NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Management theory and practice
Assignment Answers

Q1.
Answer 1:
In today’s business practices people from multiple culture comes together and works
under the same roof or towards the same cause or in the same project of the
organisation. This multicultural work environment has become a common trend in
today’s world. Nowadays most of the organizations looks forward to expand their
businesses globally to reach out to different consumers all across the globe. This
new multicultural trend helps organisations to serve customers effectively from
distant locations. However, this new trend gives rise to cultural differences that
impact the performance of employees as well as of the organisation.
Language and time difference is the main problem faced due to cultural differences
which results in communication gap when operating from different geographical
locations.
It’s a challenge to handle multicultural team. Managers should learn managerial skills
required to handle such a work culture environment. In order to manage cultural
differences effectively, managers need to consider the various aspects of corporate
culture. These aspects are called the dimensions of culture. One commonly used
model to understand and analyse the dimensions of corporate culture is Hofstede’s
five dimensions of culture.
Hofstede’s five dimensions
Professor Geert Hofstede conducted one of the most comprehensive studies of how
values in the workplace are influenced by culture.
Five dimensions of Hofstede model:
1. Power distance: Expresses how the members of any organization or society
perceives the power distribution. Do they want the power to be equally
distributed or to be centralized in the hand of certain people.
The fundamental issue here is how a society or organisation handles
inequalities among people. So, in organizations with a large degree of power
distance accepts a hierarchical order while in organizations with low power
distance, people struggle to equalise the distribution of power.
2. Individualism and collectivism: Individualism means giving preference to
individual things and when talking about collectivism it means working in a
collective environment. In other words, Individualism refers to the tendency of
individuals to give high importance to personal achievement. U.S and
Germany are individualistic country. Whereas, collectivism refers to the
 tendency of people to work, share and grow as a part of a group. Panama and
Guatemala are highly collectivistic country.
3. Masculinity/Femininity: Masculinity side of this dimension believes in
materialistic rewards. That is if there is any achievement or success there
should be some reward. In such a society the competition is high because
everyone wants to get rewarded and for that they will thrive to compete.
Its opposite, Femininity stands for a preference for cooperation, modesty,
caring for the weak and quality of life.
4. Uncertainty avoidance: It express the degree to which the members of a
society feel uncomfortable with uncertainty and ambiguity. Cultures with high
tolerance for ambiguity, would have risk taking, innovation, etc. as its values
and the vice versa. The fundamental issue is how a society deals with the fact
that the future can never be known or should we try to control the future or
just let it happen.
5. Long-term orientation: Some cultures have value for immediate outcomes
and some for long-term outcomes. This in turn may be related to values such
as patience and delaying of gratification. Those who have the former will tend
to take decisions that optimise results in the short term.

In the given case, Green Bell is a retail giant in India. Currently only confined to
metro cities for their giant super store outlets, they are planning to spread to smaller
cities in India. While working on the resource allocation, HR is planning on shifting a
few of the current staff to new locations while recruiting local staff at each location in
parallel. They need to engage the current staff in training for the newer audience. We
can discuss the expansion from the point of view of Hofstede’s five dimensions to
include in the training.
Hofstede Cultural dimensions applicability in the given case
Power distance: Green Bell is a retail giant operating in metro cities where people
are rich and independent and take their own decisions rather than taking
suggestions from their families. On the other hand, in smaller cities people are more
dependent on families, accepts unequal rights and are obedient to authorities. In
small cities power is also held by caste, religion and local leaders. While expanding
business to small cities, Green Bell should train their employees accordingly.
Individualism: In India we can find both collective and individualistic traits. The
collectivist side means that people belong to their social framework and are
influenced by one’s family. In metro cities people are more individualistic but it is
opposite in small cities so employees should be trained on the given aspects.
Masculinity: India is a male dominated society. Though this trend has changed a lot
in metro cities but in small cities this male dominating trait can be seen largely. Local
employees may know this but employees who will be shifted to that location should
know about this so that they can target customers accordingly.
Uncertainty avoidance: Societies with high uncertainty avoidance scores have
anxiety about the future, tend to take few risks, are concerned about security and are
less open-minded and this is the situation in most of the small Indian cities which
should be changed and like metro cities people should have medium to low
preference for avoiding uncertainty. This means that people should like to try out
new brands.
Long term orientation: Long-term orientation refers to the society’s future-oriented
perspective and metro cities has long term orientation but smaller cities may not
have the same perspective and this thing needs to be changed. Green Bell should
train its existing employees on this matter so that they are prepared and plan to
operate accordingly.

Q2.
Answer 2:
On a regular basis an organization has to make many decisions related to its
operational processes, employees, sales, finances etc. These decisions directly or
indirectly affect the overall business performance. Therefore, a company has to take
a decision very carefully. Decision making and problem solving is a core function of
management because it is an integral part of all other managerial functions such as
planning, organizing, directing and controlling.
Almost every day we have to make choice for one or the other situation and making
a choice out of many options constitutes a decision.
In organizations, Decision making is a logical process that starts with identifying the
problem for which a decision is to be made; collecting the relevant in-formation;
developing the possible courses of action and selecting the best one; implementing
the action; and following up.
Depending on the nature of problems, requirements of the organization and external
threats and opportunities, different types of decisions have to made.
The types of decisions made in an organisation are categorised based on two
parameters, based on the levels of management and Based on the nature of
decision.
Based on the levels of management
There are three levels of management in an organization. The top level of
management is called the strategic level, the middle level of management is called
the tactical level and the low level of management is called the operational level.
Decisions are made at all the three levels to maintain a smooth functioning of the
organization.
These decisions are:
Strategic decision: These decisions are related to the mission and vision of the
company and also about the business strategies and are taken by the top level
management like CEO, board of directors and managing directors. These decisions
are often complex and involves high level of risk.
Tactical decision: Middle management of the organization takes these decisions to
implement necessary steps to fulfil the missions and goals set in the strategic
decisions taken by top management. In other words, managers at middle level take
decisions to ensure that the goals established by the top management are
accomplished on time.
Operational decision: Operation managers are responsible for taking this decision.
These decisions involve the daily operations of an organization and are very crucial
because if these decisions are ineffective then it will hamper the overall performance
of the business. Therefore, such decisions must be in line with the organisation’s
overall business strategy.

Based on the nature of decision

In organization different types of problems arise time to time and for solving these
problems single technique can not work because each and every problem has a
unique nature. So, the solution must be given by understanding the nature of the
problem. On the basis of nature, two types of decisions are taken which are
explained as follows:
Programmed decisions: Decisions made on regular basis and are repetitive in
nature are termed as programmed decision. For example, decision of procurement
of new stock in the inventory is a regular or frequent task. Such decisions are
generally made for daily activities.
Non-programmed decisions: These decisions are made only when the situation
arises. Organizations assess the business environment regularly so that they can
know about their strength, weaknesses, threats and opportunities so when an
organization needs to deal with opportunities and threats, it needs to take important
decisions called non-programmed decisions. For example, if an organization is doing
well and plan to expand itself to other locations then this is big decision and after
analysing all the factors, this decision should be taken. Expansion, merger,
acquisition etc. are big decisions which are not taken on regular basis in an
organization so these will be non-programmed decisions.

Q3.
Answer3:
(3a)
In order to achieve the predetermined objectives of an organization, structures of
logical arrangement of tasks, duties, roles and responsibilities are made. These
structures are called organisational structures. In other words of Kast and
Rosenzweig, structure is the established pattern of relationships among the
component parts of the organisation.
Features of divisional structure
Different divisions for better functioning: Divisional structure is all about
integration of independent divisions in an organization which will result in smooth
functioning of all the operations. When the organization is large and complex, it is
ideal to adopt this type of structure.
Effective management: As the organization is divided in different divisions, it will
ensure effective management at the workplace.
Helpful for employees: Different specializations (divisions) help employees further
develop their skills in their own area of expertise. As each division is independent, it
can respond quickly to external changes in the business environment without
affecting divisions of the company.
Better performance of the employees: Under this structure, all employees need to
focus on fixed tasks and as a result, they perform well and their productivity is
improved. Each unit has a divisional manager at the apex who looks after all the
operations within a division. As a result, the division head looks after all the
operations within the division. Hence, this helps in performance measurement.
Additionally, the division head is responsible for the poor performance of a division.
This also facilitates quick remedial actions.
Ideal structure for expansion: If an organization plans for expansion and if it is
following divisional structure, it will be lot easier for it to do so. If an organization tries
to step into a new product’s market, it can simply do so by adding a new division for
that product line without interfering with the existing structure.
Example of divisional chart layout:

CEO

Division Division Division

Product A Product B Product C

R&D R&D R&D

Marketing Marketing Marketing

Finance Finance Finance

Advantages of divisional structure
Development of divisional heads: The head of each division looks after all the
functions connected with their product that is, purchase, sale, advertisement,
production, finance, etc. It helps in the development of varied skills in a divisional
head.
Monitoring the results: All the activities of each division are carried out
independently. Hence, the divisional results (profit/loss) can be assessed easily. On
this basis, an unprofitable division can be closed.
Quick decision making: Every division is independent in itself. The divisional
manager can take any decision regarding his division independently without
consulting other divisional managers. Hence, decisions are quick and effective.

In Earthmovers, we may have various divisions such as production division, cost

division, HR division, IT division, Sales division, Research & development division,
Service division etc.
According to the question the Earthmovers can make their divisional chart layout as
follows:

CEO

Mixer
Cranes Bulldozers Tractors
Trucks

Marketing Marketing Marketing Marketing

Sales Sales Sales Sales

IT IT IT IT

Finance Finance Finance Finance

(3b)
When designing an organisational structure proper attention and supervision is
required otherwise, it may negatively affect the organisation’s performance. There
are many factors that affects the structure of an organisation.
Environment: It is very important to analyse the environment in which the
organisation operates. This will help the organisation to gather information about the
trend, changes and mood of the market in which it operates. The environment of an
organisation is divided into internal and external environment.
The factors that are under the control of the organisation comes under internal
environment. For example, production process, employee management, corporate
culture etc.
The factors that are beyond the control of the organisation comes under external
environment. These factors include consumer behaviour, market trends, regulations,
market structure, social customs and technology.
The four environmental influences are Strength, Weaknesses, Opportunities and
Threats.
Organisational size: It refers to the size of the organisation. In other words, it is
defined by the number of employees and no. of businesses of the organisation.
For example, a small organisation having up to 50 employees prefer the line
organisational structure on the other hand large organisation prefer matrix
organisational structure.
Organisation’s strategy: The strategy of the organisation should be well fitted with
the organisation’s structure. For example, if the strategy of an organisation is to
maximise overall productivity, all the departments are required to meet the desired
level of productivity. In such a case, the functional organisational structure is
followed which divides an organisation into different departments such as marketing,
finance, and operations.
Technology: Technology enhances the problem-solving ability of an organisation by
reducing the time and effort involved in problem analysis and decision making. For
example, the automation of cheque processing, cash deposit, balance enquiry and
loan processing in the banking sector has led to speedy customer services. Thus,
advanced technologies reduce the dependence on manpower, which consequently
affects the structure of organisations.