A Process of Intelligence Effective Decision making is a process of Intelligence, Design and choice activities and “is a central part of the management process”. Decisions are hard to make but once decided there should be no second take.   The following steps are involved in the process of Decision-making: 1. Recognizing the problem 2. Deciding priorities among problems 3. Diagnosing the problem 4. Developing alternative courses of action 5. Evaluating alternatives 6. Selecting the best alternative 7. Effective implementation and follow-up action. Recognizing the Problem– Herbert A Simon calls this step as an “intelligent activity“. It is important to find out whether there is any deviation from the past experience. For e.g. Sales might decrease, expense might decrease, sometimes there might be deviations from the plan, sales budget, and competitors may outperform by improved systems. Deciding priorities among the problems: A manager would face many problems at the same time. He should not be bogged down with small and unimportant problems. Some problems can be easily solved by the sub-ordinates. Some may not be important. A manager must see that – he selects carefully the most important problem. Peter Drucker says that “once the right problem is perceived then half of the problem is solved”. A manager must diagnose carefully by asking the following questions. a. What is the real problem? b. What are the causes and effects of the problem? c. Is this problem very important? d. Can they be solved by sub-ordinates? e. Which is the right and most important problem to be solved? Diagnosing the Problem: After choosing the right problem the manager must now start diagnosing the problem. There is no simple answer to the question of how to diagnose the problem, because every individual differs in his or her own way of diagnosing the problem depending on the different background orientations and training. A manager must systematically analyze the problem for identifying the alternative causes of action. Developing Alternative Courses of Action: This step is creative and innovative where a manager analyzes from all perspectives Sometimes a manager can also use a technique called “brainstorming” where a few individuals discuss at length the various possible available alternatives. First of all, a manager must be thoroughly familiar with the problem. This is called saturation. Later, he must think about the problem from several view-points which is called deliberation. Sometimes the manager may not get into the crux of the problem, i.e. there may not be any fruitful result of deliberation, and then the manager might temporarily switch off his conscious search and relax. This process of realization is called incubation. Then after sometime, a flash of light may occur, and the manager may get some insights and ideas. This stage is called illumination. In the last stage, which is called accommodation, the manager resynthesises his ideas into a usable proposal. Evaluating the Alternatives: The manager must now give proper weightage to the positive and negative aspects of the alternatives and evaluate by using some criteria like (a) time; (b) cost; (c) risk; (d) results expected; (e) deviations anticipated; (f) resources available for implementation. Selecting the Best Alternative: This is the most important step where the manager selects the best alternative that will yield maximum profits or results with minimum cost, input or resources. To put it in simple terms, the solution should be able to solve the problem in the best possible way. Effective Implementation and Follow-up Action: Any decision without proper implementation becomes futile and hence proper care must be taken by the manager to pool resources and start implementing the decision taken. In large organizations, follow-up procedures are available in the system...

Synergy in Management Synergy: The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects. Synergy is the latest BUZZ WORD in the corporate business world. Synergy is the sum total of individual resources that which creates an enhanced effect greater than that of the sum total. Shall I simply say “1+1>2”! It is really amazing how much you can accomplish when it doesn’t matter who gets the credit. Teamwork divides the task and doubles the success. Unity is Strength: Synergy unites the people of an organization as a team and it serves like “BLINKERS FOR HORSES” to reach the goal of the firm without any conflicts amongst the team members. It is a managerial science and the role of top management in synergizing the employees plays a vital role in the success of the organization. As the old saying goes “Unity is Strength” and the new world aspires “Sky is the Limit”. By integrating the team members, having a smooth relationship with labor unions and management staff, a firm can achieve its overall objectives and mission in a very short span of time. Cordial Industrial Relation paves the way for the functioning of the firm without a hitch. Developing Systems for all core areas: The top management has to create “SYSTEMS” for all the core areas; Policies, procedures, rules and regulations, norms etc.,shall serve the common purpose of controlling and guiding all the employees of a firm creating a perfect ambience for efficient performance. The general managers should be the pillars of a firm who shoulder the responsibility of implementing these systems in an objective manner and not in a subjective manner. Scope: Synergy also has its scope outside the organization. The managers should be able to connect themselves with customers, banks, trade associations and also the government with ease. The weather of your firm depends on the psychology of your persona and the collective efforts of your team. If you want your firm to be SUCCESSFUL and UNIQUE, you have to POOL ALL YOUR RESOURCES, be it human, physical, financial or intangible. The competitiveness enjoyed by your firm to capture and win the market marks your strength; the limitations or restrictions that mar the growth of your firm can be overcome by the SYNERGISTIC BOOSTER that you administer into the minds of your employees. Integration is the key word that leads to DISTINCTIVE COMPETENCE, a strength that cannot be copied by other organizations which helps you to make your organization more productive and...

Entrepreneurship in Developing Economies Entrepreneurial development is a complex process of change. It has been recognized as an important ingredient of economic development. The development of entrepreneurial activity depends upon the closely interlinked economic, social, cultural, religious and psychological variables. Developing countries of late have adopted a deliberate policy of promoting and encouraging small enterprises as a strategy, for the overall development of their countries. Practical Problems Faced by Developing Countries The numerous problems confronted by developing countries such as, a high rate of population growth, a relatively low rate of economic growth, a low level of capital income with nearly fifty percent of the population subsisting below the poverty line and mounting increase in the figures of educated unemployed-all these check the growth of entrepreneurial activities. Countries have to plan realistically, mobilize and harness resources, have control over factors of growth and development and give direction to the development process. Naturally then, the national and economic goals will be focused towards: Production and productivity to be increased in the primary, secondary and tertiary sectors Maximum harnessing and utilization of material and human resources Solving problems of unemployment Having a check on population growth Equitable distribution of wealth and income To increase the purchasing power parity To increase the gross national product To increase the real per capita income Improving the quality of life Industrial Development The larger scope and potential to achieve these goals lie in the development of the industrial sector of the national economy, and the only alternative to raise the level of living is development of industries. Here, we are not merely concerned with certain quantum of growth and development in the industrial field. Theoretically, the desired quantum of industrial development could be supported by a few large investments and capital intensive units run by a small number of big entrepreneurs. But what is envisaged is to have the same quantum of industrial development with a wider spread consisting of large number of small entrepreneurs all over the country. This would result in development of small scale and tiny sector industries all over the country and would generate employment opportunities to the educated unemployed, skilled people and other potential entrepreneurs from various segments of the society. Scenario of Asian Countries Most of the Asian countries like India and China are encouraging and promoting entrepreneurial development leading to industrial and economic development. India is now a hot spot for automobiles and its accessories. Being a cost-effective core market for auto components sourcing for global auto makers, the automotive sector is a potential sector for entrepreneurs. Entrepreneurs are risk bearers, find resources and fill market gaps that would be missed by larger, more bureaucratic organizations. Entrepreneurs improve the social welfare of a country by harnessing dormant, previously overlooked talent. Surplus manpower which is considered a great liability can be converted into assets once those with potential are selectively groomed for self-employment and enterprise formation, leading to further job...

What is Distinctive Competence Distinctive Competence is a competency unique to a business organization, a competency superior in some aspect than the competencies of other organizations, which facilitates the production of a unique value proposition in the function of the business. Apple’s distinctive competencies: Innovative culture, successful entry into new markets, human centered design and development. What is distinctive competence? How does it serve as a critical factor for a firm to outsmart its rivals? This is the topic for discussion. Distinctive competence is nothing but the unique capacity of a firm in terms of resources, behavior, strengths and synergy, in relatively or exceptionally large measures. It is the advantage a company has over its competitors, because it can do something that they cannot or it can do something better than they can. Distinctive competence can be in the form of Patents Exclusive access to natural resources Government licenses Pioneer efforts Superior product Product quality Competitive price Unmatched promotional offers, such as discounts and prize coupons Particular attribute of a product-say, highly fuel efficient four wheeler Market niche creation for highly specialized products Superior R and D skills Possessing large number of equity share holders Marketing skills Managerial skills Synergistic work force Supportive union and what not. It is unfortunate that some firms fail to cash in on these competencies for better strategic formulations that might help them to have an edge over their competitors. These critical success factors have to be developed by organizations to capitalize the strategic opportunities that they present for developmental...