Essential Management Principles: Decision-Making and Organizational Culture

Core Management Concepts

Social Aspects: Obligation, sensitivity, responsibility

Organizational Analysis: Strengths, weaknesses, core competencies

Structure: Division of labor, career paths, impersonality, formal rules, formal selection, hierarchy

Organizational Influence: Defines employee behavior, influences marketing, fosters team spirit

Culture: Rituals, symbols, language

Leadership Roles

Authority figure, leader, supervisor, spokesman, entrepreneur, negotiator

Decision-Making Types

Intuitive Decisions

Based on experience, feelings, wisdom, or prior knowledge

Ethical Decisions

Based on cultural or ethical values

Intellectual Decisions

Based on skills, knowledge, and training

Environmental Factors

Legal Environment

Political and legal procedures vary by country. Stability of law impacts investment forecasts. Managers must be informed about laws and policies in each country of operation. Some countries pose investment risks due to instability.

Cultural Environment

Shared values and attitudes define behaviors and beliefs. National culture significantly affects employees, often more than organizational culture.

Management Objectives

A system where employees and managers set performance targets, review progress, and distribute rewards accordingly. Motivates employees. Components include:

• Goal specification
• Participatory decision-making
• Explicit timeframe
• Performance feedback

Planning

Defining organizational goals, establishing strategies, and creating detailed plans to integrate and coordinate work.

Types of Plans

Strategic Plans

Longer-term, broader organizational scope

Operational Plans

Shorter-term (months, weeks, or days)

Case Analysis Framework

Case-relevant facts → Central problem → Analysis → Alternatives → Solution → Instrumentation → Recommendations