Intro to Management Exam 2
when does procedural justice exist
when managers -carefully appraise a subordinate's performance -take into account any environmental obstacles to high performance -ignore irrelevant personal characteristics
perception and management
when perceptions are inaccurate managers are likely to make bad decisions and take inappropriate actions
sources of diversity in the workplace
-age -gender -race -ethnicity -religion -sexual orientation -socioeconomic background -capabilities/disabilities -education -experience -physical appearance -other characteristics
advantages of greenfield strategy
-high level of control over venture -learning by doing in the local market -direct transfer of the firm's technology, skills, business practices and culture
disadvantages of multi domestic
-hinders resource and capability sharing or cross market transfers -higher production and distributions costs -not conducive to a worldwide competitive advantage
values
-ideas about what a society believes to be good, right, desirable and beautiful -provide the basic underpinnings for notions of individual freedom, democracy, truth, justice, honestly, loyalty, love, sex, marriage, etc
disadvantages to export strategy
-relative cost v local competitors -transportation and shipping costs -exchange rates risks -tariffs/import duties -loss of channel control
benchmarking
comparison of one firm's business process and performance metrics to industry bests and best practices from other companies
business case for pursuing a sustainable CSR strategy in the firm's value chain activities
competitive advantage
corporate entrepreneurship
consists of entrepreneurial action within an established organization
environmental sustainability strategy
consists of the firm's deliberate actions to -protect the environment -provide for the longevity of natural resources -maintain ecological support systems for future generations -guard against ultimate endangerment of the planet
when should action be taken to fix sexual harassment
corrective action should be taken as soon as possible after it has been determined that sexual harassment has taken place
economies of scale
cost advantages associated with large operations
attraction and retention of talented employees decreases what
costs of hiring and helps ensure that all employees are highly motivated
baldrige program
widely used framework for business assessment is provided by the Baldrige program which is a public-private partnership (Baldrige Performance Excellence Program) -US department of commerce -baldrige foundations MISSION: -to improve the competitiveness and performance of US organizations
examples of glass ceiling
# of women and minority CEOs of fortune 500 firms (2013): -22 women CEOs (4.4%) -6 African American CEOs (1.2%) -8 Latino American CEOs (1.6%)
since the 1960s, development of MNEs
-# of non US multinationals has risen -# of multinationals has risen
federal age discrimination laws
-1964 Title VII of Civil Rights Act: prohibits discrimination in employment decisions -1967 Age Discrimination in Employment Act: prohibits discrimination against workers over 40 and restricts mandatory retirement
prohibit discrimination on the basis of sexual orientation
-20 states have laws against discrimination based on sexual orientation -The NJ Law against discrimination prohibits discrimination based on sexual or affectional orientation -there is a 1998 executive order that prohibits discrimination in federal workplaces
legal remedies to racial and ethnic discrimination
-Title VII of Civil Rights Act of 1964 -Civil Rights Act of 1991
diversity of employees provides
-a variety of points of views and approaches to problems and opportunities can improve managerial decision making -diverse employees are more attuned to the needs of diverse customers -diversity can increase the retention of valued organizational members -diversity is expected/required by stakeholders
why enter foreign markets
-access new customers -exploit core competencies -spread business risk -lower costs -access resources and capabilities
Advantages in Alliances/JV strategy
-access to knowledge -economies of scale -sharing resources (distribution, production) -focus on mutual rivals -establishing relationships with customers/officials
DMAIC
-business process improvement for existing processes -provides a framework for business process improvement as well as an implied sequence of action steps -often supplemented with additional analytic tools or modified for adaptation to different business reuirements
how should sexual harassment be eradicated
-by developing and clearly communicating a sexual harassment policy endorsed by top management -use a fair complaint procedure to investigate charges of sexual harassment
advantages of multidomestic
-can meet the specific needs of each market more precisely -can respond more swiftly to localized changes in demand -can target reactions to the moves of local rivals -can respond more quickly to local opportunities and threats
disadvantages of greenfield strategy
-capital costs of initial development -risks of loss due to political instability or lack of legal protection of ownership -slowest form of entry due to extended time required to construct facility
diversity imperative
-commitment is a moral and ethical imperative -diverse organizational members can be a source of competitive advantage, helping an organization provide diverse customers with better goods and services -variety of points of view and approaches to problems and opportunities that diverse employees provide can improve managerial decisions -effective management of diversity increases attraction and retention of talented employees, which decreases the costs of hiring and helps ensure that all employees are highly motivated
efficiency measures
-cost -variation -cycle time
disadvantages of acquisition strategy
-costs of acquisition -complexity of acquisition process -integration of the firms' structures, cultures, operations and personnel
Greenfield conditions are favorable for using internal startup strategy when
-creating an internal startup is cheaper than making an acquisition -adding production capacity will not adversely impact the supply-demand balance in the local market -a startup subsidiary has the ability to gain good distribution access -a startup subsidiary will have the size, cost structure, and resource strengths to compete head to head against local rivals
intangible or less visible costs
-customer defections -loss of reputation -lost employee morale and higher degrees of employee cynicism -higher employee turnover -higher recruiting costs and difficulty in attracting talented employees -adverse effects on employee productivity -costs of complying with often harsher government regulations
black belt
-demonstrated expertise in managing multiple successful improvement projects using the methodologies and tools
ways of capturing VOC
-direct discussion -surveys -focus groups -warranty data -collect customer input and provide feedback
Sodexo Inc, a food facilities management company, series of organization wide award winning diversity initiatives
-diversity training -programs to encourage managers to mentor and coach employees of backgrounds different than their own -bases 25% of top manager bonuses on their performance on diversity initiatives, including hiring and training diverse employees
barriers to entry
-economies of scale -brand loyalty -government regulations
sexual orientation issues
-employment and workplace discrimination -provision of same sex partner benefits
negative factors to consider before doing business in a country
-environmental regulations -subsidies and loans to domestic competitors -import restrictions -tariffs and quotas -local content requirements -regulatory approvals -profit repatriation limits -minority ownership limits
factors to remember about sexual harassment
-every charge should be taken seriously -employees who go along with unwanted sexual attention in the workplace still can be victims -employees sometimes wait before they file complaints -a firms policy should be communicated to each new employee and reviewed with current employees on a periodic basis -suppliers and customers need to be familiar with a firm's sexual harassment policy -managers should provide employees with alternative ways to report incidents -employees who report sexual harassment must have their rights protected -allegations of sexual harassment should be kept confidential -investigations of charges and any disciplinary action should proceed in a timely manner -managers must also protect employees from harassment from any 3rd party employees
drivers of unethical business behavior
-faulty internal oversight allows self-dealing in the pursuit of personal gain, wealth, and self-interest -short-termism pressure to meet or beat short term performance targets -a culture that puts profitability and business performance ahead of ethical behavior
visible costs
-government fines and penalties -civil penalties arising from class action lawsuits and other litigation aimed at punishing the company for its offense and the harm done to others -the costs to shareholders in the form of a lower stock price and possibly lower dividends
global institutions
-help mangage, regulate, and police the global marketplace -promote the establishment of multinational treaties to govern the global business system
Disability Issues for Managers
-hesitancy for employees to reveal disabilities leading to misunderstanding or miscommunication -implementation of reasonable accommodations for individuals with disabilities -promoting a nondiscriminatory workplace environment -education the organization about disabilities -educating the organization about HIV (AIDS)
advantages for acquisition strategy
-high level of control -quick large scale market entry -avoids entry barriers -access to acquired firm's skills
harmful and unethical business actions and behaviors
-increased public awareness of misdeeds of bad behavior by firms -increased legislation and regulation to correct and punish firms -refusal to do business with irresponsible firms
business case for CSR and sustainable business practices
-increased reputation and buyer patronage -reduced risk of reputation-damaging incidents -lower turnover costs and enhanced employee recruiting and workforce retention -increased revenue enhancement opportunities due to support of CSR and sustainability -CSR and sustainability best serve long term interests of shareholders
hofstede's dimensions of national culture
-individualism v. collectivism -low v. high power distance -achievement v. nurturing orientation -low v. high uncertainty avoidance -short term v. long term orientation
Ethics Code Litmus Test
-is what we are proposing to do fully compliant with our code of ethics? are there areas of ambiguity? -is this action in harmony with our core values? are any conflicts or potential problems evident? -is this action ethically objectionable? would our stakeholders, our competitors, the SEC under the Sarbanes-Oxley Act, or the news and social media view this action as ethically objectionable?
internal administrative costs
-legal and investigative costs incurred by the company -the costs of providing remedial education and ethics training to company personnel -costs of taking corrective actions -administrative costs associated with ensuring future compliance
advantages to export strategy
-low capital requirements -economies of scale -low distribution risk -no direct investment risk
advantages to licensing or franchising strategy
-low resource requirements -income from royalties and franchising fees -rapid expansion into many markets
advantages to global strategy
-lower costs due to scale and scope of economies -greater efficiencies due to the ability to transfer best practices across markets -more innovation from knowledge sharing and capability transfer -benefit of a global brand and reputation
what can companies do with globalization of production
-lower their overall cost structure -improve the quality or functionality of their product offering
disadvantages to licensing and franchising
-maintaining control of proprietary knowledge-how -loss of operational and quality control -adapting to local market tastes and expectations
critical managerial roles
-managers can take steps to become sensitive to the ongoing effects of diversity in their organizations, take advantage of all the contributions diverse employees can make, and prevent unfair treatment of diverse employees -when managers commit to diversity, it legitimizes diversity efforts of others
managerial roles in diversity management
-managers either promote the effective management of diversity or derail such efforts; thus they are crucial -managers should serve as a role model and institute policies and procedures and provide resources to ensure that diverse members are treated fairly
aging US population
-median age in US is 36.9 yo; by 2030 20% of the population will be over 65 -2008-2009 financial crisis has been very difficult for older workers: ~senior unemployment rate hits 31 year high in 2009 ~according to labor dept. in 2013 the avg. duration of unemployment for older people was 53 weeks, compared with 19 weeks for teens
effective management of diversity recognizes
-minorities start out at a slight disadvantage due to the ways in which they are perceived by others in the organization -research suggests slight differences in treatment can accumulate and result in major disparities over time
disadvantages of transnational
-more complex and harder to implement -conflicting goals may be difficult to reconcile and require trade-offs -implementation more costly and time-consuming
strategies for competing internationally
-multidomestic -global -transnational
how to deal with ethical issues
-no absolute or indisputable rules or principles that can be developed to decide if an action is ethical or unethical -neither laws nor ethics are fixed principles -managers must confront the need to decide what is appropriate and inappropriate as they use a company's resources to produce goods and services -ethical beliefs lead to the development of laws and regulations to prevent certain behaviors or encourage others
what bad decisions are made due to perceptions
-not hiring qualified people -failing to promote top performing subordinates -promoting poorly performing managers because they have the same "diversity profile"
advantages of transnational
-offers benefits of both local responsiveness and global integration -enables the transfer and sharing of resources and capabilities across borders -provides the benefits of flexible coordination
Implied social contract (Do the right thing)
-operate ethically/legally -provide good work conditions for employees -be a good environmental steward -display good corporate citizenship
disadvantages of alliances/JV strategy
-outdated knowledge -cultural/language -costs/profit sharing -conflicting objectives -value differences -loss of proprietary information -over dependence
sources of discrimination
-perception -stereotype and bias -overt discrimination
community
-physical locations like towns/cities in which companies are located -community provides a company with the physical and social infrastructure that allows it to operate -company contributes to the economy of the town or region through salaries, wages, and taxes
Americans with Disabilities Act (ADA) 1990
-prohibits discrimination against people with disabilities -requires employers to make reasonable accomodations
management roles-ethics ombudsman
-responsible for communicating ethical standards to all employees -designing systems to monitor employees conformity to those standards -teaching managers and employees at all levels of the organization how to appropriately respond to ethical dilemmas
delivering value and results
-results need to include not just financial results, but also product and process results; customer and workforce satisfaction and engagement results; and leadership, strategy and societal performance
socioeconomic implications
-savings, financial security, home ownership -affordability of child care
accommodation for religious beliefs
-scheduling of critical meetings -providing flexible times off for holy days -posting holy days for different religions on the company calendar
types of company stakeholders
-stockholders -managers -customers -community, society, and nation-state -suppliers and distributors -employees
positive factors to consider before doing business in a country
-tax incentives -low tax rates -low cost loans -sit location and development/incentives -worker training
key considerations with diversity management
-the ethical imperative exists for equal opportunity -effectively managing diversity can improve organizational effectiveness -potential legal ramifications -there is substantial evidence that diverse individuals continue to experience unfair treatment
examples of global institutions
-the general agreement on tariffs and trade (GATT) -the world trade organization (WTO) -the international monetary fund (IMF) -the world bank -the United Nations (UN) -the G20
traits common with entrepreneur
-think structurally -engage in bricolage -effectuate -cognitively adapt
Prohibit discrimination based on religion
-title VII of Civil Rights Act 1964 -White house guidelines on religious exercise and expression in the federal workplace 1997
steps in managing diversity effectively
-top management commitment and role models -strive to increase the accuracy of perceptions -increase diversity awareness increase diversity skills -encourage flexibility -pay close attention to how organizational members are evaluated -consider numbers -ensure policies and procedures create a fair environment for diverse employees -empower employees to challenge discriminatory behaviors, actions, and remarks -reward employees for effectively managing diversity -provide training utilizing a multi-pronged, ongoing approach -encourage mentoring of diverse employees
disadvantages of global strategy
-unable to address local needs precisely -less responsive to changes in local market conditions -higher transportation costs and tariffs -higher coordination and integration costs
sources of discrimination based on gender
-unequal pay -discrimination based on gender in hiring, firing, pay promotion and working conditions -pregnancy discrimination & work situations -family and medical leave
norms
-unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization -folkways, mores
the impact of these globalization factors mean firms will
-view the world, rather than just their home country, as their market -locate production and other factors (R&D) in the optimal location for that activity *BUT firms may also find their home markets under attack by foreign firms
stockholders goal
-want to ensure that managers are behaving ethically and not risking investors' capital by engaging in actions that could hurt the company's reputation -want to maximize their return on investment
physical appearance discrimination
-whether individuals are attractive or unattractive, thin or overweight, in most cases has no bearing on their job performance -sometimes these physical sources of diversity end up influencing advancement rates and salaries -managers need to ensure that all employees are treated fairly regardless of physical attributes
women in the workplace
-workforce is 46.7% female -median weekly earnings are $688 for women $843 for men -hold only 16.1% of corporate board seats
why be socially responsible
1. demonstrating its social responsibility helps a company build a good reputation 2. if all companies in a society act socially, the quality of life as a whole increases
2 types of mental leaps
1. between existing market and a new product based on new technology 2. between existing tech or product and a completely new market
Five components of a CSR strategy
1. actions to ensure the company operates honorably and ethically 2. actions to support philanthropy, participate in community service, and better the quality of life worldwide 3. actions to protect and sustain the environment 4. actions to enhance employee well-being and make the company a great place to work 5. actions to promote workforce diversity
practical decision model
1. does my decision fall within the acceptable standards that apply in business today? 2. am i willing to see the decision communicated to all people and groups affected by it? 3. would the people with whom I have a significant personal relationship approve of the decision?
what factors drive globalization
1. emergence of global institutions 2. declining barriers to trade 3. technological change 4. changing global demographics 5. changing nature of multinational enterprise (MNEs) 6. The rise of mini-multinationals 7. changing world order
what should sexual harassment policy contain
1. examples of types of behaviors that are unacceptable 2. procedure for employees to use to report instances of harassment 3. discussion of the disciplinary actions that will be taken when harassment has taken place 4. commitment to educate and train organizational members about sexual harassment
strategic options for entering international markets
1. export goods from domestic base 2. license production/distribution/marketing to foreign firms 3. franchise to foreign entities 4. establish a wholly owned subsidiary (acquisition or greenfield) 5. form strategic alliances or joint ventures with foreign companies
international business complexities
1. home-country advantages 2. location-based value chain advantages 3. government policies, tax rates, and economic conditions 4. currency exchange rate risks 5. differences in buyer tastes and preferences for products/services
7 criteria of BPEF
1. leadership 2. strategy 3. customers 4. measurement, analysis, and knowledge management 5. workforce 6. operations 7. results
Forms of sexual harassment
1. quid pro quo 2. hostile work environment
five lean principles
1. specify value from standpoint of end customer for each product 2. identify all steps in value stream, eliminating steps that don't increase value 3. make value-creating steps occur in tight sequence so the product will flow smoothly toward the customer 4. as flow is introduced, let customers pull value from the next upstream activity 5. as value is specified, value streams are identified, waste steps are removed, and flow and pull are introduced, begin process again and continue until perfection (no waste)
3 broad categories of business processes
1. value chain processes 2. support processes 3. management processes
3 core elements of performance management
1.business process management (BPM) 2. business assessment/measurement 3. business improvement
six sigma refers to defect rate of what in statistical sense
3.4 million defects/million opportunities
census bureau distinguishes between following races
American Indian/Alaskan Native Asian Indian Black African American Chinese Filipino Japanese Korean Vietnamese Other Asian Native Hawaiian Guamanian or Chamorro Samoan Other Pacific Islander White Other
Strategy, CSR, and Environmental Sustainability
CSR is a firm's duty to operate in an honorable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large
six sigma uses what for process improvement
DMAIC
Elements of DMAIC
Define Measure Analyze Improve/Innovate Control
What effect does ethical behavior have on efficiency and effectiveness?
Increases efficiency/effectiveness
social responsibility approaches scale (low to high)
Low --> high obstructionist defensive accommodative proactive
top managers; only 22 women CEOs of Fortune 500 companies (4.4%)
Margaret Whitman-HP, former CEO of eBay Indra Nooyi-Pepsi co Ursula Burns-Xerox Sherilyn McCoy-Avon (Rutgers)
Can managers inform everyone about allegations?
No, allegation reports must be kept confidential
Do employees who file complaints have less or more rights than those that don't?
No, employees who file complaints must have their rights protected
Can people be discredited as a victim if they go along with sexual attention at the workplace?
No, even people who go along with sexual attention can be victims
Can you say someone is faking it when they approach you with a sexual harassment complaint?
No, every charge should be taken seriously
Is it only people in an immediate business who need to know a firm's policy?
No, suppliers and customers need to know the firm's policy on sexual harassment as well
comparison between six sigma and lean
Six Sigma: -focus on subprocesses -remove variation -research process problems -design more capable processes -focused deeply and narrowly LEAN: -removes waste, rework -improve flow, velocity -fast results -focus on systems -focused broadly
8 types of waste
WORMPIIT
business improvement 3 core elements
role of leadership experts and training proven methodologies/tools (address common causes of failure)
Do managers have to supply alternative ways for employees to file complaints?
Yes, for anonymity and other reasons managers should offer multiple ways to file a complaint
Does a firm have to communicate their sexual harassment policy with EVERY employee?
Yes, policy should be communicated with every new employee and reviewed with every current employee
Can action be taken even if the employee waits to file a complaint?
Yes, some employees wait to file complaints out of fear or other reasons
individualism
a worldview that values individual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather their social background
short term orientation
a worldview that values personal stability or happiness and living for the present
collectivism
a worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group
nurturing
a worldview that values the quality of life, warm personal friendships, and services and care for the weak
long term orientation
a worldview that values thrift and persistence in achieving goals
transnational strategy
think global act local
multi domestic strategy
think local act local
business assessment/measurement and improvement concerns
all aspects of overall business including BPM but also such elements as strategy, leadership, customer relationship management, and employee workforce
Who else can be a possible harasser?
third party employees
proactive approach
companies actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing organizational resources to promote the interests of all stakeholders
defensive approach
companies and mangers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility
accommodative approach
companies behave legally and ethically and try to balance the interests of different stakeholders against one another so that the claims of stockholders are seen in relation to the claims of other stakeholders
obstructionist approach
companies choose not to behave in a socially responsible way and behave unethically and illegally
schema
an abstract knowledge structure stored in memory that allows people to organize and interpret information about a person, event, or situation
practical rule
an ethical decision should be one that a manager has no hesitation about communicating to people outside the company because a typical person in a society would think the decision is acceptable
moral rights rule
an ethical decision should maintain and protect the fundamental rights and privileges of people
utilitarian rule
an ethical decision should produce the greatest good for the greatest number of people
justice rule
an ethical decision should redistribute benefits and harm among people in a fair, equitable, and impartial manner
management by fact
analysis of performance measures and indicators should support organizational evaluation, alignment, and decision making
multinational enterprise (MNE)
any business that has productive activities in two or more countries
quid pro quo
asking for or forcing an employee to perform sexual favors in exchange for receiving some reward or avoiding negative consequences
business rationale in addition to the ethical and moral imperative to support workforce diversity
attract and retain talent indication of the firm's value for their employee
what does effective management increase
attraction and retention of talented employees
socioeconomic diversity requires managers to what
be sensitive and responsive to the needs and concerns of individuals who might not be as financially well off as others -meeting times -required travel
moral case for ethical strategies
because a strategy that is unethical is morally wrong and reflect badly on the character of the firm's personnel
business case for ethical strategies
because an ethical strategy can be both good business and serve the self interest of shareholders and other stakeholders of the business
why do people behave ethically
because they have internalized certain values, beliefs, and norms
how can companies act ethically toward employees
by creating an occupational structure that fairly and equitably rewards employees for their contributions
how are diverse organizational members a competitive advantage
by helping an organization provide diverse customers with better goods and services
kaizen
change for better(standardize)
Lean Six Sigma
combines tools from both lean (speed) and six sigma (quality) methodologies
components of triple bottom line
economic (profit) social (people) environmental (planet)
goal of lean principles
eliminate all waste in value creation process
low uncertainty avoidance
cultures are easygoing, value diversity and tolerate differences in personal beliefs and actions
outcome measures
customer satisfaction measures
most critical stakeholder
customers
brand loyalty
customers' preference for the products of organizations currently existing in the task environment
six sigma
data driven methodology for eliminating defects, waste, variability, or quality problems in business processes by making increments process improvements to existing process
waste
defined as anything that does not create value for the customer
power distance
degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals' physical and intellectual capabilities and heritage
cognitive adaptability
describes extent to which entrepreneurs are dynamic, flexible, self regulating, and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them
bricolage
describes the act of entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities -experimenting, tinkering, repackaging
Voice of Customer
describes the stated and unstated needs or requirements of a firm's customers
total quality management
entails creating a total quality, culture, involving managers and employees at all levels, bent on continuously improving the performance of every value chain activity (continuous improvement)
barriers to entry definition
factors that make it difficult and costly for the organization to enter a particular task environment or industry
diversity
dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities
role of organizational culture
ethical values and norms help organizational members: -resist self interested action -realize they are part of something bigger than themselves
Swim lane diagram
example of process map flowchart with lanes for each functional organization that participates
SIPOC Chart
example of process map high level flowchart -Suppliers, Inputs, Processes, Outputs, Customers -start with customer;work backwards and determine with outputs, process, and inputs are required to achieve desired customer behavior
Triple Bottom Line goal
excellence in all three performance dimensions
structural similarities
exist when the underlying mechanisms of the technology match the underlying mechanisms of the market
supplier expectations
expect to be paid fairly and promptly for their inputs
distributors' expectations
expect to receive quality products at agreed upon prices
employees expectations
expect to receive rewards consistent with their performance
master black belt
expert and experienced in process, methods, and tools used in improvement projects -experience training and coaching black belts and green belts
organizational learning and agility
firm demonstrates continuous improvement of existing approaches and significant change or innovation, leading to new goals, approaches, products, and markets
customer focused excellence
firm focuses on how its products and service impact customer satisfaction
managing for innovation
firm is able to improve products, services, programs, processes, operations, and its business model, with the purpose of creating new value for stakeholders
focus on success
firm is able to manage both short term and long term aspects of success by meeting short term demands while investing for future and is able to manage risk and uncertainty
valuing people
firm values its workforce members and the other people who have a stake in the organization including customer, community members, suppliers and partners, and other people affected by its actions
globalization of production
firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, energy, and capital
salience effect
focus attention on individuals who are conspicuously different
entrepreneurial orientation toward control of resources
focuses on how to access others' resources
Define phase
focuses on identifying and mapping all key business processes; creating a process inventory; classifying process as either core, support, or management
why would someone engage in quid pro quo
for reward or to avoid negative consequences
manger's interest
frequently juggle multiple interests
Malcolm Baldrige national quality award
given to firms that demonstrate overall excellence in their operations and performance -established in 1987
entrepreneur decisions
great uncertainty, high stakes, time pressure, and great emotional investment
organizational ethics
guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders
manager's rights
have the right to expect a good return or reward by investing their human capital to improve a company's performance
importance in capturing VOC
helps describe the ultimate customer outcome that is desired from a core business process
efficiency and local responsiveness for global strategy
high efficiency low local responsiveness
Census bureau alos categorizes ethnic identity
hispanic or not hispanic (most like to identify by origin)
Baldrige review closely assesses
how closely the firm adheres to core values
efficiency and local responsiveness for multi domestic strategy
low efficiency high local responsiveness
business process management concerns
management of operational processes within the business
what happens when the law doesn't specify how companies should behave
managers must decide what is the right or ethical way to behave toward the people and groups affected by their actions
examples of occupational ethics
medical and legal ethics
efficiency and local responsiveness for transnational strategy
mid-level efficiency mid-level local responsiveness
process maps
important in define phase -used to describe process visually -should identify ~the steps/sequence ~who performs each ~how the work flows ~key linkages -helps identify areas for improvement
When should investigations and disciplinary actions proceed?
in a timely manner
when are individual ethics seen
in how individuals should act in situations when their own self-interests are at stake
where is there underrepresentation of women
in management, senior management, and board positions
problem with managers
in many companies corrupt managers focus not on building the company's capital and stockholder's wealth but on maximizing their own personal capital and wealth
what effect does ethical behavior have on company performance
increases company performance
what effect does ethical behavior have on well being and prosperity
increases well being and prosperity
entrepreneurs
individuals who launch a new business -entrepreneurial opportunity -energetic and resourceful individual
Ethics
inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave
what does a hostile work environment do
interferes with their ability to perform their jobs effectively
glass ceiling
invisible barriers that prevents minorities and women from being promoted to top corporate positions
business process reengineering
involves radically redesigning and streamlining in how an activity is performed, with the intent of achieving quantum improvements in performance
entrepreneurial mind-set
involves the ability to rapidly sense act an mobilize even under uncertain conditions
overt discrimination
knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization -unethical and illegal -violation of the principles of distributive and procedural justice -subjects firms to lawsuits
visionary leadership
leaders should set a vision, create a customer focus, demonstrate core values, set high expectations
key observations of Baldrige
looks at how business is managed as a unified whole -performance excellence is outcome of coordination and consistency
what arguments are there for why companies should behave ethically?
moral case business case
distributive justice
moral principle calling for fair distribution of pay, promotions, and other organizational resources based on meaningful contributions that individuals have made and not personal characteristics over which they have no control
procedural justice
moral principle for the use of fair procedures to determine how to distribute outcomes to organizational members
what do managers need to be able to do
need to be able to resolve challenges that arise because of the impact of demographic and cultural diversity in business interactions
what do managers need to understand
need to understand the impact of demographic and cultural diversity on business interactions both domestically and globally
variations in dimensions by country
not necessarily bad or good just reflect differences in cultures
approaches to social responsibility
obstructionist defensive accommodative proactive
entrepreneurial philosophy towards rewards
one that compensates employees based on their contribution toward the discovery/generation and exploitation of an opportunity
entrepreneurial orientation toward culture
one that encourages employees to generate ideas, experiment, and engage in other tasks that might produce opportunities
managers should recognize what availability
opportunities available to employees to learn, advance, and make meaningful contributions while advancing their economic well-being
stakeholders
people and groups that supply a company with its productive resources and so have a claim on and stake in the company
company in US recognized for triple bottom line
pepsico
social status effect
perceive individuals with high social status more positively than those with social status
similar-to-me effect
perceive others who are similar to ourselves more positively than we perceive the people who are different
business process management falls under
performance management
individual ethics
personal standards and values that determine how people view their responsibilities to other people and groups
risks associated with international businesses
political risks economic risks
gender schema
preconceive beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences
support processes
process that enable value chain processes or the management of resources, such as financial, human, IT, etc
casual process
process that starts with desired outcome and focuses on means to generate that outcome
effectuation process
process that starts with what one has and selects among possible outcomes
perception
process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them
1991 civil rights act
prohibits discrimination (as title VII) and allows for the awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination
1990 Americans with disabilities act
prohibits discrimination against disabled individuals in employment decisions and requires that employers make accommodations for disabled workers to enable them to perform their jobs
1978 pregnancy discrimination act
prohibits discrimination against women in employment decisions on the basis of pregnancy, childbirth, and related medical decisions
1967 Age discrimination in employment act
prohibits discrimination against workers over the age of 40 and restricts mandatory retirement
1964 Title VII of the Civil Rights Act
prohibits discrimination in employment decisions on the basis of race, religion, sex, color, or national origin; covers a wide range of employment decisions, including hiring, firing, pay, promotion, and working conditions
what does diversity provide
provides a resource to an organization that managers must understand in order to develop strategy, strengthen organizational culture, and to leverage those resources for the firm's development
what does a changing society and changing market place provide
provides opportunities to firms
what happens when their is relentless pursuit of self-interest
pursuit leads to a collective disaster when one or more people start to profit from being unethical because this encourages other people to act in the same way
ethical dilemma
quandary people find themselves in when they have to decide if they should act in a way that might help another person even though doing so might go against their own self interest
effectiveness measure
quantify capability of process to deliver products in accordance with specification
what effect does unethical behavior have on company performance
reduces company performance
what effect does unethical behavior have on efficiency and effectiveness?
reduces efficiency/effectiveness
what effect does unethical behavior have on well being and prosperity
reduces well being and prosperity
socioeconomic background
refers to a combination of social class and income-related factors
entrepreneurial orientation toward opportunity
refers to a commitment to taking action on potential opportunities
entrepreneurial orientation toward commitment of resources
refers to a focus on how to minimize the resources that would be required in the pursuit of a particular opportunity
strategic orientation
refers to focus on factors that are inputs into creation of the firm's strategy
entrepreneurial orientation toward growth
reflects a focus on rapid growth
sustainability
relationship of a firm to its environment and its use of natural resources
1993 family and medical leave act
requires that employers provide 12 weeks of unpaid leave for medical and family reasons, including paternity and illness of a family member
1963 Equal Pay Act
requires that men and women be paid equally if they are performing equal work
managers responsibility
responsible for using a company's financial capital and human resources to increase its performance
why to business process management
right work done well -maximize efficiency and effectiveness of firm relative to its resources -to become more competitive
business process
set of repeatable, value adding activities performed by an organization to purposely achieve a business goal, or a product or service, the customer is willing to pay for
globalization process
set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar
globalization
shift toward a more integrated and interdependent world economy
perception biases
similar-to-me effect social status effect salience effect
stereotype
simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people
BPM tools and methods
six sigma design for six sigma lean principles lean six sigma kaizen total quality management business process reengineering
tools for process improvement/innovation
six sigma design for six sigma lean principles lean six sigma kaizen total quality management business process reengineering
Source of ethics that contribute to business ethics
societal ethics individual ethics organizational ethics occupational ethics
high uncertainty avoidance
societies are more rigid and expect high conformity in their citizens' beliefs and norms of behavior
process improvement using lean principles focused on
speed, efficiency, and the elimination of waste
moral case for pursuing a sustainable CSR strategy in the firm's value chain activities
stakeholder benefits
occupational ethics
standards that govern how members of a profession, trade, or craft should conduct themselves when performing work related activities
societal ethics
standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual
methodology of six sigma based on combo of
statistical processes control techniques data analysis systematic training of all personnel involved in the processes targeted
political risks
stem from instability or weaknesses in national governments and hostility to foreign business
economic risks
stem from the stability of a country's monetary system, economic and regulatory policies, reliability of infrastructure, and the lack of property rights protections
competitive strategies in global markets
strategy: -customize offerings to match the tastes and preferences of local customers -offer standardized products worldwide
design for six sigma
used by organizations to redesign or create a new process -uses DMADV as road map
DMADV
used for creating new process define measure analyze design verify
lean principles
used to maximize customer value while minimizing waste
management processes
such as control or governance processes, planning, administration, etc
bias
systematic tendency to use information about others in ways that result in inaccurate perceptions
hostile work environment
telling lewd jokes, displaying pornography, making sexual oriented remarks about someone's personal appearance, and other sex related actions that make the work environment unpleasant
uncertainty avoidance
the degree to which societies are willing to tolerate uncertainty and risk
not everyone within a culture necessarily exhibits that same characteristics as suggested by the dimensions
the dimensions apply overall to a society's proclivity rather than to specific attributes of any one individual
societal responsibility
the firm's leaders stress responsibilities to the public and the consideration of societal well being and benefit
reasons for globalization
the lowering of trade barriers: -opened enormous opportunities for managers to expand the market for their goods and services -allowed managers to buy and sell goods and services globally -increased intensity of global competition such that managers now have a more dynamic and exciting job of managing
performance management
the ongoing assessment and improvement of key business processes in order to drive superior results
ethics and transparency
the organization stresses ethical behavior by all workforce members in all stakeholder transactions and interactions
global outsourcing
the purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design
Corporate Social Responsibility (CSR)
the way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole
global strategy
think global act global
sustainable business practices
those practices of a firm that meet the needs of the present without compromising the ability to meet the needs of the future
entrepreneurial opportunity
those situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production -new product/service at a profit
understanding the general nature of a culture using these dimensions helps
to better appreciate and engage with members of the culture
goal of companies that work to increase efficiency and effectiveness
to create loyal customers and attract new ones
goal of performance/process management
to improve faster and better than the competition
who plays a big role in determining a company's ethics
top managers
green belt
trained in using methods and tools with only one successful project completion
value chain processes/core processes
typically operational processes that make, sell or deliver a product or service -serve as strategic means by which the firm achieves its vision and mission
rules for ethical decision making
utilitarian rule justice rule practical rule moral rights rule practical rule
types of cost companies incur when ethical wrongdoing is discovered
visible costs internal administrative costs intangible or less visible costs
WORMPIIT
waiting overproduction rework motion processing inventory intellect transportation
achievement
worldview that values assertiveness, performance, success, and competition
