SMU BBA6 BB0031 MANAGEMENT DEVELOPMENT

PROGRAM	BBA
SEMESTER	6
SUBJECT CODE & NAME	BB0031 MANAGEMENT DEVELOPMENT

Q1. What are the different types of decisions? Explain with examples. Ans. Types of Decisions: The types of decisions are based on the degree of knowledge about the outcomes or the events yet to take place. If the manager has full and precise knowledge of the event or outcome which is to occur, then the decision-making is not a problem. If the manager has full knowledge, then it is a situation of certainty. If he has partial knowledge or a probabilistic knowledge, then it is decision-making under risk. If the manager does not have any knowledge whatsoever, then it is decision-making under uncertainty. A good MIS tries to convert a decision-making situation under uncertainty to the situation under risk and further to certainty. Decision-making in the Operations Management is a situation of cer­tainty. This is mainly because the manager in this field has fairly good knowledge about the events which are to take place, has full knowledge of environment, and has pre-determined decision alternatives for choice or for selection. Decision-making at the middle management level is of the risk type. This is because of the difficulty in forecasting an event with hundred per cent accuracy and the limited scope of generating the decision alternatives. At the top management level, it is a situation of total uncertainty on account of insufficient knowledge of the external environment and the difficulty in forecasting business growth on a long-term basis. A good MIS design gives adequate support to all the three levels of management.

Organizational decisions differ in a number of ways. The following bases are used to classify the decisions:

Purpose of Decision-making: On the basis of the purpose of decision-making activities, the organizational decisions are divided into 3 categories:

·         Strategic Planning Decisions: Strategic planning decisions are those decisions in which the decision-maker develops objectives and allocates resources to achieve these objectives. Such decisions are taken by strategic planning level (top level) managers.

·         Management Control Decisions: Management control decisions are taken by management control level (middle level) managers and deal with the use of resources in the organization.

·         Operational Control Decisions: Operational control decisions deal with the day-to-day problems that affect the operation of the organization. These decisions are taken by the managers at operational level (bottom level) of the organization.

Levels of Programmability: Simon on the basis of level of the programmability of a decision, proposed two types of decisions:

1.     Programmed/Structured Decisions

Programmed or structured are those decisions, which are well defined and some specified procedure or some decision rule might be applied to reach a decision. Such decisions are routine and repetitive and require little time for developing alternatives in the design phase. Programmed or structured decisions have traditionally been made through habit, by operating procedures or with other accepted tools.

2.     Non-programmed /Unstructured Decision

Decisions, which are not well defined and have not pre-specified procedures decision rule are known as unstructured or non-programmed decisions.

Knowledge of Outcomes: Another approach of classifying decisions is the level of knowledge of outcomes. An outcome defines what will happen, if a decision is made or course of action taken. When there is more than one alternative, the knowledge of outcome becomes important. On the basis of the level of knowledge of outcomes, decision-making can be classified into three categories.

1.      Decision under certainty: Decision-making under certainty takes place when the outcome of each alternative is fully known. There is only one outcome for each alternative.

2.      Decision under risk: Decision-making under risk occurs when there is a possibility of multiple outcomes of each alternative and a probability of occurrence can be attached to each outcome.

3.      Decision under uncertainty: Decision-making under uncertainty takes place when there are a number of outcomes for each alternative & the probabilities of their occurrences are not known.

Q2. Discuss Line organizations in detail.

Ans. This is the oldest form of organization. This is known by different names, i.e. military, vertical, scalar, departmental, organization. All other types of organization structure have mostly been either modifications of this organization. The concept of line organization holds that in any organization derived from a scalar process, there must be a single head who commands it. Although an executive can delegate authority, he has ultimate responsibility for results. According to McFarland, "Line structure consists of the direct vertical relationship which connects the positions and tasks of each level with those above and below it." According to Allen, Organizationally, the line is the chain of command that extends from the board of directors through the various delegations and re-delegation of authority and responsibility to the point where the primary activities of the enterprise are performed."
Features of line organization:
(1) There are many levels of management depending upon the scale of business and decision-making ability of managers. Each level of management has equal rights.
(2) There is vertical flow of authority and responsibility. The lower positions derive authority from the positions above them.
(3) There is unity of command. Every person is accountable to only one person (his immediate boss) and none else. A person receives orders only from his immediate boss.
(4) There is scalar chain in line organization. The flow of orders, communication of suggestions and complaints etc. are made as it is in the case of a ladder. One cannot defy the claim.
(5) There is limit on subordinates under one manager. A manager has control only over the subordinates of his department.

Advantages:
(1) Simplicity—it is the simplest of all types of organizations. It can be easily established and easily understood by the workers.
(2) Clear-cut division of authority and responsibility—The authority and responsibility of every person is clearly defined. Everyone knows as to whom he can issue orders and to whom he is accountable. Further it is easier to fix up the responsibility if there is any lapse anywhere in the performance of activities.
(3) Strong Discipline—Because of direct authority—responsibility relationships, discipline can be maintained more effectively. Direct supervision and control also helps in maintaining strong discipline among the workers.
(4) Unified control—Since the orders are given by one superior, there is no confusion among the subordinates. This ensures better understanding and quick action.
(5) Prompt Decisions-As the superiors enjoy full authority, quick decisions are taken by them. Such decisions are executed promptly also.
(6) Flexibility-Since each departmental head has sole responsibility for his department, he can easily adjust the organization to changes in business situation.

Disadvantages:
(1) Heavy Burden of work—Since the departmental head has to look after all the activities of his department; he is over burdened with work. He may neglect some of the duties and there may be inefficiency in management.
(2) Concentration of Authority—It is dictatorial in nature as all important powers are concentrated in the hands of a few top executives. If they are not able the enterprise will not be successful.
(3) Lack of specialization—Line organization suffers from lack of specialized skill of experts. It is extremely difficult for one person to handle activities of diverse nature. It is not possible to achieve the advantages of specialization in all fields.
(4) Lack of communication -There is failure to get correct information and to act upon it due to lack of communication. Although there is communication from top to bottom there is usually no communication from the lower ranks to higher ranks and executives. They are not provided with an opportunity to put forward their view point or problems or suggestions to persons at the top level. Thus, they lose their capacity for independence thinking.
(5) Scope for favoritism—Since the departmental head is almost all-in-all for the activities of his department. There is scope for favoritism. There may be a good deal of nepotism and jobbery and personal prejudices. The executive may appoint and promote his own men in various positions ignoring the claim of efficient persons.

Q3. Mr. Narayan is Senior Manager HR with BrightShine Paints. He wants to develop a system which helps in drafting the plans and achieving them. It shall also help in improving the communication between the superior and subordinates. Suggest a technique which may help to achieve this. Explain the technique in detail. Ans. Being an effective manager requires experience in your industry and experience with different management techniques. Management techniques are not short-term tricks used to motivate employees, but rather effective methods of managing that help to develop a productive workplace. There is no single management technique that works in all situations, which is why it is important to become familiar with more than one. Workforce Development: Building an effective workforce means managing employee development before you even hire them, according to Dun and Bradstreet Small Business Solutions. Create a comprehensive job description for each position that you intend to hire for, and then put a monitoring system in place that allows you to track employee development and progress. Use annual performance reviews as tools to create a stronger working relationship between management and employees, and to guide employee development. Your monitoring system should also include weekly meetings with individual employees to discuss their progress and offer your assistance in their development. Growth Management: Creating growth within the company is a critical role of the management team. Growth can be characterized by an increase in revenue, employee population, number of locations or a larger main location, or a combination of the three. According to online business resource All Business, the management team needs to anticipate company growth and then put measures in place to accommodate the growth. Management techniques like assessing competition, looking at historical data on sales in various target markets, projecting changes in target markets and comparing available resources to needed resources are all part of growth management. Personnel Management: Managers use several different techniques to motivate and manage employee performance, according to a Free Management Library resource titled "Free Basic Guide to Leadership and Supervision." A manager needs to utilize his workforce properly by allocating qualified personnel to various departments and projects, creating schedules that bring together personnel resources when they are needed, and by motivating employees to improve production and assist their department to attain company goals. Managers should also be aware of any changes in employee skill sets through training or further education that would make employees more valuable to other parts of the company. Staff members should also be inspired to develop their own priority lists to help make sure that necessary task get done each day, and that important projects get needed attention.

Advantages & Disadvantages of Management Development Methods

There are many different approaches to management development. Some companies have a very defined approach to educating their leaders, while other organizations choose to train each manager in a slightly different way. Career development programs, university education programs and mentoring are just a few of the options. Each option has its own advantages and disadvantages, including costs, time and course content. Weighing the pros and cons of each and deciding on an approach for your company is an important decision for your organization's future.

Professional Development: A common approach to management development is to send your managers and supervisors to a college or university program for executive development. Many colleges offer certificate and degree programs and offer these programs at various times and locations. These programs have the advantage of sound learning and experienced professors, as well as a track record of success throughout the years. These programs are usually expensive, however, and also take time to complete successfully. Carefully select the individuals who you send to these programs since they represent an investment.

Coaching: Coaching is another method your company can use to develop managers and leaders. This technique uses other successful managers to train, advise and coach newer supervisors in order to gain knowledge of both the company and management procedures. This method has the advantage of one-on-one training, which allows the trainee ample time to ask questions and receive feedback on performance. A disadvantage is that the new manager receives coaching and advice from only other managers, not peers or outside participants. Coaching also provides company-specific information to your new leaders.

Internal Training Programs: A big advantage for internal training programs as a means to develop your managers is that your training will be tailored to the specific needs of your company. You will be able to identify training needs and create solutions to meet those concerns. Internal training can be costly to develop and maintain, and you will have to update and add to programs yourself. You also will not be able to interact with other managers from different companies, as you would with external programs.

Vendor-Provided Training: Many consultants and vendors also offer management and training development programs. You can select from many trainers, costs, locations and programs, and you can use them whenever you desire. Many of these programs can be costly, and they will not always be tailored to your company's individual development needs. Some vendors will also train your company trainers to teach their courses at your company. You must be certain that these programs train your managers on skills and techniques that you find useful and make a difference for your organization.