Principles And Practices Of Management Commerce Essay


1.a) The components in management culture is as theory as different aspects of an individual's personality such as the managers shall understand the forces of the organization internal and external environment influence, constrain and its productivity. Managers need to realize that the organizational culture and organizational environment is important implication, which has two perspective view of omnipotent and symbolic.

For the omnipotent view is mostly define as the managers are to due to their ability to diagnose the company situation , create values and overall goals which will lead the organization to responsible for the success or failure of an organization. ( Staffan Furusten , Pg 84) The managers are important as being consistent with the stereotypical picture to 'take-charge' for the executive that can perform and overcome of any obstacle in carrying out the organization's objectives. Therefore, when the organization performs poorly, someone must hold the accountable and that 'someone' is the manager.

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For the symbolic view is mostly define as the view much depends on the success or failure is due to the external forces outside managers control. It is the influence that managers 'do the right things' is mainly as a symbolic outcome. Organizational results are influenced by factors that outside the control of managers, including the economy, customers, government policies, competitors action, industry condition, control over proprietary technology and the decisions made by previous managers. For the symbolic view, managers symbolize control and influence, such as randomness, confusion and ambiguity or try to adapt and innovate. Due to this, will have limited effect on organizational outcomes involved in planning, making decisions and engaging in other managerial activities that can benefit the stockholders, customers, employees, and to the public. Therefore, the organization success or failure is minimal.

b.) Base on omnipotent view and symbolic view is as follow:

Omnipotent view: For instance, Hotel Heritage (Ipoh), the management will have to plan out the some promotion and motive. After the meeting with other shareholder for the relevant target and budget then will ask have another meeting with the all department managers ( eg. Research and Development, Sales and Marketing, Front Office, Chef and etc) to hold a meeting to discuss on the promotion that will run during the month. (Especially festive season) The action need to be quick and firm so that they won't miss out any opportunity because before the festive season they must be on all booking for the seminar rooms, the café and rooms as well. With the success, all lots of customer will come back for other promotion and so as the local or international magazine, that will publicize the hotel and so as the good facilities that available in this hotel.

If the promotion is failed, for instance, the restaurant and the seminar rooms are not fully booking, then the Managers of Research and Development and Sales and Marketing need to be ask to leave (fired) due to the ineffective and fail on the promotion that they need to responsible for the failed. . The Management will need to seek for other capable Managers to run the operation for the Research and Development and Sales and Marketing. Until today, Hotel Heritage always has a special promotion for non festive or festive season.

Symbolic view: For instance, Novartis Corporation is an innovative healthcare company that offers solutions to patients across board such as pharmaceutical products, vaccines, consumer healthcare products and others. In additional, is also diverse portfolio reduces the financial risk, bringing greater value to the patients. I would to share on the vaccine division.

Back in April 2009, the times when the swine flu or H1N1 outbreak is actually is a chaos from all around the world. The Malaysia Health Government making a decision that focus all the finance reducing the purchasing on the non-lifesaving items to purchasing for the seasonal flu vaccine for the patients that priority to the front line government employee's, under laying diseases patients and children's. Due to this outbreak is overall effected to the industries because people are afraid to go out of everywhere might infect by the H1N1 virus.

In June, 2009 Novartis, announces for the first batch H1N1 vaccine supply to United States, then to other western country.( In Malaysia, Novartis management decided to do a Community Service to the public in Kuala Lumpur giving free jab for the elderly people above 65years old and children as well at KLCC shopping complex concourse area. Thus, the vaccine is also supplying to the government hospital. Beside for the outskirt area like Perak, the Manager will give support to the local hospitals for a public talk and also information to the public, doctors and nurses. With this event, is created benefit and awareness to educate the public and have a good reputation on the company. Till now, when there is an event requested from hospitals or government Novartis will consider on the support for the benefits for the public and to the company as well.

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2a.) The external environment is more specifically, a key element in the effective management of an organization is to understand the determining the ideal of input and output from outside environmental forces. The critical of the environment forces is has impact to affect how to they constrain managerial discretion. Therefore, the organization working and achieve them to maintain it. Is comes in two factors the specific and general environment.

The specific environment includes from the external forces that influence to manager leading and immediate impact on the decision and actions to achieve the organization's goals. The force mainly is from customers, suppliers, competitors and pressure groups (eg. social and political attitudes changes) ( Stephen P.Robbins, Mary Coutlter, Pg 64)

The general environment is the dimensions of embodies conditions and events that have potential to influence the organization in important ways such as board economic, political or legal, sociocultural, demographic, technological and global conditions that may affect the organizations. The changes may not an impact to the organization because manager consider them as plan, organize, lead and control. ( Stephen P.Robbins, Mary Coutlter, Pg 66)

b) The general environment of the external environment it represent the outer layer of the environment because is influences the organization over time .For the four factors political/legal, economic, social and technological or PEST is regards to,

Political or legal , is includes the government regulations at the local, state and federal levels and so as the politics activities to influence organization behavior. It means such as fair trade practices, libel statutes like lawsuit against business, consumer protection legislation, product safety requirements, import or export procedures and etc. Managers should be aware of the changes of political in countries that can influence by the decision and the conditions.

For instance, Mattel Toys, in October 2007, has been filed a lawsuit against the company due to delaying the report of hazardous toys in 24-hour window required by federal regulators. This defects toy to recall from the worldwide, and have been sold at $33 million in stock, its cause the file 10 personal injury cases against Mattel in federal courts and in even in state court in Delaware, United State. Mattel was fined $975,000 on the same year for failing to report a defect toys from its Fisher-Price division.

Economic, is overall from health and grow of the economic system for the organization operates. It's important economic factors that for business are the growth, inflation, interest rates, changes in disposal income, stock market fluctuation and unemployment. For instance, McDonald's, operations is functioning in an economy currently characterized by strong growth, low employment and low inflation. This condition trend is lead to more people can eat out, but McDonald's also pay higher wages to attract new employee. However, its pay the supplies, for the sources such as the cooking oils , sugar, salt, vegetables, meats, soft drinks and etc. is still remain relatively in this constrain from increasing the hamburger and etc.

Social, is represent the demographic characteristics such as the norms, customs and value of the general population. Important characteristic are geographical distribution and population density, age and education levels. As from today, the foundation of tomorrow workforce and consumers is mostly seen increase globalization of both consumer markets and the labour supply. For instance, PepsiCo was the first one that able to gain market share from Coca-Cola, by being the first to introduce diet colas and fruit-based soft drinks. The same goes to, the health trend that's currently has created a threat for many industries. So as the tobacco industry, as the Malaysia government launch out the Quit Smoking clinic in every district area, is in decline as a direct result of greater consumer's awareness of the health implication of smoking.

Technological, is include scientific and technological advancements in a specific industry as well as in society at large. Is means in recent years, technology has been created massive changes for organizations in all industries. It is also converting the resources into products or services that organizations are more organize for manager to managing it. For instance, back in twenty years, mostly all the organization didn't use desktop computer. As till today, computer networks like Internet access, handheld devices, videoconferencing, mobile phone, fax machines and laptop are the minimum requirement in doing business. An organization can allow the users to check email, daily task calendar, and customer order from around the world when there is wireless network ( e.g WIFI ).

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3.a) These two view of social responsibility of classic view and socioeconomic view, have a few concept ,for instance , as called ' profit making only', 'going beyond profit making', 'voluntary activities', 'concern for the boarder social system', and 'social responsiveness'. ( Stephen P.Robbins, Mary Coutlter, Pg 100)

The classic view, according to this view, are responsible for business manager to their stakeholders, and concern on the solely with profit maximization. By diluting their purpose in the pursuit of 'social goals', for businesses extend to their influence over society. It is seen to generate a net cost to the company without any real benefit flowing from the activity of lack of public accountability.

The socioeconomic view, this view is role of society experts business to adhere to moral and social responsibilities and beyond making profit business. They are widely involved in society's social, political, and legal environment. As such, all businesses are not depending on the stakeholders. This involves the business surveying changing social political trends in order to remain in tune with the consumer. Many industries prefer this view, because it easier for them to achieve the social goal at lower cost. For instance, today, the 'non plastics bag program' issues have significantly influenced many businesses. The image was able for the image of 'environmental friendly' and more likely develop of brand loyalty, and strengthen the competitive position.

b.) "A company taking the classical view of social responsibility should provide lifetime employment to its employees".

I would disagreed, because classic view is for maximize profit business. It is clear cut basic responsibilities for the efficient execution of the economic function such as products, jobs and economic growth to be known as profit.

Lifetime employment is viewed as a commitment to assuring job security for employees who makes effort, which low productivity. Two effects arise from this commitment in life time employment. If the seniority provisions or eligibility limitations may prevent the most able employees from attaining jobs best suited their talents. This kind of barrier can be costly. Lifetime employment, tend to be less efficient because the seniority employees is earning steadily therefore it will effect in the productivity. The interest of stakeholders is not narrowly economic; it will cause the organization are generally expected by their owners to pursue some socially desirable ends. Therefore, the stakeholders are also consumers and affected when the organization fails to act responsibly.

For the classical view, the manager wants to providing the benefits for the employees and improving the quality if life in the workplace beyond economic and legal requirements. It's taking advantage of an economic opportunity that is judged to be less profitable but more desirable than some alternatives. The primary of the business performance are mainly economic efficiency and growth in production that's include technology and innovations in goods and services. The 'social goals' of the business is motivation force for organization profit. In return, its securing the maximum return for shareholders consistent with the preservation of invested capital requires managers to take a long-term view that considers the stability and growth of the corporation.

4a.) The types of decision making models that the manager approach to make decision usually falls in these three types the classical model, the administrative model or the political model.

The classical model of decision making is based on economic assumption. This model causes the management literature because managers are expected to make decision which are economically sensible and in organization's best economic interests. The decision making is considered to be normative of how to make decision. The value of the classical model is ability to help decision makers to be more rational. There are four assumptions models as follow: -clear-cut problem of goals - condition of certainty -full information about alternatives and their outcomes -rational choice by individual for maximizing outcomes

The administrative model of decision making describes as how manager make decision in difficult situation such as by nonprogrammed decisions, uncertainty and ambiguity. Many management decisions are not sufficiently programmable to lend themselves at any degree of quantification. Manager is unable to make decision rationally. Manager is also bounded rationally and satisficing in the making decision process. The administrative model is considered to be descriptive by making decision according to a theoretical idea. It is also regards intuition, represents a quick apprehension of a decision situation based on past experience without conscious thought. The factors as follow : -vague problem and goals - condition of uncertainty -limited information about alternatives and their outcomes -satisficing choice for resolving problem using intuition

The political model of making decision is useful for making nonprogrammed decision when conditions are uncertain, information is limited and managers may disagree about the goals and course of action to be taken. Most organization decision is involved many manager who are pursuing different goals and they will discuss one to another to share information and to reach the agreement. Managers to support a specific alternative, such as increasing the organization growth by engage in the decision of debating and goals , so as discussion. Decisions are result from bargaining and discussion among the coalition members. The following of the factor: -pluralistic, conflicting goals -condition of uncertainty or ambiguity -inconsistent viewpoint, ambiguous information -bargaining and discussion among coalition members

b.) "The political model in decision making adds further complications

to the consensus decision making practice applied in Japanese management".

It is also, based on the political model, the one of the factors is the stakeholder with analytical style as to consider a complex solution and to gather as much data as possible. Beside, the managers is also to have a conceptual style to consider for the amount of the information and also be more socially oriented that solved the problem and by creatively.

The political model decision making in the Japanese management practices are evident in three principle categories such as long-term objectives (lifetime employment), collective responsibility, and manufacturing concepts. The group of workers will share a basic information, value and culture that disseminated throughout the organization.

The Japanese management is mostly based on seniority employment. Seniority employment covers the minority of the work force that work for the major organization. The employee's will spend of their working life with the single enterprise, which giving them the security and belonging to the organization.( Harold Koontz, Heinz Weihrich, pg 66) Japanese management is the continual exercise of power and the maintenance of control to establish the order in such as work can be done efficiently without endless negotiations between superiors and subordinates dismissed of any grounds, except for serious breaches of ethics. In this practice, is bring the cultures induce the concept of harmony to the organization is resulting the employees loyalty and to which of the close identification of the mission of the organization. Hence, is also emphasis on informal and democratic relationship which the status is deliberately minimized and interpersonal trust build-up.

However, is also result the cost to the organization because the employees kept on the payroll and insufficient work. From this is resulting the organization to questioning regards on the lifetime employment practice because they are slow.

It is also apply to the management to prioritize the achievement of effective employee's participation in the operational decision making that for seek high degree of trust and consensus among the employee. Is also part of managerial attitudes, of culture and value in to achieve in employee commitment reward.

It is also to development of interpersonal skills among employees at all levels because of the focus for the consensus decision making such as the work of quality circles , customer services units, or production will be the functional or unit team. Is the basic information, value and culture that are broadly disseminated the organization and share among the staff.

The employee's will need to emphasis on informal and democratic relationship in the status differences of deliberately minimized and interpersonal trust built up. A high degree of trust is implicit consensus making decision that requires or trusted to apply in they own discretion and work close to the supervision.

Lastly, long-term employment and career paths that will encourage, reinforce and reward the commitment to the organization in this theory. In this policy is important to retain and builds up experience and strengthen the interpersonal bonds that are essential to the achievement of consensus and trust by the employee's, (Tony Morden, pg 185),

For instance, this type of political model and consensus making decision practice of Japanese management, are mostly found in Japanese multinational company such as Toyota, Nissan and etc. That will be requires to a high technology companies or to service organization such as airlines, hotels, educational institutions or hospitals which needs to include people-based skills and key drivers in the value-generating process or value chain. However, part of this strategic management of the market position held by the enterprise within its competitive environment.