Theory X and Theory Y

Theory X and Theory Y

McGregor’s theory X and Y are opposite to each other. Theory X is more like scientific Management and theory Y resembles to Human relations approach.

Theory Y is positive and optimistic view about workers but theory X is negative and pessimistic view about workers.

	Theory X	Theory Y
	Work is an un- natural activity	Work is a natural activity like eating, sleeping, playing and leisure.
	Workers are naturally lazy and don’t want to work	Workers are not naturally lazy , they want to work in favorable conditions
	Since workers don’t like work there is need of foolproof planning and perfect control to get work from them	Workers need favorable conditions and friendly environment to work
	There is a need of guiding workers at each and every step	Workers are self guided and self directed to achieve their goals.
	Workers don’t take responsibility	Workers want to take responsibility in favorable working conditions
	Workers are  not innovative and good problem solvers	Workers are innovative and good problem solvers.

According to McGregor, Theory Y is most preferable and applicable view for good managers. 

Importance of Management

In this world, resources are limited, but human needs are insatiable.Management has important role to play at society , organisational and individual levels.

At larger context management has following importance for society.

1. Sustainable use of resources- Since civilizations have to satisfy their needs but also to care the needs of next generations, since use of resources should be made in the way that they should not deplete but enough restored and conserved for next generations.
2. Need satisfaction of society- Management is responsible for the functioning of organizations which are established to satisfy the needs of society. Organisations serve the society by offering goods and services to satisfy the needs.
3. Employment to public- Management offers employment to workers.
4. Increased per capita income- By employment people earn their livelihood and their income is increased
5. Improved quality of life- Increased income and good service and production facilities are resulted in good quality of life for people.
6. Management is needed in any type of social organisation regardless of what product it offers.

At organisational level Management is very important because- 

1. It makes efficient use of resources. 
2. Gives organisations a clear purpose and direction
3. No organisation can exist without some sort of 'management' and few people who can take care of managerial roles.
4. Management is a major factor of production like man, machinery, manpower and material.
5. Management brings innovations and new energy in the organisation and prevents the natural decline of an organisation. It means each organisation can go to decline with course of time due to entropy, but this is management who brings innovations and new energy,skills and technology into organisations and prevent them from decline( responsible for maintaining negative entropy

 An individual also needs to manage his daily affairs,career, public and even personal life. Avoidance of management at present times is not possible. It is all pervasive.

Management as art and science

Management as a science:

Management is a science because:

1. As a discipline it is having a systematic collection( or body ) of knowledge, facts, information, theories, principles
2. It uses advance scientific analysis and synthesis of information for forecasting and understanding the situations and problems.
3. It is dependent on systematic scientific inquiry.
4. Like other sciences it also tries to explain, predict and control the behavior of people teams and structure- The organisational behavior , thus it is not only science but applied science
5.  it is based on systematic planning( thinking ) and then execution( doing) rather than doing things with trial and error, in unplanned manner with intuition.

Management is an Art because:

1.  some times managers use intuition, personal mastery and subjective judgments to solve the problems in organisations
2. Managers don't do all the work with prior planning and then doing, rather than they also involve most often in the unplanned work and problems which require their personal experience and use of subjective judgments
3. Managers deal with human being and thus have to understand the emotions, relations with their subordinate employees and team. Dealing with the team and human relations is an based on personal understanding and empathy rather than use of science and laboratory methods. It is totally art of a manager that how to manage the emotions and keep up the team spirit.
4. Getting things done by others: this is what some time called getting results either hook or by crook. This is not the science but art of the manager to achieve the target in anyway.

Management is art as well science:

Above discussed points reveal that management is science as well as art because managers use both methods: 

Managers work in systematic, planned and scientific manner, use the theories of management to get the solution of the problems: so it is a science.

Managers also face situations and problems out of the scope of their plan and then they use their personal skill, mastery and intuition to solve the problem and get the results.

Both the things are practiced by managers and are complementary to each other. Management as science gives managers a scientific orientation and art focus on human aspects and result orientation. Thus management is science as well art both., 

MBA 011 : PRINCIPLES & PRACTICE OF MANAGEMENT
Max. Hours : 40
UNIT I (8 Sessions)
Management: Concept, Nature, Importance; Management : Art and Science, Management As a
Profession, Management Vs. Administration, Management Skills, Levels of Management,
Characteristics of Quality Managers.
Evolution of Management: Early contributions, Taylor and Scientific Management, Fayol’s
Administrative Management, Bureaucracy, Hawthorne Experiments and Human Relations, Social
System Approach, Decision Theory Approach.
Social Responsibility of Managers and Ethics in Managing.
UNIT II (10 Sessions)
Introduction to Functions of Management
Planning: Nature, Scope, Objectives and Significance of Planning, Types of Planning, Process of
Planning, Barriers to Effective Planning, Planning Premises and Forecasting, Key to Planning,
Decision Making.
Organizing: Concept, Organisation Theories, Forms of Organisational Structure, Combining Jobs:
Departmentation, Span of Control, Delegation of Authority, Authority & Responsibility, Organisational
Design.
UNIT III (10 Sessions)
Staffing: Concept, System Approach, Manpower Planning, Job Design, Recruitment & Selection,
Training & Development, Performance Appraisal
Directing: Concept, Direction and Supervision
Motivation: Concept, Motivation and Performance, Special Motivational techniques: Money,
participation, reward systems, Quality of Work Life, Job Enrichment & Morale Building.
UNIT IV (12 Sessions)
Leadership: Concept and Functions, Process and models of Leadership Development, Contemporary
views on Leadership: Transformational-Transactional, Charismatic-Visionary leadership.
Controlling: Concept, Types of Control, Methods: Pre-control: Concurrent Control: Post-control, An
Integrated Control System, The Quality Concept Factors affecting Quality, Developing a Quality
Control System, Total Quality Control, Pre-control of Inputs, Concurrent Control of Operations. Post
Control of Outputs.
.
Suggested Reading:
1. Stoner, Freeman & Gilbert Jr - Management (Prentice Hall of India, 6
th
Edition)
2. Koontz Harold & Weihrich Heinz – Essentials of management (Tata Mc Graw Hill, 5th Edition 2008)
3. Robbins & Coulter - Management (Prentice Hall of India, 9th
Edition)
4. Robbins S.P. and Decenzo David A. - Fundamentals of Management: Essential Concepts and
Applications (Pearson Education, 6th
Edition)
5. Weihrich Heinz and Koontz Harold - Management: A Global and Entrepreneurial Perspective (Mc
Graw Hill, 12
th
Edition 2008)

Competitive Intelligence

Today's Business Environment of organisations is characterized by hypercompetition, where too many organisations are pursuing too little business. There is not enough demand to go around for all providers and services.
The knowledge base and capability to manage in this hyper- competitive world is called Competitive intelligence. It is the process of insight about future scenario and requires that we go from data to intelligence.

for example-
Data- Prices for our products have dropped by 5%
information - It is because of lower labor costs
intelligence- our key competitors is about to acquire new facility in India and that will increase the competition in next year/months.


Difference between data, information and intelligence


Data- Unrelated pieces of information and

Information- Increase knowledge derived by understanding the relation of data.

Intelligence- Organizing information to fully appreciate the implication and impact on the organisation.



Competitive intelligence has some basic forms such as market research and benchmarking. Good Competitive goes beyond simple research. It attempts to answer specific critical questions that can impact the organisations.

1. How is the competitor XYZ is able to to grow XYZ able to grow and capture market share.
2. What new products will competitor ABC develop and when will release this products.
3. What are the core competencies of competitor DEF?
4. Can we compete with new business lines or should we acquire another company to establish our market share.


Competitive Intelligence requires old fashioned analysis and filtering, somewhat like a detective who wants to solve a case- you can't automate the insights derived form C.I. It takes very intense and serious focus in a very short period of time.

Regardless of the tools businesses use, the single indispensable element to C.I is the human factor : the smart experience and instinct that can turn huge collection of dead facts into live intelligence that plays a central part in making business decisions

Competitive intelligence helps in decision making in the illusive and uncertain conditions. Strategy formulation process deals with incomplete options, ambiguous strategic options, difficult to evaluate . Competitive intelligence helps in this process.

Importance of Competitive intelligence

1. Sources of best practices
2. Strategy formulation and strategic analysis.
3. Isolates performance gaps in relation to competion.
4. Helps areas of improvement risks threats opportunities.

Tools of C.I
1.Environmental mapping - five forces model.
2.Organisational Appraisal
3. Wargames
4.Four Concerns analysis

5. Market Research 

6.Bench Marking- 

Imitating the industry leader, comparing resource, capabilities, processes strategy at the industry best practices

.

Management Vs. Administration

Management and administration are the terms used as synonymous in the business.Few people use them interchangeably and few use them as different terms.

Every word has its meaning in its context- American scholars and European scholars have different thinking on Management and Administration.

American scholars like  Oliver Sheldon, Schultz, are having of this view that Administration and Management are two different concepts and have different use in business world. According to these American scholars, Administration is superior than Management because,  it involves thinking,decision making,high level planning, policy and strategy formulation. Management is subordinate or inferior to administration because it is doing or, executing or,and implementing function. Management is responsible for the implementation of the policies and major plans  , strategies laid down by Administration.
Thus according to American view, Administration and management are different, administration is superior than management because management has to follow the policies, plans, strategies, decisions laid down by administration. Administration is concerned with the function of top level managers but management is concerned with middle and lower level.

European scholars like Breach are opposite the American viewpoint. According to them Management is broader and superior than administration because it is responsible for formulation of strategies, policies, plans and higher level decision making and is function of top level managers in the organisation. Administration is inferior to management because it is responsible for implementation of these plans,strategies, policies and installation of systems to execute the decisions of Management( top level managers). Thus management is determinative function and administration is implementing function( Management is thinking and administration is doing).

Management and administration are same: Many writers like Henri Fayol, William Newman, Chester Barnard, George Terry, Louis. A. Allen, Koontz and O’ Donnell make no distinction between management and administration.
According to these scholars, Management and administration both are made on similar set of principles( like henry fayol's 14 principles) and have to perform overall managerial functions(planning, directing, commanding, controlling, coordinating etc.) Management can be classified in to two parts-
1. Administrative Management- Thinking, Planning
2. Operative Management- Implementing
and every manager at each level has to do perform these two functions. So there is no any practical difference between Administration and management.

Henry Fayol: Administrative theory and 14 Principles of Management

Henry Fayol was a French scholar. He was a mining engineer who worked for a French mining company Commentry-Fourchamboult-Decazeville. In his career he attained the highest managerial position of CEO.

He wrote a famous book - 1916 book Administration Industrielle et Generale in French which was translated in 1949 in English. In this classic book he popularized the famous fourteen principles and five managerial functions.

1. Division of Labour

This principle states that work can be performed more efficiently and productively if it is divided into smaller elements and assigning these specific elements to specific workers. This is similar to one best way of doing job as in scientific management and job specialisation in Bureaucracy. Each employee or a group of employee performs a specific task. Division of labour according to job specialisation is the main function.

2. Authority

Authority is the given power ( based on legitimate rule by organization) to an official to issue orders to subordinates and take work from them. This principle states that managers require authority to perform their managerial responsibilities.

3. Discipline

Discipline is related with regulation of behaviour of employees at workplace. Without discipline, authority has no meaning; there should be someone to obey the orders.

This principle suggests that there is requirement of a set of rules and procedures aimed at attaining good employee discipline and obedience.

4. Unity of command

This is the “one man one boss rule”. An employee should receive orders from only one boss only.

If a worker will receive orders from several bosses he will be confused and over burdened. Also there will be a problem regarding reporting.

So this principle emphasizes on only one boss for a worker.

5. Subordination of individual interests to the organizational interest.

Employees must sacrifice their interests for the good of the organization. The organizational goals/ tasks/work would be preferred over interest of worker or group of workers.

Thus an organization should employ only those individuals who are fully committed to its objectives and are willing to readily follow the organization’s mandates/rules.

6. Unity of direction

This principle supposes that there should be only one plan and only one boss for each group of activities having same objectives. This is to ensure that the organization is pursuing it all activities not in contradictory directions but there is alignment between activities.

7. Remuneration of personnel

Fair wages work as a good motivation for employees. Compensation for work done should be reasonable to both – employees and organization and it should be sufficiently motivational, neither overpaid nor underpaid.

8. Centralization

Too much centralization leads to ineffectiveness and so does the decentralization. There should be a balance of centralization and decentralization in organizations.

The best approach to get the balance is top management designs the broader strategy, policies and middle level and lower level of managers interpret and operationalise them to work.

9. Scalar chain

This principle assumes that there should be clear hierarchy in organization from top to down. The flow of communication must follow the hierarchy that it should be strictly vertical.

Horizontal communication is needed only when there is urgent need and permission from superiors has been obtained.

10. Order

Order means doing things in rational and logical manner. There should be a place for everything and everything should be in its place.

An organization’s materials/resources should be at right place at right time, and its employees should be assigned to the jobs best suited to them.

11. Equity

Equity means being kind, fair and just to your subordinates or employees. Equal and fair treatment, impartiality and bias free environment promotes employee motivation commitment and loyalty.

12. Stability of personnel tenure

Employees perform well when their job is secured; they are protected from arbitrary dismissals. It is necessary to retain employees with organization because high turnover rate may result high cost to organization and leads to inefficiency.

13.  Initiative

Organizations require managers who possess ability to conceive and implement new ideas. They should be having ability to  self start and take on the risk independently.

14. Esperit de corps

The maintainance of high moral and unity among employees is an essential thing for success of organization.

Nature of Management

Nature means the essential characteristics or qualities by which something is recognized. Nature of management simply can be described as a goal oriented continuous and universal social process. Management is viewed as an integrative force to bring together the factors of production and get the result done. Management is some times viewed as an Art as well Science to.

The nature of Management could be described as following points:-

1). Management is a process:- Management involves happening of a series of interrelated managerial functions/activities that simply means that it is a process.

2). Management is a continuous process:- Management is a continuous process since it exists every time during the life of the organization- Organizational Life Cycle. Continuous existence of this process is necessary for the survival of the organization and fulfillment of its objectives. Actually this is the management process which brings new energy into organization, and prevents the organization from natural process of decline- Entropy.

3). Management is a social process:- Organizations are social units and use group effort to achieve some goals. Management is a social process because some how it is related with the relationship of employees, teams. Most of the time a manager deals with the emotional aspects and team building aspects of a team to get the desired results and thus management today is no more mechanical process and employees are no more treated as machines in modern organizations.

4).Management is goal oriented:-  Management is a goal oriented process/activity because it is aimed at the accomplishment of organizational goals. Organizational goals( Providing any service or Product to the society or economy) are the reason for which an organisation and its management exist. So management is a goal oriented process

5).Management is an integrative force: Management is the force who bring together all factors of production, resources and makes it possible to accomplishment of organizational goals. Organization is a social unit in which  people from different background, culture and having different personalities, motivation,interest and career objective work together. Management also integrates individual goals and organizational goals that means it creates a balance and reconciliation of individual employee's inspiration and organisational intent/purpose.

6). Management is multidisciplinary :- Management as an area of study and subject makes use of concepts and theories from other subjects or disciplines. It uses psychology to understand the employees behavior, makes use of sociology to understand group processes, uses anthropology to describe and change  the culture of organization, applies mathematical models to predict the future

7). Management is an applied discipline:- Management as a discipline and area of study provides solutions to the fulfillment of increasing needs of society within the limited resources. In this sense it is applied in nature

8). Management is an Art as well as science:-Management is an art because it makes use of personal skills, experience, creativity,mastery in getting any thing done in varying situations. It may not involve systematic thinking and planning and then doing any work because most  often situations before managers are unpredictable, challenging and they need to use their own insight, experience, creativity and skill to get the thing done. Some scholars say management an art because it is related with doing or practicing.
Management is a science in the sense it involves systematic planning and doing, based on logical and rational exercises. Management as a science makes use of principles, theories,scientific method to understand and solve the problem. Management as an art and science are complementary to each other.

Concept of Management

Concept of Management

Management is a set of activities (Planning, Organizing, Directing,Leading, Staffing, Coordinating, Controlling, Budgeting, Monitoring and Evaluating), directed at Organisational resources to attain the organisational goals in effective and efficient manner.

Management as an Activity

This definition defines management as a set of activities, It means management may be considered as an activity.  Activity simply means some action to achieve a defined result,output or outcome. Management is some time viewed as an action/activity to accomplish organizational goals. Such it is described as effort to achieve some thing.

Few scholars define Management as 'getting things done' by others. In this sense management is a group activity which involves use of people in doing and completing the task/things/results/outputs/goals.

Management as a Process

A process is made of so many related activities which are in sequence.

 Management as a process simply means that it consists so many activities and functions in getting the results. These activities and functions (Planning, Organizing, Directing,Leading, Staffing, Coordinating, Controlling, Budgeting, Monitoring and Evaluating) are related with each other and are not opposite and totally different from each other.

Planning can't be separated from other functions because it is related and keeps in view all other activities.It comes in the beginning, then come organizing, staffing, Coordinating, Leading, directing, Monitoring and control.  

These functions are performed in sequence to achieve the goals and are related with each other, so management is a process.

Management can also be defined as a process in the sense that it starts with the inception of organization and continues till the decline of the organisation.It is very difficult to imagine an organization without management process. Processes are continuous in the sense that they are enduring in time aspect and as explained management is a long ending related sequential set of activities.

Management as a body of people

Some times few people who are taking care and control  of things in any organisation are referred to be managers and called the 'management of the company/organization'.

In this sense management refers to 'those people- CEO,Director,Mangers etc.) who are performing managerial functions(PODSCORB). Simply management is referred here as a third person.

Management as an Economic Resource or Factor of Production

Is it possible to accomplish organizational goals, or produce some thing without a manager or person who is performing managerial functions?

Management is identified as an important factor without which it would be difficult to produce some thing.

It is not possible to get the results without management this is why management can be considered as an important function of production.

Managers are now considered as Entrepreneurs who come up with new ideas of production and innovation - bring together new factors of production and thus contribute into the growth of company/enterprise/organisation and ultimately to the economy

Management as an academic discipline

Management is a separate field or area  of study. It has its organized body of knowledge, facts, principles and theories. It is taught in almost all countries in universities and college level.

Management is also an area of research and you can find libraries and journals exclusively about this area of study.

In management there are so many theories, facts, information and issues being studied and researched. This discipline has become vast and now there are sub-disciplines within this discipline- Marketing Management, Strategic Management, Human resource management etc.

Goals and objectives in Strategic Management

Goals


Goals are what an organisation hopes to accomplish in a future period of time .Goals adress a broad category of financial and non-financial issues.Goals are general statements about overall growth, survival and profitability of business, for a longer period of time and do not describe specific targets. Goals may be of qualitative nature and difficult to measure and control.


Objectives

objectives are desired outcomes /targets in specific relevant areas that the organisation wants to achieve during a fixed time period.

Objectives are concrete and specific in contrast to goals that are generalized.Objectives make the goals Operational, while goals may be qualitative objectives are mainly quantitatively expressed and are measurable and comparable.

Objectives are statement of result, a firm seeks to achieve over a specific period of time.

Area-------------------------------------------------------> Target

                               Time Period


The areas in which objectives should be set may be focused to internal or external aspects of organisation
for example  an objective may look alike this-

Objective Example 1: Create new-to-the-world products that exceed the needs of the existing new market spaces and increase the revenue stream of such endeavors by $10 million by 2012.




Objective Example2 : Reduce the amount of toxic substances used in the production of products by 90% over next ten years.



PROCESS OF OBJECTIVE FORMULATION


Balanced Score Card (B.S.C) Approach to objective formulation

Developed by R.S Kaplan and David Norton of Harvard Business School, B.S.C is used as performance management system , also is a set of measures that are directly related with strategy to link it long term strategy with tangible goals and and actions.B.S..C allows a manager to evaluate the company from four Perspectives

financial Performance

Customer Knowledge

Internal Business Process

Learning and Growth

If objectives are to be set then it is necessary to understand and focus attention on financial, customer, Learning and Growth and Internal Business perspectives. This method gives a balanced view to objective setting.

Characteristics of Good Objectives
 Acceptable
flexible
Measurable
Motivating
Suitable
Achievable.

Bureaucracy

Weber was a German scholar. He provided a model of ideal organisation and said that an ideal organisation would be bureaucratic organisation.
According to Weber, to improve the productivity and achieve  efficiency it is necessary to structure organisation on bureaucratic model. Bureaucratic organisation is the best and efficient organization. It is based on formal and legitimated system of authority. Authority can be defined as legitimated power given to a person in organisation.

Weber didn't provide any definition of bureaucracy but he deduced that as an organisation grow in its size, number of staff increase , conflict and complexity will increase and then a formal system of authority, rule, specialization and impersonal judgement will be needed to manage the organisation.

He founded five basic characteristics of an bureaucratic organisation
1. The organization should establish a hierarchy of positions or offices that creates a chain of command from the top of the organization to the bottom.- Hierarchy of positions means there should be a distribution of power and responsibility among officials.

Hierarchy of authority makes for a sharp distinction between administrators and the administered, or between management and workers. Within the management ranks there are clearly defined levels of authority. This detailed and precise stratification is particularly marked in the armed forces and in the civil service.

2.The organization should adopt a distinct division of labor, specialization and each position should be filled by an expert.- Bureaucracy is managed by experts. Experts of Marketing will head marketing department. for example only a person having specialization in Marketing can be the head of marketing operations. An engineer having qualification and technical knowledge of Production can be the head of production. An finance person can be the head of finance department. Thus the similar jobs are grouped together and performed by specialists.

3. The organization should develop a consistent set of rules to ensure that task performance is uniform.
Each work will be done on the basis of predetermined set of rules, and if any problem arises it will be dealt with according to the rules and policies which are made in advance. System of rules aims to provide for an efficient and impersonal operation. The system of rules is generally stable, although some rules may be changed or modified with time. Knowledge of the rules is a requisite of holding a job in a bureaucracy




4. Managers should conduct business in an impersonal way and maintain an appropriate social distance between themselves and their subordinate-

means that allocation of privileges and the exercise of authority should not be arbitrary, but in accordance with the laid-down system of rules. In more highly developed bureaucracies there tend to be carefully defined procedures for appealing against certain types of decisions



5. Employment and advancement in the organization should be based on technical expertise, and employees should be protected from arbitrary dismissal.




Criticism of Bureaucracy:

Weber’s concept of bureaucracy has a number of disadvantages and has been subject tosevere criticism.
■ The over-emphasis on rules and procedures, record keeping and paperwork may become more important in its own right than as a means to an end.
■ Officials may develop a dependence upon bureaucratic status, symbols and rules.
■ Initiative may be stifled and when a situation is not covered by a complete set of rules or procedures there may be a lack of flexibility or adaptation to changing circumstances.
■ Position and responsibilities in the organisation can lead to officious bureaucratic behaviour. There may also be a tendency to conceal administrative procedures from outsiders.
■ Impersonal relations can lead to stereotyped behaviour and a lack of responsiveness to individual incidents or problems.

Obudsman and Citizen's Ombudsman(लोकपाल और जन लोकपाल )

Jan Lokpal Bill (Citizen's Ombudsman Bill)	Draft Lokpal Bill (2010)
Lokpal will have powers to initiate suo moto action or receive complaints of corruption from the general public.	Lokpal will have no power to initiate suo motu action or receive complaints of corruption from the general public. It can only probe complaints forwarded by the Speaker of the Lok Sabha or the Chairman of theRajya Sabha.
Lokpal will have the power to initiate prosecution of anyone found guilty.	Lokpal will only be an Advisory Body with a role limited to forwarding reports to a "Competent Authority".
Lokpal will have police powers as well as the ability to register FIRs.	Lokpal will have no police powers and no ability to register an FIR or proceed with criminal investigations.
Lokpal and the anti corruption wing of the CBI will be one independent body.	The CBI and Lokpal will be unconnected.
Punishments will be a minimum of 10 years and a maximum of up to life imprisonment.	Punishment for corruption will be a minimum of 6 months and a maximum of up to 7 years.

Detailed

The following table details differences between the Government and activist backed versions

Issue	The Jan Lokpal Bill	Government's Lokpal Bill
Prime Minister	Can be investigated with permission of seven member Lokpal bench.	PM can be investigated by Lokpal after s/he vacates office.
Judiciary	Can be investigated, though high level members may be investigated only with permission of a seven member Lokpal bench.	Judiciary is exempt and will be covered by a separate "judicial accountability bill".
MPs	Can be investigated with permission of seven member Lokpal bench.	Can be investigated, but their conduct within Parliament, such as voting, cannot be investigated.
Lower bureaucracy	All public servants would be included.	Only Group A officers will be covered.
Central Bureau of Investigation (CBI)	The CBI will be merged into the Lokpal.	The CBI will remain a separate agency.
Removal of Lokpal members and Chair	Any person can bring a complaint to the Supreme Court, who can then recommend removal of any member to the President.	Any "aggrieved party" can raise a complaint to the President, who will refer the matter to the CJI.
Removal of Lokpal staff and officers	Complaints against Lokpal staff will be handled by independent boards set-up in each state, composed of retired bureaucrats, judges, and civil society members.	Lokpal will conduct inquiries into its own behavior.
Lokayukta	Lokakyukta and other local/state anti-corruption agency would remain in place.	All state anti-corruption agencies would be closed and responsibilities taken over by centralized Lokpal.
Whistleblower protection	Whistleblowers are protected law.	No protection granted to whistleblowers.
Punishment for corruption	Lokpal can either directly impose penalties, or refer the matter to the courts. Penalties can include removal from office, imprisonment, and recovery of assets from those who benefited from the corruption.	Lokpal can only refer matters to the courts, not take any direct punitive actions. Penalties remain equivalent to those in current law.
Investigatory powers	Lokpal can obtain wiretaps, issue rogatory letters, and recruit investigating officers. Cannot issue contempt orders.	Lokpal can issue contempt orders, and has the ability to punish those in contempt. No authority to obtain wiretaps, issue rogatory letters, or recruit investigating officers.
False, frivolous and vexatious complaints	Lokpal can issue fines for frivolous complaints (including frivolous complaints against Lokpal itself), with a maximum penalty of 1 lakh.	Court system will handle matters of frivolous complaints. Courts can issue fines of Rs25,000 to 2 lakh.
NGOs	NGOs not within the scope due to their role in exposing corruption.	NGOs are within the scope and can be investigated.
Scope	All corruption can be investigated.	Only high-level corruption can be investigated.

Courtesy: Wikipedia

Strategic Decision Making

Strategic decision Making is the process of selecting a course of action from many alternatives.
steps in strategic decision making looks some what like us:-

1. Objectives to be achieved are determined.
2. Alternative ways of achieving these objectives are identified.
3. Each alternative is evaluated.
4. The best alternative is chosen

The Entrepreneur /honor or Top management always have to chose the vision. There  may be alternative visions of a company from which one best vision is chosen.

At second step a company has to chose its mission. To chose a mission means a company has to decide about what product it has to offer?.......................  A company may have ability to produce different products

whom to serve...........................................  A company have to decide the customer group 

which technology to use?... To chose from  different technologies of production and distribution of the product 

 Similarly when an organisation has to chose its objectives. Top  managers identify objectives, alternative ways , evaluate the feasibility to achieve the objectives.

Characteristics of Strategic Decisions:-

Popularized by Mintzberg et al. (1976), strategic decisions are seen as large, expensive, and precedent setting producing ambiguity about how to find a solution and uncertainty in the solution’s outcomes. Once implemented, a strategic decision stipulates premises that guide operational decisions that follow. A strategic decision is often difficult to reverse once human and financial resources have been committed to their cause. Furthermore,

strategic decisions have the following characteristics:

◆ They are elusive problems that are difficult to define precisely.

◆ They require an understanding of the problem to find a viable solution.

◆ They rarely have one best solution, but often a series of possible solutions.

◆ Questions about trade-offs and priorities appear in the solutions.

◆ Solution benefits are difficult to assess as to their effectiveness, in part because

they lack a clear final end point against which effectiveness can be judged.

◆ Other problems in the organization are connected to solutions for a focal

problem.

◆ High levels of ambiguity and uncertainty are associated with solutions.

◆ Realizing hoped for benefits has considerable risk.

◆ Strategic decisions have competing interests that prompt key players to use

political pressure to ensure that a choice aligns with their preferences.

A simple model of strategic decision making can be illustrated as following-

BUSINESS POLICY

  

Business policy as defined by Christensen and others as the study of the function and responsibility of Senior Management. The crucial problems that affect the success of the in the whole organisation and the decisions that determine the direction of the  organisation and shape its future.

Igor Ansoff (1987) makes a difference between strategy and policy.

"strategy is a rule for decision making"

"Policy is a general decision that is always made in the same way whenever the same circumstances arise"

"A strategy applies similar principles but allows different decisions as the circumstances differ"

Wikipedia defines Policy as -

A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s).Policies are generally adopted by the Board of or senior governance body within an organization where as procedures or protocols would be developed and adopted by senior executive officers. 

Ones a company sets the vision - the description of its future it wants to realize in future, the mission- the statement of its social reasoning, nature of business, product, customer target, technology and its role in society, it becomes necessary to visualize those problems which will come as impediments in accomplishing the mission of the company as a whole.

As a part of strategic management component, business policies are related with those concerns/problems/issues which affect the organisation as a whole and are of general nature. Since company has got a vision to aspire, a mission to pursue it needs to understand the problems which are normally to be recurring during the implementation of strategy.

Few examples of business policies are-

• A company will not consider any cost reduction options if it means

compromising quality.

• A company decides to grow only through retained earnings.

• A company will not consider adding new products with less than

10 percent return on investment.

• A company sells exclusively on cash terms.

• A rental company charges a deposit for rented material.

• A rental car company charges extra money for delivering the rented

car in another location.

• A company hires personnel with experience only.

• A company prepares guidelines on how to collect debts from its customers.

• A company will not question customers’ returns of items purchased

earlier.

• A company responds to 50 percent of customer inquiries within three

working days.

STEPS IN BUSINESS POLICY FORMULATION-More or less  business policy formulation is similar like decision making process. There are following steps in Policy formulation.

I) Environmental Analysis

The first step in the process of policy formulation is environmental analysis. There are basically two environmental factors: internal and external. The external environment of the company comprises of economic, technological, political and social forces operating outside the boundaries of the company. These influence the company indirectly and the company has no control over them. These have to be continuously analyzed and understood before the formulation of polices. The internal environment of the organization comprises of the firm’s employees, the organization structure, resources, value system, functional departments etc. These affect the organization’s activities directly as they are internal to the organization. Both internal and external forces interact and a change in one affects the other one. The two together provide for identification of problem areas with respect to which the policies could be made.

II) Identification of Policy Alternatives

Once the analysis has been done, the next step requires identification of policy alternatives. The environmental analysis helps to determine the opportunities and threats facing the company and also its strengths and weakness. When the organization is engaged in the matching of its strengths with the opportunities, various policy options emerge. The options or alternatives also arise with the help of past experience, past performance results and the practices followed by the management.

Identification of alternatives has to be done efficiently and then only can they be evaluated for one choice.

III) Evaluation of Policy Alternatives

After the various alternatives have been identified, they are to be evaluated so that the best one could be selected. The evaluation of policies is known as policy audit. The alternatives can be evaluated on the basis of their consequences in terms of their contribution to corporate goals. Several criteria could be used for evaluation like growth, unit, profitability, development, organizational goals, etc. The evaluation has to be done with care so that errors may not occur. Policy should not only be feasible but it should also be consistent with organization’s goals.

IV) Choice of Policy

The last step in the policy formulation process is the choice of the best alternative from among the various alternatives identified and evaluated. The evaluation helps in the selection of the best possible policy. If any of the alternatives are not acceptable and not consistent with company’s objectives then the process reverts back to the identification of alternatives where fresh alternatives are looked for. The search begins again.

The various alternatives are compared with each other and the most preferred option is selected. This selected policy has to be tested so that it could be known whether it fits in the organizational boundaries and meets the organizational goals. After being successfully tested, the policy becomes ready for implementation and the manner in which it would be implemented should be explained clearly. After the policy has been made, it becomes necessary to review it from time to time so that it does not become obsolete.

TYPE OF POLICIES:

Basically there are three main types of policies

1. Basic Policies:- These are framed by the top management and spell out the basic approach of a company to its activities and its environment.

 2.General Policies:- These are framed by the middle level management and are more specific. They apply to large segments of the organization.

3.Specific Policies:- These are framed by the foremen and supervisors and are very specific in nature. They are applicable to routine activities.

COCA-COLA policy document is displayed on its website:- :: www.thecoca-colacompany.com.