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Course Name: BUS501 ORGANIZATIONS AND MANAGEMENT

Question 1: How can we categorize decision types for businesses? Is organizational structure
important when making decisions for business? Describe each type of decision with an example with
details.
Question 2: What are three basic attitudes that international managers have? How can managers
adjust to cultural differences in Global companies? Why should managers understand cultural
differences in the organization?

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How can we categorize decision types for businesses

Programmed and non-programmed decisions:

Programmed and Non-programmed
Operational and strategic
Organizational and personal
Individual and group

Is organizational structure important when making decisions for business?

An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how information flows
between levels within the company. An organizational structure defines how activities such as
task allocation, coordination, and supervision are directed toward the achievement of
organizational aims.
When talking about organizational struction in work, it can be specialization or overspecialization.
Specialization can be the degree to which tasks in the organization are divided into separate jobs
with each step completed by a different person.
Overspecialization can be said to be in human diseconomies from boredom, fatigue, stress, poor
quality, increased absenteeism, and higher turnover.
Organizational structure is very important for business when making decision because it is a major
contributor  to the way decisions are made in a company.Organization structure is a major
tools that  provides guidance and direction to all employees by laying out the official
reporting relationships that govern the workflow of the company.The degree or level of
relationship and communication between managers and individula goes a very long
way in any company because it helps to determine the effectiveness of teamwork or if
there will be any conflict.

ANOTHER REASON WHY ORGANIZATION STRUCTURE IS IMPORTANT FOR

BUSINESS IN DECISION MAKING :
In a virtual sense, technology is another means of flattening the organization. The use of
computer networks and software designed to facilitate group work within an organization can
speed communications and decision making. Even more effective is the use of intranets to
make company information readily accessible throughout the organization. The rapid rise of
such technology has made virtual organizations and boundarlyless organizations possible,
where managers, technicians, suppliers, distributors, and customers connect digitally rather
than physically.
A different perspective on the issue of interdependence can be seen by comparing the
organic model of organization with the mechanistic model. The traditional, mechanistic
structure is characterized as highly complex because of its emphasis on job specialization,
highly formalized emphasis on definite procedures and protocols, and centralized authority
and accountability. Yet, despite the advantages of coordination that these structures present,
they may hinder tasks that are interdependent. In contrast, the organic model of organization
is relatively simple because it de-emphasizes job specialization, is relatively informal, and
decentralizes authority. Decision-making and goal-setting processes are shared at all levels,
and communication ideally flows more freely throughout the organization.

A common way that modern business organizations move toward the organic model is by the
implementation of various kinds of teams. Some organizations establish self-directed work
teams as the basic production group. Examples include production cells in a manufacturing
firm or customer service teams in an insurance company. At other organizational levels,
cross-functional teams may be established, either on an ad hoc basis (e.g., for problem
solving) or on a permanent basis as the regular means of conducting the organization's work.
Aid Association for Lutherans is a large insurance organization that has adopted the self-
directed work team approach. Part of the impetus toward the organic model is the belief that
this kind of structure is more effective for employee motivation. Various studies have
suggested that steps such as expanding the scope of jobs, involving workers in problem
solving and planning, and fostering open communications bring greater job satisfaction and
better performance.
Aspect of organization structure that is important for busines in any company is
centralization,decentralization,and employee empowerment.
• Centralization  The degree to which decision making is concentrated at upper levels in the
organization. Organizations in which top managers make all the decisions and lower-level employees
simply carry out those orders.
• Decentralization  Organizations in which decision making is pushed down to the managers who
are closest to the action.
Employee Empowerment  Increasing the decision-making authority (power) of employees.

Describe each type of decision with an example with details.

Programmed and Non-Programmed Decisions:

Programmed decisions are normally repetitive in nature,easiest to make,usually these decisions are
Programmed decisions
taken in consultation with the existing policy, rule or procedure.
are concerned with the problems of repetitive nature or routine type
matters. A standard procedure is followed for tackling such
problems. These decisions are taken generally by lower level
managers. Decisions of this type may pertain to e.g. purchase of raw
material, granting leave to an employee and supply of goods and
implements to the employees, etc,another goood example is making
purchase orders, sanctioning of different types of leaves, increments in salary etc.
Non-Programmed:
Non-Programmed decisions are different in that they are non-routine in nature.Example Issues
related to handling a serious industrial relations problem, declining market share, increasing
competition etc. AndThe solutions may widely differ in the case of nonprogrammed decisions. The
effectiveness of the manager lies in handling exceptional situations.

 Non-programmed decisions relate to difficult situations for which

there is no easy solution. These matters are very important for the
organisation. For example, opening of a new branch of the
organisation or a large number of employees absenting from the
organisation or introducing new product in the market, etc., are the
decisions which are normally taken at the higher level.

Operational and strategic decisions:

Operational or Tactical decisions relate to the present. The primary purpose is to achieve high degree
Decisions pertaining to various
of efficiency in the company’s ongoing operations.
policy matters of the organisation are policy decisions. These are
taken by the top management and have long term impact on the
functioning of the concern.
Example:
Better working conditions, effective supervision, better maintenance of the equipment etc.
For example, decisions regarding location of plant, volume of
production and channels of distribution (Tactical) policies, etc. are
policy decisions. Operating decisions relate to day-to-day
functioning or operations of business. Middle and lower level
managers take these decisions.

Strategic decisions:
Expanding the scale of operations, entering new markets, changing the product mix, shifting the
manufacturing place from one place to other etc. Are strategic in nature.Such decisions will have far
impact on the organization. Strategic decisions require extensive deliberations and huge resources
and are taken by top level managers. Strategic
decisions are important which
affect objectives, organisational goals and other important policy
matters. These decisions usually involve huge investments or funds.
These are non-repetitive in nature and are taken after careful
analysis and evaluation of many alternatives. These decisions are
taken at the higher level of management.

Organizational and Personal Decisions:

Decisions taken by managers in the ordinary course of business in their capacity as managers relating
to the organizational issues are organizational decisions.
Exmple:
Decisions regarding introducing a new incentive system, transferring an employee, reallocation etc.
Are taken by managers to achieve certain objectives.
 For example, if an executive leaves the organisation, it may affect
the organisation.
Managers do take some decisions which are purely personal in nature. However, their impact may
not exactly confine to their selves and they may affect the organization also.

Individual and Group Decisions

When the decision is
Individual decisions are taken where the problem is of routine nature.
taken by a single individual, it is known as individual decision.
Usually routine type decisions are taken by individuals within the
broad policy framework of the organisation.
Group decisions are taken by group of individuals constituted in the
form of a standing committee. Generally very important and
pertinent matters for the organisation are referred to this
committee. The main aim in taking group decisions is the
involvement of maximum number of individuals in the process of
decision- making. Important and strategic decisions which have a bearing on many aspects
of the organization are generally taken by a group. Group decision making is preferred these days. It
contributes for better coordination among the people.

Brews, Peter J., and Christopher L. Tucci. "Exploring the Structural Effects of
Internetworking." Strategic Management Journal 25, no. 5 (2004): 429–452.
Hansen, Morten T., and Nitin Nohria. "How to Build Collaborative Advantage." MIT
Sloan Management Review 46, no. 1 (2004): 22–31.
Lumpkin, G.T., and Gregory G. Dess. "E-Business Strategies and Internet Business
Models: How the Internet Adds Value." Organizational Dynamics 33, no. 2 (2004):
161–173.
O'Reilly, Charles A., III, and Michael L. Tushman. "The Ambidextrous
Organization." Harvard Business Review 82, no. 4 (2004): 74–82.
Ticoll, David. "Get Self-Organized." Harvard Business Review 82, no. 9 (2004): 18–
20
Question 2: What are three basic attitudes that international managers have? How can managers
adjust to cultural differences in Global companies? Why should managers understand cultural
differences in the organization?

What are three basic attitudes that international managers have?

a. Ethnocentric attitude:The parochialistic belief that the best work

approaches and practices are those of the home country. Managers with
an ethnocentric attitude believe that people in foreign countries do not
have the needed skills, expertise, knowledge, or experience to make the
best business decisions as people in the home country do. They wouldn't
trust foreign employees with key decisions.

 b. Polycentric attitude:The view that managers in the host country

know the best work approaches and practices for running their business.
Managers with a polycentric attitude view every foreign operation as
different and hard to understand. Thus, these managers are likely to leave
their foreign facilities alone and let foreign employees figure out how best
to do things.

 c. Geocentric attitude: This is a world-oriented view that focuses on

using the best approaches and people from around the globe. Managers
with this type of attitude believe that it's important to have a global view
both at the organization's headquarters in the home country and in the
various foreign work facilities. Major issues and decisions are viewed
globally by looking for the best approaches and people regardless of
origin.

How can managers adjust to cultural differences in Global companies?

Culture is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group
of people. Misunderstandings and miscommunications in international business often occur because
of cultural misunderstandings.
Managers are responsible for the processes of getting activities completed efficiently with
and through other people and setting and achieving the firm's goals through the execution of
four basic management functions: planning, organizing, leading, and controlling.

 global company, is coined from the base term 'global', which means all around the world,
global company is one that does business in at least one country outside of its country of origin.

MANAGERS CAN ADJUST TO CULTURAL DIFFERENCES IN GLOBAL COMPANIES

THROUGH THE FOLLOWING FACTORS BELOW:
Language: Managers can either speak their own language, use a translator, or learn the local
language because effective communication is very important in any business transaction and
organization. Language and culture are intertwined. A particular language usually points out
to a specific group of people. When you interact with another language, it means that you
are also interacting with the culture that speaks the language. You cannot understand
one's culture without accessing its language directly .
2. Interpersonal space - how close people should be when communicating varies by culture.Some
cultures like the people of Latin America prefer a smaller interpersonal space, whereas others, like
the people of Northern Europe prefer to be further apart. The scientists found that residents of
Argentina, Peru and Bulgaria stand the closest to strangers, while those from Romania,
Hungary and Saudi Arabia want the most space. Americans were somewhere in the middle.
Some cultures like the people of Latin America prefer a smaller interpersonal space, whereas others,
like the people of Northern Europe prefer to be further apart.

3. Time orientation - time orientation varies by culture. Americans practice monochromatic time (a
preference for doing one thing at a time) Arab cultures follow polychromatic time (preference for
doing more than one thing at a time).
Managers needs to understand timing in global businesses because the time factor of each country
varies. The time orientation of a culture affects how it values time, and the extent to which it
believes it can control time. For example, America is often considered to be future-
orientated, as compared to the more present-orientated France and the past-orientated
Britain.

4. Religion - Christianity has the largest following with 2.1 billion adherents, Islam is next with 1.3
billion followers, then Hinduism, Buddhism, and Judaism .Organizations need to consider the impact
of religious differences on employee groups .
Managers with strong values match up with company cultures purporting high ethical
standards in all business dealings. Failing to do so can tarnish for managers the company's
belief structure, transforming attitudes into those that may detrimentally ignore breaches in
ethics standards.

Why should managers understand cultural differences in the organization?

Culture is one of the main reasons for managers to understand cultural differences in any
organization. Culture is the shared set of beliefs, values, knowledge, and patterns of behavior
common to a group of people.Misunderstandings and miscommunications in international business
often occur because of cultural misunderstandings.
In low-context cultures like Germany and the U.S., shared meanings are primarily derived from
written and spoken words.
In high-context cultures like Japan and China, people rely heavily on situational cues for meaning
when communicating with others.
There is no better way to integrate into the foreign culture than to learn the local language
and be able to communicate with your employees in this local language. However this can
take a long time and it might not be efficient for stints that are short-term. A more practical
strategy would be to at least learn the common phrases and terms so that you can
communicate with your employees without the aid of an interpreter. Direct communication,
even though it might be sparse and hesitating, can do wonders in terms of showing sincerity
and seriousness.
Leadership style
All bosses tend to have their own leadership style with some being more participative while
others more autocratic. Managers are posted abroad many a times because they have been
effective and are high-performers. However, these qualities can sometimes become a liability
in a foreign context, especially when there is a misfit with the local culture. It is important to
be flexible and be able to mould your leadership style to fit the culture. Therefore, you should
be mindful of the type of culture you are in and then try to adapt your leadership style to it, no
matter how hard it might be.
Use technology
Technology is great leveler – leverage it. It is a great way to communicate especially
with a younger workforce.  Use it for direct communication with the employees and to
share ideas with them on a frequent basis. Invite new ideas and make it a two-way
process. Interactions which take time if they were personal can be much more
efficient online. Set up blogs or forums whereby new ideas and thoughts can be
shared and all of a sudden the entire organization can be digitally invigorated through
a technology platform.
Conclusion
One of the most sensitive issues in a global context is being glocal – global yet local. Thus,
glocal is the key challenge facing managers in a foreign cultural context. You can be a most
effective manager in your own country yet fail miserably in a foreign land. Being
knowledgeable and having domain competence is a given, but not sufficient. Empathy and
cross-cultural intelligence are new skills which must be acquired. Learning the foreign
language is a huge asset, but even learning key phrases and terms which allow direct
communication can get the job done. The goal is empathy and understanding, ensuring that
employees trust you. This means becoming one of them, through following local customs
and practices, and also adapting one’s own natural leadership style.

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