jjjjMANAGEMENT CASE STUDIES CONTENTS PAGE I II EXECUTIVE SUMMARY CASE STUDIES II.1 CHAPTER 1 THE CHALLENGE OF MANAGEMENT II.1.1 CASE STUDY 1 ³A DAY IN THE LIFE OF A BANK MANAGER ³ II.1.1.1 SUMMARY II.1.1.2 QUESTIONS II.1.1.3 CRITICAL ANALYSIS II.1.2 CASE STUDY 2 ³GEORGE FISHER WORKS TO TIRNAROUND KODAK´ II.1.2.1 SUMMARY II.1.2.2 QUESTIONS II.1.2.3 CRITICAL ANALYSIS 1-35 1 1 1 1 4 6 6 6 9 II.2 CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT II.2.1 CASE STUDY 1 ³FORD MOTOR CHANGES AHEAD & GO INTO GLOBALIZATION II.2.1.1 SUMMARY II.2.1.2 QUESTIONS II.2.1.3 CRITICAL ANALYSIS II.2.2 CASE STUDY 2 ³SIEMENS GROOMING A NEW GENERATION´ II.2.2.1 SUMMARY II.2.2.2 QUESTIONS II.2.2.3 CRITICAL ANALYSIS 12 12 12 12 14 15 15 15 17 II.3 CHAPTER 3 UNDERSTANDING COMPETITIVE ENVIRONMENTS & ORGANIZATIONAL CULTURE II.3.1 CASE STUDY 1 ³XEROX WORKS TO MEET ENVIRONMENTAL CHANGES ³ II.3.1.1 SUMMARY II.3.1.2 QUESTIONS II.3.1.3 CRITICAL ANALYSIS II.3.2 CASE STUDY 2 ³SOFTWARE AG´ A TALE OF TWO CULTURES´ II.3.2.1 SUMMARY II.3.2.2 QUESTIONS II.3.2.3 CRITICAL ANALYSIS 19 19 19 19 22 23 23 23 25 27 II.4 CHAPTER 4 SOCIAL RESPONSIBILITY AND ETHICS IN MANAGEMENT II.4.1 CASE STUDY 1 ³TONY¶S SANTINO¶S DILEMMA´ II.4.1.1 SUMMARY II.4.1.2 QUESTIONS II.4.1.3 CRITICAL ANALYSIS II.4.2 CASE STUDY 2 ³ROCHESTOR CORPORATION: A BURIED TREASURE´ II.4.2.1 SUMMARY II.4.2.2 QUESTIONS II.4.2.3 CRITICAL ANALYSIS 27 27 27 28 29 29 29 30 32 II.5 CHAPTER 5 MANAGERIAL DECISION MAKING II.5.1 CASE STUDY 1 ³PROFITS FINALLY COME TO USA TODAY´ 32 II.5.1.1 SUMMARY II.5.1.2 QUESTIONS II.5.1.3 CRITICAL ANALYSIS II.5.2 CASE STUDY 2 ³ROYAL DITCH/SHELL VOGOROUSLY PURSUES OPPORTUNITIES´ II.5.2.1 SUMMARY II.5.2.2 QUESTIONS II.5.2.3 CRITICAL ANALYSIS III RESEARCH TOPICS III.1 TOPIC 1 MANAGEMENT AND ROLE OF IT III.1.1 IMPLICATION III.1.2 EXPERT VIEWS III.1.2.1 FROM WIKIPEDIA III.1.2.2 SURVEY ARTICLES IN THE ECONOMIST, JOHN BROWNING, 1990 III.1.2.3 RESEARCHERS BAKOS AND TRACY, 1986 III.1.2.4 BENJAMIN AND LEVINSON III.1.3 MY ANALYSIS DIVERSITY IN MANAGEMENT III.2.1 IMPLICATION III.2.1 EXPERT VIEWS III.2.1.1 John Chang, a Senior Faculty member at Clark University III.2.1.2 Anita Rowe, diversity consultant and coauthor of Managing Diversity A Complete 32 32 33 34 34 34 35 38-74 38 38 39 39 40 40 41 42 42 42 III.2 TOPIC 2 44 Desk Reference and Planning Guide III.2.3 MY ANALYSIS III.3 TOIPC 3 CENTRALIZATION Vs DECENTRALIZATION III.3.1 IMPLICATION III.2.1 EXPERT VIEWS III.2.1.1 Published Articles by David Balovich III.2.1.2 Joe Ellis and Todd Mauldin III.3.3 MY ANALYSIS III.4 TOPIC 4 QULAITIES OF AN EFFECTIVE MANAGER III.4.1 IMPLICATION III.4.2 EXPERT VIEWS III.4.2.1 Timothy R. Barry III.4.2.2 Marc Pfefferle III.4.3 MY ANALYSIS III.5 TOPIC 5 ETHICAL MANAGEMENT PRACTICES III.5.1 IMPLICATION III.5.2 EXPERT VIEWS III.5.2.1Carter McCanara, MBA, PHD in Human and Organization Development III.5.2.2 SHRM manual (society for human resource development) 46 47 47 47 47 48 53 54 54 54 54 57 58 61 61 61 61 63 III.5.3 MY ANALYSIS 65 IV V VI OVERALL ANALYSIS FINDINGS RECOMMENDATIONS REFERENCES 67 70 73 II CASE STUDIES II.1 CHAPTER 1 THE CHALLENGE OF MANAGEMENT II.1.1 CASE STUDY 1´ A DAY IN THE LIFE OF A BANK MANAGER´ II.1.1.1 SUMMARY OF CASE STUDY The case study aims at providing a close view of the life of a bank manager. The activities performed by the bank manager and their management. How a bank manager does all this? The name of the bank manager is Marjorie Wong Gill-more. Her over all busy routine, her relationships with her customers, her staff people and outsiders. It discusses the managerial roles played by her, her technical, conceptual and human skills, her managerial work agendas and methods. It gives us a description of the way she is doing these things. The way she is implementing all these. II.1.1.2 QUESTIONS Q1 To what extent does Wong Gill-more¶s day coincide with the managerial work methods identified by Mintzberg? What roles are evident in her activities? The work methods she is having include: A) UNRELENTING PACE She arrives at the bank at 8 am. She is busy in many activities. Starting from meeting customers, staff meetings, follow-up phone calls, loan applications and viewing her circulation file. Her tasks include report reviewing and decision making. She is busy doing these things for the entire day. B) BREVITY, VARIETY AND FRAGMENTATION She is handling a variety of issues daily. These things are a part of her daily job. Meeting customers, managing meetings, making phone calls, handling the breakdown of an ATM, holding staff meetings and many more. These show the variety of activities, in which she is engaged with for the whole day. C) NETWORKS It involves the relationships she has kept with different people outside the bank in order to run her bank business effectively. She keeps a contact with her customers, local CPA firms and different business clients. The roles evident in her activities are: Inter personal and decisional: Her interpersonal roles include leader and liaison. Since, she has a relationship with her staff people and coaching them. She plays the role of a liaison since keeps a network of relationships with people outside the bank. She keeps relationship with her customers. Her decisional roles include entrepreneur. She initiates new procedures at the branch and the information about the new promotions. She might be considered as a resource allocator. It is not mentioned whether she is going to hire a new employee or the head office is responsible for it. If it is assumed that she will be arranging for it, then her role can be considered as a resource allocator as well. A partial informational (spokesperson) role, that she is playing, is that she tells outsiders or customers about the bank and its services. She is transmitting the information about the bank to the clients. Q2 Identify the planning, organizing, leading and controlling functions performed by Wong-Gillmore. Marjorie Wong Gill-more performs her management function in the following ways: A) PLANNING Her planning involves her goal of getting more and more customers for the bank and expanding the bank¶s business. As her planning activities are concerned, she has kept a 3 page list of things to be done next day, after a weekend. She will be visiting a Chinese Restaurant whose owner is installing a new credit card printer that will deposit credit slips into a Bank of America acceptance account. There is a new customer campaign that aims at CPA¶s (Certified Public Accounts). B) ORGANIZING One of her junior assistant managers has been promoted and sent to the larger branch. She thinks to hire one person as an assistant manager. The current situation is making her job more hectic and tiresome. She will soon be making arrangements for a new employee. C) LEADING She keeps a track of the activities of her assistant managers. She leads them in way that on weekdays, except Monday, she holds staff meetings with her subordinates at 9. am to review the bank¶s various products such as seven types of checking accounts. She directs and informs her staff members about these so that they are able to explain these account types to the customers. D) CONTROLLING It would include that she is making use of rules and regulations stated by the Head office to meet the performance criteria. This includes the rules and regulations regarding acceptance and rejection of cheques and loan applications. She decides whether to accept a check or reject it. It comes in the rules and regulations implemented by the Head office. Why a cheque should be rejected? Why a loan application should be rejected? A customer¶s check is rejected due to any of the following reasons:o Insufficient funding in an account o Post dated cheque o Amounts in words and figures differ o Currency differences o Signature specimen different o Pre dated cheque and many more reasons like these. Wong Gill-more is not making her own standards. Although she is implementing the policies laid down by the Head Office in cheque acceptance or loan acceptance. In this way, she is controlling Q3 What work agendas does she seem to have? How do technical, human, and conceptual skills come into play in her job? The work agendas she is having include the goal of expanding the branch and ensure good customer service. It further has: A) UNRELENTING PACE She arrives at the bank at 8 am. She is busy in many activities. Starting from meeting customers, staff meetings, follow-up phone calls, loan applications and viewing her circulation file. Her tasks include report reviewing and decision making. She is busy doing these things for the entire day. B) BREVITY, VARIETY AND FRAGMENTATION She is handling a variety of issues daily. These things are a part of her daily job. Meeting customers, managing meetings, making and attending phone calls, handling the breakdown of an ATM, holding staff meetings and many more. These show the variety of activities, in which she is engaged with for the whole day. C) NETWORKS It involves the relationships she has kept with different people outside the bank in order to run her bank business effectively. She keeps a contact with her customers, local CPA firms and different business clients. As far as her skills are concerned, she possesses all the three skills. D) HER TECHNICAL SKILLS Her technical skills include her area of specialization she pitches, reviews loan applications. She accepts them or rejects them according to the decision implied by the main branch and the customer¶s account history. She has good product knowledge. She implements her managerial knowledge in decision making. She knows about the types of checking accounts. All these qualities reflect her technical skills. E) HER HUMAN SKILLS She likes to work with her juniors. She possesses almost all the qualities of a good leader. She keeps a relationship network with the customers and outsiders. She often leaves the operations of the branch to her assistant managers in order to save her time. She likes to work as a senior, as well as a part of the group with her subordinates. She takes pride in their achievements and considers their accomplishments hers. She is able to maintain a CRM (Customer Relationship Management). All these qualities reflect her human skills. F) HER CONCEPTUAL SKILLS Her conceptual skills comprise her long term goals. Her priority is customer service. Her goal is to expand the bank business by making more and more customers, and keeping the current ones satisfied. II.1.1.3 CRITICAL ANALYSIS OF THE CASE STUDY A) MANAGEMENT FUNCTIONS She is performing all the functions of management. Those are planning, organizing, leading and controlling. She keeps a 3 page list of all the things to be done. She keeps a relationship with her customers and outsiders to expand her bank business. She might arrange for another employee at the branch. She holds staff meetings to instruct her juniors updated and well informed. She likes to work with them. She keeps a track of her staff people¶s activities. (These have been discussed in detail in answer to Question 1). B) WORK METHODS ADOPTED BY HER Her work methods include unrelenting pace, brevity, variety and fragmentation. It further includes the network of contacts she has with different people. She is busy the moment she enters the bank. She starts early in the morning and keeps on switching between varieties of activities all over the day. She is busy in pitching, reviewing applications and handling different issues. C) HER SKILLS She has all the three types of managerial skills. She uses her technical skills for reviewing loan applications and managing other things. She has managerial knowledge. She has knowledge about the bank strategies and policies. She likes to work with her juniors or staff people. She communicates with them, directs and motivates them. She has a goal to expand the bank¶s business and providing good customer service. Her objective is to get more and more customers for the bank, keeping the current ones satisfied. These reflect her key skills. D) MANAGERIAL ROLES She is playing interpersonal, decisional, and to some extent, informational roles. Interpersonal roles include that of a: o Leader o Liaison Informational Decisional roles include that of a: o Entrepreneur o Resource allocator E) HER LEVEL IN THE ORGANIZATION She is a unit or Bank (branch) manager. She comes in the category of middle level managers, as she is responsible for the work of other staff members. She is a function manager as her responsibility area is concerned. F) HER JOB DEMANDS These are the things or duties which can not be compromised. These must be performed by her at any cost. These are the parts of her job which ought to be performed. For example, getting customers, meeting people and expanding the business of the bank. These can not be ignored at any cost. G) HER JOB CONSTRAINTS These are the things which restrict her. These are the factors which limit her. She can not go beyond these. For example, if there is a criterion that she has to reject a cheque, because the customer has insufficient funds left in his account, she has to reject it. H) HER OVER ALL PERFORMANCE Wong Gill-more has been promoted to the level of Vice President. It means her over all performance was good. That is why she was promoted. I) OVER WORKED People at the bank, including Wong Gill-More, are over burdened and overworked. J) DIFFICULT TIME MANAGEMENT She manages to keep the paper records of whole day¶s transactions ready for the courier .by 3.30pm. It is a pressure, though she finds it difficult to manage. K) LESS EMPLOYEES AT BANK The no. of people working at bank is less. As stated in the case study, Wong Gill-More is doing the work of an assistant manager, who was promoted and left. Instead of doing his work, some people with expertise in banking should be hired. L) LESS TECHNICAL SUPPORT Handling an ATM problem is not Gillmore¶s duty. It is the duty of some IT department person. She is a manager. She doesn¶t have to deal with the technical issues. This implies that she is managing technical things because she has less or no technical support at the branch. M) CRM LEVEL AT THE BRANCH The CRM level at the bank is operational and collaborative. Making telephone calls to customers reflects an operational CRM. Collaborative CRM is implemented via meetings and appointments. If brochures of bank¶s latest issues and procedures are rendered to the customer, it also shows a collaborative CRM. II.1.2 CASE STUDY 2´ GEORGE FISHER TO TURNAROUND KODAK´ II.1.2.1 SUMMARY OF CASE STUDY The case study aims at describing the role of the CEO in making the company prosperous. It further includes his management skills, his agendas, and his work methods. His marketing plan, the innovation he has brought, the way Kodak has changed its culture. It identifies different managerial roles played by Fisher. It also discusses the efforts he has made. His over all contributions in making the company prosperous. What motivation he has offered to his employees. How his efforts will work? II.1.2.2 QUESTIONS Q1 Categorize each of Fisher¶s activities according to the four function of management: planning, organizing, leading and controlling. Fisher is performing all the four functions of management. Those are: A) PLANNING He plans to design a strategy for Kodak Company which was in the recession stage. Fisherµs objective is to bring the company into a prosperous stage. He wants his company to be a world class leader in digital imaging and processing. He is trying to set tough goals and then letting his managers how to achieve them. B) ORGANIZING Fisher has set up a new digital division composed of digital resources. He has hired an executive from Digital Equipment Corporation (DEC) to lead it. This way, he has allocated a human and non-human resource. C) LEADING He gives a tough time to his managers. He has set tough goals and expects his managers to achieve them. He holds conversations with his employees at the café and instructs them. He does not behave as the top level person, but as a lower level person and makes himself accessible. He chats with his employees in order to guide them properly. He welcomes their queries and mails them back. Different meetings are held with the employees. Compensation systems are being adjusted to reward those who are showing a good performance. D) CONTROLLING Fisher has set up realistic goals and expects his managers to cope up with them. He tracks their progress in meeting their goals. He checks to see whether they are meeting the right criterion. Q2 Which of Mintzberg¶s roles are apparent in Fisher¶s activities? Fisher is playing three types of roles: Interpersonal His interpersonal roles include role of a leader and a liaison. Leader He is communicating with his employees. He is giving them a good time. He encourages their questions. He asks them to mail him and get the response. He holds meetings with them in order to guide them. Liaison The work relationships that he has kept with the outsiders to help out carry his tasks. It has networks of relationships with companies like International Business Machines (IBM), Microsoft and Sprint. The company has several trade agreements with these companies. Informational Monitor Fisher tends to seek information about issues that can affect the Kodak Company. These issues include declining earnings, slow growth, heavy debt and deflated employees. When he became the CEO of the company, these issues were prevailing and affecting the company to a great extent. Decisional Entrepreneur Fisher believes in innovations and taking risks. From photographic imaging, he plans to deal in digital imaging. He believes in replacing old techniques and adopting the new ones. Digital imaging lets people take pictures, crop them and print them electronically. Disturbance Handler He has taken up the right decisions when the company was in a horrible condition. Heavy loans, less net income, non motivated employees. These were the difficulties being faced by Kodak. Fisher tried to solve all these problems by prioritizing them and then resolving them. Resource Allocator He has hired an expert from DEC to be the unit head of the new digital division, which comprises different digital resources. Q3 Point to evidence that Fisher possesses technical, human and conceptual skills. To what extent do you believe Fisher¶s efforts at Kodak will be successful? Give your reasoning. Fisher possesses all the three skills. They are: A) HIS TECHNICAL SKILLS Fisher is a specialized person in the field of applied sciences. He knows the value of photographic business in the forthcoming years. He is well aware of the fact that this industry will flourish a lot in the coming years. He conducts an 18 hours study to see how to develop a better version of the technology. He is using his technical skills to beat the company¶s competitors. He considers the company¶s expansion in international markets as well, from a marketer point of view. He spends his time daily in studying each segment of the Kodak business. B) HIS HUMAN SKILLS He does not behave like a top level person. He keeps himself updated about the latest issues and concerns. He likes to build a relationship with his employees and juniors. He motivates them by giving excellent performers rewards. He encourages their suggestions and has maintained a decentralized culture at the company. He holds meetings with them. C) HIS CONCEPTUAL SKILLS As far as his conceptual skills are concerned, Fisher has a long term goal of changing the photographic technology to a digital one. He wants his company to be a world class performer in digital imaging. He has set certain goals and expects his managers to achieve them. His plans also include taking the company out of trouble. As the CEO¶s are not that much concerned with such issues, as Fisher is concerned with. His efforts will bear fruit in the future. But it might take a long time. II.1.2.3 CRITICAL ANALYSIS OF THE CASE STUDY A) HIS MANAGEMENT FUNCTIONS Fisher is performing all the management functions. Those are planning, organizing, leading and controlling. (These are discussed in detail in answer to question 1). B) HIS WORK AGENDAS The work agendas he has included: o Taking the company out of trouble o Making it a prosperous one o And visioning the company as a globally recognized entity in digital image processing C) HIS SKILLS Fisher has all the three types of skills. Those include technical, human and conceptual. (These are discussed in detail in answer to question3). D) HIS MANAGERIAL ROLES The managerial roles played by him are interpersonal and decisional. Interpersonal o Leader o Liaison Informational o Monitor Decisional o Entrepreneur o Disturbance Handler o Resource allocator E) HIS LEVEL IN THE COMPANY As being the Chief Executive officer of Kodak, he is considered as a top level manager. From a functional point of view, he is a general manager, since he is presiding over a major division. F) HIS JOB DEMANDS His job demands include the things he must do. For example, taking the company out of financial and other problems is his job demand. Making the company recognized in the world of digital imaging is his job demand. Beating his competitors and entering a market is another job demand. G) KODAK¶S JOINT ALLIANCES Kodak has formed joint alliances for products and services with companies like IBM, Microsoft and Sprint. It has to face a competition with 599 competitors allover the globe. H) KODAK POSITIONING & REPOSITIONING Positioning refers to how a company has managed to make an image in the eyes of its customers and competitors. Kodak has repositioned itself from a premature to a much positioned company with better managerial control and a motivated workforce. But it will take some time to get Kodak repositioned in terms of price. I) FISHER¶S OVER ALL PERFORMANCE Since becoming the CEO of a new company, Fisher over all performance and efforts are good enough to encourage and initiate innovations. J) EXPERTS However, there are fewer experts at the company. For making innovations, a research & Development department must be established. The way Fisher encourages suggestions form his employees, he must welcome different suggestions from different experts. K) MARKETING APPROACH The marketing approach adopted by them is product oriented. Fisher aims at improving the technology at Kodak, but there is no element of customer satisfaction involved in it. L) TARGET MARKETS Fisher thinks that Kodak business has significant growth potential. He wants to expand the company to Asia. A target market already exists in India, Russia and Brazil. In USA, it has a subsidiary named Qualex, which handles photo finishing for large retailers. M) ECONOMIC STAGES THE COMPANY WENT THROUGH The time Fisher joined the company, it was in recession stage. After moving from a recession ±recovery, Kodak has entered a prosperity stage. N) TQM AT KODAK Since Fisher considers each employee to work to achieve goals set by him. Each member of the company is responsible for providing the quality. Each of them has to make an individual effort to globalize the company. II.2 CHAPTER 2 PIONEERING IDEAS IN MANAGEMENT II.2.1 CASE STUDY 1´ FORD MOTOR CHARGES AHEAD AND INTO GLOBALIZATION´ II.2.1.1 SUMMARY OF THE WHOLE CASE STUDY The case study aims at focusing the changes that have taken place at ford Motor. It further gives a snapshot of the stages it has gone through during the past 200 years. It gives an evolutionary viewpoint of different things, which have taken place in terms of management style, organizational structures, technological changes and a much informal control. The way they have provided a security to its employees by making them involved in decision making. It specifies the way company has proved itself, made advancements and tired to get a market share. What are their future aims and objectives? II.2.1.2 QUESTIONS Q1 Identify influences from the classical, behavioral and quantitative view points in the way Ford Motor Company is managed today. The Company has adopted certain classical, behavioral influences. We see all the aspects of scientific management at Ford Company. Certain professional workers are found there. The Company has moved from a centralized decision making to a decentralized one. They have launched an Employee Involvement Program that enables decision making at the lower levels as well. First line managers are also encouraged to stop the work if they see a problem. Ideas from the bottom of the company are encouraged in the same way. We find white- collar (professional) workers there who are responsible for carrying their task decided by the management. There is division of work in 5 centers. The European center is responsible for adaptive designing, whereas, other centers are responsible for basic designing. Also, we find order in the company. There is a little concept of bureaucratic management as well. It says that go for rational decision making. A first line supervisor has an access to stop something, which he feels is going wrong. Also we find team concept in areas like design, manufacturing, engineering & development. Ford encourages innovative ideas from the bottom as well. There is autonomy at the company. He encourages creative ideas from designers, manufacturers and developers. The influence it has adopted from Quantitative management is operational management, in which a field of expertise is primarily responsible for managing the production and delivery of the company¶s products. The departments responsible for production at Ford are manufacturing department, engineering department, design department. The department responsible for delivery to the markets is marketing department. Since Ford wants its business to be expanded to China, India Indonesia, Thailand and Vietnam. The company is expending efforts to marketize the products in Latin America, Brazil, Argentina and Venezuela as well Q2 Use Systems Theory to contrast the way Ford Motor Company operated at the time the Edsel was introduced with the way the company is currently operating, including its world-wide emphasis. In systems theory, the company is considered as a system. In systems theory, there are inputs, processing on inputs, outputs and a feedback. When Edsel was introduced, the company wasn't that much open. Ford did not fall in the line of an open system their sales diminished and kept on declining and the company faced a loss of $200 million. The reason was that the company was following the two steps of systems theory. It was producing vehicles using human and other resources. They were getting an output in form of services. But there was no profit. It was facing a big loss. But they lacked managerial planning. Ford relied on initial marketing data instead of conducting a market survey. There was a stock market collapse which badly affected purchase of medium sized cars. In other words, there was less demand for medium sized cars. They interacted with the environment by advertising and marketing. But they ignored the feedback from their customers. They did not study the demand of the cars. Small sized, fuel efficient cars were more in demand that year. The first Edsels were prone to problems like oil leakage, faulty brake system and starting problem. These problems needed to be solved before they advertised in the newspapers. They ignored the negative marketing information. The information which they got or neglected badly affected the growth of the company and its status. The way, Ford is being managed today, reveals aspects of systems theory to a much better extent. It is using its human, materials equipment, financial and informational resources in a much better way to produce its products (cars). When Edsel was introduced, the top management decision was considered. But today, Ford supports ideas from lower level as well. The managerial functions and activities are performed in a much better way. They are handling technology in a better manner. Ford supports innovation and novelty. They are earning much profit and expanding their business to international markets. The last thing which Ford focuses on is customer satisfaction. They also aim to be more efficient i-e they want to develop more products with a smaller group of engineers and personnel. They aim to generate a much higher output in future. Q3 Explain the influence of Japanese Movement on current management at Ford Company. The impacts of Japanese Theory, a concept which states positive points of Japanese and American management, are visible in the management style at Ford. There is consensual decision making and a concept of individual responsibility at Ford. It has adopted a decentralized structure and eliminated a pyramid type structure. An assembly line worker is granted access to stop the line if some problem is encountered. Many parts of the organization work together. It has adopted the Japanese Theory view that higher quality ultimately means lower costs. Even the bottom level workers are given some authority in decision making. Ford believes in team work and shows greater concern for employees¶ work. II.2.1.3 CRITICAL ANALYSIS OF THE CASE STUDY A) MANAGEMENT FUNCTIONS Consequently, all the management functions are being performed at Ford Motor. Ford has a long term goal to get a market share, expand its market business and globalize the company. He has split up the company into five centers, each one responsible for its own tasks. He is obviously instructing his lower staff and other employees. B) SCIENTIFIC MANAGEMENT AT FORD A concept of scientific management is found at Ford Motor. Different parts are divided into more tasks. Ford Motor has white-collar, high class professionals in every field. different tasks are divided. For example, design department has a task of designing the cars. Marketing staff is responsible for selling the products. R&D department is responsible for making innovations. Each of these units is performing its own tasks as specified. C) BEHAVIORAL SCIENCE APPROACH AT FORD Workers are satisfied with their jobs. Ford likes to have ideas from his entry level staff. Many parts of the company are working together but retaining their autonomy. D) OPERATIONS MANAGEMENT AT FORD It involves the units or departments which are responsible for product management and delivery. These include engineering, design, development, manufacturing and marketing. Though quality assurance department is also responsible, but nothing is mentioned in the case study about QA department. E) FORD MOTOR AS AN OPEN SYSTEM Ford Motor can be considered as an open system. It is using its informational, human, technical, financial and other resources to produce its products. Then all the managerial and technologies abilities are being implemented by the company people. The outcome they are getting is really appreciable. They are willing to attain their goals, which include entering new markets, ensuring customer satisfaction, and being more efficient. F) ENTROPY Entropy means, tendency of systems to vanish over time. Ford Motor has proved itself from the times Edsel was introduced. It has managed to sustain itself and tried to get a position in the global market. These imitate negative entropy. G) SYNERGY Different units of the company are working together. This shows synergy. H) MARKETING STRATEGY ADOPTED BY THEM At the time Edsel was introduced, the company was following a sales oriented strategy. Ford Motor was interested in making sales & selling their products through advertisements and sales people, but there was no concern of customer satisfaction. Now Ford Motor has started moving towards market oriented strategy, where customer satisfaction is considered. I) INFLUENCE OF JAPANESE THEORY ON THE COMPANY The impacts of Japanese Theory, a concept which states positive points of Japanese and American management, are visible in the management style at Ford. There is consensual decision making and a concept of individual responsibility at Ford. It has adopted a decentralized structure and eliminated a pyramid type structure. An assembly line worker is granted access to stop the line if some problem is encountered. Many parts of the organization work together. It has adopted the Japanese Theory view that higher quality ultimately means lower costs. Even the bottom level workers are given some authority in decision making. Ford believes in team work and shows greater concern for employees¶ work. J) MOVING FROM CENTRALIZED TO DECENTRALIZED MANAGEMENT The Ford Motor has started following a new approach in internal management. The old highly hierarchal structure has been eliminated and replaced by a more informal structure. II.2.2 CASE STUDY 2´SIEMENS IS GROOMING A NEW GENERATION OF MANAGERS´ II.2.2.1 SUMMARY OF THE WHOLE CASE STUDY The whole case study aims at giving a look of the way Siemens has entered the world of electronics business. It portrays a picture of how Siemens is evolving into an open system. The way it is hiring new and fresh people to carry out business tasks and enter the new markets. The selection and the training given to new batch of mangers, the way they go through different tests, all is given in the case study. The role of CEO of the company in making it a world class leader. Siemens has a goal to enter and dominate electrics business market. The way they are behaving flexibly to give more output. II.2.2.2 QUESTIONS Q1 Explain how siemens is changing to an open system. Siemens¶s long term goal is to dominate the global market for electronic systems. Siemens is a place where there is high competition among individuals. Siemens is going for those managers who are more aggressive and robust in developing new products and markets. Siemens wants people with extra high potential to make innovations and increase business. Siemens want such managers who can interact effectively and efficiently with the outer world, and are able to beat their competitors. The company is moving towards a much flexible and modernized way. Full time tough training is being given to the managers, which includes appropriate product knowledge, creativity and problem solving abilities. Though the company was making a lot of sales, but wasn¶t satisfied with the output generated. They have started hiring fresh, young and energetic people for the posts of managers. Most of them are in their twenties and thirties. The company expects them to give an exceptional performance and provides an attractive salary package. The tough training includes press & media handling, psychological assessment and crisis management. The managers have to prove themselves to stay at the company and deliver an outstanding performance. Through its managers, who are taught proper product know-how and media handling, Siemens is able to get a feedback from its environment. They can manage to have a status of the organization by training the managers to handle media. They aim at being more efficient and effective. They aim to manufacture world class electronic products. They are utilizing all the inputs i.e. human, financial, materials, informational and equipment. The managers will be operating in foreign countries. They would be assigned specific job designations to interact more and more with the system. Q2 To what extent are the Theory X & Theory Y Concepts relevant to the changes being made at Siemens? Theory X and Theory Y concepts are found at changing Siemens. The effects of Theory Y are visible in the new Siemens. It is being assumed that managers should be highly efficient and effective. They should use their potential and skills. They are highly motivated. Siemens expects its managers to work well and put efforts. Siemens ensures that the new managers possess self control and high working capacity. It is believed in Theory Y that managers should exhibit greater commitment to organizational goals. Siemens believes in hiring highly motivated and ambitious new generation people for managerial jobs. It also expects its managers to be extremely creative and innovative. These managers will be working in foreign countries and will be given an attractive salary. However, the performance expected out of them is very high. Siemens assumes its managers to possess intellectual, extrinsic and intrinsic skills as well. Their training includes practical exercises, risk handling abilities and management tests. Q3 How could Siemens effectively use contingency theory to help train its new group of managers? Contingency theory can be used at Siemens to training its new batch of managers. It says that these managers are being given tough training to handle different types of situations effectively. Some of them will be operating in foreign markets where things would be different. How to resolve a particular dilemma in what situation? Right managerial action depends on the situation. These managers are given hard training. The coaching includes a full week taking tests. These managers are rated by top level managers to judge their performance. They are being taught how to handle different dilemma in different situations. A place where universal principles would not work. They are taught to cope with disastrous management. II.2.2.3 CRITICAL ANALYSIS OF THE CASE STUDY A) SIEMENS AS AN OPEN SYSTEM Siemens is currently moving towards an open system. It is hiring energetic, fresh employees to carry out business activities and enter the new business markets. They are being given tough training to handle press, media crisis and risks. B) CONTINGENCY THEORY AT SIEMENS Siemens believes that there can different situations in different foreign markets which need to be handled in an efficient manner. Different managers operating in foreign market can be subjected to different situations. Therefore, they must know how to tackle the situation. A universal viewpoint would not work there. C) FAST PACE CAREER AT SIEMENS There is fast pace career at Siemens. Nothing is mentioned about the employment term. The chosen candidates might be sent to foreign countries. They are being offered a good salary but the competition they have to go through is really high. D) NO CHAIN OF COMMAND The CEO of the company can call a lower level manager to his office to get information directly, instead of going through a chain of command. E) ENTROPY Though Siemens has been able to lead itself in the world of electronic things, this depicts negative entropy. Negative entropy is the ability of a system to bring new energy, inputs and feed back and sustain itself. F) SYNERGY The system (Siemens) as a whole is able to achieve its goals more effectively than if the units were working separately. This gives a picture of synergy of the system. But now it has decided to create smaller business units to be headed by talented managers. This reduces the synergy of the system. G) BEHAVIORAL SCIENCE APPROACH Since managers are being tested and their behavior too in almost four to five aspects of life. A useful outcome is that siemens assumes that managers perform better with challenging and attainable goals than they do without goals. Siemens has outlined specific and accomplishable goals and expects its managers to go on with. H) TYPICAL BUREAUCRATIC MANAGEMENT Since managers are selected on their own qualification. They are promoted on their performance. There is no class consciousness or nepotism at Siemens. I) NO SOLDIERING Since the managers are motivated, there are no soldiering practices at Siemens. II.3 CHAPTER 3 UNDERSTANDINCOMPETITIVE ENVIRONMENTS AND ORGANIZATIOANAL CULTURES II.3.1 CASE STUDY 1´ XEROX WORKS TO MEET ENVIRONMENTAL CHALLENGES´ II.3.1.1 SUMMARY OF THE WHOLE CASE STUDY The case study aims at showing different stages through which Xerox went through. Different people like Joseph C, Wilson, Peter McCullough, David Kearns and Paul Allaire worked as the CEO¶s for the company. The way they made changes, encouraged innovations and technology is shown in the case study. The roles they have played in getting a market share and making the company prominent. The way they have worked out on new things and emerged new cultures at Xerox. How the company kept on improving its products and services during the eras of these four CEO¶s. The major elements of task and mega environment of the company. The external micro, macro and internal environment the company inclines to have. II.3.1.2 QUESTIONS Q1 How have elements of mega and task environment impacted Xerox? The major elements of mega and task environment seen at Xerox are: A) ELEMENTS OF MEGA ENVIRONMENT: 1) TECHNOLOGICAL ELEMENTS The Xerox started its business with a photocopier business and to an innovative graphic processing company in 1947. Yet Xerox Palo Alto Research center played a major role in developing the basic technology used in PC¶s. Xerox moved to color copiers and document processing sector from a photocopier business. When Allaire became the CEO of the company, DocuTech machine was introduced that could produce documents electronically from PC¶s. After 4 years a new software DucuSP was introduced which allowed tying digital printers to PC¶s, scanners and data storage devices anywhere in the world. 2) ECONOMIC ELEMENTS Xerox, in the times of McCullough retained to get a market share of about 40 percent. When David Kearns became the CEO of the company, deflation occurred which lowered the costs. The company gave up the market shares and the net income of the company declined to 50 percent. After this, Kearns focused at cost cutting and dedication to customer services. As a result of this, Xerox received the Malcolm Bald ridge National Quality award in 1989. The market share of the company in copiers began to increase. As the U.S economy was lethargic and based on a Capitalistic approach, Xerox faced such economic problems. 3) LEGAL POLITICAL ELEMENTS The legal political elements Xerox faced were patent laws, Trade controls and deregulation of financial service industry. There was a problem when Xerox was importing a low column copy machine from Fuji Xerox. But they were unable to develop the product, so they imported the machine from Fuji. 4) SOCIO-CULTURAL ELEMENTS The Xerox in the times of Kearns shifted towards employee involvement culture. Greater authority was delegated to lower levels and employees became more involved in decisions and activities. There was demographic towards old customers and workers. However, the Xerox at east coast and Xerox west coast. The two headquarters were having different cultures. The east coast headquarter culture was bureaucratic while the west coast culture was highly entrepreneurial. Since the internal cultures wee different, a cold war was developed between the two headquarters. 5) INTERNATIONAL ELEMENTS The international factor, which Xerox had to go through were Fuji-Xerox (Japan), Xerox Canada and the global competition. The competitors they had were IBM and Kodak. Then a Japanese competitor was Canon, which had the most market value at that time. B) ELEMENTS OF TASK ENVIRONMENT: 1) CUSTOMERS & CLIENTS The case study reveals little about the clients and customers that Xerox was having. But as the Personal computers are mentioned, it is assumed that personal computer users were the clients & customers of Xerox. As reference to page 75 of the book, the customers include AT&T, Du- Pont, Sun Microsystems and defense department. 2) COMPETITORS The Competitors Xerox had at that time included IBM, Kodak, Canon and Ricoh. The type of competition is brand competition. 3) SUPPLIERS Nothing is mentioned about the suppliers of Xerox in in the case study, as reference to page 75 of book, the suppliers were Reeli Precision Manufacturing Co., AMPLACO, Rogers Corporation and Nationwide Precision. 4) LABOR SUPPLY Nothing is mentioned about the labor supply in the case study. As reference to page 75, the labor supply include unions, varying labor markets and combined clothing and textile workers. 5) GOVERNMENT AGENCIES The case study reveals nothing about the Government agencies, tax authorities, and local content law bodies. As reference to page 75, government agencies include Internal Revenue, EEC Commission (Europe), SEC (Securities & Exchange Commission) and Environmental Protection Agency. Q2 What major methods has Xerox used in attempting to manage environmental influences? The major methods that Xerox has used in managing environment elements are adaptation. This approach involves changing internal operations and activities to make the organization more compatible with its environment. The methods Xerox is using include forecasting and smoothing. Smoothing include making a good quality product with a low cost. Xerox aims at improving its products with a better customer service and a better delivery system in the times of Kearns, he began emphasizing on cost cutting, dedicated customer service and ensuring high quality. . They aim to create the value of their products and hence try to make their product available (Product Utility). Allaire forecasts the future in the way that he thinks data in future will be largely stored electronically and be printed directly to printers. Based on this prediction, he is moving ahead. Nothing is mentioned about stockpiling products or rationing the products. To some extent, Xerox has adopted a domain shift in its product. It has moved from a photocopier business to a DocuTech machines. Q3 Compare and contrast the organizational cultures at Xerox during the McCullough and Kearns eras. What direction does Allaire seem to be encouraging? In the times of McCullough, IBM, Canon and Kodak were the major competitors. McCullough made efforts in beating these competitors. McCullough immensely believed in Research & development. Xerox Palo Alto research center was developed in his times. The organizational culture in the times of McCullough was highly entreprenral. Since there was bureaucracy involved at the company, which affected the product development. By the time David Kearns became the CEO of Xerox, the company was facing economic problems like giving up market share. Kearns more emphasis was on cost cutting, dedicated customer service and high quality. Kearns followed the entrepreneurial culture and was interested in maintaining it. The culture became a little more flexible by giving lower level staff an authority in decision making and activities. They realized the importance of customer satisfaction and quality. In the Kearns¶ times, Xerox won a Malcolm Bald ridge National Quality award for its services. In Kearns¶ era, the market share of the company increased. In the era of Paul Allaire, exposing its first entry in digital image market. DocuTech machine and DocuSP software were introduced. High technological improvements were made in the times of Allaire. The culture found is even more flexible and more entrepreneurial, than it used to be in the times of Kearns, where product decisions can be made by the lower levels. Some part of authority is assigned to lower level recruits as well. Moving from centralized to decentralized decision making. II.3.1.3 CRITICAL ANALYSIS OF THE CASE STUDY A) THE EXTERNAL ENVIRONMENT The elements of mega environment Xerox has, includes: o o o o o Technological Element International element Socio-cultural element Legal political element Economic element The elements of task environment include: o o o o o Labor & Supply Clients & Customers Government Agencies Competitors Suppliers B) NATURAL SELECTION MODEL Xerox has been able to survive due to its entrepreneurial approach, decentralized decision making and developing new internal organizational cultures. . These factors let Xerox survive in the competiting world of business till the date. C) HIGH UNCERTAINTY As the technology is constantly changing and beating competitors is a difficult job. The company comes in the category of ³high uncertainty´. D) USING ADAPTATION TO MANAGE ENVIRONMENTAL ELEMENTS The techniques used by Xerox in the times of these 4 CEO¶s include smoothing and forecasting. But Today, Xerox is somewhat involved in advertising (on net), recruiting, making strategic alliances ad many more. But the case study does not reveal these. E) THE ORGANIZATIONAL CULTURE The organizational culture has been changing since the times of Joseph Wilson. Under the 4 CEO¶s, the company flourished a lot and expanded its business. The cultures kept on changing from entrepreneurial to bureaucratic. F) THEIR GOAL Their goal is to make the company a world class leader in handling electronic documents. G) POSITIONING They have introduced a new logo´ THE DOCUMENT COMPNAY´ in order to crate a better image in the eyes of its clients and competitors. (Image utility) H) ECONOMIC CYCLE The economic cycle that Xerox went through were prosperity, recession & recovery (in the times of Kearns), and now a prosperity one again. II.3.2 CASE STUDY 2´ SOFTWARE AG: A TALE OF TWO CULTURES´ II.3.2.1 SUMMARY OF THE WHOLE CASE STUDY The case study aims at telling how Software AG rated itself, what management team is running it. It tells about the internal organizational cultures of the two groups. It tells that the two groups, German Headquarter and US subsidiary, have totally different cultures. They have cultural differences among themselves. They are following two different approaches towards their services and customers. Due to these clashes, a senior person of the company resigned. II.3.2.2 QUESTIONS Q1 What elements of mega and task environment appear to be important to the success of Software AG at the present time? The major elements of mega and task environment which have been important for the success of Software AG are economic elements. When the company was started. Long term employees owned the company¶s, prevented it from hostile take over and saved the company. Seventy percent of the profits are devoted to R&D, 20 percent for pensions and bonuses, and 10 percent for social causes. The technological element is that they aim to produce cognitive software development. It comes in the top 10 software companies of the world. If it is assumed that German and US subsidiary is one unit, the socio-cultural element is that US Software AG is 100 percent market oriented. They design the things while keeping the US customer in mind. Instead of high performance software, they go for a design which pleases the customer. They feel pleased to keep the customer happy, even if the software is not highly efficient. They know the values, psychology and behavior of an American customer. The international element which comes here is, of course the beating up the foreign software companies. They are good at that. Page thinks that the company needs to pay more attention to market considerations. The elements of task environment which make Software AG a successful company are its customers, workers, and competitors like IBM. The labor supply comprises a five person management team and 4000 employees. The factors which should be given more preference in making the company more successful are socio-cultural elements and its customers. The cultural differences between the organizational groups should be resolved. Customer satisfaction is important, but quality is equally important. Many analysts say that the American clients go for ³quality´ based products. Q2 Compare and contrast the organizational cultures in the German and US parts of Software AG. Where would you place them on the entrepreneurial Vs administrative continuum? There is a lot of difference between the two cultures. The managers at US subsidiary aim at pursuing the latest trends in marketing and computing. They are more aggressive in marketing their products. They believe more in keeping the customers happy. They design the products while keeping the customers in mind, though the product may not be that much good enough to meet their needs. It is only presentable. They believe in a way that the American customers are attracted by fancy things. In contrast, the German Software AG believes in making a product that will completely satisfy the needs of the customers. Their behavior is more cautious. It is argued by an industry analyst that German Software AG ignores US customer¶s considerations. The approach being followed by German Software AG is highly evolutionary, whereas the US Software AG is following the revolutionary approach. The Software AG organizational culture at Germany is very relaxing. People set up their own working hours, dress the way they like, take breaks and accept the responsibility of developing software which is highly progressive. People from different parts of the world are working there. The atmosphere at Germany is administrative. Their approach is evolutionary. In Contrast, the organizational culture at US subsidiary is entrepreneurial. Their approach is radical and revolutionary. Q3 What advice would you give Page¶s successor regarding the handling of two cultures? Since the two cultures seem to have serious conflicts, it becomes to work and make the company established under such situations. Page resigned due to these cultural clashes. The Page successor either should introduce a hybrid approach. The approach should be both revolutionary and evolutionary. A combination should be used. That means such an approach should be followed which keeps the US customers happy, plus it should deliver a product which is efficient and meets all the customer needs. With a German approach, it would be difficult to cope with American market. If only US marketing approach are followed, then product principles can not be completely satisfied. II.3.2.3 CRITICAL ANALYSIS OF THE CASE STUDY A) SOCIO-CULTURAL ELEMENT The socio cultural element is being followed by one group, not the other. B) HIGHLY DYNAMIC BUSINESS ENTITY Being a software company, the entity shows high uncertainty. C) RATING It comes in the top 10 software companies of the world. D) NATURAL SELECTION MODEL Due to factors like international elements and technological elements, the company has been able to sustain itself. This shows that company has shown negative entropy. E) REVOLUTIONARY APPROACH AT US SUBSIDIARY The managers at US Software give more preference to presentability of a product (service/software). They are less concerned about the problem solving capacity of the product. F) EVOLUTIONARY APPROACH AT GERMANY The managers at Germany are more precautious. They ignore the marketing consideration factor for US market. They aim to deliver a service which meets the entire needs of the customer. They are not using fast pace approach. G) HYBRID APPROACH A combination approach should be adopted. The focus should be customer satisfaction and improved quality. The make the company more successful, the internal conflicts need to be resolved. This cultural conflict can be a barrier in the company¶s success. Since Page resigned from the company due to these differences, these disagreements must be settled down. II.4 CHAPTER 4 SOCIAL RESPONSIBILITY AND ETHICS IN MANAGEMENT II.4.1 CASE STUDY 1´TONY SANTINAO¶S DILEMMA´ II.4.1.1 SUMMARY OF THE WHOLE CASE STUDY The whole case study shows the way a 39 year old manager went throughout his career. The ethical issues he faced in his overall employment career. The problems he faced at different companies and showing a picture of the one, he faced at the company he worked most recently. The pricing problem, which he thought was illegal and unethical. His discussions with other people, and the way he retaliated to all these dilemmas. Q1 What ethical guidelines for managers are relevant to this situation? The company, at which Tony is working currently, seems to have little moral management. They are just concerned about making profits and generating revenue. The Top executives take negative decisions by fooling people. According to most of the sociologists, each organization is fooling people for selling its products. At times, sociologists treat the terms ³advertising´ and ³fooling´ synonymously. But talking about business world, this is a part of it. All these things, marketing, planning & advertising are associated with an organization. Tony was asked to collect information about a competitor by pretending to be an executive recruiter. In my opinion, this was unethical. Disguising you and getting information in a wrong manner. Then in order to beat the competitor, the company developed a fake price list, which was again unethical. They were not following the truth. The company is not following any code of conduct or any code of ethics. Q2 What steps would you recommend that Tony take to clarify his own values and protect himself in this situation? Well, Tony is facing an ethical career issue. He should go for a reputable company and leave this job. Since he is not engaged in any of the illegal activates, he can manage to do it. He should consult experts from the marketing field and make an analysis. This would help him clarify his own values on the issue. Tony has tried a lot to convince his superiors, but still it did not work. If Tony attempt to tell people that he was behaving unethically because he was trying to fulfill the orders, won¶t work. He should maintain a memo or a record of the things he was asked to do. He should put everything rightly in the memos and ask for the opinion of others. He should record the conservations held with different consultants and other employees and get their views as well. In this way, he can protect himself. If he still thinks that he is not happy with the nature of his job, he should straight away resign and look for a new job. Q3 How might Tony try to avoid getting into a similar situation if he seeks a new job? Well, Tony can avoid such a situation at the new place. When he goes for a new job, he should see what direction the company is moving a head. He should see whether the company is following some code of ethics or not. If that code of ethics satisfies him and he finds them valid, then he should go for a new job. Different big companies have defined their own code of ethics that an employee has to follow. The company Tony is working at seems to have no code of ethics. II.4.1.3 CRITICAL ANALYSIS OF THE CASE STUDY A) INDIVIDUAL EXECUTIVE APPROACH Since this is a small company, individual¶s executives can be used to handle such problems. If it were a big company, then temporary task forces cloud have been appointed. B) TELLING THE TRUTH The top level is interested in making the profit. They are not telling the truth. C) IMMORAL MANAGEMENT The top level management is immoral. They deceive people by creating a fake price list to beat their competitors in the market. They asked Tony to conduct an informational survey to gather information about their competitors. This was again, unethical, not illegal. But all this is an attitude which is opposed to ethical behaviors. D) NEW JOB SEARCH Tony should go for a new job. Where he is satisfied with his work, and where he is not asked to do something unethical. Tony thinks that he is being treated like a commodity. E) SOCIAL RESPONSIBILITIES OF MANAGEMENT The company is lacking ethical responsibilities, though not neglecting economic responsibilities. F) ETHICS COMMITTEE If it is feasible, an ethical committee should be formed. This would help people in the company to resolve ethical issues. G) ENVIRONMENTAL COMPETITION The main reason for the company to indulge in such behavior is environmental competitiveness. The company wants to get a market share as soon as possible and has a pressure for high performance. H) CODE OF ETHICS A Document named ³code of Ethics´ Should be prepared. It would help organization members come out of ethical dilemmas. II.4.2 CASE STUDY 2´THE ROCHESTOR CORPORATION: A BURIED TREASURE´ II.4.2.1 SUMMARY OF THE WHOLE CASE STUDY The whole case study aims at predicting how Rochester Company went through different stages. Its evolution in its products. It has encountered an unethical situation. The waste left after product manufacturings are hazardous. The owner has got a view of it. He tries to solve this problem by engaging two of his executives. He discusses the problem with them and asks for their opinions as well. Q1 Who are the major stake holders in this situation? The major stakeholders in this situation include: A) SHAREHOLDERS These are the people who have a share in the Rochester Company. Al Canales is a major stock holder in Rochester Company. Since it is corporation, it can be assumed that there can be many owners. B) EMPLOYEES These include the people who work for the company. It includes Al Canales, Dennis Ehrhart, (V.P controller) and Earnie Fascett (V.P manufacturing). C) CUSTOMERS The Rochester customers include Ocean Navigating Companies (in 1700s) Oil & gas companies (used to manufacture wire-rope for them) in 1950¶s Oceanographic companies (used to produce signal carrying cables) in 1960¶s Companies using latest networking technologies (started manufacturing fiber optics) for them in 1990¶s. D) LOCAL COMMUNITY (GENERAL SOCIETY) Environment engineering firm, from which a top executive received a call. Corporate Attorneys Q2 What are the options available to Al Canales and the Rochester Corporation? The Rochester has two options: Own budgeting The Company should self finance to get rid of the wastes and chemicals if it is not that costly. If it doesn¶t cost them too much, then the waste should be cleaned up. ³Superfund´ If it costs the company too much to clean up the hazardous material, then Superfund option is available. It is a federal program for financing when there is no other option. Q3 What do you think Al Canales should do next? As Al Canales had a long discussion with two of his top executives, one of them is of the view that waste clean up is against the rules. their ancestors did not do it. Why should they be doing it? Al Canales is of the view to go for ³Superfund´; a top executive is ready for the company¶s self financing program. Al Canales listens to him asks what to do next. One of the executives thinks that this is mega project. It would costs them a million dollars to get rid of the waste materials. Al Canales should arrange for a temporary task force for relatively short period. The people at the task force should do the following: Conduct a feasibility study Conduct a technical feasibility study Conduct an economic feasibility (Development Cost) The output of all these activities should come in form of a feasibility report. The report should tell in detail whether this cleanup project is implement able or not. After the conduction of feasibility studies and report, the temporary task force should be disbanded. II.4.2.3 CRITICAL ANALYSIS OF THE CASE STUDY A) EVOLUTION AT ROCHESTER From a rope making company in 1700¶s, Rochester has gone through evolutionary stages. From rope making to wire ropes, wire ropes to signal carrying cables and in the end, fiber optic cables. B) THEIR STAKEHOLDERS Their stakeholders include o Shareholders (Owners) o Employees o Customers Ocean Navigating Companies (old customers) oil & gas companies Oceanographic companies (old customers) Companies using latest networking technologies (started manufacturing fiber optics) for them in 1990¶s. (current customers) o Local Community( General society) Environment engineering firms. Corporate Attorneys C) ETHICAL RESPONSIBILITY OF MANAGEMENT It is the social responsibility of management to take into consideration of what society and people think about this clean up issue. It is their duty to check and take proper measures. D) NOT A VANGUARD COMPANY A Vanguard company is that which scores highly on social responsibility and performance as well. Rochester has yet not entered that stage. E) OPINION SURVEYS CONDUCTION Rochester should perform opinion based surveys to check what people and the general society think about this ³waste´ issue. F) APPOINTMENT OF TEMPORARY TASK FORCE A temporary task force should be made in order to carry out the proper feasibility studies. G) IS THE ISSUE UNETHICAL OR ILLEGAL? The dilemma is whether the issue is unethical or illegal. At this stage the issue is unethical. It will enter into an illegal stage when certain alert messages are given to people at Rochester from different environmental firms. H) FROM AMORAL TO MORAL MANAGEMENT If Al Canales finds it feasible to implement the waste cleanup problem, the company is moving from amoral to moral management. An amoral management is neutral; a moral management is the one which strives to follow the ethical principles. II.5 CHAPTER 5 MANAGERIAL DECISION MAKING II.5.1 CASE STUDY 1´PROFITS FINALLY COME TO USA TODAY´ II.5.1.1 SUMMARY OF THE WHOLE CASE STUDY The whole case study aims at showing the birth of USA Today and the problems it had to go through its entire life cycle. It was launched. It was successful for a period of time but went into recession. It started getting negligible profits. There were clashes among the top level executives. Due to poor leadership and ineffective decision making process, USA Today wasn¶t able to protract itself. Q1 Which model of decision making best matches the situation involving the birth of USA Today? USA today was evolved after very tough work and efforts. It was in heavy loss in its early 1980¶s. A book was published by the owner of the Gannett, in which he has described the initial problems and difficulties relating to the launch of the newspaper. The CFO of the company is not in the favor of the way the project was launched. The major procedures like planning expenditures were neglected. The management and staff of ASA Today were free to spend large amounts of money when the project was in a weak stage. They lacked good managerial decision making and planning. No rational decision making process was followed. They were following a non rational decision making model. They were going for an average solution. They were not going for an optimal solution. There was no proper planning and effective decision making. Q2 Evaluate the extent to which Gannet top level executives used an effective decision making approach in deciding to launch USA Today and in dealing with the subsequent problems. What was the impact? The way Gannet top level people used an effective decision making approach, was not that well. They knew that the company has faced problems in its launch. The top level executives had clashes among themselves. One of them was of the view that the there was no proper planning at the time of its launch. They went through the first step of decision making, ³identifying the problem´, but forgot about the rest three steps. They did not go for any alternative solution. They did not encourage questions and alternative solutions. They top executives were criticizing other¶s ideas for improvement. They did not check out the feasibility & other costs related to the problem. They came up with a solution that was an average one. The impact was that the company did well for some of the time period, but started losing and making little profits in the end due to ineffective decision making. Q3 Evaluate the extent to which the USA Today situation presented an escalation situation (between the time the paper was launched and the time it began to take money). An escalation situation is where you think that there is a possibility of rising loyalty and making speedy losses. USA today presented an escalation situation between the time it was launched and the time it started making money. The chairman of the company made it clear it everyone the employees could have a future with the newspaper. He might have spent a lot on his employees. It is mentioned that the management and staff of USA Today were allowed to spend large amounts of money. When the paper was in a non profitable stage. The amount of money spent on the employees was a sunk one. These were the sunk costs as they weren¶t to be returned. It is stated by the chairman ³why should we kill ourselves in Idaho to make money when they will just waste it over there (USA Today)´. The company had operating losses of more than $230 million in 5 years after its launch. All this was a sunk cost. This was not returnable. The Chairman made it clear to employees that have a bright future in the company. But he wasn¶t able to sustain it. II.5.1.3 CRITICAL ANALYSIS OF THE CASE STUDY A) POOR DECISION MAKING There poor decision making practices at USA today. B) POOR LEADERSHIP Instead of compromising on relevant issues, the leaders are having clashes among themselves. c) BIASED STAFF The staff is somewhat biased against the chairman of the company. They showed disgust for his book and thought that it criticized them. D) ECONOMIC CONDITION The company moved from recession to prosperity and from prosperity to secession again. E) THE SATISFICING MODEL The people at USA Today do not go for the best solution. They go for a satisfactory one. F) NO BRAINSTORMING G) NO GROUP DECISION MAKING No concept of group decision making is found at USA Today. H) CONFUSED WAYS OF ACT The leaders are confused about most of their decisions. They are not clear-headed. I) NO ALTERNATIVE GENERATION When a problem is there, USA Today staff does not go for alternative solutions. They do not want to raise and ask any questions. II.5.2 CASE STUDY 2´ ROYAL DUTCH/SHELL VOGOROUSLY PURSUES OPPORTUNITIES´ II.5.2.1 SUMMARY OF THE WHOLE CASE STUDY The case study aims at demonstrating the ways shell is dealing with different types of crisis, non crisis and opportunity problems. The way it is making profit and generating revenue. What mechanisms it is following in order to tackle the types of problems. To what extent these approaches are helpful. How they are dealing with uncertainties and risks? How Scenarios analysis helps them in decision making? The way they are dealing with the typical types of risks that are subject to oil companies. Q1 To what extent does shell appear to emphasize the handling of crisis, non-crisis and opportunities problems? An opportunity problem that Shell was able to solve was passing Exxon to become the world¶s largest oil company. The company is able to handle most of its capital and generating revenue more than $100 billion. After passing Exxon, it became the world¶s largest oil company. A crisis problem which Shell might be facing is the rapid change in price of raw materials. This can happen any time, and Shell is handling it effectively. A change in cost from $4 to $40 is not negligible, and can have an effect on the company¶s profit. But still the company is making big profits and adopted a growth strategy. A non-crisis problem for the company is gas prices. Since gas prices are much lower than oil, this is an issue which needs to be resolved. Shell has adopted a cost cutting strategy to enhance profit levels. This strategy worked well and had a positive impact on the company¶s profit levels. Hence, Shell is capable of handling all types of problems i.e crisis, non-crisis and opportunity as well. Q2 What evidence exists that Shell uses an effective decision making process in making various decisions? What evidence exists regarding problems with decision making? Shell is using an effective decision making process by following almost all the steps involved in decision making. The first case where they faced a problem was getting less operating profits. They classified it as a problem and tried to find out what were the reasons (causes) for it. They discovered that the problem was due to weak oils and lower gas rates. They checked out the rest and offered low oil prices. This was how they implemented and monitored the solution. The result was an improved profit. Shell is using three approaches for crisis handling: o Geographic Diversification o Concentric Product Diversification o Speedy adaptation to change Shell is explores its products in 50 countries and sells them in 100 countries. Economic disorder cannot affect the company Secondly, it does business only in the countries where it expects high returns. Thirdly, Speed is also another factor which Shell considers. When Spain discontinued the problem of gas stations, Shell was there to provide the service. These are the careful and planned steps that Shell has taken to run its business. Q3 How do Scenarios help Shell¶s managing directors engage in divergent thinking? What might be the limitations of such an approach? Shell is using scenario based analysis to address its environmental variables. Scenarios are outlines of possible future conditions which include the path the company could take. The scenario analysis is done by the planning department at Shell. The managing directors identify changes by studying these scenarios. The Shell at geographic locations uses these scenarios to give their own strategies and act according to the plan. In addition to scenario process, wars help Shell out. During the gulf War, supplies were interrupted from Middle East; Shell was able to provide the supplies. These scenarios help Shell people in divergent way of thinking to a grate extent. These give a future prediction of 10 years in the world. The managers are able to handle different problems and have different solutions for them. They know if a problem is encountered, they have multiple solutions for it. Such an approach is not applicable where there has to be a certain specific solution for a given problem. There are certain situations where a divergent thinking would not work. For example, Shell is being criticized by activitists for polluting the area in Nigeria and continuing to work in some parts of the country. They do not want to leave the country. They want to stay there and form some sort of agreement. II.5.2.3 CRITICAL ANALYSIS OF THE CASE STUDY A) PROBLEM HANDLING The Shell is able to handle all the types of problems They are:o Crisis problems o non-crisis problems o opportunity problems Shell is good at handling all types of these problems and coping with them. these problems are subject to every oil company. Shell has been successful in dealing with these. B) DEALING WITH PROGRAMMED DECISIONS MORE Shell is more dealing with programmed decisions like cost cutting, and how to do what when such things happen? Most of their decisions are planned and well defined. They have to deal with the uncertainties but they know that these uncertainties will happen in future. They have designed different strategies for them. C) ADOPTED A RATIONAL MODEL People at Shell have adopted a rational decision making model. They are not following any non rational model. Since they are using scenarios, their decisions are well planned. D) NO SATISFICING MODELING There is no satisficing model followed at Shell. They go for the best solution and do not compromise on an average one. E) NO GARBAGE CAN MODELING There is no garbage can modeling at Shell. It strives to improve its quality and products, instead of changing the product. F) SCENARIO BASED ANALYSIS They are using scenario based analysis which helps them a lot in managerial decision making. This job is performed by the planning department. The Managers make a study of these and try to get help out of these. G) INELASTIC DEMANDS The demand for oil & petroleum is elastic. It can vary from $4 to $40. H) RATING The Shell has shown a remarkable performance and got significant rewards. In 1990, the company passed Exxon to become the world¶s largest oil company. I) COORDINATION OF MARKETING ACTIVITIES Their marketing activities like quality, delivery and performance are in well coordination. They know how to improve the quality of their product, how to deliver the product and over all performance. J) PLACE & TIME UTILITY The Shell stations serve their customers at their best, anywhere, anytime. K) MOVING FROM DECENTRALIZED TO CENTRALIZED APPROACH The 260 units were free to make their own decisions. The managers of operating units used to consider local conditions, and shift rapidly to handle customer needs. But now a more centralized approach is followed where senior managers administer divisions like production & exploration. NOTE: I have not changed the words and writings of the experts. These are their exact views and opinions on certain topics. Rather, ³«..´ are used. III RESEARCH TOPICS III.1 MANAGEMENT AND ROLE OF IT III.1.1 IMPLICATION In a business, IT might play a: functional role decisional support role performance monitoring role strategic support role Projected job growth stems primarily from rapid growth among computer-related occupations. Employers prefer managers with formal education and advanced technical knowledge acquired through computer-related work experience. Job opportunities should be best for applicants with a master¶s degree in business administration or management information systems with technology as a core component. The need for organizations to incorporate existing and future technologies in order to remain competitive has become a more pressing issue over the last several years. As electronic commerce becomes more common, how and when companies use technology are critical issues. Computer and information systems managers play a vital role in the technological direction of their organizations. They do everything from constructing the business plan to overseeing network security to directing Internet operations. The Chief technology officers, for example, evaluate the newest and most innovative technologies and determine how these can help their organization. The chief technology officer, who often reports to the organization¶s chief information officer, manages and plans Management information systems (MIS) directors manage information systems and computing resources for their entire organization. They may also work under the chief information officer and plan and direct the work of subordinate information technology employees. These managers oversee a variety of user services such as an organization¶s help desk, which employees can call with questions or problems. MIS directors also may make hardware and software upgrade recommendations based on their experience with an organization¶s technology. Project managers develop requirements, budgets, and schedules for their firm¶s information technology projects. They coordinate such projects from development through implementation, working with internal and external clients, vendors, consultants, and computer specialists. These managers are increasingly involved in projects that upgrade the information security of an organization. Network administrators (managers) provide a variety of services, from design to administration, of an organization¶s local area network, which connects staff within an organization. These managers direct the network, and its related computing environment, including hardware, systems software, applications software, and all other computerrelated configurations. III.1.2 EXPERT VIEWS III.1.2.1 From Wikipedia ³Management Information Systems (MIS) are information systems, typically computer-based, that are used within an organization. Word Net describes an information system as "a system consisting of the network of all communication channels used within an organization". A management information system may also be defined as "a system that collects and processes data (information) and provides it to managers at all levels who use it for decision making, planning, program implementation, and control." ³An information system is comprised of all the components that collect, manipulate, and disseminate data or information. It usually includes hardware, software, people, communications systems such as telephone lines, and the data itself. The activities involved include inputting data, processing of data into information, storage of data and information, and the production of outputs such as management reports. As an area of study it is commonly referred to as information technology management. The study of information systems is usually a commerce and business administration discipline, and frequently involves software engineering, but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization. The area of study should not be confused with Computer Science which is more theoretical and mathematical in nature or with Computer Engineering which is more engineering. In business, information systems support business processes and operations, decisionmaking, and competitive strategies.´ III.1.2.2 Survey article in The Economist, John Browning (1990) wrote: "Information technology is no longer a business resource; it is the business environment." His statement is not far from truth. Ongoing advances in information technology (IT), along with increasing global competition, are adding complexity and uncertainty of several orders of magnitude to the organizational environment. One of the most widely discussed area in recent business literature is that of new organizational network structures that [supposedly] hold the promise of survival and growth in an environment of ever-increasing complexity (Bradley, Hausman and Nolan, 1993; Byrne, 1993; Davidow & Malone, 1993; Eccles and Nolan, 1993; Jarillo & Ricart, 1987; Malone & Rockart, 1993; Miller, Clemons and Row, 1993; Naisbitt, 1982, 1985; Toffler, 1985). How can IT help the organizations in responding to the challenges of an increasingly complex and uncertain environment? How can IT help the organizations achieve the "flexible" organization structure? It is thought that the open systems theory (Bertalanffy, 1950; Boulding, 1956) as one possible tool for organizational MIS research and practice, using the issues of environmental change, organizational structure and organizational interdependence to illustrate its use. The area of environmental change and organizational IT response is an especially appropriate application area for the open systems theory.´ III.1.2.3 Researchers (Bakos and Treacy, 1986; Cash and Konsynski, 1985; Kling, 1980; Kriebel and Moore, 1982) ´The increasing global interdependencies and the accelerating pace of change demand more flexible and adaptive organizations (Malone and Crowston, 1991). Malone and Smith (1984) have defined organizational flexibility in terms of "vulnerability" and "adaptability." Effective implementation of IT would decrease vulnerability by reducing the cost of expected failures and enhance adaptability by reducing the cost of adjustment. Rockart and Short (1989) attribute the everincreasing need for managing interdependence to competitive pressures that included globalization, time-based competition, increased market risk, and a greater emphasis on customer service and cost reduction. Bennis (1974: 22) notes that "the organization's response to the environment will continue to be the crucial determinant for its effectiveness." Since postindustrial organizations will be faced with increasing environmental complexity and turbulence, organizations' needs to process information and make decisions will be substantially increased (Huber, 1984). The capabilities and flexibilities of computer-communication systems make them increasingly relevant to organizations by being able to respond to any specific information or communication requirement. IT is becoming all pervasive and is having impact on all industries ± in service as well as in manufacturing. It is affecting workers at all levels of organizations. From executives to assembly hands and clerks. IT is increasingly becoming an integral component of all types of technologies ± craft, engineering, routine, and no routine. ³ III.1.2.4 Benjamin and Levinson They emphasized that for IT-based change to be effective, technology, business processes, and organization need to be adapted to each other. Comparing the present information revolution with the Industrial Revolution, they indicated that the latest changes in IT would lead to the evolution of new technology-intensive organizational structures. They project that the advances in IT would result in dramatic decline in the costs of "coordination" which would lead to new, coordination-intensive business structures. They suggested that IT would enable the firms to respond to the "new and pressing competitive forces" by providing for "effective management of interdependence. Inter organizational relations, which are based upon trust and conditions of unstructured authority.´ III.1.3 MY ANALYSIS The most significant role played by IT in management is the evolution of management information systems. MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology). Software include: System software (utilities and operating systems) Application software (word processors DBMS, spreadsheets) Date bases include: Hypertext DBMS Tools (oracle & SQL) A decision support system abbreviated DSS, the term refers to an interactive computerized system that gathers and presents data from a wide range of sources, typically for business purposes. DSS applications are systems and subsystems that help people make decisions based on data that is called from a wide range of sources. III.2 DIVERSITY IN MANAGEMENT III.2.1 IMPLICATION The Diversity in Management evolves when different groups or operating unite come to some other place for performing their operations. The term ³diversity´ encompasses a number of factors. These factors include workplace diversity, ethnic groups, genders, demographics, age, cultures, traditions and norms. Diversity refers to the ways that people in organizations differ. That sounds simple, but defining it more specifically is a challenge because people in organizations differ in a great many ways race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, and more. There is also the fact that diversity not only involves how people think of others and how this affects their interaction but how they conceive of themselves. III.2.2 EXPERT VIEWS III.2.2.1 John Chang, a senior faculty member at Clark University ³A) DIVERSITY IN WORK GROUPS In today's competitive business climate, managers must be aware that racio-ethnic and gender diversity in a project team has the potential to either hinder or expedite problemsolving. A diverse team has a wide range of useful viewpoints to draw upon when completing a task. Unfortunately, the creativity and functionality of the team can be impaired if stereotyping results in women and people of color being marginalized. To be effective, team members must not allow stereotypes to prevent them from accessing and utilizing each member's strengths and weaknesses. B) STRATEGIES FOR MOVING BEYOND STEREOTYPES The research of Graves and Elsass suggests several strategies a project manager could use to get John's team back on track. All of the strategies encourage team members to see past stereotypes to the unique qualities of each individual team member. The project manager could Help to create a "positive diversity climate" in the workplace by utilizing techniques designed to raise employees' awareness of stereotypes based on race, gender, and other ways of categorizing people. Make each team member responsible for a specific set of tasks, thus preventing any one member from being overburdened. Establish rules for decision-making that require the input of each team member. Provide relevant personal information about team members that will help them be seen as individuals. Make sure that resources and time allotted for the task are comfortably adequate. The ability of people to move beyond stereotypes can be hampered by stressful working conditions. C) UNDERSTANDING DIVERSITY DYNAMICS Focusing on groups predominantly composed of white males, the researchers examined how stereotypes about women and people of color can lead to differences in social and task interaction between group members. On first meeting, people tend to categorize each other on the basis of gender, race or ethnic group. Those categorizations are frequently accompanied by assumptions about how a person will behave or should be treated. If those stereotypes are not challenged, they can negatively affect both social and task-related behaviors in the work group, forcing women or people of color into unproductive or inappropriate roles. He suggests that there are four patterns of behavior that can occur in a diverse work group: Engagement. This is the preferred scenario, in which stereotyping has not been allowed to obscure each group member's strengths and weakness. This behavior pattern is characterized by a high level of both social exchange (members provide mutual support) and task exchange (resources, information and opinions are shared in an equitable fashion). Exclusion. This is the least productive scenario, in which stereotypes have not been challenged. As a result, there is a low level of both social and task exchange. Women or persons of color are marginalized; their input is not solicited or supported and their contributions are ignored. Complementing. Here, women and people of color are allowed to contribute socially to the group, but are excluded from meaningful task participation. For example, it may be expected that female group members be supportive and nurturing. Contributing. This is identified as the most likely to occur of the four patterns. In this scenario, women and people of color are able to participate in the task, but they receive little social support. The contributing pattern is more likely to occur when each member has been assigned specific tasks. Occasionally, events will occur that can serve to disable stereotypes. Sometimes a stereotyped individual will act in such a way that obviously challenges or contradicts the stereotype; for example, a woman might refuse to make coffee for the group. Additionally, concern about being unable to meet a project goal or deadline might trigger group members to reassess their task strategy, and in the process reconsider the social and task inputs of each group member.´ III.2.2.2 Anita Rowe, diversity consultant and co-author of Managing Diversity: A Complete Desk Reference and Planning Guide "Internal because you have staff and chances are good that people will differ from each other in some way, such as educational level, age, parental status or physical attributes. If people don't feel included and that their concerns are germane, Rowe warns, "the cost to your company can be high - in terms of commitment, satisfaction and high turnover (it's costly to recruit and train). A comprehensive 1993 study of U.S. workers' attitudes bears out Rowe¶s assertions. The first installment of a planned quadrennial survey, the privately funded National Study of the Changing Workforce found that perceptions of discrimination take a heavy toll on job performance. More than one-fifth of minority workers reported they had been discriminated against by their current employers. Those beliefs correlated with a higher Tendency to feel "burned out," a reduced willingness to take initiative on the job and a greater likelihood of planning to change jobs. From an external perspective, a diverse workforce can also provide a distinct competitive advantage for your firm and enhance its success in today's increasingly global marketplace. Conversely, if you don't understand the nuances of different cultures, you may be inadvertently slighting potential customers and missing out on new markets, your lack of understanding can also affect existing relationships. Diversity is both a customer service and a business development issue. A) COMMITTED LEADERSHIP Firms that have already recognized the value of a diverse work force and made a sincere effort to maximize its contributions have learned that changing hiring policies will not in and of itself ensure success. A strong commitment from company leaders is also critical. The correct question today is not `How are we doing on race relations?' or `Are we promoting enough minority people and women?' Rather, it is `Given the diverse work force I've got, am I getting the productivity, does it work as smoothly, and is morale as high, as if every person in the company was the same sex, race and nationality? When you seek to attract talented employees of diverse backgrounds, one of their considerations will be whether your firm offers a reasonable opportunity to develop to their fullest potential. B) OPEN COMMUNICATION Another lesson to learn is the importance of communication and a willingness to listen to what your employees have to say. People often don't realize how their actions or words will be taken; it usually takes a specific incident to bring this home. Creating an open atmosphere in which people feel free to raise issues without fear of reprisal is an important first step, and it doesn't cost anything. Do you know what your employees' needs are? Is two-way dialogue taking place? If you see negative issues, don't ignore them. Sit down with employees and discuss how 'we' will work them out. If you empower staff members to be part of the solution, they will feel valued and that they have a tangible stake in the company. A bank manager was helping a customer fill out account forms. He was joking and laughing in an attempt to make the man feel comfortable. When the customer returned home, he called the manager¶s supervisor to complain. In the customer's country, conducting business is considered very serious. He thought the manager was being disrespectful with his levity. Business owners and managers must be aware of cultural differences and how they affect customer service, as well as learn how to communicate and work with people of diverse backgrounds. Sensitivity is the key, recognize that your interpretation of a behavior isn't universal and for another person it may mean something else entirely. Question your automatic judgments or assumptions. Just keep an open dialogue and an open mind. C) BUILD PERSONAL RELATIONSHIPS Once people form a personal relationship, their entire outlook changes, one-on-one relationships remove mistrust and fear and increase opportunities for people to feel comfortable talking with others who may be different from them in some regard. D) DIVERSITY TRAINING OPTIONS If you don't feel comfortable undertaking some of these programs on your own, you may want to hire a diversity consultant to work with you and your staff. However, a word of caution. Diversity training has become an industry in itself, replete with its own share of charlatans. So choose trainers and consultants carefully, and be sure to ask for - and check -references. If you can't afford outside help, another option is turning to the many publications and newsletters available today which are filled with helpful exercises. Or contact your local university or community college about classes and workshops. E) SMALL COMPANY ADVANTAGE Smaller firms have the best chance of establishing a truly diverse culture and managing it successfully, many experts agree. Typically not burdened by a large, entrenched bureaucracy, it is easier for them to make changes while the business owner maintains greater control of the process. In smaller organizations, people are often less threatened by diversity, they develop trust more quickly and are more open, and there tends to be a greater level of confidentiality. In addition, smaller companies have fewer candidates competing for job. Since their choice of potential employees can be limited, small firms must think about using the most qualified people available, regardless of their backgrounds. Customers have their own expectations as well. Diversity has competitive implications. Customers expect small businesses to be more mindful of differences and to better serve their needs. In a country seeking competitive advantage in a global economy, the goal of managing diversity is to develop our capacity to accept, incorporate and empower the diverse human talents of the most diverse nation on earth. It's our reality. We need to make tour strength." III.2.3 MY ANALYSIS My own analysis is that different organization when come to other countries must be able in diversity management. They must be able to know the needs of their customers. They must be familiar with the norms and values of different cultures. An organizational internal culture is as important as external culture. The variations to be performed should be in a flexible way. Diversity management involves being considerate to a very high level. It means that treating others in way, you would expect others to treat you. In case of gender, diversity management varies. For example, handicapped lady working at a bank should be given more preference in terms of location. There are certain organizations which give an equal opportunity to the disabled employees. One way to handle diversity is to have a keen study of the organization and its external environment. The other way is to study the past events. Another way is to build personal relationships with people outside the community to know what is wrong and right. Diversity in management comes for ethics, gender, age, values, culture and a lot more factors. Diversity in management is a very vast topic, and can not be discussed in general. III.3 CENTRALIZATION VERSUS DECENTRALIZATION III.3.1 IMPLICATION The centralized system has certain benefits: Standardization can be enforced cost saving advantages Ability to easily align employee objectives with corporate objectives. Simplified reporting mechanisms (from one system versus many). Accuracy in reporting mechanisms (from one system versus many). The decentralized system has the following benefits: increased local control at lower level ability to manage more content ability to enhance learning ability to enhance good training The centralized system is ineffective in the position where rapid decision making is involved. For example, a certain problem has encountered. One of the employees had a car accident and out of an extremely busy day, he had to be taken to the hospital. It involves a rapid decision making process. The senior manager might cancel some of the important meetings due to his accident. Here a decentralized approach would work. Informing the top level person and getting a response from him will take too long. In contrast, a decentralized approach is good for decision making, but seems to ignore the long term objectives of the company. People working in one division are operating according to their own procedures and policies with little or no regard for company goals and objectives. Where standards are to be met, a centralized approach should be followed. Where innovations, decision making and learning are involved, a decentralized approach should be used. III.3.2 EXPERT¶S VIEWS III.3.2.1 Published Articles by David Balovich ³The dilemma many large organizations have anguished over is whether to centralize or decentralize key operating functions such as sales, credit, accounts payable, etc. In the past it has been common for companies to decentralize sales, credit and other offices scattered about the country responsible for customers and activities in their respective region. However, decentralization is no longer being restricted within our continental boundaries. Major U.S. companies. including IBM, Procter & Gamble, Dell, Microsoft and Oracle, too name just a few, are decentralizing their operations to other countries including India, Cost Rica, Ireland and China. We are not talking about manufacturing jobs but rather professional jobs that include financial analysts, accountants, human resources, payroll, collectors, customer service and others at higher levels in the labor pool. Employer¶s say moving jobs to foreign countries makes them more competitive because they can realize enormous savings in labor costs. According to A.T. Kearney, a management consulting firm, an MBA with three years experience in India will make about $12,000 a year, compared with $100,000 in the U.S. A debt collector will make $5,000 compared with $50,000. Over the next five years financial service companies plan to move more than 500,000 jobs to countries such as India. Proctor and Gamble currently handles payroll, accounts payable and invoice processing in the United Kingdom, Costa Rica and the Philippines. In addition to lower wages, major companies are able to work around the clock because of their presence in other countries. For example, Oracle, which has two large R&D centers in India, plans to have 4000 employees in place by year¶s end. Programmers there will pick up projects when their American counterparts leave for the day, and vice versa. Oracle will be able to operate 24 hours a day at a third of the cost it would pay to operate 24 hours in the U.S. Another consulting firm recently surveyed 38 large companies about moving white-collar jobs overseas. While only seven companies admitted to seriously considering moving jobs overseas, they all said they were evaluating it. Dell has operated a customer service and technical support center in India for several years, where the deregulation of the telephone industry has caused rates for international calls to fall as much as 30%. Many of their employees assume an American name and take training in U.S. customs, making it hard to distinguish between a call from Austin or Mumbai (formerly called Bombay). A major concern of this movement to offshore decentralization should be security. The more removed the information is from the corporate office the higher the risk that the information is susceptible to compromise. ³ III.3.2.2 Joe Ellis and Todd Mauldin Joe Ellis is the founder and CEO of TEDS ± a CBM Company. Todd Mauldin is TEDS¶ vice president for customer relations. TEDS is one of the world¶s leading learning management and human capital development software systems, serving millions of users in more than 100 countries ³The debate over the centralization versus decentralization of operations within a large enterprise is a never-ending one. It is an age-old battle of standardization versus autonomy, corporate efficiency versus local effectiveness and pressure on costs and resources versus accommodation of specific local needs. A popular theory states that organizations vacillate between a strong centralization philosophy and a strong decentralization philosophy in roughly three-year cycles. The scenario works like this: A group of decentralization proponents will analyze a key centralized operation within the organization and discover gross inefficiencies. The centralized system is perceived to be too slow to react to problems in the field or to issues within a particular company department or division. The obvious solution is decentralization. Responsibility for decisions, actions and record-keeping is then moved out to be closer to the source. The result, it is hoped, will be quick reaction and speedy solutions. Some three years later, a group of centralization proponents will analyze this decentralized operation and discover gross inefficiencies. The decentralized operation is perceived as fragmented and inconsistent. The employees in one division are operating according to their own procedures and policies with little or no regard for company goals and objectives. Company headquarters can¶t even get any consistent organization-wide reporting, for goodness sake. The obvious solution is centralization. Organizations looking toward implementing or revitalizing an effective learning management and human capital development operation will do well to take a hard look at this phenomenon. Vacillation between centralization and decentralization is both nonproductive and unnecessary. Once an organization¶s initiatives, goals and strategies are established, the issues surrounding centralized versus decentralized learning come into focus. All organizations are confronted by a similar challenge as regards corporate learning: How do we get the right learning to the right people at the right time? Implicit in this question are several subordinate questions. Who determines what that learning should be? What is the best method of delivering various learning solutions to employees and to others in the enterprise? What records, including certifications and competencies, should be maintained? Where should those records reside? What compliance issues must be addressed? What are the implications for software and hardware requirements? While certain learning challenges are similar among virtually all organizations, other specific challenges are special or unique to a particular enterprise. Obviously, the basic characteristics of an organization, including size, domestic or international scope and the diversity of products and services provided, must be considered in the development of any corporate learning and human capital development strategy. These are but a few of the many questions and organizational characteristics to be considered as a part of the decision-making process that leads to the successful implementation of a learning management and human capital development system. But they also point toward the process involved in answering the initial question: For my organization, which is better, centralized or decentralized learning? Let¶s begin by examining the benefits of each methodology. A) BENEFITS OF CENTRALIZED LEARNING To achieve centralized learning, an organization will utilize one central learning management system with one central database. Such a system can manage many functions. In general terms, the main benefit of centralized learning is the cost savings that result from standardization, central reporting and record keeping and quality control. The advantages of such a system include: Reduction in number of systems required to handle corporate learning. Reduction of infrastructure requirements via consolidation of IT resources. Immediate population of the company¶s central database with course completions and certifications. Promotion of standardization via reduction in the number of duplicate courses. Realization of significant cost savings advantages. Reduction in number of administrators. Standardization of content. Standardization of certifications and competencies. Ability to easily align employee objectives with corporate objectives. Simplified reporting (from one system versus many). Accuracy in reporting (from one system versus many). B) BENEFITS OF DECENTRALIZED LEARNING To achieve decentralized learning, an organization may utilize several learning management systems, each with its own database. These systems can also manage many functions. In general terms, the main benefit of decentralized learning is the ability to deploy and manage large amounts of content, all of which can be localized. The advantages of such a system include: Increased control at the local level. Local training departments tend to understand the specific needs of their areas of responsibility much better than corporate. Local training departments see efficiencies in creating their own courses versus depending on corporate. Local training departments can manage their own costs. Ease of creation of desired local reports. Control over local resources. Ability to manage more content. Ability to localize courses and learning events. Ability to add spot training instantly when needed. Obviously, the advantages of each model for corporate learning management are, in essence, the disadvantages of the other. C) CHOOSE THE HYBRID MODEL Based on TEDS¶ years of working with large corporations, we feel that the best model is one that captures the strengths of both models while effectively managing the relationship between corporate and local training functions. In order to reap the benefits of a strong centralized learning management and human capital development system as well as the advantages of localized learning, two challenges must be addressed: the technical infrastructure of the system and the execution of the plan. The learning management system (LMS) a company selects must be robust enough, through its technical infrastructure (architecture) and depth of functionality, to centrally manage reporting and record keeping while pushing out content for localization and management. For example, our LMS uses four-tier architecture, which allows for centralizing the database while decentralizing the Web servers that store course content. Online content puts the largest demands on servers and pipelines. Once that content is pushed out to local management via localized content servers, two problems are solved. Content no longer flows from a single central server through restricting pipelines, and control of content is where it should be, at the local level. Having the ability to control the content locally permits the accommodation of local culture issues, languages and customs²a great advantage to global enterprises. The LMS should be capable of managing multiple courses on multiple servers. It should allow users to choose what server they want to launch from and what language they want the course to be delivered in. And it should be able to recognize, track and record localized courses via a global course name and number. That is, it must have the capability of assigning a global number to a course or learning event that is delivered in multiple locations and in multiple languages. In the competency arenas, centralized learning management allows companies to start getting a true picture of human capital assets within the corporation. Most corporations must be able to manage human capital globally and shift that capital as needed. Centralized systems tend to force dialogues, or the sharing of similar data, in regard to skills, competencies and certifications. Therefore, standardization of employees¶ skills, competencies and certifications is much more likely to happen in a centralized management system. In a true human capital LMS, courses and other learning events can be local, but competencies can be tracked and measured against global standards. Several TEDS¶ customers follow this ³local content/global competency standards´ model. They push their content out to users in various countries in several languages from many servers, but they use a centralized server for tracking, record keeping and certifications. They also realize huge time and cost savings by upgrading one centralized learning and human capital development system versus upgrading many systems at multiple global locations. The reduction of cycle times for software version upgrades is significant. D) CORPORATE AND LOCAL COOPERATION When implementing this very productive hybrid of centralized/decentralized learning management, some caveats are worth noting. Corporate generally controls the purchase and maintenance of the system, the management of the enterprise¶s standard courses or courses shared by multiple locations, and the creation and maintenance of corporate reports. Corporate may also initiate and control the process for creation and maintenance of local reports. This yields efficiencies in cost and resource utilization. The company¶s local training groups generally have the authority and ability to create and maintain those courses specific to their areas of responsibility (either through corporate or via privileges within the system), have control over when those courses are taught via sessions and have the ability to create unique reports, thus taking advantage of the local group¶s ability to better manage specific local training. The most critical issues in this combined model are the continual management of expectations and the relationship between corporate and local. There is a tendency for corporate to take away more control than necessary from local groups at the outset to establish dominance, which can lead to resentment from local training managers. Such resentment is difficult to overcome once it has occurred. If not careful, corporate may alienate local groups by not including them in the design and implementation of the new learning management model. It is critical that corporate include the needs of local groups in the final solution before implementation begins. The mission and focus should be clearly established so that the movement to the new model is perceived as corporate and local groups working together for a common goal²the good of the company and of its employees. The importance of open communication and buy-in from all affected groups cannot be understated. From the local side, there is a tendency to agree with the corporate initiative on the surface, but to undermine the desired efficiency gains through noncompliance with the implementation plan. Local groups will see the solution as giving up power if they are not actively involved in the new plan and its implementation. Even with local involvement and communication, the loss of local power may still be perceived. Local groups may begin to erode efficiencies by taking on their own versions of corporate courses to manage. To be sure, there are courses and learning events that should be managed locally to meet specific goals. However, once the local group assumes management of these courses, it is tempting to move into unauthorized management of corporate courses. A telling sign that the model is breaking down is often the creation of local spreadsheets to capture completion data, thus defeating the purpose of centralized reporting. E) MAKING IT WORK The suggested hybrid model can be very effective and highly productive when the proper infrastructure is in place and when both corporate and local groups have agreed upon common learning management and human capital development goals and continually work together to meet those goals. In today¶s cost-sensitive environment, there isn¶t room for the inefficiencies produced by multiple systems or even multiple autonomous administrators in one system. The inability to get accurate completion data quickly and therefore impact the learning paths across a company are simply not options any more. ³ III.3.3 MY ANALYSIS Since, it is a dilemma. One can never say either to go for a completely centralized or a completely decentralized approach. For some organizations, a decentralized approach would work. For many organizations, a decentralized approach would work. It depends on the structure of the company. Some parts of the company such as operations activities may follow a centralized approach, whereas some parts of the company may be going for a decentralized approach. Again, it depends on the geographic area, location, the demographics of the country in which the organization is working. Some parts like decisions like settlement of employee salary, his working hours, and his working location are centralized. In Pakistan, most of the companies are following a centralized approach. Pakistan Army, Federal Public Service Commission, public sector banks, institutions and many more. While some of the organizations like ³Voxel´ give some compromise to their employees by asking them about their working hours, their salaries (Would they go for a commission based job or a non commission based job?). What working times suit them? They are allowed to dress informally. The centralized system is ineffective in the position where rapid decision making is involved. For example, a certain problem has encountered. One of the employees had a car accident and out of an extremely busy day, he had to be taken to the hospital. It involves a rapid decision making process. The senior manager might cancel some of the important meetings due to his accident. Here a decentralized approach would work. Informing the top level person and getting a response from him will take too long. In contrast, a decentralized approach is good for decision making, but seems to ignore the long term objectives of the company. People working in one division are operating according to their own procedures and policies with little or no regard for company goals and objectives. Where standards are to be met, a centralized approach should be followed. Where innovations, decision making and learning are involved, a decentralized approach should be used. Centralized versus decentralized? The most effective enterprise learning management and human capital development system is the right combination of both. III.4 QUALITIES OF AN EFFECTIVE MANAGER III.4.1 IMPLICATION A manager is someone skilled in knowing how to analyze and improve the ability of an organization to survive and grow in a complex and changing world. This means that managers have a set of tools that enable them to grasp the complexity of the organization's environment. A main person for running the organization and its operations is a manager. Nevertheless, what level of manager he is at. But managerial skills are required at each level of an organization. A bad manager can cause damage himself as well as to his company. If a manager does possess efficient problem solving capacity, he is not able to handle uncertainties. A company might go through many problems, a manager must be able to solve and sort them out. If he lacks leadership skills, he is not able to interact with the people inside as well as outside the organization. There are certain companies in Pakistan which have such problems. If he does not treat people well, his clients may not come back to him. If he does not keep his mind cool under intense pressure, he might lose his temper and take such an action which affects the company in the long run. If he is not authoritative, no subordinate would be listening to him. If he does not have a vision before him, he is going to attain nothing. In contrast, an effective manager is able to make rapid decision making, communicating effectively and having a vision. For example, many organizations went for quick decision making when earth quakes disaster took place in Pakistan. Their manager and top level people went for quick decision making. A good manager will possess all the qualities and can be an asset to his organization. III.4.2 EXPERT VIEWS III.4.2.1 Timothy R. Barry Timothy R. Barry is a trainer and consultant for ESI International with more than 20 years of experience in management. He has worked with over 40 major organizations worldwide. According to Timothy R. Barry, the following qualities are important for being an effective manager they are: ³A) INSPIRES A SHARED VISION An effective manager is often described as having a vision of where to go and the ability to articulate it. Visionaries thrive on change and being able to draw new boundaries. It was once said that a leader is someone who "lifts us up, gives us a reason for being and gives the vision and spirit to change." Visionary leaders enable people to feel they have a real stake in the project. They empower people to experience the vision on their own. According to Bennis "They offer people opportunities to create their own vision, to explore what the vision will mean to their jobs and lives, and to envision their future as part of the vision for the organization." B) GOOD COMMUNICATOR The ability to communicate with people at all levels is almost always named as the second most important skill by project managers and team members. Project leadership calls for clear communication about goals, responsibility, performance, expectations and feedback. There is a great deal of value placed on openness and directness. The manager is also the team's link to the larger organization. The leader must have the ability to effectively negotiate and use persuasion when necessary to ensure the success of the team and project. Through effective communication, project leaders support individual and team achievements by creating explicit guidelines for accomplishing results and for the career advancement of team members. C) INTEGRITY One of the most important things a manager must remember is that his or her actions, and not words, set the modus operandi for the team. Good leadership demands commitment to, and demonstration of, ethical practices. Creating standards for ethical behavior for oneself and living by these standards, as well as rewarding those who exemplify these practices, are responsibilities of project leaders. Leadership motivated by self-interest does not serve the well being of the team. Leadership based on integrity represents nothing less than a set of values others share, behavior consistent with values and dedication to honesty with self and team members. In other words the leader "walks the talk" and in the process earns trust. D) ENTHUSIASM Plain and simple, we don't like leaders who are negative - they bring us down. We want leaders with enthusiasm, with a bounce in their step, with a can-do attitude. We want to believe that we are part of an invigorating journey - we want to feel alive. We tend to follow people with a can-do attitude, not those who give us 200 reasons why something can't be done. Enthusiastic leaders are committed to their goals and express this commitment through optimism. Leadership emerges as someone expresses such confident commitment to a project that others want to share his or her optimistic expectations. Enthusiasm is contagious and effective leaders know it. E) EMPATHY What is the difference between empathy and sympathy? Although the words are similar, they are, in fact, mutually exclusive. According to Norman Paul, in sympathy the subject is principally absorbed in his or her own feelings as they are projected into the object and has little concern for the reality and validity of the object's special experience. Empathy, on the other hand, presupposes the existence of the object as a separate individual, entitled to his or her own feelings, ideas and emotional history (Paul, 1970). As one student so eloquently put it, "It's nice when a project leader acknowledges that we all have a life outside of work." F) COMPETENCE Simply put, to enlist in another's cause, we must believe that that person knows what he or she is doing. Leadership competence does not however necessarily refer to the project leader's technical abilities in the core technology of the business. As project management continues to be recognized as a field in and of itself, project leaders will be chosen based on their ability to successfully lead others rather than on technical expertise, as in the past. Having a winning track record is the surest way to be considered competent. Expertise in leadership skills is another dimension in competence. The ability to challenge, inspire, enable, model and encourage must be demonstrated if leaders are to be seen as capable and competent. G) ABILITY TO DELEGATE TASKS Trust is an essential element in the relationship of a project leader and his or her team. You demonstrate your trust in others through your actions - how much you check and control their work, how much you delegate and how much you allow people to participate. Individuals who are unable to trust other people often fail as leaders and forever remain little more that micro-managers, or end up doing all of the work themselves. As one project management student put it, "A good leader is a little lazy." An interesting perspective! H) COOL UNDER PRESSURE In a perfect world, projects would be delivered on time, under budget and with no major problems or obstacles to overcome. But we don't live in a perfect world - projects have problems. A leader with a hardy attitude will take these problems in stride. When leaders encounter a stressful event, they consider it interesting, they feel they can influence the outcome and they see it as an opportunity. "Out of the uncertainty and chaos of change, leaders rise up and articulate a new image of the future that pulls the project together." (Bennis 1997) And remember - never let them see you sweat. I) TEAM-BUILDING SKILLS A team builder can best be defined as a strong person who provides the substance that holds the team together in common purpose toward the right objective. In order for a team to progress from a group of strangers to a single cohesive unit, the leader must understand the process and dynamics required for this transformation. He or she must also know the appropriate leadership style to use during each stage of team development. The manager must also have an understanding of the different team players styles and how to capitalize on each at the proper time, for the problem at hand. J) PROBLEM SOLVING SKILLS Although an effective manager is said to share problem-solving responsibilities with the team, we expect our project leaders to have excellent problem-solving skills themselves. They have a "fresh, creative response to here-and-now opportunities," and not much concern with how others have performed them.´ III.4.2.2 Marc Pfefferle This article was written by Marc Pfefferle, a partner at Carl Marks Consulting Group LLC and appeared in The Deal. Marc Pfefferle, CTP, is a Partner with the Carl Marks Consulting Group LLC. He has more than 20 years of consulting experience focused on strategic planning, corporate restructuring, profit improvement, and operational reviews. He is a Certified Turnaround Professional and a Certified Fellow introduction and Inventory Management. A) UNCOMPROMISING INTEGRITY AND ETHICAL STANDARDS ´A good manager must be honest, ethical and able to develop and maintain the trust and confidence of all constituents. It's not in the job description, but a good manager knows he is the custodian of everyone's money. The best manager in a turnaround situation will understand he owes allegiance to all constituents and that sometimes his role is to deliver bad news to the CEO²even if it means risking his job²because it will benefit the stakeholders. B) FINANCIAL ACCOUNTING, CASH MANAGEMENT AND CORPORATE FINANCE COMPETENCE A good manager at bank must possess fundamental accounting knowledge, cash management skills and the ability to manage the financial function. A manager need not be a CPA, but the person absolutely must know how the numbers are generated and be able to communicate effectively with managers, creditors, shareholders and others. C) BASIC BUSINESS KNOWLEDGE AND STRONG UNDERSTANDING OF COMPANY OPERATIONS To be effective in a turnaround, a manager must understand business fundamentals, a company's basic operations and its business model. A manager who merely reports numbers and has no interpretive ability does not add value in a restructuring. D) STRATEGIC VISION AND LEADERSHIP SKILLS The best managers can think strategically, help create and execute business plans and demonstrate strong leadership within the financial departments and with the management team as a whole. He can¶t just be a "numbers guy"; he's got to be a negotiator. Managers, who stay in their offices all day, demonstrate no executive presence, hoard information or are arrogant or condescending are generally ineffective. E) PROBLEM-SOLVING ABILITIES A manager's knowledge of the company, its resources and the numbers is critical in formulating a plan to secure a company's future. Good managers look for "win-win" situations, rather than trying to get a "good deal." F) COMMUNICATION SKILLS Especially in turnaround situations, a manager must be able to communicate the financial performance and resources of the company to all key constituents orally and in writing. A good manager will give you the answers before you ask the questions; a bad one will make you feel that if you hadn't asked, you would never have found out. G) STRONG WORK ETHIC A manager in a turnaround must be willing to work long hours, processing a tremendous amount of work product while paying extreme attention to detail. A manager who only works eight-hour days will not accomplish the objectives. H) SELF-CONFIDENCE AND WILLINGNESS TO TAKE A STAND To gain and keep the trust of all constituents in a turnaround, including the company's employees, the manager must be self-confident without being arrogant. That means the ability to transmit appropriate messages to appropriate audiences, a willingness to admit mistakes and the ability to offer input without insisting on being right. I) RESULTS-ORIENTED MINDSET A company in turnaround needs a manager who is committed to results first. The manager who elevates process above all impairs his ability to see problems, which is a problem in itself²especially when the company's procedures are likely part of what got it into trouble in the first place. J) RELIABILITY A manager who works reliably under pressure to produce timely, accurate information and is willing to do whatever is necessary to bring about results is invaluable. The right manager not only wants change, but also can help set the ball in motion. ³ III.4.4 MY ANALYSIS There are some qualities a manager must possess in order to be effective: A) SKILLS A manager should posses the basic key knowledge skills like conceptual, technical and human skills to be more effective. B) GOOD LEADERSHIP SKILLS A manager must have excellent leadership qualities in order to motivate his staff. He must have leadership qualities to work wit the team members, and also behave like their senior. C) PROBLEM SOLVING ABILITY A manager must be bale to solve all the types of problems. Whether crisis, non-crisis or opportunity. A manager must be able to handle disastrous events. D) PRESENTIBILITY A manager must be presentable and pleasant looking. Most of the advertisements in the newspapers give an advertisement like ³Person with a present personality«.´ E) WRITING SKILLS A manager must be able to explain a problem, if not orally. However, this requirement is optional. Since, managers are involved in day-to-day operations and are less concerned with writing documents. F) EXCELLENT COMMUNICATION SKILLS A manager at any level in the organization needs to have excellent communication skills. He has to communicate upwards (his boss), lateral (people at his level) and downwards (his juniors). So he must be a good communicator. G) HONEST An effective manger must be honest enough to tell the truth and obey the laws. H) STATIC STATE OF MIND A manager must be able to work under tough pressures. There are situations where environment is intolerable, things are not suitable. I) ETHICS A manager must behave ethically. He should not be involved in illegal practices, which either harm him or his company in the long run. J) SELF CONFIDENCE & COURAGE A manager must be bold enough to take a stand and able to convey his views in a confident manner. III.5 ETHICAL MANAGEMENT PRACTICES III.5.1 IMPLICATION A manager must prefer the company¶s benefit over his individual benefit. He should be of the view that his interests are less important than the company¶s interests. A company should believe in ethics in order to run its business. Companies with poor ethical management practices lose their business as well as their position. III.5.2 EXPERT VIEWS III.5.2.1 CARTER McCanara, MBA, PHD in Human and Organization Development. "Ethics is Simply to Do What's Right" ³Business Ethics Literature is Often Far Too Simplistic -- So Many Leaders and Managers Think Business Ethics is Irrelevant So What is "Business Ethics"? The concept has come to mean various things to various people, but generally it's coming to know what it right or wrong in the workplace and doing what's right -- this is in regard to effects of products/services and in relationships with stakeholders. Wallace and Pekel explain that attention to business ethics is critical during times of fundamental change -- times much like those faced now by businesses, both nonprofit and for-profit. In times of fundamental change, values that were previously taken for granted are now strongly questioned. Many of these values are no longer followed. Consequently, there is no clear moral compass to guide leaders through complex dilemmas about what is right or wrong. Attention to ethics in the workplace sensitizes leaders and staff to how they should act. Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. Many people react that business ethics, with its continuing attention to "doing the right thing," only asserts the obvious ("be good," "don't lie," etc.), and so these people don't take business ethics seriously. For many of us, these principles of the obvious can go right out the door during times of stress. Consequently, business ethics can be strong preventative medicine. Anyway, there are many other benefits of managing ethics in the workplace. Two Broad Areas of Business Ethics A) Managerial mischief. Madsen and Shafritz, in their book "Essentials of Business Ethics" (Penguin Books, 1990) further explain that "managerial mischief" includes "illegal, unethical, or questionable practices of individual managers or organizations, as well as the causes of such behaviors and remedies to eradicate them." There has been a great deal written about managerial mischief, leading many to believe that business ethics is merely a matter of preaching the basics of what is right and wrong. More often, though, business ethics is a matter of dealing with dilemmas that have no clear indication of what is right or wrong. B) Moral mazes. The other broad area of business ethics is "moral mazes of management" and includes the numerous ethical problems that managers must deal with on a daily basis, such as potential conflicts of interest, wrongful use of resources, mismanagement of contracts and agreements. There are certain points: o Business ethics is now a management discipline. Business ethics has come to be considered a management discipline, especially since the birth of the social responsibility movement in the 1960s. In that decade, social awareness movements raised expectations of businesses to use their massive financial and social influence to address social problems such as poverty, crime, environmental protection, equal rights, public health and improving education. An increasing number of people asserted that because businesses were making a profit from using our country's resources, these businesses owed it to our country to work to improve society. Many researchers, business schools and managers have recognized this broader constituency, and in their planning and operations have replaced the word "stockholder" with "stakeholder," meaning to include employees, customers, suppliers and the wider community. The emergence of business ethics is similar to other management disciplines. For example, organizations realized that they needed to manage a more positive image to the public and so the recent discipline of public relations was born. Organizations realized they needed to better manage their human resources and so the recent discipline of human resources was born. As commerce became more complicated and dynamic, organizations realized they needed more guidance to ensure their dealings supported the common good and did not harm others -- and so business ethics was born. About 90% of business schools now provide some form of training in business ethics. Today, ethics in the workplace can be managed through use of codes of ethics, codes of conduct, roles of ethicists and ethics committees, policies and procedures, procedures to resolve ethical dilemmas, ethics training, etc. o Business ethics and social responsibility is the same thing. The social responsibility movement is one aspect of the overall discipline of business ethics. Madsen and Shafritz refine the definition of business ethics to be: 1) an application of ethics to the corporate community, 2) a way to determine responsibility in business dealings, 3) the identification of important business and social issues, and 4) a critique of business. Items 3 and 4 are often matters of social responsibility o Our organization is not in trouble with the law, so we're ethical. One can often be unethical, yet operate within the limits of the law, e.g., withhold information from superiors, fudge on budgets, constantly complain about others, etc. However, breaking the law often starts with unethical behavior that has gone unnoticed. The "boil the frog" phenomenon is a useful parable here: If you put a frog in hot water, it immediately jumps out. If you put a frog in cool water and slowly heat up the water, you can eventually boil the frog. The frog doesn't seem to notice the adverse change in its environment. o Managing ethics in the workplace has little practical relevance. Managing ethics in the workplace involves identifying and prioritizing values to guide behaviors in the organization, and establishing associated policies and procedures to ensure those behaviors are conducted. One might call this "values management." Values management is also highly important in other management practices, e.g., managing diversity, Total Quality Management and strategic planning. Some ethical management practices include: Trustworthiness: honesty, integrity, promise-keeping, loyalty Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance Responsibility: accountability, pursuit of excellence Caring: compassion, consideration, giving, sharing, kindness, loving Justice and fairness: procedural fairness, impartiality, consistency, equity, Equality, due process Civic virtue and citizenship: law abiding, community service, protection of environment´ III.5.2.2 SHRM MANUAL (SOCIECTY FOR HUMAN RESOURCE DEVELOPMENT) A)´ PROFESSIONAL RESPONSIBILITY Adhere to the highest standards of ethical and professional behavior. Measure the effectiveness of HR in contributing to or achieving organizational goals. Comply with the law. Work consistent with the values of the profession. Strive to achieve the highest levels of service, performance and social responsibility. Advocate for the appropriate use and appreciation of human beings as employees. Advocate openly and within the established forums for debate in order to influence decision-making and results. B) PROFESIOANL DEVELOPMENT Pursue formal academic opportunities. Commit to continuous learning, skills development and application of new knowledge related to both human resource management and the organizations we serve. Contribute to the body of knowledge, the evolution of the profession and the growth of individuals through teaching, research and dissemination of knowledge. Pursue certification such as CCP, CEBS, PHR, SPHR, etc. where available, or comparable measures of competencies and knowledge. C) ETHICAL LEADERSHIP Be ethical; act ethically in every professional interaction. Question pending individual and group actions when necessary to ensure that decisions are ethical and are implemented in an ethical manner. Seek expert guidance if ever in doubt about the ethical propriety of a situation. Through teaching and mentoring, champion the development of others as ethical leaders in the profession and in organizations. D) FAIRNAESS & JUSTICE Respect the uniqueness and intrinsic worth of every individual. Treat people with dignity, respect and compassion to foster a trusting work environment free of harassment, intimidation, and unlawful discrimination. Ensure that everyone has the opportunity to develop their skills and new competencies. Assure an environment of inclusiveness and a commitment to diversity in the organizations we serve. Develop, administer and advocate policies and procedures that foster fair, consistent and equitable treatment for all. Regardless of personal interests, support decisions made by our organizations that are both ethical and legal. Act in a responsible manner and practice sound management in the country (is) in which the organizations we serve operate. D) USE OF INFORMATION Acquire and disseminate information through ethical and responsible means. Ensure only appropriate information is used in decisions affecting the employment relationship. Investigate the accuracy and source of information before allowing it to be used in employment related decisions. Maintain current and accurate HR information. Safeguard restricted or confidential information. Take appropriate steps to ensure the accuracy and completeness of all communicated information about HR policies and practices. Take appropriate steps to ensure the accuracy and completeness of all communicated information used in HR-related training. ³ III.5.3 MY ANALYSIS The following ethical management practices should be followed by the management. A) OBEYING THE LAW Management must always follow the law. B) TELLING THE TRUTH At any cost, never hesitate to tell the truth. C) SHOWING RESPECT FOR SENIORS & JUNIORS Show respect for juniors, seniors and the people outside the organization. D) SHOWING RESPONSIBILITY Being responsible and not taking things for granted is the best ethical management practice. E) EQUITY A manger must treat the people (outsider) and his juniors with equity and justice. He should believe in fair compensation. F) ETHICS A manager must behave ethically. He should not be involved in illegal practices, which either harm him or his company in the long run. G) NO DEVIATION FROM POLICIES OF COMPANY These describe the job constraints of a manager. A manager must not disobey the policies laid down by the upper level people. If he is having some problems, he can straightway go to any of his seniors or bring the matter into their notice. H) NO NEPOTISMS A manager must be non partial. He should not favor any employee on a friendship basis. He must mot hire people on the basis of relationships. I) UNBIASED APPROACH A manager must show an unbiased attitude towards different employees, whether his juniors or seniors. J) ORGANIZATION¶S BENEFIT IS MORE IMPORTANT A manager must prefer the company¶s benefit over his individual benefit. He should be of the view that his interests are less important than the company¶s interests. IV MY OVERALL ANALYSIS IV.1 OVER ALL ANALYSIS REGARDING THE CASE STUDIES IV.1.1 CASE STUDY 1 The case study 1 shows the management functions like planning, organizing, leading and controlling, performed by a banker. She is committed to her work. She takes pride in doing her work. She is following some managerial work methods and agendas to carry on her work. She is playing different managerial roles (Mintzberg).She is engaged in day to day activities, her day is really hectic. She starts early in the morning and keeps doing her job till the end. The case study aims at providing a close view of the life of a bank manager. The activities performed by the bank manager and their management. How a bank manager does all this? The name of the bank manager is Marjorie Wong Gill-more. Her over all busy routine, her relationships with her customers, her staff people and outsiders. It discusses the managerial roles played by her, her technical, conceptual and human skills, her managerial work agendas and methods. It gives us a description of the way she is doing these things. The way she is implementing all these. IV.1.2 CASE STUDY 2 The second case study tells the managerial functions performed by George Fisher and his efforts towards making Kodak a remarkable company. The case study aims at describing the role of the CEO in making the company prosperous. It further includes his management skills, his agendas, and his work methods. His marketing plan, the innovation he has brought, the way Kodak has changed its culture. It identifies different managerial roles played by Fisher. It also discusses the efforts he has made. His over all contributions in making the company prosperous. What motivation he has offered to his employees. How his efforts will work? IV.1.3 CASE STUDY 3 The third case study pictures different viewpoints regarding management. It discusses different management theories found at Ford Motor Co. It discusses how the company is moving from a closed system to an open system. It provides a comparison of the eras when EDSEL was introduced and the way Ford Motor is operating today. The case study aims at focusing the changes that have taken place at ford Motor. It further gives a snapshot of the stages it has gone through during the past 200 years. It gives an evolutionary viewpoint of different things, which have taken place in terms of management style, organizational structures, technological changes and a much informal control. The way they have provided a security to its employees by making them involved in decision making. It specifies the way company has proved itself, made advancements and tired to get a market share. What are their future aims and objectives? IV.1.4 CASE STUDY 4 The fourth case study is about Siemens. It gives an idea of hoe the company is moving into a new generation. The way different people are hired and trained at Siemens. The whole case study aims at giving a look of the way Siemens has entered the world of electronics business. It portrays a picture of how Siemens is evolving into an open system. The way it is hiring new and fresh people to carry out business tasks and enter the new markets. The selection and the training given to new batch of mangers, the way they go through different tests, all is given in the case study. The role of CEO of the company in making it a world class leader. Siemens has a goal to enter and dominate electrics business market. The way they are behaving flexibly to give more output. IV.1.5 CASE STUDY 5 The fifth case study is about Xerox Company. The case study aims at showing different stages through which Xerox went through. Different people like Joseph C, Wilson, Peter McCullough, David Kearns and Paul Allaire worked as the CEO¶s for the company. The way they made changes, encouraged innovations and technology is shown in the case study. The roles they have played in getting a market share and making the company prominent. The way they have worked out on new things and emerged new cultures at Xerox. How the company kept on improving its products and services during the eras of these four CEO¶s. The major elements of task and mega environment of the company. The external micro, macro and internal environment the company inclines to have. IV.1.6 CASE STUDY 6 The sixth case study is about Software AG. It is a software house providing IT based solutions to its customers. It was caught in a trap of cultural conflicts. The case study aims at telling how Software AG rated itself, what management team is running it. It tells about the internal organizational cultures of the two groups. It tells that the two groups, German Headquarter and US subsidiary, have totally different cultures. The approach followed by German Software AG was static, evolutionary and less customer oriented. The approach followed by the US Software AG was highly revolutionary and customer oriented. They have cultural differences among themselves. They are following two different approaches towards their services and customers. Due to these clashes, a senior person of the company resigned. IV.1.7 CASE STUDY 7 The seventh case study is about a manager¶s career dilemma. The way he tried to make up his future and avoided some of the practices, he thought were unethical at the company he worked. The way he got himself into many things and thought that he was doing wrong and was being treated like a commodity. The whole case study shows the way a 39 year old manager went throughout his career. The ethical issues he faced in his overall employment career. The problems he faced at different companies and showing a picture of the one, he faced at the company he worked most recently. The pricing problem, which he thought was illegal and unethical. His discussions with other people, and the way he retaliated to all these dilemmas. IV.1.8 CASE STUDY 8 The eighth case study is about Rochester Corporation. The way a person pointed out to a hill of waste materials left after manufacturing. The owner got a view of it. He noticed it and called up two of his senior employees to get their viewpoint about the waste hill. The whole case study aims at predicting how Rochester Company went through different stages. Its evolution in its products. It has encountered an unethical situation. The waste left after product manufacturings are hazardous. The owner has got a view of it. He tries to solve this problem by engaging two of his executives. He discusses the problem with them and asks for their opinions as well. IV.1.9 CASE STUDY 9 The ninth case study is about the launch of USA Today. The problems they had to go through during the launch of the paper. The whole case study aims at showing the birth of USA Today and the problems it had to go through its entire life cycle. It was launched. It was successful for a period of time but went into recession. It started getting negligible profits. There were clashes among the top level executives. Due to poor leadership and ineffective decision making process, USA Today wasn¶t able to protract itself. IV.1.10 CASE STUDY 10 The tenth case study is about Shell. The way Shell is handling crisis, non crisis and opportunity problems. The way they are managing to get to a divergent way of thinking. The case study aims at demonstrating the ways shell is dealing with different types of crisis, non crisis and opportunity problems. The way it is making profit and generating revenue. What mechanisms it is following in order to tackle the types of problems. To what extent these approaches are helpful. How they are dealing with uncertainties and risks? How Scenarios analysis helps them in decision making? The way they are dealing with the typical types of risks that are subject to oil companies. IV.2 MY OVER ALL ANALYSIS ABOUT THE ARTICLES IV.2.1 ARTICLE 1 ³MANAGEMENT AND ROLE OF IT´ The analysis regarding ³MANAGEMENT & ROLE OF IT´ is that during the past few years, IT has played major role in the management and business. The result is the evolution of MIS management information systems. These systems help managers provide managers with the tools for organizing, evaluating and efficiently running their departments. An MIS may play a strategic or a decisional role inside an organization. This is one of the major roles that Information Technology has played in management. Those employees who have IT knowledge get better jobs. In most places of business, a computer is standard. In banks, computers are to look up the account information. Customer accounts are computerized. Databases used are computerized. At universities, an online form submission or network is maintained. About ninety percent of the companies or organizations go for a computer literate staff in order to perform day-to-day operations efficiently and effectively. Managers who have more IT knowledge get a better job. With the evolution in technology, companies like to hire staff which is intouch with IT. Some new forms of managers in the past few years include DBA Data base Admin manager, Network administrator, IT manager and so forth. Well, IT is a very vast topic to be discussed. It includes databases, networks, hardware, telecom, development and many more. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology). IV.2.2 ARTICLE 2 ³DIVERSITY IN MANAGEMENT´ The analysis about ³DIVERSITY IN MANAGEMENT¶ is that it covers a large area. The term ³diversity´ has several meanings. Diversity in management includes diversity for gender, workplace, location, age, demographics, culture, norms, values and shared beliefs. When most of the companies come to Pakistan, they have to diffuse themselves (to some extent) in order to be successful. From a marketing point of view, diversity in management is important because a firm has to do a business in a market. It has to know the psychology, beliefs and values of the customers they have in that culture. If they fail to do so, they will not be able to carry with their business in that particular area. A main reason for joint ventures and acquisitions to fail is lack of good management. Poor leadership is followed and companies fail in their projects. Diversity in management can be applied to minorities as well. There are certain companies in Pakistan where Christian workers are preferred. The management cares more for their values and norms. There are certain places in Pakistan where non Muslims are not allowed. For example, a nonMuslim wishing to work at KRL laboratories may not be allowed to do so. Diversity in management can also be applied to gender. There are certain places where females are not allowed. For example, in Pak Army, a lady can not be selected as a commando). This thing has even improved. General Duty Pilots used to be men. A little no. of females joins this profession. But now the first batch of female GDP¶s has been passed out. When two cultures do not meet, even the projects fail due to poor management. When there is a strong cultural clash between the two entities. Case study 2, Chapter 3 Software AG, is an example of this. The two cultures were different. Their approach was totally different. So, one of the seniors resigned due to these disagreements. IV.2.3 ARTICLE 3 ³CENTRALIZATION VS DECENTRALIZATION´ The analysis about ³CENTRALIZATION VS. DECENTRALIZATION´ is that it is a dilemma. Many firms form a centralized approach and tend to perform well. It is so, because centralization approach has a definite objective. The workers are working hard to achieve a goal. This approach is useful for a long term plan. The workers are given some directions and they have to perform under those. This approach fails where a rapid decision making or disastrous management is involved. The people at a lower level might have to take their own decisions. At times the situations may not tally with the decisions made by the upper management. For example, there was a case when people were taking live calls. One of the employees started feeling bad. He started spitting out blood. The CEO and owner of the company were not there. All the work was immediately stopped. He was rushed to a nearby hospital and the CEO and the owner were informed the next day. There are places where a decentralized approach would not work. For example, if 100 employees work for a company, and each one of them has a decision making capability of deciding his own salary, this would be a un-implement able job. This criterion has been decided by some top level person and he has to handle it. So the employees have to listen to him. However, if they are not satisfied, they can tell him. But there shouldn¶t be any decision-making process. Many firms in their initial stages adopt a centralized approach. As the company is mature and starts earning a big profit, they slowly start moving towards a decentralized approach. Ford Motor Company is an example of this. When the company initially started, their approach was centralized. With the passage of time, the employees were given some authority in decision making. IV.2.4 ARTICLE 4 ³QUALITIES OF AN EFFECTIVE MANAGER´ The analysis about the ³QUALITIES OF AN EFFECTIVE MANAGER´ is that management is something which is organized, well placed and ordered. A good manager must be able to communicate effectively. He must be having good technical, human and conceptual skills. H need not involve in any illegal practices. He should posses leadership qualities, and be able to maintain a network of contacts. . But managerial skills are required at each level of an organization. A bad manager can cause damage himself as well as to his company. If a manager does possess efficient problem solving capacity, he is not able to handle uncertainties. A company might go through many problems, a manager must be able to solve and sort them out. If he lacks leadership skills, he is not able to interact with the people inside as well as outside the organization. There are many banks in Pakistan, where females go not prefer visiting. National Bank of Pakistan is an example of it. Managers are working ineffectively and things are always late. In contrast, an effective manager is able to make rapid decision making, communicating effectively and having a vision. For example, many organizations went for quick decision making when earth quakes disaster took place in Pakistan. Their manager and top level people went for quick decision making. Self-confidence, ability to take extra pressure and having a vision, make up a good manager. These are what, qualities of an effective manager. Case study 1 Chapter 1,´A Day in The Life of a Bank Manager´, reveals most of the qualities of an effective manager. Case study 2 of the same, ³Fisher at Kodak´ shows its readers most of the qualities a good manager should be having. A good manager will possess all the qualities and can be an asset to his organization. IV.2.5 ARTICLE 5 ³ETHICAL MANAGEMENT PRACTICES´ The analysis about ³ETHICAL MANAGEMENT PRACTICES´ is that ³ethics´ is a broad term to be used. Ethics mean moral values, moral code or moral principles. It is something that one might think wrong. Ethics is simply doing what is right and eliminating what is wrong. Good management practices, not involving in illegal activities, doing good to others and remaining positive, all show ethical management practices. It also involves telling the truth and obeying the law. Things which are not to be done should not be done at any cost. Being responsible, respecting others, treating others with equity and justice are also some of the ethical management practices. As far as telling the truth is concerned, it is again a dilemma. Most of the organizations hide business secrets and hide the information which might be useful to others. For example, when Army officers are selected on deputation in foreign countries, they go through Ministry of Foreign Affairs. They are not telling the truth. But since it is for the sake of their country, they have to do it. Following some ³code of conduct´ is also an ethical management practice. Case study 1, Chapter 4 ³Tony¶ dilemma´ is also reflecting how ethical management practices are violated to some extent. Case study 2 ³Rochester Corp´ also reflects how the owner of the company tries to resolve an ethical issue by engaging in conversation with two of his senior employees. V FINDINGS V.1 THE FINDINGS FOR THE CASE STUDIES V.1.1 CASE STUDY 1 Unrelenting pace at bank Brevity, variety and fragmentation at the bank Verbal contacts of the Banker Planned effective management Good managerial skills of banker Good over all performance Overworked employees Less technical support Difficult Time Management V.1.2 CASE STUDY 2 Good planning at Kodak More involvement of CEO good managerial skills of the CEO CEO¶s ability to position and reposition Kodak Fewer experts at Kodak Product oriented market approach ( less customer satisfaction) Prosperous economic stage Total Quality Management at Kodak V.1.3 CASE STUDY 3 Ford Motor moving from closed to open System Operations management at Ford Negative entropy at Ford Synergy of System Moving from sales oriented to customer oriented marketing Influence of Japanese Theory on Ford Co. Moving from centralized to decentralized approach V.1.4 CASE STUDY 4 Contingency Theory adopted in training workers Siemens is an open system Fast pace career No chain of command Negative Entropy at Siemens Behavioral science approach No soldiering of workers V.1.5 CASE STUDY 5 High Uncertainty at Xerox Natural Selection model Using adaptation to manage environmental factors High goal Able to position Prosperous economic cycle V.1.6 CASE STUDY 6 High Cultural clash between the two Highly dynamic business entity Natural selection model Revolutionary approach at US Software AG Evolutionary approach at German Software AG V.1.7 CASE STUDY 7 Immoral management at Tony¶s firm Violation of laws, to some extent Lacking planned management Neglecting ethical responsibilities No specific code of ethics V.1.8 CASE STUDY 8 Evolution in products of Rochester Not a vanguard Company No opinion surveys Moving from amoral to moral management V.1.9 CASE STUDY 9 ³Yellow press´ at USA Today Poor decision making Poor leader ship Biased staff Recession stage The Satisfying model Confused ways of act V.1.10 CASE STUDY 10 Good crisis handling at Shell Good non crisis handling Able to get an opportunity Scenario based analysis More programmed decisions No Garbage can modeling Adopted a rational model High rating of Shell V.2 THE FINDINGS FOR THE ARTICLES V.2.1 MANAGEMENT AND ROLE OF IT The findings for the first topic ³Management & role of IT´ are that It has played a major role in the past few years. The role it has played is: functional role decisional support role performance monitoring role strategic support role The Chief technology officers, for example, evaluate the newest and most innovative technologies and determine how these can help their organization. The chief technology officer, who often reports to the organization¶s chief information officer, manages and plans Management information systems (MIS) directors manage information systems and computing resources for their entire organization. They may also work under the chief information officer and plan and direct the work of subordinate information technology employees. These managers oversee a variety of user services such as an organization¶s help desk, which employees can call with questions or problems. MIS directors also may make hardware and software upgrade recommendations based on their experience with an organization¶s technology. Project managers develop requirements, budgets, and schedules for their firm¶s information technology projects. They coordinate such projects from development through implementation, working with internal and external clients. V.2.2 DIVERSITY IN MANAGEMENT The Diversity in Management evolves when different groups or operating unite come to some other place for performing their operations. The term ³diversity´ encompasses a number of factors. These factors include workplace diversity, ethnic groups, genders, demographics, age, cultures, traditions and norms. Diversity refers to the ways that people in organizations differ. That sounds simple, but defining it more specifically is a challenge because people in organizations differ in a great many ways race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, and more. There is also the fact that diversity not only involves how people think of others and how this affects their interaction but how they conceive of themselves. The findings for diversity in management say the diversity can be in: o o o o o o o o o o o race culture sex subculture demographics personality style ethics work places work groups psychology V.2.3 CENTRALIZATION VS. DECENTRALIZATION The centralized system has certain benefits: Standardization can be enforced cost saving advantages Ability to easily align employee objectives with corporate objectives. Simplified reporting mechanisms (from one system versus many). Accuracy in reporting mechanisms (from one system versus many). The decentralized system has the following benefits: V.2.4 increased local control at lower level ability to manage more content ability to enhance learning ability to enhance good training QUALITIES OF AN EFFECTIVE MANAGER A manager must be a good communicator A manager must have a vision V.2.5 A manager must have skills A manager must be enthusiastic A manager must be efficient A manager must be a good problem solver A manager must a good decision maker A manager must be sympathetic ETHICAL MANAGEMENT PRACTICES Always speak truth Respect others Treat others with equity and justice Be a good professional Be responsible Do not engage in unethical activities Do not misuse the information Obey the law Be tactful Believe in the value of ethics Take a stand where necessary Do not take others for granted Be considerate Be insensitive Maintain a level of professionalism VI RECOMMENDATIONS VI.1 RECOMMENDATIONS REGARDING CASE STUDIES VI.1.1 CASE STUDY 1 Wong Gill more should have more employees at the branch More technical support at the bank VI.1.2 CASE STUDY 2 more experts at Kodak customer oriented market approach should be adopted VI.1.3 CASE STUDY 3 More innovations should be encouraged VI.1.4 CASE STUDY 4 Fast pace career sholud be chamged to staic one VI.1.5 CASE STUDY 5 No recommendations VI.1.6 CASE STUDY 6 a hybrid approach should be adopted VI.1.7 CASE STUDY 7 tony should look for a new job individual executive approach should be followed management should consider social responsibility ethics committee to be formed VI.1.8 CASE STUDY 8 a feasibilty study shloud be conducted a temporaray task force to be formed VI.1.9 CASE STUDY 9 good management practices should be introduced group decision should be encouraged V.1.10 CASE STUDY 10 No recommendations VI.2 RECOMMENDATIONS REGARDING ARTICLES My suggestions about ³IT in management´ is that new technologies should be adopted. So that business people are able to run and manage their business in a much more effective manner. COBOL was a language designed for business applications. There are certain expert systems which perform the job of a human expert in a much better way. In a situation, where working for human beings can be dangerous, an expert system can work. ³XSITE´ is an expert system that configures consumers¶ site for DEC computers. Diversity management is a huge topic to be discussed in detail. Firms when come to other companies for doing business should take it an important thing to manage diversely among various groups. Proper training should be given to the employees to understand the culture and other values associated with a country. Free training should be providing d to workers to engage in such behavior. Some Foreign universities provide free training and language learning opportunities to some students. Al Falah Bank is providing training in ³management ³at Karachi campus. Some institutes like NUST, offer diploma courses in management and different types of management. Some organizations hold seminars regarding management. Where standards are to be met; a centralized approach should be followed. Where innovations, decision making and learning are involved, a decentralized approach should be used. Centralized versus decentralized? The most effective enterprise learning management and human capital development system is the right combination of both. A manager should posses the basic key knowledge skills like conceptual, technical and human skills to be more effective. He must have excellent leadership qualities in order to motivate his staff. He must have leadership qualities to work wit the team members, and also behave like their senior. He must be able to solve all the types of problems. Whether crisis, non-crisis or opportunity. He must be able to handle disastrous events. He must be presentable and pleasant looking. Most of the advertisements in the newspapers give an advertisement like ³Person with a present personality«.´ A manager must be able to explain a problem, if not orally. However, this requirement is optional. Since, managers are involved in day-to-day operations and are less concerned with writing documents. A manager at any level in the organization needs to have excellent communication skills. He has to communicate upwards (his boss), lateral (people at his level) and downwards (his juniors). So he must be a good communicator. An effective manger must be honest enough to tell the truth and obey the laws. A manager must be able to work under tough pressures. There are situations where environment is intolerable, things are not suitable. A manager must behave ethically. He should not be involved in illegal practices, which either harm him or his company in the long run. A manager must be bold enough to take a stand and able to convey his views in a confident manner. Some ethical management practices include: Trustworthiness: honesty, integrity, promise-keeping, loyalty Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance Responsibility: accountability, pursuit of excellence Caring: compassion, consideration, giving, sharing, kindness, loving Justice and fairness: procedural fairness, impartiality, consistency, equity, Equality, due process Civic virtue and citizenship: law abiding, community service, protection of Environment´ A proper training should be given to the employees to understand a ³CODE OF CONDUCT´ and a ³CODE OF ETHICS´ document should by some senior person or some advisory consultant. So that the employees believe in the value of ethics. They have a clear knowledge of what to do and what not to do.