changes brought by technological development in your locality

In the history of science and technology, there is a deep rooted term which have very great role for human civilization. There are many incredible changes in the world. The historiography of technology, we can get socio-economic, education, transportation, media and various three words are in one by the help of technological achievement. From air, land and water, these words are deep rooted and developed drastically that is the age of science and technology. This is the movement of media or technology so definitely, it is the 21^st century and it has various achievements for human civilization.

In the context of my locality, people are fulfilled their needs by the help of technological developments such as telephone, computer, transportation, education and the like. In the human civilization, science and technological developments are systematized and made advanced in all disciplines therefore in my locality; it has a great role to make standard life of modern people. In the world, it has been established incredible role and similarly my locality has been established incredible role and similarly my locality has been standardized by technological developments that have brought modern and standard living style. Although, it has also drawbacks but there are various achievements from technological developments.

In this way, I think that technological developments in my locality is flooded from advanced media, computer, education, electronic devices and luxurious life by using modern techniques or 21^st century science and technological development. Apart from this, the technological development is a great matter to develop and to make better life at the present scenario in my society.

Group Decision Making

The process of making decision by involvement of group rather than a single individual is known as group decision making. Groups play an important role in decision-making in organizations. Most of the decisions in organizations are made in a group context because they offer the advantages of experience, wide knowledge, and mutual support. Groups such as committees, study teams, task forces, and review panels are especially useful for non-programmed decision because these decisions are complex and few individuals have all the knowledge and skills necessary to make the best decisions.

Advantages

1. Group can have more complete information, experience, and perspective that is lacking in a single individual.
2. A group can identify more alternative than individual.
3. A decision made by group is generally accepted by all.
4. Decision made by a group is considered as more legitimate then the decision made by a person.
5. Group decision making is suitable for non-programmed decisions.

Disadvantages:

1. Group decision making is a time consuming process.
2. In group decision making, there is chance of dominance over minority by the majority.
3. One person can not be held responsible for the wrong decision.
4. May create conflict between supporters of different views.
5. Requires good group management and communication skills.

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Quantitative Tools for Decision Making

1. Linear Programming
2. Simulation
3. Break- Even Analysis
4. Queuing Theory: This theory is also known as waiting-line theory. This theory is basically used to manage waiting lines. When people wait in a line to get particular service, they form a queue. This theory is a process of calculating probability for determining the number of person who is waiting in a queue to get service. With the help of this technique the organization will be able to decide about the allocation of resources so that all customers who are waiting in a line can be satisfied.
5. Game Theory:  This theory assumes that business situation has great similarity with game. It explains how rational people behave in a competing situation. Thus it is used in formulating strategy against competition. This theory helps manager to be prepared against the move of competitors.

Decision Making

Decision making is an important managerial activity and central point of the management. Decisions are made by every manager though its significance and coverage depends on the situation, problem, and hierarchy. Indeed, the managers manage by making decisions and getting them implemented. He makes decisions for solving problems, handling the situations, and resolving crises.

“Decision making is the act of choosing one alternative from among a set of alternatives.” -Ricky Griffin

“Decision making is the process of identifying and selecting a course of action to solve a specific problem.” -James Stoner

            Decision making is a managerial process involving selection of a particular course of action out of many alternatives for achieving given objectives or solving a problem. It takes place only when more than on option is available to the manager. By taking decision, a manager attempts to reduce the gap between the present and the desired situation.

Characteristics of Decision Making

• Goal- oriented
• Mental process
• Pervasive
• Problem solving
• Choice
• Continuous
• Positive and Negative

Types of Decision

            Managers are evaluated by the decisions they make and, more often, by the results obtained from their decisions. So it would be useful to distinguish between decisions made by managers at different levels.

1.      Non-routine and Routine Decisions: Non routine decisions are decisions concerning unique problems or situations. They are one-time decisions demanding large investments. For example, decisions about launching a new production plant or buying a more advance computer system are non-routine decision.

Routine decisions are repetitive in nature. They require little deliberation and are generally concerned with short term commitments. Generally lower level managers look after such mechanical or operating decision.

2.      Personal and Organizational Decisions: Decisions to watch television, to study, or retire early are examples of personal decisions. Such decisions pertain to managers as individuals. Such decisions affect the organization in an indirect way.

           The organizational decisions are aimed at furthering the interests of the organization. These decisions can be delegated. In order to protect long term interests of the organization, sometimes, a manager may be forced to adopt certain decisions which may be against his personal choice.

3.      Programmed and Non-programmed Decisions: A programmed decisions are one that is routine and repetitive. On the basis of pre-established set of alternatives, programmed decisions can be made in a routine way. Since programmed decisions are relatively easy and simple for manages to make, they free managers for more challenging and difficult problem solving.

       Non-programmed decisions deal with unique and unusual problems. In such cases, the decision maker has to make a decision in a poorly structured situation. Because non-programmed decisions often involve broad, long range consequences for the organization, they are made by higher-level personnel only.

Approaches to decision making

1.      Marginal Approach:

This approach stresses on profit maximization. The economists who propounded this approach say that profits will be maximized only when marginal costs of inputs are equal to marginal revenues. When marginal costs and revenues differ, profits can not be maximized. In practice, it is very difficult to locate the marginal point each factor of production because these are carried on with the cooperation of every on in the organization.

2.      Psychological Approach:

            The thrust of this approach is on the maximization of customer satisfaction. The manager acts as an ‘administrative man’ rather than ‘economic man’. A good manager will try to protect economic interest of the enterprise besides maximizing consumer satisfaction. According to this approach the consumer’s interests should be a top priority in the mind of the decision maker.

3.   Mathematical Approach

            This approach is based in the use of models. This is also known as operations research approach. The techniques generally used includes linear programming, theory of probability, simulation models, games theory network theory etc. the analyst defines the problem area, uses symbols for unknown data and then tries to solve it.

Decision Making Condition/ Environment

             A decision making tries to visualize the conditions in future and take decisions accordingly. So decisions are made in an environment of at least some uncertainty. There are certain risks involved in decision making and the conditions vary from certainty to complete uncertainty. The conditions under which decisions are taken are as follows.

1.      Certainty: Under the conditions of certainty, people are reasonably sure about what will happen when they take a decision. The required information is available and it is reliable and the cause and effect relationships are known. The manager makes decisions under such situations at different times with the same results. Under such situations a deterministic model is used, in which all factors are assumed to be exact with the chance of playing no role.

2.      Risk: Under risk situation, factual information may exist but it may be insufficient. Most of the business decisions are taken under risk conditions the available information does not answer over all questions about the outcome of the decision. A manager has to develop estimates of the likelihood of the various states of event occurring. The estimates may be based on past experience, other available information or intelligence. In order to improve decision making under these conditions, one may estimate the objective probabilities of an outcome by using, for example, mathematical model. On the other hand, subjective probability based on judgment and experiences may be used. There are number of tools available which help a manager in taking decisions under such conditions.

3.      Uncertainty: Under conditions of uncertainty, a manager has only little information and he is not sure about its reliability also. Since the manager does not have proper information on which he con develop, the best he can do is to be aware that he has no chance of predicting the events. The interactions of various variables cannot be evaluated for taking decisions. The decisions making under uncertainty is a difficult proposition. But, now days, the use of a number of modern techniques may improve the quality of decisions under uncertain conditions. The use of risk analysis, decision trees, and reference theory can help in making proper decisions under those situations.

Decision making Process

            In practice, different decision making procedures are required in different situations depending on the nature of the problem, environment, time, and cost. Theoretically each decision making process involves the following steps, known as element of decision making.

1.       Recognize and define the problem: The first step in decision making process is recognizing a problem. The manager must be aware that problem exists and that it is important enough for managerial action. Problems generally arise because of disparity between what is and what should be. To identify the gap between the current and desired state of affairs, managers should look for problems that need solving.

2.       Developing Alternatives: Once the decision problem has been recognized and defined, the second step is to identify alternative courses of effective action. In general, the more important the decision, the more attention is directed to developing alternatives. Quite often executives try to take up the first feasible. The ability to develop alternatives is as important as making a right decision among alternatives.

3.       Evaluation of Alternatives: In this step the decision maker tries to outline the advantages and disadvantages of each alternative. The consequences of each alternative would also be considered. So the managers have to weigh each alternative carefully with respect to how it will ultimately meet the internal as well as external conditions.

4.       Selection of the Best Alternative: In this step the decision maker merely selects the alternative that will maximize the results in terms of existing objectives. However in a dynamic environment selection process is not as simple as it appears to be. Sometimes, the best alternative may meet internal demands but fail to meet the environmental condition. In such case manager may be forced to select less than optimal alternative.

5.       Implementing the Chosen Alternative: After alternative have been selected, the manager must put it into effect. In some decision situations, implementation is quite easy; in others it is more difficult. Implementation of decision implies series of actions and utilization of resources. To implement decisions, necessary structural, administrative, and logistical arrangements are to be made.

6.       Follow-up and evaluating the results: At last, managers must se whether the implemented decision has actually worked or not. In other words, he must seek feedback regarding the effectiveness of the implemented solution.

Implementation of Strategy

            Once the creative and analytical aspect of strategy formulation is over, the managerial priority is one of converting the strategy into something operationally effective. Therefore to bring result, the strategy should be put to action because mere choice of even the soundest strategy will not affect organizational activities and achievements of its objectives. It is to be noted that the requirement of strategy formulation is primarily conceptual and analytical skills while that of implementation is administrative skills. But in real life, the processes of formulation and implementation are intertwined. The formulation of strategy does not end where implementation begins; both should be taken as continuous process. Therefore, it is necessary to understand the total implication of strategy implementation.

            The process of strategy implementation involves the following functions:

1.          Structuring and organizing the available resources in ways that are supportive of strategic accomplishment.

2.          Exercising whatever leadership posture and managerial style is appropriate for the situation.

3.          Developing functional policies for each critical functional area.

4.          Allocation of resources to various strategic business units.

5.          Developing appropriate information system.

6.          Developing and implementing suitable management control system.

7.          Evaluation and review of the strategy.

SWOT-Analysis

The environment in which an organization exists can be described in terms of the opportunities and threats operating in the external environment apart form the strengths and weaknesses existing in internal environment.

            Business firms undertake SWOT-analysis to understand the external and internal environment. SWOT is the acronym for strengths, weaknesses, opportunities, and threats. Through such analysis, the strengths and weaknesses existing within an organization can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated. An effective organizational strategy, therefore, is one that capitalizes on the opportunities through the use of strengths and neutralizes the threats by minimizing the impact of weaknesses.

            The four environmental influences could be described as follows.

Strength: Strength is an inherent capacity which an organization can use to gain strategic advantage over its competitors. An example of strength is superior research and development skills which can be used for new product development.

Weakness: A weakness is an inherent limitation or constraint which creates a strategic disadvantage. An example of a weakness is overdependence on a single product line, which is potentially risky for a company in times of crisis.

Opportunity:  An opportunity is a favorable condition in the organization’s environment which enables it to consolidate and strengthen its position. An example of an opportunity is growing demand for the products or services that a company provides.

Threat: A threat is an unfavorable condition in the organization’s environment which creates a risk for, or causes damage to, the organization. An example of threat is the emergence of strong new competitors who are likely to offer competition stiff to the organization.

Environmental Scanning

Business environment consists of the totality of all forces and factors which are external to, and largely beyond the control of individual business firm. Environmental analysis is the process by which corporate planners monitor the economic, political, socio-cultural, technological, and market settings to determine the opportunities for and threats to their enterprises.  In other words, environmental analysis consists of identifying and analyzing environmental influences individually and collectively to determine their potential effects on an organization and the consequent problems and opportunities. Obviously, in this context, analysis consists of tracing the source of any opportunity or threat, to break the whole into parts so as to examine its nature and interrelationship. It is from such analysis that management can make decisions on whether to react to, ignore, or try to influence, or anticipate future opportunities or threats discovered.

System Approach

Introduction:

System approach of management represents new thinking and latest development related to organization and management. A system can be defined as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. This approach stress that management involves managing and solving problems in each part of organization but doing so with the understanding that actions taken in one part of the organization affect other parts of the organization. The managers must take into account interdependencies, interactions, and interrelationships among the various components of the system on the one hand and internal as well as external realities on the other while making decisions. Thus system approach facilitates both the process of analysis and synthesis and differentiation and integration by relating sub-systems with larger system from the lowest to the highest level.

The enterprises are viewed as procuring and transforming inputs into outputs. The organization transforms inputs into a variety of outputs and offers the same to external environment in the form of products, goods, and services. Sale of outputs provides the necessary energy (feedback) to repeat the system cycle as shown in following figure.

Fig: Organization as open system.

Features:

1.      An organization is a system consisting of four main parts or sub-systems namely task, structure, people, and environment.

2.      The subsystems of the organization system are interconnected and interdependent. Therefore, all parts of the organization must be in balance with one another.

3.      An organization is an open adaptive system which continuously interacts with its environment.

4.      It is the responsibility of management to regulate and modify the system so as to optimize performance. Management have o perform maintenance and adaptation function. Maintenance is concerned with ensuring the stability and efficiency of the system where as adaptation involves adjusting the system to the changing demands of the environment.

5.      An organization has synergistic effect i.e. it is more than the aggregate of its various parts. The focus given on the total system rather than on individual subsystem.

Contributions:

1.      The system approach provides a unified focus to organizational efforts. It gives managers a way of looking at the organization as a whole that is greater than the sum of its parts.

2.      The theory treats an organization as an open system. A closed system imports something form the environment and exports something into the environment where as an open system is in continuous interaction with environment.

3.      System theory is a way of interpreting and integrating management functions (planning, organizing etc.) and movements (scientific management, human relation etc.) in order to analyze how managers organize their thoughts and actions.

4.      It provides a world –view more consistent with the reality of organizational life.

5.      This theory is oriented towards the accomplishment of objective and helps to generate coordinated effort toward accomplishing goals.

Limitations:

            The majority of the scholar agreed that the systems theory has fascinating appeal, but it is yet incomplete. The conceptual framework for understanding organizations provided by the system theory is too abstract. It does not really offer anything now. Managers do understand the interrelationship between different parts and the influence of environment on organizational subsystems. The inter and intra-part interdependence between various organizational subsystems in not recognized by this theory. Additionally, the organization-environment relationships are also taken into account while providing answers to specific management problems.