Management Theory and Practice

Answer 1
Having a proper organizational structure requires constant attention and supervision. If an
organization does not give constant attention and supervision, it will have a negative effect on
the organization’s performance. There are many factors that influence the structure of an
organization which are as follows:
• Environment – Having a good knowledge about the environment is beneficial as it
helps in collecting information on the latest trends and changes in the market and thus
develop the structure accordingly. Environments are of two types; they are internal
and external. Internal environments include those factors which are within the control
of the organization whereas external environment include those factors which are
outside the control of an organization. The four environmental influences are
discussed as follows:
➢ Strength – It is an internal attribute of an organization that helps it to achieve
its goals and objectives. Sound finance, low cost, flexibility, effective
marketing, good relationship with suppliers etc are the strength of an
organization.
➢ Weaknesses – It is an inherent inadequacy that brings strategies disadvantages
for an organization. Insufficient funds, late response to customer requirements,
limited product range, inefficient production etc are the weaknesses of an
organization.
➢ Opportunities – These are external conditions that are favourable for an
organization and may strengthen the position of a potential customers,
leverage in political and legal standards, development of new distribution
channels are examples of opportunities.
➢ Threats – They are the trouble causing in the organizations. Rise in raw
material prices, high rate of attrition, improved competitive products etc.
• Organizational Size – It includes the number of employees and the businesses of an
organization. It is influences by the size of an organization.
• Organization’s Strategy – The strategy of an organization should be well fitted with
the structure of an organization.
• Technology – With the increase in advancement of technologies it has automated the
different processes of an organization.
SWOT Analysis of ICT Limited
ITC Limited is an Indian conglomerate that operates in a variety of diversified businesses.
ITC has six separate industry verticals, FMCG, Hotel, Paperboards, Specialty Papers,
Packaging, IT, and Agribusiness.
 Strength
• Operating Income is 2.7 billion US
Dollars in 2019.
• Net Income is Rs. 12824 Crores in
2019.
• ITC cigarette contributes a
significant proportion of its sales to
the FMGC.
• ITC’s hotel and property businesses
are also doing well. With a portfolio
like this, ITC has become one of
India’s most dominant
conglomerates and is revered all
over the world.
• ITC has leveraged the experience of
food and bakery items from its hotel
company to become part of the
Packaged Food group.
• ITC is a large brand house with most
of its products leading the segments
in which it works.
Opportunities
• Mergers and acquisitions are
planned to reinforce the brand.
• Increased people’s buying power,
thus rising competition. More
exposure to hotel chains to increase
market share.
• Growing Personal Hygiene as well
as Food Processing Industry in
India: ITC should use its distribution
channel in the Personal Hygiene and
Food Processing Industry to
capitalize on the growth of
categories and thus increase revenue.
• Growth in purchasing power and
changing lifestyles: ITC can tap into
rising buying power and changing
customers’ lifestyles in India. It will
help to raise sales for all of its
companies.
Weaknesses
• High Proportion of Tobacco Product
Revenues: ITC has made continuous
efforts to separate the FMCG sector
from over-dependence on tobacco
products and has been successful in
doing so to some degree.
Nonetheless, tobacco products
remain the biggest source of revenue
contributing more than 60 percent to
FMCG’s overall revenue.
• Tobacco Products Association has
an impact on the brand: ITC has
made a great deal of effort to
enhance its corporate image, but the
fact that ITC has many tobacco
products in its portfolio has an
impact on its corporate image. The
increase in the Tobacco Tax has an
effect on revenue: due to the rise in
the tax on tobacco products, rates
and, subsequently, profits are
affected.
• ITC is still dependent on its tobacco
sales, and people have cheaper
alternatives and other brands.
• The hotel industry has not been able
to build an enormous market share.
Threats
• Intense and increasing competition
among other FMCG companies and
hotel chains.
• FDI in the retail sector, thereby
allowing for international brands.
• Intensifying rivalry in FMCG
companies: ITC is facing intense
competition in its FMCG market
from major MNCs such as HUL and
P&G and Indian FMCGs such as
Patanjali and Dabur. It limits the
market share of the ITC.
Through this we can identify the strength, weaknesses, opportunities, and threats of ICT
Limited.

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Answer 2
Just In Time (JIT)
JIT is a manufacturing management process. It was first developed and applied in the Toyota
manufacturing plants to meet consumer demands with minimum delays. Taiichi Ohno of
Japan is referred to as the father of Just In Time. Toyota realised the Just In Time approach
would only be successful if every person within the organization was committed and
involved in it, and if plant and processes were properly arranged for maximum efficiency and
output, and if the quality of the goods produced and production programs were scheduled to
meet demands exactly. The aim is to reduce non profitable activities and make the
manufacturing system more flexible, eliminating the associated costs of carrying and
maintaining the inventory. There is no scope for extra inventory whatsoever.
There are various methods by which JIT can be achieved which are as follows:

JIT has various advantages which will help play a key role in the organization which are as
follows:
• Reduce setup time
• Have low wastage
 • Improvement in the flow of goods from warehouse to shelves
• Multi skilled employees are way more efficient
• Prioritizing the improvement of supplier’s relationship
• Cost efficient by minimizing storage space which will help in saving warehousing
cost
• Low chances of inventory breaking/expiring
These are the few advantages of Just In Time which will be beneficial for a company when
they will apply it in their daily life style.

Lean Production
The core idea of lean manufacturing, (i.e., lean production) is quite simple;
relentlessly work on eliminating waste from the manufacturing process. Waste is seen
as anything that customers do not believe adds value and are not willing to pay for. Some of
the benefits of lean manufacturing can include reduced lead times, reduced operating costs
and improved product quality. The techniques of lean production enable organization to
deliver higher quality products at significantly lower costs to its customers.
Lean Production has the following five principles which are as follows:
1. Identify value from customer’s perspective
2. Map the value system
3. Create flow
4. Establish a pull system
5. Pursue perfection with continual process improvement
Lean Production provides the firm with following benefits when applied which are as
follows:
• Improve delivery of the product on time
• The quality of the product also improves
• Improvement of customer service and satisfaction
• Reduction of defect
• Reduction of resource consumption
• Increase efficiency of the firm
When the organization use Lean Production technique it have these advantages.
Just In Time and Lean Production has the following difference:
Just In Time Lean Production
Just In Time is a part of lean and focuses on Lean is a macro concept and is a complete
elimination of waste of excess inventory. system. Lean is used to create Just In Time
process.
Its main focus is on inventory management. Lean Production focuses on manufacturing
and operating management.
It is used to express process problem. It is used to eliminate the problem.
 Just In Time focuses on waste reduction. Lean not only focuses on waste reduction
but also focuses on value creation for its end
users.
Just In Time and Lean production are almost similar but Just In Time is a narrower technique
where as Lean Production is a broader technique.

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Answer 3a
There are three forces behind management thoughts which are as follows:
• Political Forces: Political forces includes government regulations, political
institutions, and trade policies affects in the areas of environment analysis,
organisational design and structure, and employees’ rights. Political pressure plays a
major role on organizations’ management as the rights of customers, suppliers,
labour, creditor, owners, and other segments keep changing with respect to changes
in the political environment of a country.
• Social Forces: These forces can be in the form of social norms arising from the
values and beliefs of people in a society. These forces help in the formation of social
contracts, wherein no sets are mutually understood. Interaction among people takes
place because of these norms. Similarly, social contracts are also formed between
organisations and their labour, creditors, investors, and customers.
• Economic Forces: These forces are responsible for the formation of base market
economy and other concept, such as private ownership of property, economic
freedom, and competitive markets. These forces also play and important role in
determining the distribution of goods and services in a society.

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Answer 3b
Contingency Approach
Contingency approach or situational approach wherein an organisation determines problems
by analysing in detail its conditions and environment. According to this approach, there is no
single set of rules that is applicable in solving all types of problems in organisations. So,
managers need to analyse in detail every problem which arises, and various aspects
associated with it, and define different ways to solve the problem.
Contingency Approach has the Primary Characteristics that must be taken care of
specially during pandemic
The primary characteristic of contingency approach are as follows:
• Non-universality of management theory
• Contingency
 • Environment
• Diagnostics
• Human Relations
• Information and Communication
Contingency Approach has the following Advantages even during pandemic
• It provides a realistic view of management and organization
• Removal of universal validity of principles
• Managers of the organization are more situation-oriented and not stereotyped
• Lends itself to an innovative and creative management style