Question no 01 Identity The Seven Diminesions of Organizational Culture ?

Answer : Organizational Culture

Definition: Organizational culture, as the name suggests is the culture inherent in the
organization, which determines its internal atmosphere and the overall personality.
Understanding a set of values that might be used to describe an organization’s culture helps us
identify, measure, and manage that culture more effectively. One framework that provides
insight into the different types of organizational culture is the seven-dimension Organizational
Culture Profile.

(1) Detail-oriented :
The degree to which employees are expected to exhibit precision, analysis, and attention to
detail. Not surprisingly, detail-oriented companies are all about meticulous attention to details.
These companies tend to be in customer-oriented industries in which such precision is valued.
For example, Four Seasons hotels are dedicated to providing customers with exactly the service
they prefer, and they keep records on each guest’s experiences, preferences, and
expectations.

(2) Outcome-oriented:
Emphasizing achievements and results. The degree to which the company’s management is
oriented towards the outcomes instead of the strategies and processes employed to achieve
them. Also focuses on results or outcomes rather than on technique and process.

(3) People-oriented:
Insisting on fairness, tolerance and respect for the individual. If you work for a people-oriented
corporation, you can expect the company to care about you. They value fairness and are
supportive of individuals’ rights and dignity. Software company SAS is a good example of a
people-oriented company that offers employees a wide range of individualized benefits,
including on-site childcare

(4) Team-oriented:
The degree to which work activities are organized around teams rather than individuals.
Emphasizing and rewarding collaboration. Employees who like to collaborate and cooperate
with team members do well in team-oriented companies. Whole Foods, for example, expects its
employees to function as members of teams and to support other members of the team when
necessary. This creates strong, solid relationships within working groups.

(5) Aggressive:
The degree to which people are aggressive and competitive rather than easygoing. It is all
about the employee’s approach to the work, i.e. the extent to which employees show
competitiveness towards work, instead of having a casual approach. Although some companies
value cooperation, others value aggressive competition. Stratasys, a maker of 3D printers, has
been willing to make enemies in order to survive and thrive. Stratasys expanded rapidly through
growth, takeovers, and mergers to gain a dominant position in the 3D printer industry.
Sometimes, Stratasys’ aggressive approach has gotten the company into legal battles but the
company has continued to perform well.
(6) Stability: The degree to which organizational activities emphasize maintaining the status
quo in contrast to growth. Providing security and following a predictable course. Employees at a
stable corporation know exactly who is in charge, who to report to, and what they are expected
to accomplish. Kraft Foods, for example, is a very stable organization with a strong
bureaucracy. Although it is consistent, however, Kraft is not known for innovation or creativity.

(7) Innovative and Risk-Taking:

The extent to which employees are motivated to become innovative, willing to experiment and
take risks. Individuals who want opportunities to invent new products or services should
consider working for companies such as W.L. Gore and Associates, maker of GORE-TEX.
These companies not only encourage innovation but give employees company time to work on
their own projects. This approach can result in a wide range of exciting new products developed
by engineers or scientists working on their own.
There is no one “best” type of corporate culture, and many larger corporations actually exhibit
more than one culture. For example, the sales department may have an aggressive culture,
whereas marketing is more team-oriented. In general, however, corporations can be grouped
into the categories mentioned earlier.
Question No 02 Describe Different Dicisions Making Styles and Discuss How Biases Affect
Dicisions Making ?
Answer :

1) Decision Making Style :

Effective decision making is not everyone’s piece of cake. That’s why a leader is supposed to carry out
the responsibility of making a decision. When leaders make a decision, they consider numerous factors
before they take one. These factors can be social, economic and psychological. They can all influence a
person’s decision making styles process. Since we all human beings differ from each other, our
perceptions, our thinking process, our personal believes and our internal/external stimuli, it all works
differently. Scientists have agreed that most individuals fall into one of the four basic categories of
decision making. These categories are :

• Analytic Decision Making

• Directive Decision Making
• Conceptual Decision Making
• Behavioral Decisions Making

1. Directive Decision Making Style : Managers who use directive decision making style have
low tolerance for ambiguity and they rational in the way they think. This form of decision
making relies on a rational and autocratic style that results in the employee using his own
knowledge, experience and judgment to choose the best alternative. This type of leader is
very rational, but thinks mostly about the short-term. John believes that a shopping mall is
the best type of development for the land. They are very logical, efficient and take quick
decisions within a short time. They assess few alternatives and also consider limited
information while taking any decision. Basically such managers use their logic and idea while
taking decisions. Directive style decision-making has low tolerance for ambiguity and is
rational. When a manager spots the dirt on the window, and orders the cleaner to clean the
window now, that is a directive style decision making.

2. Analytic Decision Making Style : Managers using analytic decision making style have much
greater tolerance for ambiguity and rational way of thinking. They want more information
before making a decision and also consider more alternatives. Analytic style decision-making
has high tolerance for ambiguity and is rational. The decision-making style is due to
uncertainty, and lack of information. Such managers are more careful decision makers as
they consider factual and detailed information before taking any decision. They have the
ability to adapt or cope with unique situations.
 For example, when the management is discussing about acquisition. They do not make
decision fast. They want to have more information before they make the major acquisition.
They have to find answers to many “what if” questions.

3. Conceptual Decision Making Style : Conceptual style decision-making is characterized by

high tolerance for ambiguity and is intuitive in nature. Managers using conceptual decision
making style have high tolerance for ambiguity and have intuitive in their way of thinking.
They look at many alternatives. They focus on the long run and are very good at finding
suitable solutions. This kind of decision making is for a long term, and subjected to changes.

For example, after Singapore gained independence, the Singapore government decided on
industrialization. That was a conceptual style decision making. There was no guarantee of
success, and no historical data for analysis. As a result of the decision, Jargon Industrial Park
was developed along with roads and infrastructure.

4. Behavioral Decisions Making Style : Behavioral style decision-making has low tolerance for
ambiguity and is intuitive. Managers using behavioral decision making style have low
tolerance for ambiguity and intuitive in their way of thinking. The manager possesses
behavioral style decision-making will engage in team discussion. He is responsive to the
mood of the team members. He makes decision based on what feels right, and what will
motivate the team members to perform. The decision is communicated clearly and leaves
no room for doubt. They are concerned about the achievement of subordinates and always
take suggestions from others. They organize meetings of subordinates time and again to get
information and suggestions. However, they try to avoid conflict. Acceptance by others is
important to this decision making style.

2) Dicisions Making Biases and Errors :

Answer : When manager make decisions they use “rules of thumbs” heuristics to simply
their decision. It is usefull because it help to make sense of complex, uncertain and
ambigow information. Even through managers use it but it does not mean it is raliable.
Because it have errors and biases in process. We will discuss 12 common errors they
may even have in it.

1. Over Confidence Biases: When dicision maker think they know more than they do or
hold realistically positive views of them they are exhibiting overconfidence bias.

2. Immediate Gratification: It describe dicision maker who tend to want immediate

rewards. For these individuals dicision choices that provide quick pay offs are more
appealing than that who provide pay off in future.
3. Anchoring Effect: It is a cognitive biase where an individual depends too heavily on
an initial piece of information offered to make subsequent judgment during dicision
making.

4. Selective perception: When dicision makers selectively organize and interpret

events based on their baised perception they are using selective perception.

5. Confirmation bias: Dicision makers who seek out information that confirms or
support one’s past choices and valves. Then they are using confirmation biases.

6. Froming bias: It occur when dicision making select and highlight certain aspects of a
situation while excluding and omitting others. They distort what they see and create
incorrect reference.

7. Availability bias: It Happen when dicision makers tend to remember events that are
most recent. This result as a distortion in recalling events in an objective manner.

8. Representation bias: When dicision makers asses the likelihood of an event on the
basis of how closely it to other events or set of events that’s the representation bias.

9. Random bias: It describes action of decision makers who try to create meaning out
of random events.

10. Sunk cost error: It occur when dicision makers forget that current choices can’t
correct the past.

11. Self serving bias: Dicision makers who are quick to take credit for their success and
to blame failure on outside factors are exhibity self serving bias.

12. Hindsight bias: Hindsight bias is the tendency for Dicisions makers to falsely believe
that they would have accurately predicted the outcome of an event once that
outcome is actually known mangers avoid the negative effects of these decisions
errors and biases by being aware of them and not using them research.