Business Decision Making and Management Levels

The assignment delves into the process of making decisions in a business context. It outlines the steps involved, from identifying problems to evaluating alternatives and implementing solutions. The importance of various management levels (top, middle, and first-line) in decision-making is also discussed, emphasizing their respective roles and responsibilities.

ONLINE ASSESSMENT ANSWER BOOKLET
SIM ID:10222114 DATE: (25/11/2020)
NAME (as reflected in your SIM e-Card):Celine Piong Jing Ling CLASS NO.: L01R
PROGRAMME:Management Foundation Studies
MODULE CODE & TITLE:IOM - 1079_2043
12 page booklet
INSTRUCTIONS TO CANDIDATES:
1. Fill in the required details as stated above.
2. Read all instructions on the cover page of
the question paper carefully.
3. Begin each answer on a fresh sheet.
4. Write the question number at the top of
each page.
5. Any candidate found using, or attempting
to use, unfair means will be reported and
disciplinary action will be taken.
Questions
Answered
(students to list
below)
For Lecturer’s
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TOTAL
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Question Number: __1 (a)___
The first challenges is to build competitive advantage.Is the ability
to perform better than its competitors.Airbnb is more efficient and
inexpensive accommodations.
Managers need to be innovative and be responsive to customers’
needs and wants.For example:Airbnb can produce good quality and
service better than their competitor.This method can be apply in
various country.
In addition,the second challenges is maintaining ethical and social
responsible standards.An organization has an obligation to protect
the interests of its stakeholders.Airbnb slashes 25% of staff because
of the coronavirus pandemic crushes the travel industry.
The third challenges is maximizing the contributions of a diverse
workforce.Manager should know how to motivate and maximize the
skills,knowledge and experiences of a diverse workforce.Must
establish sound human resource practices and policies that do not
discriminate against employees.For example:Airbnb need to
develop,implement and maintain ongoing training.
The fourth challenges is utilizing new information technologies
efficiently and effectively.Airbnb has transformed global travel
using digital technology to connect millions of guests with private
hosts.
The last challenges is practicing global crisis
management.Organizations need to manage crises properly and
minimize the damage.Airbnb reduce the number of employees.
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Question Number: _1(b)______
The first impact of stakeholders is stockholders who provide the
organization with financial capitals.As such,the organization has an
obligation to protect the interest of its stockholders in the form of
returns on investment.When Airbnb earning are low,more financial
leverage results in higher losses for stockholders.
Second is managers.Represent and make important decisions for the
organization.It is because they carry the responsibility for aligning
the performance of employee.
Third impact of stakeholders is employees.They should be given
fair treatment.Employees desire attractive salaries and benefits,safe
and healthy work environment and opportunity for growth and
advancement.For example:salary will be deducted and some slashes
by Airbnb.
The fourth impact of stakeholders is customers.Customer count on
the organization to provide them with quality products that are safe
and reliable,and at fair price.Example:reduce the cost of company
And stay/remain competitive.
Last,is community,society and nation.They large affected by the
practices of the organization and its manager.
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Question Number: ___2(a)____
Classical decision model assumes that managers are logical and
rational and that they make decisions that are in the best interest of
the organization.
Yes,it is.First is a clear defined problem.This model assumes that
the decision-maker has clearly set goals and knows what is expected
from him/her.
Next is decision makers have access to complete information.Can
identify and evaluate all alternatives rationally and logically.
Third reason is decision makers can derive at the best solution to the
problem.
Lastly,the goal is clear and well defined.
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Question Number: _2(b)______
Ethics are the underlying principles,values and beliefs that guide a
person’s behaviour,how he analyses and interprets a situation,and
decides on the right and appropriate way to behave.
Yes.he does.First sources is utilitarian rule.In this rule,the manager
chooses an approach that result in the greatest good for the
maximum number of people.This rule focuses on the consequence
of one’s action-”What action will result in the greatest
good?”However,the extend of “goodness” or “badness”is
subjective,and people may have different opinions.Example,Yeo
Meow Koon pleaded guilty to conspiring with dentist Cecil Goh to
cheat the CPF Board into disbursing from his patients’ Medisave
accounts.
Second is moral right rules.In this rule,manager chooses an ethical
approach that best preserves and defends the fundamental right of
the people affected by it.The manager focuss on the moral values
and principles,regardless of the consequences.However,it is
important to note that there are many shades of grey and moral
standing of issues are generally debatable.Example,they admitted to
two counts of conspiring with another dentist to forge medical
documents which were submitted to MOH audits.
Third is justice rule.Approach means that the manager chooses an
approach that distributes costs and benefits amongst stakeholders in
a fair and equitable manner.The rule focuses on being impartial in
terms of applying rules and procedures such that the outcomes
inflict equal share of misery and rewards upon all stakeholders.
Last is practical rule.This means that the manager has no hesitation
or unwillingness in comunicating his decision to others because
majority pf the people in the society will find it acceptable.The
manger can ask himself,”Will I be comfortable if my decision is
printed in full on the front page of the newspaper or reported on
television news?”Such question will allow the manager to regulate
his own behaviour
Q1©
The first action is to establish a code of ethics.
Second action is to train staff on code of ethics.
Third.managers should be role model
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Question Number: __3a_____
First force is economic forces include general economic conditions
such as interest rates,inflation,and unemployment can affect general
health as well being of an organizations’ performance.For example,
the high economic growth rates of Asian countries are opportunities
for Apple to increase its revenues through sales in these foreign
markets.
Second force is technological forces.Technological change can
create new products,features,and capabilities such as digital
camera.Manager must move quickly to respond to such
technological change if their organizations are to survive and
prosper.Example,the external strategic factor of increasing
technological integration presents the opportunity to enhance the
company’s services and grow the business by offering its
technological goods and services to more customers, including
organizations.
Third is sociocultural forces.Include relationships between
individuals and groups and values that may affect the organizations.
A society’s social structure and national culture can also change
over time.Managers and organizations must be sensitive to
defferences between societies and adjust their behaviours
accordingly.
Fourth is demographic forces.Include the characteristic of
population such as age,race,religion,education level,literacy rate,life
cpectancy and so forth.Apple focus on making the best products.
They are a company that focuses on innovation, and by that I mean
with new products, but also improvements on their existing
products. They use the focused differentiation strategy, by making
products that are exclusive, and pretty expensive.
Last force is political and legal forces.A country can shape laws that
Constrain the operations of organizations,thereby creating both
opportunities and threats.Examples include:environment and
consumer protection,deregulation of airlines and privatization of
state-owned organizations.
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Question Number: ___3(b)____
Business-level plans are less broad than corporate-level plans,led by
division manager who compete in distinct industries,specify details
how overall objectives are to be achieved.
Functional-level plans are most limited in scope,led by functional
manager who help the division attain its business-level goals.
Apple should develop business-level plans first.
3c)
First is rare earth metals
Second is aluminium
Third is lithium
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Question Number: __4(a)_____
Step 1 - Recognize the need for a decision A problem surfaces and a
decision must be made. The problem may be positive or negative.
For example, a departmental manager noticed that his employees
are calling in sick more often, and are also making more mistakes
than usual. He knows that work is demanding and his employees are
overworked and burnout.
Step 2 – Identifying alternatives The decision maker identifies all
the alternatives. For example, alternatives include hiring more staff
to share out the workload, providing incentives like increase salaries
to motivate them or modify the quarterly targets to achieve.
Step 3 – Evaluating alternatives Each alternative is evaluated to
determine how feasible it is to implement, the costs and benefits.
For example, the manager evaluates how feasible it is to increase
wages, revise quarterly targets and hire more staff.
Step 4 – Selecting the best alternative Consider all factors and
choose the best alternatives that fix the current situation. Permission
is required from the senior management team change the quarterly
goals and increase wages, and they may not be receptive to such
changes. These alternatives are too time-consuming to implement
and will not generate immediate benefits for the department. Hiring
temporary staff satisfies all of the conditions.
Step 5 – Implementing the chosen alternative The chosen
alternative is implemented. For example, the human resource
department is roped in to hire the staff.
Step 6 – Following up and evaluating the results Some in the future,
the decision-maker will need to reflect on his choices, and assess if
the alternative chosen and implemented has worked. For example,
six months later, the departmental manager assesses if employees’
performance has improved and less of them call in sick. If there is a
shortfall or the situation has not improved, the decision-maker will
have to repeat part of or the entire process, as new decisions will
have to be made.
4(b)
Policy decision and Operating decision.Tactical decisions relating to
the firms strategy and planning are known as policies decision.
These decisions are typically reserved for the top management offici
als of the company. They have a long-term effect on the
business and need a lot of research.
Operating decisions are the decisions required
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for the execution of policy decisions. The strategies and policies im
plemented by
High-level managers help to enforce these decisions. Typically, suc
h decisions are made by middle and lower management. Say a bonu
s question is announced by the firm. This is a decision on strategy.
The measurement and execution of this bonus problem, however is
an operational decision.
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Question Number: __4c_____
First is top managers.The top managers are at the peak of the
hierarchy and they are responsible for the overall successes and
failures of the organization. They establish the strategic goals of the
organizations, make key decisions, and provide overall directions of
the organization. Examples of top managers include the Chief
executive officer, Chief financial officer, Chief operating officer,
President and Vice-president. Second is middle managers.Middle
managers are responsible for finding the best way to use available
resources to achieve the strategic goals set by the top managers.
They translate the goals into specific details and work with the first-
line managers to achieve those goals. Examples of middle managers
include Departmental Heads, Project Leader and Division Manager.
The middle managers report to the top managers.Third manager is
first-line manager.First-line managers make operating decision and
are responsible for the day-today supervision of non-managerial
employees. Examples of first-line managers include departmental
managers, production supervisors and so forth. They report to the
middle managers.
Middle manager would make the decision on the respond.Their
responsible is finding the best way to use available resources to
achieve the strategic goals set by the top manager.They translate the
goals into specific details and work with first-line managers to
achieve those goals.
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