Lecture no.

6
Difference between generalization and fallacy of composition:
Generalization
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Generalization is not backed by scientific analysis, it may be subjective.

Stereotyping someone is also generalization
Generalization is on a larger scale

Fallacy of Composition:
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Fallacy of composition is farroq sattar statements, saying that on the basis of

his statement, it is true for all MQM.
It is for a smaller scale

PLANNING AT SHELL:
Strategic planning is for 20 years while business planning is for 5 years
For business planning, focus scenarios are provided and retreats are conducted.
Then they give plans. Then the plans are given to operating companies. Then given
to the group review, where the plans are aggregated and presented before the
CMEs (committee of Managers).
Hence this is not a bottom up approach. This falls under strategic planning but shell
believes it is doing strategic management. People do not own the plans while in SM
there is high level of ownership.
Because lower levels are not involved in the decision making process, they do not
relate to the plans. They can only relate with the 1 year plan.
Strategic management in SHELL is not at its best. Graham Geller did not have a
proper understanding of what is going on in the organization. This is the reason why
shell was facing problems. The reason is that he doesnt know why the people are
not owning the plans.
The approach that SHELL should take is summarized in the last paragraph.
(comments of the author not Gallers)
SHELL follows a global strategy. What is true for one country may not be true for
another. This is development economics.
IMF policies could not be implemented as development goals cant be met as
conditions vary in each country. We have to be very original.
Politicking:
Unacceptable ways of getting ahead, not competitive enough, not growing oneself,
leg pulling. You maintain the position by pulling other people down.

Politics:
Competition for scarce resources for achieving organization goals.
Flux - after transformation change, organization may enter into flux.
SHELL Nigeria SHELL used to pollute and supported by military general. There was
an uproar against it. Political means were used to hang the person and SHELL was
stigmatized. SHELL had a hard time to validate itself for local accountability.
Machiavellian Approach: you say something and do something else. Zia ul Haq was
Machiavellian.
Understanding military approach and then applying it to business.
Bhutto was stigmatized
Purpose of mission statement:
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Common cause, unanimity of purpose, sense of purpose.

Basis for allocation of resources, performance evaluation and organizational
structure.
Mission is not about to be but to do Christianity mission is to provide
service to need, to contribute in the society.
Prophet mission message of God to spread on earth in such a way it
becomes irreversible.

University Mission:
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Accumulate Knowledge through research

Disseminate knowledge through publications and class rooms
Apply knowledge consultancies and policy advices

Research, consultancy, class rooms instructions, and publications, these directly

translate mission into performance appraisal.
Work structure - different departments but no chain of command, no hierarchy.
Resources shall be allocated on research plans
Components of mission statement not necessary to include all the components.
Generalization - everyone having offshore account has done something wrong but
reality might be different.
Characteristics
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Attitude and declarations of outlook.

Balance between breath and specificity. Require specificity to focus on cola
drinks breaths and consider non-cola drinks. When you have breath, try
innovative things and resolve divergent views so everyone knows the
mission. Also e.g of Jazz band, Edhi
Utility

Social Policy : service form the business to society which will not bring any financial
return e.g Merk has developed a drug for blindness and distributed in Africa free.