I) Explain why there is no one best way to manage in all situation?

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- Approach that says organizations are more effective when they are structured to fit the
demands of the situation and when the structure is aligned with the strategies and internal
actions of the organization.
- There is no one best way to manage in all situations because every situation is unique and
requires a different approach. Here are a few reasons why:

1. Diversity of individuals: A skilled manager understands that people have different personalities,
different strengths, and different weaknesses. Something that works for one person might not work
the same way for another. As a result, managers need to be flexible and adaptive in their
managerial style in order to meet the unique needs and peculiarities of every team member.

2. Varying goals and objectives: Different situations may have different goals and objectives.
For example, managing a crisis situation requires quick decision-making and assertive leadership,
while managing a long-term project may require more strategic planning and collaboration.
Managers need to be able to adjust their approach based on the specific goals and objectives of
each situation.

3. Context and environment: The management approach can be significantly impacted by

external factors related to a situation. Elements such as the culture within an organization,
accepted practices within the industry, and prevailing market conditions can differ, thus
demanding a distinct management strategy to achieve desired outcomes. In order to be successful,
a manager must take into account these contextual factors and modify their approach accordingly.

4. Changing dynamics: Situations have the potential to develop and transform as time passes,
and strategies that were successful in the past may not yield the same results in the future.
Competent managers consistently keep track of and evaluate the situation, and are willing to test
out new methods and adapt their management style accordingly.

5. Individual and team development: Managers should take into account the development
requirements of their team members as they grow and progress. As individuals develop, their
needs and expectations may alter. Managers should be mindful of this and offer the essential
assistance and direction to facilitate the realization of their team members' maximum capabilities.

In summary, the ability to be a successful manager requires the ability to be flexible and
adaptable as well as having a deep understanding of the unique dynamics and goals of every
situation. There is no one management style that works better in all situations, which
emphasizes the fact that there isn't a single approach that works best in all situations.
II) What are four mechanism of succsess for measurement-managed firms and 4 barries to
effective measurement?
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- 4 mechanism of success
Strategic and Results Oriented
They Are Strategic and Results Oriented: Control systems support strategic plans and are
concentrated on significant activities that will make a real difference to the organization. Thus,
when managers are developing strategic plans for achieving strategic goals, that is the point at
which they should pay attention to developing control standards that will measure how well the
plans are being achieved.

Timely, Accurate, and Objective

They Are Timely, Accurate, and Objective: Good control systems - like good information of any
kind - should be
 Timely - meaning when needed. The information should not necessarily be
delivered quickly, but it should be delivered at an appropriate or specific
time, such as every week or every month. And it certainly should be often
enough to allow employees and managers to take corrective action for any
deviations.
■ Accurate - meaning correct. Accuracy is paramount, if decision mistakes are to
be avoided. Inaccurate sales figures may lead managers to mistakenly cut or
increase sales promotion budgets. Inaccurate production costs may lead to
faulty pricing of a product.
■ Objective - meaning impartial. Objectivity means control systems are impartial
and fair. Although information can be inaccurate for all kinds of reasons
(faulty communication, unknown data, and so on), information that is not
objective is inaccurate for a special reason: It is biased or prejudiced. Control
systems need to be considered unbiased for everyone involved so that they will
be respected for their fundamental purpose - enhancing performance.

Realistic, Positive, and Understandable and Encourage Self-Control Flexible

They Are Realistic, Positive, and Understandable and Encourage Self Control: Control
systems have to focus on working for the people who will have to live with them. Thus, they
operate best when they are made acceptable to the organization’s members who are guided by
them. They should:

■ Be realistic: They should incorporate realistic expectations. If employees feel

performance results are too difficult, they are apt to ignore or sabotage the
performance system.

■ Be positive: They should emphasize development and improvement. They

should avoid emphasizing punishment and reprimand.
■ Be understandable: They should fit the people involved, be kept as simple aspossible, and
present data in understandable terms. They should avoid complicated computer printouts and
statistics.

■ Encourage self-control: They should encourage good communication and

mutual participation. They should not be the basis for creating distrust between
employees and managers.

They Are Flexible Control: Systems must leave room for individual judgment, so
that they can be modified when necessary to meet new requirements.

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1. Too Much Control: Some organizations, particularly bureaucratic ones, try to
exert too much control. They may try to regulate employee behavior in everything from
dress code to timing of coffee breaks. This leads to micromanagement, which frustrates
employees and may lead them to ignore or try to sabotage the control process.

2. Too Little Employee Participation: As highlighted by W. Edwards Deming,

which was discussed in Chapter 2, employee participation can enhance productivity.
Involving employees in both the planning and the execution of control systems can
bring legitimacy to the process and heighten employee morale.

3. Overemphasis on Means Instead of Ends: We said that control activities should be strategic
and results oriented. They are not ends in themselves but the means to eliminating problems. Too
much emphasis on accountability for weekly production quotas, for example, can lead production
supervisors to push their workers and equipment too hard, resulting in absenteeism and machine
breakdowns. Or it can lead to game playing - “beating the system” - as managers and employees
manipulate data to seem to fulfill short-run goals instead of the organization’s strategic plan.

4. Overemphasis on Paperwork: A specific kind of misdirection of effort is management

emphasis on getting reports done, to the exclusion of other performance activity. Reports are not
the be-all and end-all. Undue emphasis on reports can lead to too much focus on quantification of
results and even to falsification of data. Note that going paperless, while laudable, does not reduce
the risk of over-focusing on reporting.

5. Overemphasis on One Instead of Multiple Approaches: One type or method of control may
not be enough. By having multiple control activities and information systems, an organization can
have multiple performance indicators, there by increasing accuracy and objectivity. A recent study
found that control systems affect each other and thus must be integrated.
III) Distinguish among the 6 areas of organizational control: physical, human, information,
financial, structural and cultural.
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1. Physical Control: The Physical Area includes buildings, equipment, and tangible
products.

2. Human Resources Area: The controls used to monitor employees include personality tests and
drug testing for hiring, performance tests during training, performance evaluations to measure
work productivity, and employee surveys to assess job satisfaction, engagement, and leadership.

3. Information Control: Information control is the management of data, information systems,

and knowledge in an organization. It includes a range of measures implemented to protect
confidential data, ensure data integrity and dependability, control information sharing, and
implement security protocols. Using information effectively to support decision-making and
maintain the organization's competitive advantage is the main goal of information control.

4. Financial Control: The concept of financial control involves the effective management of
financial resources, budgets, and performance within an organization. It includes activities such as
planning and budgeting, reporting financial information, controlling expenses, analyzing costs,
and managing financial risks. Financial control plays a crucial role in ensuring the efficient
allocation of resources, effective cost management, and achievement of financial goals.

5. Structural Control: Structural control refers to the arrangement and configuration of an

organization. It encompasses establishing chains of command, defining duties and obligations,
developing work procedures, and designing methods for decision-making. The main objective of
structural control is to enhance the organization's framework in order to facilitate efficient
communication, coordination, and the enforcement of responsibilities.

6. Cultural Control: The act of directing and influencing the norms, values, beliefs, and
behavioral patterns that are present in an organization is known as "cultural control.". This
includes the organization's common values, its cohesive mission, and its idealized culture. Cultural
control is important for directing employee conduct, encouraging moral behavior within the
company, and forming the culture of the workplace as a whole.

Although each area of control has its own distinct focus, they are interconnected and
collaborate with one another to guarantee efficient organizational performance and the
accomplishment of objectives. Successful control systems merge these areas to establish a
unified and well-administered organization.
IV) Why companies expand internationally? How companies expand internationally?
PDF 165

1.Availability of Supplies
2.New Markets
3.Lower Labor Costs
4.Access to Finance Capital
5.Avoidance of Tariffs and Import Quotas

Companies expand internationally for various reasons, including:

1. Market growth and opportunities: Expanding to international markets allows companies to
tap into new customer bases and access larger market opportunities. It helps to diversify revenue
streams and reduce dependency on a single market.

2. Increased profit potential: International expansion can lead to increased profitability by

accessing new markets with higher demand for products or services. It may also provide cost
advantages such as lower production costs, favorable exchange rates, or tax incentives.

3. Competitive advantage: Companies expand internationally to gain a competitive edge over

their rivals. By entering new markets, they can capture market share before competitors do or gain
access to resources and capabilities that are not available domestically.

4. Resource acquisition: International expansion can provide access to key resources such as raw
materials, talent, technology, or intellectual property. It allows companies to leverage the strengths
of different regions and diversify their supply chains.

5. Economies of scale: Expanding internationally enables companies to achieve economies of

scale by spreading fixed costs over a larger customer base. This can lead to cost savings in
production, marketing, and distribution.

Companies employ various strategies to expand internationally, including:

1. Exporting: This involves selling products or services to customers in foreign markets from the
company's home country. It can be done directly or through local distributors.

2. Licensing and franchising: Companies license their intellectual property, brand, or business
model to foreign partners who pay royalties or franchise fees in return. This allows for rapid
market entry with minimal investment.

3. Strategic alliances and joint ventures: Companies form partnerships with local firms in target
markets to combine resources, knowledge, and market presence. This approach helps mitigate
risks and gain local market insights.
4. Foreign direct investment (FDI): Companies establish a physical presence in a foreign market
by setting up wholly-owned subsidiaries or acquiring existing local companies. FDI provides
greater control over operations but involves higher investment and risks.

5. Online and e-commerce: The digital age has enabled companies to expand internationally
through online sales and e-commerce platforms. This approach allows for global reach with
relatively lower costs and infrastructure requirements.

The specific approach to international expansion depends on factors such as market

characteristics, industry dynamics, competitive landscape, regulatory environment, and
available resources. Companies must conduct thorough market research, analyze risks, and
devise a suitable entry strategy to ensure successful international expansion.

VI) Explain the difference between objective and subjective performance appraisails, and
describe 360-degree feedback appraisal, forced ranking, and formal versus information
performance feedback?

Objective and subjective performance appraisals are two different approaches used to
evaluate an employee's performance:

1. Objective performance appraisal: This type of appraisal relies on measurable criteria and
tangible data to assess an employee's performance. It focuses on quantifiable factors such as sales
numbers, production output, or attendance records. Objective appraisals are typically more reliable
and less biased as they are based on factual evidence and avoid personal opinions or perceptions.

2. Subjective performance appraisal: In contrast, subjective appraisals rely on the judgment and
opinions of the appraiser rather than quantifiable data. This type of assessment focuses on
subjective qualities like communication skills, teamwork, or problem-solving abilities. Subjective
appraisals can be more prone to bias as they are influenced by the personal opinions and
interpretations of the appraiser.

Now let's explore the following performance appraisal methods:

1. 360-degree feedback appraisal: This method involves gathering feedback from multiple
sources, including superiors, peers, subordinates, and even external stakeholders. The feedback is
collected anonymously and provides a comprehensive view of an employee's performance from
various perspectives. The 360-degree feedback appraisal helps evaluate both job-related skills and
behavioral competencies, providing a well-rounded assessment.

2. Forced ranking: Also known as "rank and yank" or "stack ranking," forced ranking requires
managers to rank employees from top to bottom based on their performance. The goal is to create
a performance distribution within the organization, distinguishing high performers from low
performers. However, this method can foster unhealthy competition and may lead to negative
consequences such as demotivation and friction among employees.
3. Formal versus informal performance feedback: Formal feedback refers to scheduled and
documented performance discussions between a manager and an employee. These discussions
often occur annually or semi-annually and involve setting goals, reviewing performance, and
discussing areas of improvement. Informal feedback, on the other hand, occurs more
spontaneously and is provided on a day-to-day basis. It can be shared in casual conversations,
during team meetings, or through regular check-ins. Informal feedback allows for more immediate
and timely guidance.

Both formal and informal feedback are essential for employee development. While formal
feedback provides structure and comprehensive evaluations, informal feedback gives real-time
guidance and helps reinforce positive behavior or address issues promptly.

In summary, objective and subjective appraisals differ in their reliance on quantifiable data
versus personal judgment. 360-degree feedback involves gathering input from multiple
sources, forced ranking ranks employees based on performance, and formal versus informal
feedback represents structured annual reviews versus ongoing, informal communication.
Each method has its benefits and limitations, and organizations should choose the most
appropriate approach based on their specific needs and requirements.