Management Theory and Practice Assignment

June 2022 Examination

Answer 1.
Introduction:

Geert Hofstede's Cultural Dimensions theory is a framework for understanding cultural

differences between countries and determining how companies are conducted in various cultures.
To put it another way, the framework is designed to discern between distinct national cultures,
their characteristics, and their business impact. In 1980, Geert Hofstede, a Dutch control
researcher, developed Hofstede's Cultural Dimensions concept. The goal of the investigation
became to identify the cultural elements that differed.

Concept and Application:

Let us have a look at Hofstede's five dimensions:

1. Energy Distance: Energy distance refers to the stage in which a society decides on
uneven energy distribution in organisations and society. In extreme influence distance cultures
like Japan, we anticipate considerable regard for age, prestige, and titles. This is most likely a
difficult chore for an American visitor who is accustomed to the informality of a small strength
separation lifestyle, as well as the usage of first names and casual attire in the workplace. The
high-energy distance measures how much injustice and electricity a culture can accept. Prejudice
and management are seen through the eyes of believers — the lowest level — at this magnitude.

2. Avoiding Uncertainity: Uncertainty avoidance is the process through which a society

analyses or is concerned about risk, transition, and situational ambiguity. One would expect a
drive for order, command, and probability in high-uncertainty-avoidance civilizations like France
or Japan. Uncertainty avoidance is a set of guidelines that governs how much ambiguity and
uncertainty may be accepted. This dimension appears to be concerned with how individuals react
to unexpected circumstances. Danger-taking is demonstrated by a low tolerance for ambiguity,
perplexity, and a high level of uncertainty avoidance.

3. Idealism: Individualism-collectivism refers to the degree to which a device prioritises an

individual's accomplishments and self-interest over group accomplishments and interests. It has
the highest uniqueness score of any country, according to Hofstede's research. Individualism vs.
collectivism is a metric that examines how societies are structured, as well as their acknowledged
responsibilities and reliance on them. Individualism is the practise of charging a higher price for
achieving one's particular goals.

4. Masculinity-Femininity: Masculinity-femininity refers to the point at which an ideology

prioritises assertiveness and materialism over sympathies, friendships, and pleasurable lives. It
favours traditional male or female characteristics, as well as gender roles and attitudes. Visitors
visiting Japan, which, according to Hofstede's research, has the highest masculinity rating, may
notice the restricted job opportunities for women. Cultural ideals for success, ideas on gender
justice, and conduct, among other things, are all part of the "tough vs. soft" aspect of masculinity
as opposed to femininity.

5. Time Orientation: This is the percentage of a society's dreams that are short-term or
long-term. As a result, businesses in the United States are under pressure to provide results
quickly. Success is prized in many Asian cultures for its endurance, moderation, and
commitment to long-term labour. The dimension of long-term vs. short-term orientation assesses
how society sees its temporal horizon. Long-term thinking has emphasised the benefits and a
resolve to forego immediate satisfaction in the pursuit of the situation's outcomes. Tenacity,
perseverance, and protracted progress are all terms used to define long-term direction.

Conclusion:

As a result, when discussing the expansion of the inexperienced Bell in India's smaller towns, all
five of Hofstede's dimensions should be examined. As each scale addresses a distinct issue, one
might be encountered when expanding a firm into a new city and training employees.
Individualism and collectivism will aid the antique staff in educating the new staff jointly and
without feeling harsh, as the power distance discusses how a lot of power needs to be provided
while developing new businesses.
Answer 2.
Introduction:

A decision may be classified into numerous categories depending on its scope, significance, and
impact. Selections have been classified in a variety of ways by various authorities. Programmed,
non-programmed, operational, strategic, and other decisions are frequently made by corporate
executives. The choice might be classified into one of many categories based on the amount,
importance, and influence of the decision. Policymaking is defined as the act or process of
considering a variety of options and selecting one. It's critical to remember that managers are
always making the same decision, and that the integrity of these choices has a significant impact
on the organization's and stakeholders' performance. Any person or entity impacted by a business
is referred to as a stakeholder (which includes clients, employees, shareholders, etc.).

Concept and Application:

Managers are constantly making decisions, and their choices, or simply their assessments, can
have far-reaching consequences for the company and its stakeholders. Managerial decision-
making is characterised by complexity, limited knowledge, and time constraints, with few
correct answers available. When there are several good alternatives (or more than one bad one),
management must choose the one that will yield the best results.

Managers make a variety of decisions based entirely on the character of their employees at
various phases of their careers:

1. Decisions made with and without a plan: The repetition is at the heart of programmed
choices. Those findings are based on simple, common, and recurrent challenges with well-
mounted methods. These judgments are based on the company's present policy, regulation, or
system. Making purchase orders, authorising various types of leave, approving pay raises, and so
forth. When dealing with such typical incidents, managers follow the established processes.

2. Decisions on operations and strategy: On the operational or tactical levels, decisions

are based on present issues or difficulties. Strategic decisions are focused on the long term,
whereas operational decisions are focused on the near term. The primary goal is to maximise
performance. This involves, among other things, improved working conditions, qualified
supervision, creative use of present assets, and increased device security. Expanding the scope of
operations, entering new markets, altering the product mix, transferring the manufacturing
facility, developing strategic collaborations with other businesses, and so on are all strategic
decisions.

3. Individual and organizational choices: Organizational decisions are those made by

management in the normal course of business in their role as managers. Managers, for example,
make decisions such as installing a new incentive machine, moving an employee, reallocating or
redeploying workers, and so on in order to achieve specified objectives. Managers, on the other
hand, do make personal assessments in person. Their influence, however, may have an impact on
the company. For example, a manager's intention to leave the company for personal reasons
might cause some issues for the company.

4. Individual and collective decision: Individual judgements are made when the situation
is normal; nevertheless, vital and strategic decisions that influence many aspects of the firm are
normally decided by a group. Organizational decision-making is popular these days since it
allows for more coordination among individuals concerned about the decision's execution.

5. Decision making on regular and crucial: Tactical or regular decisions are made on a
regular basis, following established norms, processes, and guidelines. They do not need the
acquisition of clean data or group sessions. As a consequence, they may be taken without having
to learn a lot of ideas. They're complex, yet they're always one-dimensional. They don't require
any additional managerial effort.

Conclusion:

As a result, it's easy to see how decision-making will take a systematic or orderly path from
problem to solution. There is only one superb or flawless outcome. The goal of rational
judgments is to maximise applicability. The selected solution will be in line with the selection
maker's thoughts and interests. When given the same set of sufficient knowledge for the
decision, all rational decision makers must arrive at the same conclusion. This demonstrates how
rational decision-making may be applied often in collaborative selection.
Answer 3a.
Introduction:

A divisional organisational structure is comprised of parallel divisions or working units. These

divisions might be in charge of a good product or service, a certain geographic area, or a specific
client. One method of arranging these commitments is through a company's divisional structure.
It creates discrete divisions or divisions, as well as personnel agency, based on products or
services, clientele, and location. Each unit, including advertising, operations, and human
resources, has some autonomy with great function devices. A divisional organisation is ideal for
chain stores and workers both inside and outside the country.

Concept and Application:

A divisional company produces clear patterns of obligation since decision-making is dispersed.

The main firm (for example, the headquarters) can distribute energy to its subsidiaries using
several words. It solves the issues that arise with a hierarchical, centralised organisation.

Each division has entire autonomy in making decisions, establishing strategies, changing
operations, and designing marketing and advertising and marketing specifications to fit the needs
of the markets within its authority. This is especially important under uncertain and volatile
market conditions.

Divisional organisational capabilities include:

• The divisional structure supports the firm in a variety of ways. Because the company's divisions
are financially self-contained, they will establish clear lines of duty and responsibility. Economic
independence encourages collaboration rather than division.

• One-of-a-kind specialisations (divisions) help individuals hone their skills in their chosen
sector. Because each division is self-contained, it can respond quickly to changes in the business
environment without causing harm to the others.
• Divisional organisational methods serve large firms that operate in numerous geographic
regions or have separate smaller divisions to address different goods or market segments. For
firms with divisional systems, effective management is the most important factor in achieving
success.

The units of a divisional organisation may be divided into three categories:

 product,
 consumer, and
 physical region.

Conclusion:

In the issue at hand, Earth Movers Ltd is a heavy vehicle service provider with a fleet of tractors,
cranes, bulldozers, mixer vans, and other heavy vehicles. As a result, the employer's department
has been established according to the type of product for which services must be supplied.
Humans are organised into divisions based on the product or service they provide, not the work
they perform.

Answer 3b.
Introduction:

The company's stance is the next herbal step after planning. To meet the plan's objectives,
someone must work hard and complete the proper project. The organising function motivates
people to work. According to the role, "managers are involved in decisions that result in a
machine of skilled coordinated jobs." The structure of an organisation has several parts. At
labour, there may be both human and nonhuman factors.
Concept and Application:

The following variables are used to determine the corporation's structure:

• Unit Dimensions: An operation's magnitude is determined by its duration. The three

smart operation scales are small, medium, and giant. The size of a corporation affects its cost,
efficiency, and profitability significantly. Before beginning any corporate or non-profit
challenge, organisers should choose the most satisfying and feasible unit size. The idea of an
adequate or top-of-the-line length is a dynamic one that changes as knowledge and technology
advance. As a result, one factor that influences a company's size and structure is technology. To
introduce new technology into a company, the activity must be expanded, and the organisational
structure must change as a consequence.

• Organizing activities: The proposed employment should be grouped into businesses

according to the type of work. If you wish to expand coordination, it's critical to institutional
actions. Each organisation is given the title "Department." The department is another factor that
determines an employer's form. As a result, every agency has divisions such as public relations,
production, and finance, all of which perform their functions. In each domain, such as Finance,
we sense authority relationships.

Conclusion:

For specialised work designs, slim spans, uniform departments, little control, low authority, and
a compact structure will be built. With little or no specialisation, activity designs will have a
convoluted organisational structure, with several divisions, diverse control spans, and greater
delegation of electricity. Observe and delight in have confirmed that performance, attitudes,
contentment, and other factors also have an influence, despite the fact that they are the variables
that establish the design of an agency.