BA132 Introduction to Management Page 1

BA132 Introduction to Management

Assignment #01, week #04, semester 02 2014

NAME: EDWARD LYAKAMEN

ID: 11300482

GROUP: BEEE/3

INSTRUCTOR: Mr. Maekar

Due Date; 11th August, 2014

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Q 1. Discuss the importance of the Hawthorne Experiment.

The Hawthorne Experiments

The Hawthorne studies, initially undertaken to investigate the relationship between work-place conditions

and worker productivity, introduced a wide range of topics to the field of management study. Investigators

found no strong relationship between workplace conditions and productivity but reached several

conclusions: individual work behaviour is driven by a complex set of factors; work groups develop norms

which mediate between the needs of the individual and institution; employees should not be considered

appendages of machinery; awareness of employee sentiments and participation can reduce resistance to

change; the workplace is an interlocking social system, not simply a production system; social structure

maintained through symbols of prestige and power.

Following paragraphs will fully describe The Hawthorne Experiments, conclusions and critisims.

Four (4) Parts of Hawthorne Studies / Experiments

Part I - Illumination Experiments (1924-27)

These experiments were performed to find out the effect of different levels of illumination (lighting) on

productivity of labour. The brightness of the light was increased and decreased to find out the effect on the

productivity of the test group. Surprisingly, the productivity increased even when the level of illumination

was decreased. It was concluded that factors other than light were also important.

Part II - Relay Assembly Test Room Study (1927-1929)

Under these test two small groups of six female telephone relay assemblers were selected. Each group was

kept in separate rooms. From time to time, changes were made in working hours, rest periods, lunch

breaks, etc. They were allowed to choose their own rest periods and to give suggestions. Output increased

in both the control rooms. It was concluded that social relationship among workers, participation in

decision-making, etc. had a greater effect on productivity than working conditions.

Part III - Mass Interviewing Programme (1928-1930)

21,000 employees were interviewed over a period of three years to find out reasons for increased

productivity. It was concluded that productivity can be increased if workers are allowed to talk freely about

matters that are important to them.

Part IV - Bank Wiring Observation Room Experiment (1932)

A group of 14 male workers in the bank wiring room were placed under observation for six months. A

worker's pay depended on the performance of the group as a whole. The researchers thought that the

efficient workers would put pressure on the less efficient workers to complete the work. However, it was

found that the group established its own standards of output, and social pressure was used to achieve the

standards of output.

Conclusions of Hawthorne Studies / Experiments

The conclusions derived from the Hawthorne Studies were as follows and there are 8 of them

A. The social and psychological factors are responsible for workers' productivity and job satisfaction.

Only good physical working conditions are not enough to increase productivity.

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B. The informal relations among workers influence the workers' behavior and performance more than

the formal relations in the organization.

C. Employees will perform better if they are allowed to participate in decision-making affecting their

interests.

D. Employees will also work more efficiently, when they believe that the management is interested in

their welfare.

E. When employees are treated with respect and dignity, their performance will improve.

F. Financial incentives alone cannot increase the performance. Social and Psychological needs must

also be satisfied in order to increase productivity.

G. Good communication between the superiors and subordinates can improve the relations and the

productivity of the subordinates.

H. Special attention and freedom to express their views will improve the performance of the workers.

Criticism of Hawthorne Studies / Experiments

The Hawthorne Experiments are mainly criticized on the following grounds. There are 4 of them:

1) Lacks Validity: The Hawthorne experiments were conducted under controlled situations. These

findings will not work in real setting. The workers under observation knew about the experiments.

Therefore, they may have improved their performance only for the experiments.

2) More Importance to Human Aspects: A The Hawthorne experiment gives too much importance

to human aspects. Human aspects alone cannot improve production. Production also depends on

technological and other factors.

3) More Emphasis on Group Decision-making: The Hawthorne experiments placed too much

emphasis on group decision-making. In real situation, individual decision-making cannot be totally

neglected especially when quick decisions are required and there is no time to consult others.

4) Over Importance to Freedom of Workers: The Hawthorne experiments give a lot of importance

to freedom of the workers. It does not give importance to the constructive role of the supervisors. In

reality too much of freedom to the workers can lower down their performance or productivity.

Q 2. What is the importance of social responsibility?

Definition: Social responsibility is an ethical theory that an entity, be it an organization or individual, has

an obligation to act to benefit society at large. Social responsibility is a duty every individual has to

perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist

between economic development, in the material sense, and the welfare of the society and environment.

Social responsibility means sustaining the equilibrium between the two. It pertains not only to business

organizations but also to everyone whose any action impacts the environment. This responsibility can be

passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly

advance social goals.

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Although the activity of social responsibility is benefit for social and business organizational, the

arguments for and against business social responsibility exist. There are several reasons of agreement of the

activity.

The importance of social responsibility is stated below. There are 6 of them:

Best Interest of Business to Promote and Improve the Communities

Organizations, as members of society, have a moral obligation to help society deal with its problems and to

contribute to its welfare. It is the ethical thing to do by the business organizations. A measurement should

be made of whether the organization is performing such activities as producing goods and services that

people need, creating jobs for society, paying fair wages, and ensuring worker safety.

People and organizations need each other. Social responsibility to employees extends beyond terms and

conditions of the formal contract of employment and gives recognition to the workers as a human being.

People today have wider expectations of the quality of working life; included justice is treatment,

opportunities for consultation and participation, training in new skill and technologies, effective personal

and industrial relations policies, and provision of social and leisure facilities. Organization should be, for

example, give due consideration to the design of work organization and job satisfaction, make very

reasonable effort to give security of employment, and provide employment opportunities for minority

groups.

A number of leading companies have taken steps to develop more ethical cultures and system by involving

individual employees in corporate affairs. To provide or support some benefits to the workers will lead to a

good community in the business organizations. Good communication in the internal business would be

leads to avoid miss understanding of each other. The workers would then enjoy their work and work out

more efficiency. The quality of goods and services of the organization therefore increase. This will lead to

profitable to the organization's business. Therefore, the social responsibility is important in internal

environment of the business too.

Improves Public Image of the Firm

To many people, responsibilities to consumers may be seen as no more than a natural outcome of good

business. There are, however, broader social responsibilities including providing good value for money; the

safety and durability of products or services; standard of after-sales service; prompt and courteous attention

to queries and complaints; long-term satisfaction, for example serviceability, adequate supply of products

or services, and spare and replacement parts; fair standards of advertising and trading; full and

unambiguous information to potential customers. Increasing concern for social responsibilities to

consumers can be seen by the activities of such bodies as the Consumers Association, and the number of

television and radio programmed devoted to this subject.

As an example of degrading the quality of life, some people believe that cigarette companies, because they

produce goods that can harm the health of society overall, are socially irresponsible. By doing that, the

consumers would be loses of confidence on the organization's products, and not buying their products.

Then consumers will buy the goods from other organizations that they are confidence to. Social initiatives

taken by organizations tend to promote goodwill, public favor, and corporate trust, and these may

contribute to the long-run success of the organizations and profit. Therefore, socially responsible would

acts enhance an organization's image and business in general.

Improving Stock Price

To having the action of social responsibility of an organization would lead to their suppliers and business

associates more confidence to the organization. The examples of social responsibility might include: fair

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standards of trading, honouring terns and conditions of purchase or sale, and settlement dates, for example

payment of accounts, assistance to smaller organization; engagement only in fair competition; respect for

copyright and patents. By doing that, the other organizations would view the company as less risky. This is

in the stockholders best interest. It will improve the price of stock in the long run because the stock market

will views the company as less risky and open to public attack. So, it would reduce the cost of the

production of the company. Therefore award it a high price-earnings ratio.

Some organizations extend the range of social responsibilities even future by, for example: giving

recognition to the needs of developing countries; limiting the extent of political involvement or

campaigning; donations to, or sponsorship of, the arts, educational or educational or research institutions,

sporting organizations or charities.

Solving Social Problems

Organizations have a responsibility not to misuse the scarce factors of production upon which the wealth of

the country depends. Organizations have a responsibility to society, to respect environmental

considerations and take care of amenities. For example, the effects and potential dangers of pollution,

noise, disposal of waste; the sitting and appearance of new buildings; transportation policies, such as the

routing of heavy vehicles through narrow village roads; and avoidance of excessive packaging and more

use of biodegradable materials. All of that must be think off since the decision making of the organizations

to have their process of production. For example, is the protest against aerosol sprays containing

chlorofluorocarbons. These have been blamed for damaging the ozone layer, which protects the earth from

harmful ultraviolet rays from sun. Organizations should, of course, respect and obey the law which is set up

of government even where they regard it as not in their best interests.

Resource given by the organizations to solve the social problem

The measurement of social investment deals with the degree to which the organization is investing both

money and human resources to solve community social problems. Here, the organization could be involved

in assisting community organizations dedicated to education, charities, and the arts.

Management seems to include social responsibility issues in everything that it does. As an example, when

recently looking for a site to build its new factory, the company was torn between building a new factory in

its native Vermont to support struggling farmers or closer to the West Coast to avoid the pollution caused

and energy expended by transporting the ice cream a couple of thousand miles. The Vermont site was

eventually chosen.

A lot of money would be used for solving the social problems. Most of the time, there is limited money for

that. Technical also been used to solving problems. So, in order to avoid the limited of resources, most of

the organizations will possess the resources (such as money and expertise) needed to tackle social

problems. A good image of the companies develops. It will lead to even more consumers to have

confidence on that company and more consume on the goods of the companies. These companies would be

profitable in the long run period. Therefore, being social responsibilities is very important to an

organization in order to create a good image to the company.

Social Responsibility Conclusion

The first responsibility to society is to operate at a profit, and only slightly less important is the necessity

for growth. The business is the wealth-creating and wealth-producing organ of the society. Management

must maintain its wealth-producing resource intact by making adequate profits to offset the risk of

economic activity. And it must beside increase the wealth-producing capacity of these resources and with

them the wealth of society.

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Ethics play an importance role in social responsibility. The business organizations must have ethical

responsibility as they are doing business, including production, management, and services and so on.

Without ethics, it would be danger to the human. Ethics is simply the rules that say what is right and

wrong, as defined by a particular reference group or individual.

The social responsibility is very importance to both society and business organizations. Although there are

some arguments for and against social responsibility, even more of the organizations would take action on

social responsibility. Many of the advantages being social responsibility was created, some of that was

already discuss on previous pages. Believed that, the best interest of business organizations is social

responsibilities, that would be benefit in the long run of company, can be earn more profit, and benefit to

the human and the environment.

Q 3. „‟The business of business is business „‟Comment on this statement

Firstly, business of business is obviously a business, as nowadays company main motive is to earn profit

instead of taking care of customer needs. The ultimate goal of every Business is to make profit. Since

inception of the term "business" implied gain or profit. Without profit no business is sustainable or viable.

Ensuring customer satisfaction, quality products are some of the procedures of making the business

successful and ultimate measurement of the success in business is profit.

I agree companies made products as per customer demand but not because they concerned about providing

best facilities to them but instead because they have to earn profit as much as possible.

Secondly, business is completely business of business. These days all we ever think about is how to

maximize profits but maximizing profits has to do with satisfying consumer wants and needs because if the

consumer is not satisfied with what was delivered, they will never be sales therefore where there is no sale

there is no profits. So, business is business of business and not business of business where sales vary.

Finally, there are some factors where business of business is only business in one point, and not in others

view. It is the way how we look at it.

Business of business is business when companies look only for their profits how to maximize them and all,

we know that customer satisfaction, employee satisfaction, quality, and quantity.

These are the several pillars to keep a company in top and maximize their profits always.

In current scenario companies are doing social activities but I see still poor people and slum areas in

our country even though they are in social activities.

It means just to get a good reputation and good values in the society they are publishing that they

are doing social activities but not for people sake.

To conclude, business of business is only business. Business simply means maximize the profit and

minimize the lose. If we are earning money then it simply means customer is satisfied with us. Yeah it’s

true we need to do business after seeing what the customer want. If we are doing business without seeing

the requirements of customer then the time and money is spend on it goes for wastage.

Q 4. Explain the method and process of formulating organization objectives

To obtain long-term results, we need to know, specifically, what more immediate goals will take us there.

We need to have mid-term goals that will lead to the outcomes we desire.

Now we'll look at developing the specific objectives that will help to make your vision and mission a

reality.

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What are objectives?

Definition: Once an organization has developed its mission statement, its next step is to develop the

specific objectives that are focused on achieving that mission. Objectives are the specific measurable

results of the initiative. An organization's objectives offer specifics of how much of what will be

accomplished by when.

There are three (3) basic types of objectives. They are:

A. Behavioural objectives. These objectives look at changing the behaviours of people (what they are

doing and saying) and the products (or results) of their behaviours. For example, a neighbourhood

improvement group might develop an objective for having an increased amount of home repair

taking place (the behaviour) and of improved housing (the result).

B. Community-level outcome objectives. These are often the product or result of behaviour change

in many people. They are more focused on a community level instead of an individual level. For

example, the same neighbourhood group might have an objective of increasing the percentage of

people living in the community with adequate housing as a community-level outcome objective.

(Notice this result would be a community-level outcome of behaviour change in lots of people.)

C. Process objectives. These are the objectives that provide the groundwork or implementation

necessary to achieve your other objectives. For example, the group might adopt a comprehensive

plan for improving neighbourhood housing. In this case, adoption of the plan itself is the objective.

The best objectives have several characteristics in common. They are all S.M.A.R.T. +C.:

1. They are specific. That is, they tell how much (e.g., 40%) of what is to be achieved (e.g., what

behaviour of whom or what outcome) by when (e.g., by 2050)?

2. They are measurable. Information concerning the objective can be collected, detected, or obtained

from records (at least potentially).

3. They are achievable. Not only are the objectives themselves possible, it is likely that your

organization will be able to pull them off.

4. They are relevant to the mission. Your organization has a clear understanding of how these

objectives fit in with the overall vision and mission of the group.

5. They are timed. Your organization has developed a timeline (a portion of which is made clear in

the objectives) by which they will be achieved.

6. They are challenging. They stretch the group to set its aims on significant improvements that are

important to members of the community.

Why should you create objectives?

There are many good reasons to develop specific objectives for your organization. They include:

Developing objectives helps your organization create specific and feasible ways in which to carry

out your mission.

Completed objectives can serve as a marker to show members of your organization, funders, and

the greater community what your initiative has accomplished.

Creating objectives helps your organization set priorities for its goals.

It helps individuals and work groups set guidelines and develop the task list of things that need to

be done.

It reemphasizes your mission throughout the process of change, which helps keep members of the

organization working toward the same long-term goals.

Developing the list of objectives can serve as a completeness check, to make sure your organization

is attacking the issue on all appropriate fronts.

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When should you create objectives?

Your community organization should create objectives when:

Your organization has developed (or revamped) its vision and mission statements, and is ready to

take the next step in the planning process.

Your organization's focus has changed or expanded. For example, perhaps your organization's

mission relates to care and caring at the end of life. You have recently been made aware of new

resources, however, to positively affect the lives of those deeply affected by the death of a loved

one. If your organization were to apply for this new grant, it would clearly expand upon your

current work, and would require objectives as you developed your action plan.

The organization wants to address a community issue or problem, create a service, or make a

community change that requires:

o Several years to complete. For example, your child health organization might hope to

increase the percentage of students who finish high school - a task that may take several

years to complete.

o A change in behaviour of large numbers of people. For example, your organization may

be trying to reduce risks for cardiovascular diseases, and one of your objectives may be to

increase the number of adults who engage in physical activity in your community.

o A multi-faceted approach. For example, with a problem as complex as substance abuse,

your organization may have to worry about tackling related issues, such as access to drugs,

available drug rehabilitation services, legal consequences for drug use, etc., as well as

reducing the prevalence (how often or how much) of drug use.

How do you create objectives?

So once your organization has decided that it does wish to develop objectives, how do you go about doing

so? Let's look at the process that will help you to define and refine objectives for your organization.

Define or reaffirm your vision and mission statements

The first thing you will need to do is review the vision and mission statements your organization has

developed. Before you determine your objectives, you should have a "big picture" that they fit into.

Determine the changes to be made

The crux of writing realistic objectives is learning what changes need to happen in order to fulfil your

mission.

There are many ways to do this, including:

Research what experts in your field believe to be the best ways to solve the problem. For many

community issues, researchers have developed useful ideas of what needs to occur to see real

progress. This information may be available through local libraries, the Internet, state and national

agencies, national nonprofits groups, and university research groups.

Discuss with local experts what needs to occur. Some of the people with whom you may wish to

talk include:

o Other members of your organization

o Local experts, such as members of other, similar organizations who have a great deal of

experience with the issue you are trying to change

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o Your agents of change, or the people in a position to contribute to the solution. Agents of

change might include teachers, business leaders, church leaders, local politicians,

community members, and members of the media.

o Your targets of change, the people who experience the problem or issue on a day-to-day

basis and those people whose actions contribute to the problem. Changing their behaviour

will become the heart of your objectives.

Discuss the logistical requirements of your own organization to successfully address community

needs. At the same time your organization is looking at what needs to happen in the community to

solve the issue important to you, you should also consider what your organization requires to get

that done. Do you need an action plan? Additional funding? More staff or more training for

additional staff? This information is necessary to develop the process objectives we talked about

earlier in this section.

At this point in the planning process, you don't need hard and fast answers to the above questions. What

you should develop as part of this step is a general list of what needs to occur to make the changes you

want to see.

For example, perhaps your group has decided upon the following mission: "To reduce risks for

cardiovascular diseases through a community-wide initiative."

At this point in your research (without getting into specifics), your organization might have decided that

your objectives will be based on the following general goals:

a) Begin smoking cessation programs

b) Begin smoking prevention programs

c) Bring about an increase in aerobic exercise

d) Decrease the amount of obesity

e) Encourage healthier diets

f) Increase preventative medicine (for example, more checkups for earlier detection of disease; better

understanding of warning signs and symptoms)

g) Increase the scientific understanding of your own organization regarding the causes and

pathophysiology of cardiovascular disease

h) Strengthen your organization's ties with national organizations committed to the same goals as your

organization

Collect baseline data on the issues to be addressed

As soon as your organization has a general idea of what it wants to accomplish, the next step is to develop

baseline data on the issue to be addressed. Baseline data are the facts and figures that tell you how big the

problem is; it gives specific figures about the extent to which it exists in your community.

Baseline data can indicate the incidence (new cases) of a problem in the community. For example, "Malott

County has an adolescent pregnancy rate of 12.3 pregnancies for every thousand teenage girls." Such data

can also reveal the prevalence (existing cases) of the problem. For example, "In Jefferson County, 35% of

teens reported that they did not use contraceptives during the last time they had sex."

Decide what is realistic for your organization to accomplish

Once you know what you want to do, as well as exactly how big the problem is, it's time to figure out how

much you believe your organization can accomplish. Do you have the resources to affect all of the goals

you looked at in Step Two? And to what extent will you be able to achieve them?

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These questions are difficult ones to answer. It's hard for a new organization to know what it can

reasonably expect to get done. For example, if you are trying to increase rates of childhood immunization,

will your organization be able to increase it by 5% in three years, or by 20% in one year? How do you

make these decisions?

Unfortunately, there are no easy answers. Your organization will need to take a good look at its resources,

as well as talk to experts who have a sense of what is not only possible, but likely. For example, you might

ask members of organizations who have done similar things, or researchers in your topic area what they

believe makes sense.

Remember, you are attempting to set objectives that are both achievable and challenging. It's hard to hit

just the right note of balance between these two qualities, and you may not always get it just right.

Research and experience, however, should help you come closer and closer to this goal.

Set the objectives for your organization or initiative

With all of this information in mind, your organization is ready to set some short-term goals or objectives

that are feasible but demanding. Remember, objectives refer to specific measurable results. These changes

in behaviour, outcome, and process must be able to be tracked and measured in such a way to show that a

change has occurred.

A caution: Oftentimes, the objectives of a community initiative or organization are set or influenced by the

primary funding agency. Regardless of outside influences, each community initiative must decide what

problems it is going to take on and what objectives would define success for their organization.

Your organization's list of objectives should do all of the following:

1. Include all three types of objectives: objectives that measure behaviour change, community

outcomes, and those that measure important parts of the planning process.

2. Include specific objectives that tell how much of what will occur by when. For example, "By 2030,

rates of teen pregnancy among 12-17 year old girls will decrease by 30%."

3. They should include all of the "SMART +C criteria." As we discussed earlier in this section, this

means that they should be, Specific, Measurable, Achievable, Relevant, Time d, and Challenging.

Review the objectives your organization has created

Before you finalize your objectives, it makes sense for members of your organization to review them one

more time, and possibly, ask people outside of your organization to review them as well. You might ask

members of your organization who were not involved in the development process to review your work.

You may also wish to get the thoughts of local experts, targets and agents of change, and/or of people

doing similar work in other communities to review what you have developed. You can ask reviewers to

comment on:

1. Do your objectives each meet the criteria of "SMART+C"?

2. Is your list of objectives complete? That is, are there important objectives that are missing?

3. Are your objectives appropriate? Are any of your objectives controversial? If so, your organization

needs to decide if it is ready to handle the storm that may arise. For example, a program that is

trying to reduce the spread of AIDS in its community may decide clean needles for drug addicts is

an objective they wish to strive for; but it may very well cause difficulties for that organization.

That's not to say the organization shouldn't make that an objective, but they should do so with a

clear understanding of the consequences.

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Use your objectives to define your organization's strategies

Finally, once you have your general objectives, you are ready for the next step: developing the strategies

that will make them possible. Once your objectives are finished, and satisfactory to members of the

organization and important people outside of your group, you are ready to move on to developing

successful strategies.

To conclude, developing objectives is a critical step in your planning process. It can also be very exciting

piece, because this is the time when your organization really starts to say what, exactly, you are going to

get done in order to realize your dream. In the next section on strategies, we get even more detail oriented,

as we discuss the broad ways to achieve (or even, to exceed) the objectives you have set.

Q 5. Discuss the characteristics of strategic decisions

Definition: Strategic decisions are the decisions that are concerned with whole environment in which the

firm operates the entire resources and the people who form the company and the interface between the

two.

Characteristics/Features of Strategic Decisions

A. Strategic decisions have major resource propositions for an organization. These decisions may be

concerned with possessing new resources, organizing others or reallocating others.

B. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and

opportunities.

C. Strategic decisions deal with the range of organizational activities. It is all about what they want the

organization to be like and to be about.

D. Strategic decisions involve a change of major kind since an organization operates in ever-changing

environment.

E. Strategic decisions are complex in nature.

F. Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve

a lot of risk.

G. Strategic decisions are different from administrative and operational decisions. Administrative

decisions are routine decisions which help or rather facilitate strategic decisions or operational

decisions. Operational decisions are technical decisions which help execution of strategic

decisions. To reduce cost is a strategic decision which is achieved through operational decision of

reducing the number of employees and how we carry out these reductions will be administrative

decision.

In corporate practice it is possible to observe discussions concerning the nature of strategic decisions and

strategic activities. In some case terms like “strategic” or “strategy” will be employed to emphasize the

long term benefits (in detail) and / or to convince others to transfer budgets and resources to specific

measures and activities. However I have also observed situations were these terms have been used simply

to outline potential, but unclear benefits. Basically I recommend being very analytical when someone

starts to employ such term in his or her justification.

Of course, strategic decisions are part of corporate management. HAMBRICK and FREDRICKSON, two

important strategic thinkers, (2001) argue that the strategy should be a central and integrated concept of

how the business will achieve its objectives. Such a concept needs to include activities and measures; since

resources are limited in most cases or most organizations, a concept needs to include decisions. Major

strategic decisions will focus on financial resources (i.e. investments), corporate culture or HR related

areas. LOMBRISER and ABLANALP explain that it could be possible within each step of strategy

BA132 Introduction to Management Page 12

implementation to return to a previous process step (in strategic planning) or even to decide about an

unclear step in advance.

To implement strategic management the following set of attributes should be taken into account:

Legal, political and social limitations

Ethical issues

Stakeholders’ expectations

Values, experiences, skills and goals of managers

Corporate culture

Financial room for manoeuvre

For all these attributes the management team needs to make “long-lasting” decisions. According to

JOHNSON and SCHOLES strategic decisions name four key characteristics.

a) Those decisions are likely to be linked with or influence the long term direction of an organization.

b) Strategic decisions are normally concerned with attempting to achieve some advantage for the

organization, e.g. over the competition.

c) Furthermore, strategic decisions are likely to be concerned with the scope of activities and address

the question, whether the organization should concentrate on one area of activity, or should it have

many? This is a fundamental issue to strategic decisions.

d) The scope of activities defines the way in which managers understand the boundaries of the

organization.

Hence strategic decisions are very likely to have an impact on operational decisions.

Case Study Assignment Questions

Q 1. What has gone wrong with the business

The business has gone wrong as follows:

Does not have clear objectives and vision for the business to overcome the challenges that will

encounter by the business in the future.

Not scientific selection of workers so that each worker would be given responsibility for tasks for

which he or she is best suited

Lack and incorporative management relationships among key stakeholders for the good of the

business

Lack of statistical forecasting techniques, manager was not anticipating changes in political,

economic, social and technological variables so as to prepare alternative plans for the future of the

business.

Manager lack a network and share research costs in new technologies, knowledge or support

government rallies to ensure their survival of the business.

Lack of development of a true science of management so that the best method for performing each

task could be determined instead of unnecessary movements in the business.

The lack of scientific education and development of the worker in the business

Lack of intimate, friendly cooperation between management and labor in the business

The lacks of social and psychological factors that responsible for workers' productivity and job

satisfaction. Only good physical working conditions are not enough to increase productivity.

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Q 2. What should have been done?

The business should done:

Clear objectives and vision for the business to overcome the challenges that will encounter by the

business in the future.

careful scientific selection of workers in the business so that each worker would be given

responsibility for tasks for which he or she is best suited

Good management relationships among key stakeholders for the good of the business

An efficient statistical forecasting technique, manager was not anticipating changes in political,

economic, social and technological variables so as to prepare alternative plans for the future of the

business.

An excellent network and share research costs in new technologies, knowledge or support

government rallies to ensure their survival of the business.

Strong development of a true science of management so that the best method for performing each

task could be determined instead of unnecessary movements in the business.

Scientific education and development of the worker in the business

intimate, friendly cooperation between management and labor in the business

Strong and efficient social and psychological factors that responsible for workers' productivity and

job satisfaction.

Q 3. Who is to be held responsible for the problem?

The manager-CEO of the business (Chhota Suchi), the workers and the surroundings there. The

manager or the CEO is expected to plan, organize, lead and control the activities and activities of

the business. She/he uses all resources (finance, equipment, people and information) to attain

business make more profits and operates efficiently.

The workers, equipments and finance to carry out the vision and mission established by the

business manager. The manager is responsible for the business to operate in more efficient, and

find alternative ways with less cost and effort to be deployed so that the business can achieve its

aims and visions. Otherwise, the manager fails to make business without visions and missions,

everybody down the line fails to comply with and business suddenly comes to a halt.

Q 4. What would be your recommendation to the management of this company?

For the recommendation is that the CEO or the top level manager of the business (Chhota Suchi) has to

think critically and set up visions and missions ahead. The business has some clear vision, and missions to

be achieved strictly to a point of period. The business should have clear objectives and vision for the

business to overcome the challenges that will encounter by the business in the future, careful scientific

selection of workers in the business so that each worker would be given responsibility for tasks for which

he or she is best suited and finally good management relationships among key stakeholders for the good of

the business. Thus will result in business operation efficiently and have more income or profit for the

business.

BA132 Introduction to Management Page 14

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