Question 2 (a) Describe and compare two decision-making model that are likely to be most commonly used by managers in a high pressure, rapidly changing environment. Explain why these two models are most relevant in such an environment?
Answer: Classical Model and Administrative Model
The Classical model based on rational and logical assumptions. It operates to accomplish established goals and defines problems. The manager strives for full informations and evaluates alternatives to maximize the benefit. This model of decision making is considered to be normative, which is the manager knows how the decision should be and not rely entirely on personal preferrence.
Meanwhile, the Administrative Model has a vogue problems and goals. This model usualy under the uncertainty condition because managers have limited informations and alternatives. They make a decision based on intuitions and experiences but rarely use rational procedures concerning time consumptions. Most of the managers settle for satisficing choice for resolving problems.

The Classical Model relevant for rapidly changing environment because this model focus on accomplising goals and resolving problems. It is derives from many informations and alternatives. The manager incorporates thoughtful analysis into decision making, not by personal perception.

The Administrative Model uses intuition decision which is based on years of practice and hands-on experience that enable the manager to quickly identify solutions without conscientious computations. In today’s fast changing environment, intuition plays an increasingly important role besides rational analysis in decision making for saving time.

(b) Describe programmed and non-programmed decisions. Explain three difference between these two types of decisions.
Answer: programmed decisions are those that managers have encountered and made in the past. They use the assistance of company policies, computations or a set of decision-making guidelines. In addition to being well-structured with predetermined rules regarding the decision-making process, programmed decisions may also be repetitive as their outcome was succesful in the past. In certain condition, managers do not really have to make a decision. For example, the manager decides to order paper when the office’s paper is almost out of stock.
On the other hand, the non-programmed decision are concerned with unique or unusual problems. They are encountered in very non-frequent manner. The decisions are relatively complex and have a long-term impact. They require high degree of executive jugdgement and deliberation. For example, in 2005, Mc Donald’s became aware of a need to respond to growing customer concern regarding foods high in fat and calories. In response, Mc Donal’s decide to offer healthier alternative such as substituing apple slices in Happy Meals for french fries and discontinuing the use of trans-fats.

The diffences between programmed decisions and non programmed decisions: * Programmed decisions making are usually made in accordance of rules or procedures while the nature problem that requires non-programmed decision is unstructured and unusual. It requires higher level management participation * There will be minor error in programmed decision making because it is routine and has a guidelines. However the non-programmed decision is likely to have big error because it is more challenging and non-frequent occur * Programmed decision making is low risk and high certainty because it is a problem that well-structure and happen repetitively in past. Meanwhile non-programmed decision making is high risk and low certainty. The managers will take a long time to make a decision because the manager does not have a guideline to handle the problem.

(c) Choose and identify an organization. Provide examples of two programmed decisions and two non-programmed decisions for the selected organization
Answers: Unilever
Programmed decisions:
- if the raw materials is almost empty the production manager will buy the materials - if the political condition is stable, Unilever will increase the number of production. If not, unilever tends to decrease the amount of production
Non-programmed decisions:
- PT Unilever expand the popularity by giving donation to sinabung victims
- PT Unilever increase the selling price because government increase the fuel’s price

Question 3 (a) Describe each of the five structures and discuss the advantages and disadvantages of functional structure, divisional structure, matrix structure, team and virtual networks.
Answer:
Functional structure is a structure that consist of activities such as coordination, supervison and task allocation. The term organizational structure refers to how the people in organization grouped and to whom they report. One traditional way of organizing people is by function within an organization include production, marketing, human resources and accountant

Advantages: 1. employess is managed by a person with experience in their same speciality who can understand and review their work 2. employess directed and controlled by the one top manager 3. employees can work with collegues which allows for them to share knowledge disadvantages: 1. poor commucication across functional deparment that leads slow response to external changes 2. as the company grows larger, the functional areas can become difficult to manage due to their size. They can become almost like a small companies on their own, with their own cultures, facilities, and management methods. 3. Functional areas may become distracted by their own goals and focus on them, rather than on overall company objectives. For instance, there may be a desire by the marketing department to sell their product as much as they can but actually the company goals want to keep their quality of products

divisional stucture is a type of organizational that the department are grouped based on output.

Advantages: 1. Allows specialisation in a particular products or services 2. Enables managers and employess to become experts in their industry 3. Allows organization to get closer to the customer because the employess will solve the customer problem directly 4. Manager can make a quick decision making without consultating with other divisonal manager because he already expert in his job
Disadvantages:
1. There can be a conflict between divisonal head because each of them want to build his supremacay 2. Each department need the entire set of function that lead the duplicity of function. It can make the resources are misused and cost opereation is unnecessarily increased 3. Manager can have a selfish attitude because he already expert in his job
Matrix structure is a combination of the functional dan divisonal sructure. The matrix organizational sructure brings managers and employess from different department to work together accomplishing a certain goal. Usually matrix organization has more that one manager so the employess must report to all the managers.
Advantages:
1. Suitable for cordinating and controling the functional activities and projects activities. Functional authority flows downwards and project authority flows horizontally which enables to establish better coordination and control. 2. Adaptable to dynamic environment because this structure can easily adjust with changing environment at business world 3. Project structure makes the utilization of resources used effectively 4. Working as a team and have less conflict between subordinate because they share ideas an opinion frequently 5. A excellent specialization made by this matrix structure due to all the expertist from various functional areas are combined together 6. Suitable for complex and high collaborative projects such as building an aircraft

Disadvantages: 1. Frustration and confusion from dual chain of command because every employees must report to several managers 2. Involving a huge overhead cost due to employees high remuneration and facilities 3. Wasting time and ideas because too much experts gather to solce problem 4. A high level of interpersonal skill or specialist is required to maintance the balance between functional and project authority.
Team structure is a newer and less hierarchical organizational structure that individual employee grouped into teams to work on spesific project.
Advantages:
1. Increasing creavity in problem solving 2. Allowing te organizations to delegate the authority that give shorter time to respond a problem 3. Becoming flexible and competitive in global environment

Disadvantages: 1. High level of conflict because the team is consisf of several people with different charasteristic and background 2. Unplanned decentralization 3. Spending more resources and time on meeting
Virtua network structure means that the firm sub contracts most of its major functions to seperate companies. A virtual network structure does not consisf of a physical connection (does not see face to face) but implement a network virtualization method
Advantages:
1. Highly flexible and responsive 2. Reducing overhead cost 3. Less in time consuming because we can make a meeting anytime we want without see in physically
Disadvantages:
1. Lack of control and weeker employee loyalty 2. Poor in communication because manager and employees did not meet physically 3. The techonologies from different vendors may not work well together due to immature standards.
(B) some people argue that matrix structure should be adopted only as a last resort because the dual chains of command can create more problem than they solve. Do you agree or disagree? Why?
Answer: agree because the dual chains of command can make a confusion to employees. Employees can confuse should report to whom or should listen to which manager. Sometime it also can leads to become more complex. Example in mobile phone company that want to increase the profit, manager of production wants to create a high-tech mobile phone that multifunction and really booming nowadays but it will be cost a little bit higher. Meanwhile the vice president of finance wants to reduce the cost of production so it is affordable for customer to buy. So the employee will be confuse should do the high-tech mobile phone that multifunctional but pricey or a simple mobile phone that cheaper.