Management Theory and Practice

June 2022

QUESTION 1.
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.
Discuss the expansion from the point of view of Hofstede’s five dimensions to include in the
training. (10 Marks)

ANSWER 1.
Introduction:
Hofstede's Cultural Dimensions theory, established by Geert Hofstede, is a structure for expertise
cultural variations between nations and figuring out how businesses are performed in different
cultures. In different words, the structure is intended to distinguish between particular national
cultures, their aspects, and their effect in a commercial context. Hofstede's Cultural Dimensions
principle was created using Geert Hofstede, a Dutch control researcher, in 1980. The reason for
the examination turned into to discover the components of culture that differ. Power Distance
Index, Collectivism vs. Individualism, Uncertainty Avoidance Index, and Femininity vs.
Masculinity, short-term vs. long-term Orientation, Restraint vs. Indulgence are six elements
Hofstede recognized to decide tradition.

Concept and application:

Allow us to understand the five dimensions of Hofstede:

1. Power Distance: The step to which a society entails deciding on unequal energy
distribution in organizations and society is known as energy distance. We expect great respect
for age, status, and titles in extreme influence distance civilizations like Japan. This is probably a
task for an American visiting used to the casualness of a minor strength separation lifestyle and
to using first names and informal clothes inside the office. The high-energy distance assesses
how a lot of inequity and electricity are tolerated in a given tradition. In this size, prejudice and
management are perceived from the believers' point of view — the lower stage. An excessive-
power distance index suggests that injustice and electricity imbalances are an element that fosters
bureaucracy and places a high significance on rank and authority. A low electricity distance
index suggests that a lifestyle values flat organizational structures, decentralized choice-making,
participative control, and an emphasis on strength distribution.

2. Uncertainty Avoidance: The step to which a society considers or is uneasy with danger,
transition, and situational ambiguity is uncertainty avoidance. In high-uncertainty-avoidance
societies like France or Japan, one would expect a desire for arrangement, command, and
probability. Uncertainty avoidance guides procedures on how lots of ambiguity and uncertainty
are tolerated. This dimension seems at how people react to surprising conditions and
unanticipated events. A limited threshold for ambiguity, confusion, and a high uncertainty
avoidance rating shows danger-taking. Through imposing strict guidelines, laws, and other
norms, ambiguity is eliminated. A tough open-mindedness for ambiguity, confusion, and
boldness is shown using the avoidance of uncertainty score. The sudden is speedier followed,
and there also are fewer regulations, laws, and limitations in the vicinity.

3. Individualism-Collectivism: The quantity with which a gadget to screen an individual's

accomplishments and self-interest over the achievements and interests of groups is referred to as
individualism-collectivism. According to Hofstede's research, it has the best individuality rating
of any country. Individualism vs. collectivism is a measurement that looks at how societies are
prepared into devices, along with their recognized obligations and dependence on them.
Individualism refers to setting a more significant fee on accomplishing personal desires. A
person's self is characterized as "I" in this category. Collectivism suggests a greater emphasis on
the desires and well-being of the collective. A character's self is classified as "We" in this
section.

4. Masculinity-Femininity: The step to which a philosophy favors assertiveness and

materialism over sentiments, friendships, and pleasant lifestyles is referred to as masculinity-
femininity. It tends to emphasize traditional male or feminine features and attitudes concerning
gender roles. Site visitors traveling Japan, which has the most masculinity rating in line with
Hofstede's research, might likely observe how limited task options for girls might be. The
"difficult vs. soft" thing of masculinity as opposed to femininity consists of cultural values for
success, perspectives on gender equity, and behavior, amongst different matters. Masculinity is
characterized by astounding gender norms, aggressiveness, and a concentration on financial
achievement and wealth. Fluid gender roles, modesty, tenderness, and care for the excellence of
lifecycle are all tendencies of femininity.

5. Time Orientation: This is the proportion of a society's quick-term or long-term dreams.

As a result, corporations inside the United States must deliver brief-time period outcomes.
Staying power, moderation, and a dedication to work for a lengthy time, success is valued in
many Asian cultures. The lengthy-term vs. brief-time period orientation dimension evaluates
how society interprets its temporal horizon. Long-term orientation has focused on the positives
and a determination to forgo present gratification inside the pursuit of results of this situation.
Protracted orientation is described via perseverance, perseverance, and prolonged progress.
Quick-term orientation emphasizes the existing over the destiny, specializes in the immediate
future, and provides quick-time period success or fulfillment. Short-time period outcomes and
lifestyle are emphasized in quick-time period orientation.

Conclusion:

Therefore, talking about the growth of the inexperienced Bell in the smaller towns of India, all of
the above discussed five dimensions of Hofstede ought to be considered. As every scale is
talking about a specific problem, one can be faced while expanding a business right into a
particular city and schooling of the staff. The power distance talks about how tons of power need
to be given while expanding new corporations; individualism and collectivism will assist the
antique staff in training the new staff collectively and without feeling unfair.

QUESTION 2.
Sateesh is a project manager in an IT company. He needs to deploy some additional developers
to be based on site. He has a meeting with the HR for the same and needs to give a plan of
resource deployment to the HR with clarity on how many new members’ vs how many current
developers can be deployed on site. Managers have to make many decisions.
Discuss various types of decisions managers typically make based on nature of the decisions,
level of the management or capacity. (10 Marks)

ANSWER 2.

Introduction:
Depending on the extent, relevance, and influence of a choice, it can be divided into several
classes. Numerous authorities have classed selections in numerous methods. Managers in
corporations often make four classes of choices: programmed, non-programmed, operational,
strategic, and others. Depending on the quantity, relevance, and impact of the decision, it could
be categorized into considered one of many classes. The act or system of thinking about
numerous possibilities and picking one is stated as policymaking. It's vital to consider that
managers are continuously making the one choice, and added that the integrity of these decisions
has a substantial effect on the organization's and stakeholders' performance. Stakeholders are any
folks or units affected by a business (which includes clients, employees, shareholders, etc.).

Concept and application:

Managers are continuously making selections, or even the one's judgments may have a long way-
attaining outcome for the business and its stakeholders. Complexity, constrained knowledge, and
time regulations outline managerial choice-making, and around is hardly a single correct answer.
When there are numerous suitable options (or more than one terrible one), the management must
determine which one will produce the high-quality outcomes. Managers have to consider the
capacity ramifications of every choice and renowned that there are frequently several
stakeholders with competing wants and choices, making it hard to fulfill everyone. In the end,
managerial selections may have ethical ramifications, which ought to be considered previous to
making a very last preference.

Diverse types of selections made by the managers based totally on the character, and different
stages of employment of the managers are:

1. Programmed and Non-programmed decisions: The essence of programmed selections is

that they're repeated. Those conclusions are made in response to easy, not unusual, and regularly
recurring difficulties with nicely-mounted procedures. Those conclusions are made primarily
based on the company's current policy, regulation, or system. Making purchase orders, approving
various styles of depart, approving salary increases, and so forth. Managers adhere to installed
protocols while dealing with such common occurrences. Non-programmed judgments are not
made on a regular foundation. They're associated with unusual instances for which no popular
method exists. This class includes, for example, troubles inclusive of falling market proportion,
elevated competition, and so on. These troubles must be addressed in a unique approach.
Numerous of the decisions made with the aid of top-level managers aren't pre-programmed.

2. Operational and Strategic Decision: Selections made on the operational or tactical stages
are related to current challenges or difficulties. Operational decisions are devoted to the short-
term or instant present, while strategic decisions are dedicated to the long-term. The number one
aim is to reap the most performance. This includes improved working situations, qualified
supervision, clever use of current assets, and better device protection, among different matters.
Expanding the scope of operations, entering new markets, changing the product mix, moving the
production plant, forming strategic partnerships with other companies, and so forth are all
strategic. Ordinary picks are usually made using lower-degree managers, whereas higher-level
managers make strategic decisions.

3. Organizational and personal decision: Organizational alternatives are those made by

using the management within the regular route of the commercial enterprise of their position as
managers. Managers, as an instance, make decisions like implementing a brand new reward
machine, transferring an employee, reallocating or redeploying staff, and so on so that you can
attain specific goals. On the alternative hand, managers do make certain judgments that are
personal in person. However, their impact may affect the organization. For instance, a manager's
desire to go away the organization, even as personal, may additionally purpose some problems
for the agency.

4. Individual and group decision: While the situation is normal, individual judgments are
made; however, essential and strategic decisions that affect many factors of the company are
usually made through a group. These days, organization decision-making is favored because it
allows for greater coordination among those worried about the choice's execution.

5. Routine and Strategic Decision: Tactical or routine alternatives are made on a regular
foundation, following rules, procedures, and rules. They do not necessitate the collection of clean
data or sessions with others. As a result, they may be taken without lots of concepts. They are
complicated, yet they're continually one-dimensional. They do no longer necessitate any
additional work on the part of the management. Supervisors on the mid and bottom management
stages often make such judgments. Strategic or fundamental choices are crucial and regularly
made through a pinnacle and center control: the extra a manager's role, the different strategic
judgments he ought to make.

6. Organizational and Personal Decisions: A manager's decisions in his official position are
called organizational selections. Delegation of such picks is viable. Non-public choices can't be
delegated given that they difficulty the supervisor as a character instead of a member of the
company.

Conclusion:

Hence, it could be understood that choice-making will follow a systematic or ordered route via
trouble to answer. There's just one excellent or perfect result. Rational decisions aim to
maximize or maximize application. The chosen solution will align with the selection maker's
interests and ideas. When supplied with the same set of sufficient knowledge for the choice being
made, all rational choice makers must attain the same result. This shows that rational choice-
making may be used frequently in collaborative selection-making.
QUESTION 3.
Earthmovers Ltd is into providing heavy vehicle services. They have various heavy vehicles like
tractors, cranes, bull dozers, mixer trucks, etc. They have been growing increasingly and have
employed a total staff of 1200. They have divided their business in a Divisional structure. Based
on this information, answer the following questions.
a. Discuss the features of divisional structure of organization and infer the divisions that
EarthMovers may have employed. (5 Marks)
b. Elaborate on the factors that influence organizational structures. (5 Marks)

ANSWER 3A.
Introduction:
Parallel divisions, or working units, make up a divisional organizational structure. These
divisions might be responsible for a positive product or service, a specific geographic area, or a
specific client organization. A company's divisional shape is one technique of organizing
beautiful obligations. On the grounds of products or services, clients, and location, it develops
distinct divisions or divisions and agencies of personnel. Every unit has some autonomy with
excellent function devices, including advertising, operations, and human assets. For chain shops
and associates both within and out of doors the country, a divisional company is optimal.

Concept and application:

As choice-making is decentralized, a divisional corporation generates obvious patterns of duty.

Different phrases let the parent company (e.g., the headquarters) delegate energy to its branches.
It overcomes the problems that include a centralized, hierarchical structure.

Each division has complete autonomy in making decisions, formulating strategies, adjusting
operations, and customizing marketing and advertising and marketing specs to meet the desires
and desires of the markets in its jurisdiction. This is mainly vital underneath market situations
that are unsure and unstable.

Capabilities of the divisional shape of organization:

• The divisional shape benefits the business in a selection of methods. Due to the fact, the
company's divisions are financially self-contained; they'll establish clean strains of duty and
duty. Economic independence fosters collaboration as opposed to contention amongst divisions.

• One of kind specialties (divisions) assists personnel in honing their talents in their
selected field. Because each division is self-contained, it can react swiftly to modifications
within the business environment without harming other divisions.

• Large corporations that function in multiple geographic locations or have distinct smaller
divisions to cover different items or market sectors benefit from divisional organizational
models. Powerful management is the foremost essential thing of fulfillment for companies with
divisional systems.

A divisional organization's units might be categorized by using:

• Product,

• Client, or

• Geographic place.

For instance, inside the car region, a corporation's organizational structure can be divided based
on its specific products: SUV, sedan, and coupe. some other alternative is to base the shape on
consumer types, with divisions which include "elite," "medium," and "low-profits." Create
geographic divisions for commercial enterprises, like Europe and Asia.

Conclusion:

In the given case, Earth Movers Ltd provides services to heavy automobiles, and they have
numerous heavy cars like tractors, cranes, bulldozers, mixer vans, and so on. As a result, the
department of the employer has been achieved according to the sort of product to which the
services must be provided. Human beings are grouped collectively in a divisional structure
relying on the product or service they deliver, not the labor they adopt.
ANSWER 3B.

Introduction:
After planning, the corporation's position is the subsequent herbal step. Someone must labor and
do the right project to obtain the plan's targets. human beings are motivated to work because of
the organizing function. "Managers are concerned in choices that result inside a machine of
skilled coordinated jobs," in line with the function. Many elements have a position in the
structure of an organization. There may be both human and non-human elements at work.

Concept and application:

The structure of the corporation is decided using the following variables:

• Size of Unit: The size of an operation is indicated through its length. Small, medium, and
large are the three smart operating scales. A company's length has an extensive impact on its
cost, efficiency, and profitability. Before starting any enterprise or non-business challenge, the
organizers should decide the maximum rewarding and viable unit size. An appropriate or top-of-
the-line length is a dynamic concept that varies as knowledge and technology progress. As a
result, technology is one aspect that affects the size and structure of a company. To convey new
technology into a firm, the activity needs to be extended, and the structure should modify as a
result.

• Grouping activities: The designed jobs should be divided into businesses based on the
activity's kind. It's crucial to institution activities if you want to expand coordination.
"Department" is the call given to each group. Another component that influences the shape of an
employer is the department. As a result, we see divisions such as publicizing, production, and
finance in every agency company, all of which carry out their roles. We perceive authority ties in
each area, such as Finance.
• Delegation of Authority: The structure of a corporation is likewise determined by using
the authority relationship. If the span is more, there could be many extra authority tiers, and
pinnacle executives might assign work to every level." The proper to make judgments without
acquiring consent from an upper character," says the authority. Suppose the breadth and stages of
organization in a corporation are more. In that case, the delegation of electricity may be more,
and round could be extra decentralization of authority for seamless process execution. There
might be fewer strength ranges and more excellent centralization if the time is brief. The
structure of the employer is thus decided by using delegation of authority.

Conclusion:

Slim spans, homogeneous departments, minimal control, little authority, and a compact structure
will be constructed for specialized work designs. Activity designs with little or no specialization
will have a complicated organizational structure, with various departments, different control
spans, and more delegation of electricity. Despite the truth that these are the variables that
determine the shape of an agency, observe and revel in have validated that performance,
attitudes, satisfaction, and different elements also impact.