories may not be allowed to do so. Diversity in
management can also be applied to gender. There are certain places where females are
not allowed. For example, in Pak Army, a lady can not be selected as a commando). This
thing has even improved. General Duty Pilots used to be men. A little no. of females
joins this profession. But now the first batch of female GDP’s has been passed out.
When two cultures do not meet, even the projects fail due to poor management. When
there is a strong cultural clash between the two entities. Case study 2, Chapter 3
Software AG, is an example of this. The two cultures were different. Their approach was
totally different. So, one of the seniors resigned due to these disagreements.
The findings for the first topic “Management & role of IT” are that It has played a major
role in the past few years. The role it has played is:
functional role
decisional support role
performance monitoring role
strategic support role
The Chief technology officers, for example, evaluate the newest and most innovative
technologies and determine how these can help their organization. The chief technology
officer, who often reports to the organization’s chief information officer, manages and
plans Management information systems (MIS) directors manage information systems and
computing resources for their entire organization. They may also work under the chief
information officer and plan and direct the work of subordinate information technology
employees. These managers oversee a variety of user services such as an organization’s
help desk, which employees can call with questions or problems. MIS directors also may
make hardware and software upgrade recommendations based on their experience with
an organization’s technology. Project managers develop requirements, budgets, and
schedules for their firm’s information technology projects. They coordinate such projects
from development through implementation, working with internal and external clients.
o race
o culture
o sex
o subculture
o demographics
o personality
o style
o ethics
o work places
o work groups
o psychology
No recommendations
No recommendations
Diversity management is a huge topic to be discussed in detail. Firms when come to other
companies for doing business should take it an important thing to manage diversely
among various groups. Proper training should be given to the employees to understand
the culture and other values associated with a country. Free training should be providing
d to workers to engage in such behavior. Some Foreign universities provide free training
and language learning opportunities to some students. Al Falah Bank is providing
training in “management “at Karachi campus. Some institutes like NUST, offer diploma
courses in management and different types of management. Some organizations hold
seminars regarding management.
A manager should posses the basic key knowledge skills like conceptual, technical and
human skills to be more effective.
He must have excellent leadership qualities in order to motivate his staff. He must have
leadership qualities to work wit the team members, and also behave like their senior. He
must be able to solve all the types of problems. Whether crisis, non-crisis or opportunity.
He must be able to handle disastrous events. He must be presentable and pleasant
looking. Most of the advertisements in the newspapers give an advertisement like
“Person with a present personality….”
A manager must be able to explain a problem, if not orally. However, this requirement is
optional. Since, managers are involved in day-to-day operations and are less concerned
with writing documents.
A manager at any level in the organization needs to have excellent communication skills.
He has to communicate upwards (his boss), lateral (people at his level) and downwards
(his juniors). So he must be a good communicator.
An effective manger must be honest enough to tell the truth and obey the laws.
A manager must be able to work under tough pressures. There are situations where
environment is intolerable, things are not suitable.
A manager must behave ethically. He should not be involved in illegal practices, which
either harm him or his company in the long run.
A manager must be bold enough to take a stand and able to convey his views in a
confident manner.