Question

1.How does the way a company is managed affect its competitive advantage?

2. Explain the principles of Mary Parker Follett’s human resource management

3. Describe the three-step process that managers use to make sense of their changing environments.

4. What steps can managers take to improve ethical decision making?

No plagiarism please!!!!!!!!

Answer 1

The dictionary definition of comparative advantage tells us about the superior or better position of a particular company over its competitors. Competitive advantage is achieved through various means -- production/service technology, location, brand value, research and development etc. However, one of the essential features for maintaining long term comparative advantage vests with the way the company management functions.

One might ask, what role does the company management play in deciding how the company fares among its competitors. The primary answer lies in how we define the way a company is managed and the way it can add to more effectiveness and streamlining of functions.

Management comprises of people and the relations between them in context of the work in a particular entity. It includes taking decisions, the hierarchy, delegation of work to the employees and forming a strategy to achieve certain ends and targets. In terms of decision making, the level of professionalism forms the key to making both swift as well as efficient decisions. Where one company might function around the board of director method of vote taking, another might use the stakeholders and shareholders for crowdsourcing the right direction for the company.

In terms of hierarchy, it can be a comparison between a tightly bureaucratic model against a more informal chutzpah model followed by Israeli startups. Writers Dan Senor and Saul Singer, in their book Start-Up Nation point out that chutzpah or no-hierarchy culture in the Israeli startups led to them being more competitive and decisive against start-ups in Europe or USA. The focus was on allowing employees to pitch in ideas directly to the shareholders without any official formalities. Whereas in a more bureaucratic setup, there are more obstacles in transferring ideas from one place to another. This as seen in the Soviet model, has led to discrepencies in the way the commerce of the company holds against others.

Overall, the management acts as the direction chamber of any company, deciding its culture, strategy, shareholder-employee relations, consumer connect etc. These facets ultimately add upto influencing the economic decisions and the production styles. The management has to be balanced as well as flexible to handling the ups and downs of the market and in most cases pre-empt the ways in which an edge can be achieved against its competitors.