MGMT Ch 1-5

What are the three level of managers?

*From bottom to top of pyramid - First line: Supervisors, responsible for daily supervision of non managerial employees who perform activities necessary to produce goods/services - Middle managers: Find best way to use resources to achieve organizational goals - Top managers: Establish strategy, how departments interact, - CEO: Most senior manager and one that all other top managers report to - COO: Being groomed to be CEO when they retire, they are supposed to make good relationships

Achievement vs. Ascription

- Achievement: People are accorded status base don how well they perform their functions. High achievement culture (US) high status to high achievers. Merit individual performance equals success. - Ascription: Status based on who or what a person is. High ascription cultures (China, Indonesia) status based on age, gender, or social connection

What is the "leading" task

- Articulation of a clear vision and energizing/enabling employees so they understand the part that they play in achieving organizational goals - Involves managers using their power, personality, influence, persuasion to coordinate people in groups so their activities and effort are in harmony

What are challenges for management in a global environment?

- Building a competitive advantage - Maintaining ethical standards - Maintaining a diverse work force - Utilizing IT and E-Commerce - Practicing global crisis management

Cultural Diversity and how culture affects managerial approaches

- Centralized: In some societies, top managers make all important organizational decisions. - Decentralized: These decisions are diffused throughout the entire organization, and middle and lower-level managers actively participate in and make key decisions. Use this in the US

Cooperation vs. Competition

- Competition: More seen in US, between people like sales contests salesman of the year employee of the month. We encourage competition so people perform their best - Cooperation: Other countries encourage cooperation and competition is frowned upon

What are the managerial skills that managers need?

- Conceptual skills: Ability to analyze and diagnose a situation and distinguish between cause and effect, critical thinking. Top managers require this skill - Human skills: Ability to understand, alter, lead, and control the behavior of other individual groups - Technical skills: Job specific skills required to perform a particular type of work

What is the result of the GLOBE Project?

- Corresponds generally with Hofstede and Trompenaar's - Different from Hofstede in that many more researchers with varied perspectives were involved (Hofstede worked alone) and they studied many companies (Hofstede only studied one)

What is the "planning" task

- Deciding which goals the organization will pursue - Deciding what strategies are to be used to achieve goals - Decide how to allocate organizational resources The outcome of planning is a strategy, cluster of decisions about goals actions and how to use resources Planning is done under uncertainty where the result is unknown

What are Fayol's Principles of Management?

- Division of labor advocated that workers be given more job duties to perform - Authority and responsibility fayol went beyond webers formal authority of bureaucracy to recognize the informal authority that derives from personal expertise, knowledge, and lead/generate commitment - Unity and Demand specifies employee should receive orders from and report to only one boss - Line of Authority is chain of command extending from the top to the bottom of organization, important that managers - Centralization is concentration of authority at top of managerial hierarchy - Unity of Direction is singleness of purpose that makes possible creation of one plan of action or strategy to guide as they use resources

What are the Managerial "Decisioner" Roles identified by Mintzberg?

- Entrepreneur: Commit organizational resources to develop innovative goals - Disturbance handler: Move quickly to take action with unexpected problems - Resource allocator: Allocate organization resources among different tasks and departments of the organization - Negotiator: Work with people to get resources

Continued Fayols Priciples

- Equity involves justice impartiality and fairness that all members are entitled to. Should be a primary concern of managers - Order meant methodical arrangement of position to provide organization with greatest benefit and provide employees with career opportunities that satisfy needs - Initiative, employee ability to act on their own without superior. Leads to creativity - Discipline is the obedience energy application of respect for superior authority - Remuneration of Personal encouraged reward systems including bonuses and profit sharing plans - Stability of 10 year personal happens when employees stay with org for extended period. They develop skills to improve org - Subordination of Indv Interest/General Interest - Esprit de cors which is key element to any successful organization, comes from french expression

What is the "controlling" task

- Evaluating how well an organization is achieving its goals and taking corrective actions to maintain/improve performance - More about evaluation and not about power Outcome is the ability to measure performance accurately and regulate efficiency and effectiveness Managers must decide which goals to measure

Differences across cultures

- Far more differences that have been found - Human resource management utilized in selection of employees can further form the culture that international managers will oversee. Understanding human resource management strategies before becoming manager in industry can aid in perfective performance - Importance of criteria used in evaluation of employees Ex: Wages, compensation, pay equity, maternity leave all have different level of importance in different cultures

What are the Managerial "Interpersonal" Roles identified by Mintzberg?

- Figurehead: Outline future goals to employees at meetings, state ethical guidelines, - Leader: Provide example for employees to follow, give direct commands, make decisions - Liaison: Coordinate the work of managers in different departments

High vs. Organizational Loyalty

- High: In some societies, some people identify very strongly with their organization or employer - Low: In others, people identify more with their occupational group than they do with any particular company so organizational loyalty or commitment is lower, people tend to jump from job to job. US is more low organizational loyalty

Individual vs. Group Rewards

- Individual: Personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. Seen in US, with raises, individual performance evaluations - Group: In others, like Asia, cultural norms require group rewards and individual rewards are frowned upon

Individualism vs. Communitarianism

- Individualism: People regard themselves as individuals. High individualism countries (US, UK, Argentina) stress personal and individual matters and assume great personal responsibility. - Communitarianism: People regard themselves part of a group. High communitarianism countries (Asia) make decisions by committee or group, joint responsibility in business matters

Individualism vs. Collectivism

- Individualism: The extent to which people look after themselves and immediate family only. High individualism countries (US, Canada, Sweden) are wealthier, have protestant work ethic, greater individual initiative, promotions based on market value - Collectivism: The tendency for people to belong to groups and to look after each other in exchange for loyalty. High collectivism countries (Indonesia, Pakistan) often poor, less supportive work ethic, less individual initiative and promotions are based on seniority rather than merit or performance.

Informal vs. Formal Procedures

- Informal: In some societies, much is accomplished through informal means in flatter more organic organizations or in countries that emphasize those structures - Formal: Set forth and followed rigidly, more standard operating procedures and more rules. The US is some of both. Companies like Google are probably informal and companies like IBM are more formal

What are some characteristics of culture?

- Learned, not inherited or biologically based it is acquired - Shared, members of a group that share culture not specific to single individuals - Transgenerational, passed down from one generation to the next - Symbolic, based on human capacity to symbolize or use one thing to represent another - Patterned, has a structure and is integrated - Adaptive, based on human capacity to change or adapt as opposed to genetically driven like animals

What is empowerment?

- Management technique that gives employees more authority and responsibility over how they perform work acitivites - Expansion of employees knowledge, task and decision making - IT has been used to expand job knowledge and promotes the use of self managed teams

Masculinity vs. Femininity

- Masculinity: A cultural characteristic in which the dominant social values are success, money, and things, material things. High masculine countries (Germany) stress earnings, how much money you make, recognition, advancement, high job stress, wealth. US is more masculine - Femininity: A cultural characteristic in which the dominant values are caring for others and quality of life. High feminine countries (Norway) cooperation, friendly atmosphere, employment security, group decision making, low job stress.

What are the Managerial "Informational" Roles identified by Mintzberg?

- Monitor: Evaluate the performance of managers in different tasks and take corrective action to improve their performance, watch for changes in external/internal environment - Disseminator: Inform employees about changes taking place in environments that will affect them/organization - Spokesperson: Launch a national advertising campaign to promote

Neutral vs. Emotional

- Neutral: Culture to which emotions are held in check. High neutral countries (Japan and Uk) people act socially and remain composure - Emotional: Emotions are openly and naturally expressed. High emotional countries (US, Mexico) people smile a lot, talk loudly, and great each other with enthusiasm.

Similarities across cultures

- Not possible to do business the same way in every corner of the globe. Procedures and strategies that work well at home can't be adopted overseas without modification - Some similarities have been found: Russian managers carried out traditional management, communication, HR and networking activities and that networking increased opportunities for promotion and communication was predictor or performance. Social rewards and positive feedback resulted in quality and Russian supervisors were taught to give corrective feedback to reduce wrong behaviors. This is all comparable to united states. Study in Korea found organizational size increases, commitment declined as structure became more employee focused commitment increased. Again similar to that in the US.

A model of culture

- Outer ring: The explicit artifacts and products of the society, language food buildings art. - Middle ring: The norms and values that guide the society, formal and informal, - Inner ring: The implicit, basic assumptions that guide people's behavior

Culture can be similar or quite different across countries. Challenge for MNCs is to recognize and manage these similarities or differences

- Parochialism: The tendency to view the world through ones own eyes and perspective. Strong temptation for many international managers who come from advanced economies and believe their state of the art knowledge is more adequate and better to handle challenges of doing business in less developed countries "Our way is the best way, we are advanced and smarter" - Simplification: Process of exhibiting same orientation toward different cultural groups. Us manager interacts with British managers is the same way that us manager does business with asian executive. Not always a good idea. Ned to understand culture in which you do business

Resources include...

- People - Skills - Know how and experience - Machinery and raw materials

What are factor that have led to changes in the business world?

- Restructuring: Involves simplifying, shrinking, or downsizing an organizations operations to lower operating costs. IT has increased the amount of downsizing - Outsourcing: Contracting with another company, usually in a low cost country abroad, lowers operating costs, need to respond to low cost global competition has increased outsourcing

Time

- Sequential: Only one activity at a time, appointments are strictly capped, prefernce for following plans as their layed out and not deviating form them. (US) - Synchronous: Multitask, common for people to do more than one activity at a time, appointments are approximate, time is approximate, schedules are subordinate to relationship (France, Mexico)

Short-term vs. Long-term Horizons

- Short-term: Cultures focus heavily on short term goals, short term range goals, profit and efficient, stock market is short term oriented. Companies in US is short term oriented, they want everything now. - Long-term: Understand important of long range goals and looking ahead to the future, companies that have been around for a while understand that success isn't short term

Specific vs. Diffuse

- Specific: Large public space shared with others and small private space guarded closely. High specific countries (US, Switzerland) people are often open and extroverted and have strong separation of work and home life - Diffuse: Public and private places are similar size, individuals guard their public space carefully. Entry into public space means entry into private space. High duffuse countries (China, Japan) people are indirect and introverted and work and private life are closely linked.

What is the "organizing" task

- Structuring working relationship so organization members interact and cooperate to achieve organizational goal

What are the building blocks for a competitive advantage?

- Superior efficiency - Quality - Speed flexibility and innovation - Responsiveness to customers

Why study management?

- The more efficient and effective resources are used the greater well being of the society - Helps people deal with their bosses and co workers - Opens a path to a well-paying job and a satisfying career

What is the relative amount of time that managers spend on the four managerial tasks?

- Top mangers spend more time planning and organizing than first line managers - First line managers spend more time leading front line employees

Priorities of cultural values in the US, Japan, and Arab countries

- US: Freedom, Independence, self-reliance, equality - Japan: Belonging, harmony, group collectiveness - Arab: Family securities, family harmony, parental guidance

Universalism vs. Particularism

- Universalism: Belief that ideas and practices can be applied everywhere in the world without modification. High universalism countries (US, UK, Germany, Sweden) have formal rules, close adherence to business contracts, business is often done according to American standards of business across the world - Particularism: Belief that circumstances dictate how ideas and practices apply. High particularism in China and Indonesia, we see this practical implications, legal contracts are modified, deals are executed changed as people get to know each other. Don't have one standard way of doing things

Phases of the Globe Project

1 and 2 looked at middle managers and the 3rd looked at upper-level management

Max Weber's Principles of Bureaucracy

1. A managers formal authority derived from position he or she holds in organization 2. People should occupy positions because of their performance not because of their social standing or contact 3. The extent of each positions authority and responsibility and relationships should be clearly specified 4. Authority can be exercised effectively in organization when positions are arranged hierarchy so employees know who to report to 5. Managers must create a well defined system of rules, operating procedures, and norms so they can operate

The strategy for managing across cultures: There are four distinct strategic predispositions toward doing things in a particular way

1. Ethnocentric 2. Polycentric 3. Regiocentric 4. Geocentric

4 tasks of management

1. Planning 2. Organizing 3. Leading 4. Controlling

What are Hostede's cultural dimensions?

1. Power Distance 2. Uncertainty Avoidance 3. Individualism-Collectivism 4. Masculinity- Femininity 5. Time orientation 6. Indulgence vs. Restraint

A study of managers by four countries by George England and Lee that found...

1. Strong relationship between level of managerial success and personal values 2. Value patterns predict managerial success and can be used in selection/placement dimensions 3. Country differences in relationship between values and success; however, findings across US, Japan, and Australia, and India are similar 4. Values of more successful managers favor pragmatic, dynamic, achievement-oriented, and active role in interaction with others. Less successful managers prefer more static and passive values

What are the four principles to increase efficiency?

1. Study the way workers perform their tasks, gather informal job knowledge workers possess and experiment w ways of improving 2. Turn the new tasks into written rules and standard operating procedures 3. Carefully identify who possess the skills and abilities that match the needs and tasks/train them to perform them 4. Establish a fair or acceptable level of performance or task and develop a pace system that rewards performance

Phase 1 identified nine dimensions of the GLOBE Project

1. Uncertainty avoidance: Inclination to avoid uncertainty by relying on social norms 2. Power distance: Degree to which members agree how power should be distributed 3. Collectivism 1: Societal collectivism which rewards collective distribution of resources and action Collectivism 2: In-group collectivism degree individuals express pride in organization 4. Gender egalitarianism: Extend of minimizing gender role differences/discriminations 5. Assertiveness: Degree of assertiveness/confrontation in social relationship 6. Future orientation: Groups engage in future oriented behaviors, like planning investing delaying gratification 7. Performance orientation: Extent to which a group encourages/rewards members 8. Human orientation: Degree to which members of group encourage/reward individuals for being caring and kind to others

How do values translate into management practices?

A US Cultural Value: That competition stimulates high performance. An alternative to that is that competition leads to imbalances and disharmony. So the management process that's affected is career development and marketing. How do we engage in career development and helping employees grow fi we're putting them in constant competition

What is a globalization imperative?

A belief that one worldwide approach to doing business is the key to both efficiency and effectiveness. The factors that facilitate the need to develop unique strategies for different cultures - Diversify of worldwide industry standards such as those in broadcasting where television sets must be manufactured on country by country basis. - Continued demand by local customers for differentiated products customer goods that must meet local taste, drive smaller large in Europe, scented soaps - Importance of being an insider as in case of customers who prefer to "buy local" - Need to allow subsidiaries to use their own abilities or core competencies or talents and not be restrained by headquarters and generate high returns on investment

What is Time Orientation? (Hofstede added this dimension in 1988)

A characteristic dealing with society's search for virtue - Long term oriented societies: focused on the future, able to adapt traditions when conditions change, tend to save and invest, focus on achieving long term results (Asian countries) - Short term oriented societies: Focus on quick results, immediate gratification, don't tend to save, believe in absolutes, value stability but also leisure. Want playtime. (US, UK, Spain)

What does the GLOBE Project provide?

A current comprehensive overview of general stereotypes that can be further analyzed for greater insight

Who was Gurt Hofstede?

A dutch researcher who found that there are dimensions of culture we can use to help explain how and why people form various cultures behave as they do.

From the Hawthorne Studies came the Human Relations Movement...

A management approach that advocates the idea that supervisors should go through training to manage subordinates. Demonstrated the understanding that feelings, thoughts of behavior of employees and managers impacts employees performance

Ethnocentric Predisposition

A nationalistic philosophy of management, where by the values and interest of the parent company guide the strategic decisions. If you hae operations all around world, you run them all as you do in home country. See things through your own world view/lense and don't consider there are other ways of doing things.

Polycentric Predisposition

A philosophy of management where by strategic decisions are tailored to suit cultures of the countries where embassy operate. Can have operations all over world but each one is run as it would be run in their own country, so if you have operations in japan then those operations will be run like other companies in japan. take into account the company that you're in.

Geocentric Predisposition

A philosophy of management where the company tries to integrate a global systems approach. Not just my way or the highway but more of how can I do things as similar as possible across the board in a way that i global and not ethnocentric.

What is a closed system?

A self contained system that is not affected by changes in external environment. These organizations fail to acquire imput and are likely to experience entopy and lose its ability to control itself and therefore it dissolves and disenegrates.

What is an open system?

A system that takes in resources from its external environment and converts them into goods/services that are then sent back to environment where they're bought by customers Anything an organization does/decisions makes products of an organization, impacts the external environment through things like waste and waste disposal or use of natural resources, hiring/employment. Anything that happens in external environment like economy war climate protest also impacts the organization. Businesses do not operate in a vacuum, they operate in an open system and it is dynamic, two way, and always changing

What is a low-cost strategy?

A way of obtaining customers by making decisions that allow an organization to produce goods and services more cheaply than competitors Ex: Walmart

What is culture?

Acquired knowledge that people use to interpret, experience, and generate social behavior. Forms from values, creates attitudes and influences behavior.

What are Trompenaar's Cultural Dimensions?

Address the way that people deal with each other. - Universalism vs. Particularism - Individualism vs. Communitarianism - Neutral vs. Emotional - Specific vs. Diffuse - Achievement vs. Ascription

What is the contingency theory?

An idea that organizationals structures and control systems really are contingent on characteristics of external environment in which the organization operates.

What is keiretsus?

An organization arrangement in which a large group, a vertically integrated company who is holding supply much of the assistance needed in providing goods and services to end users.

What does international management involve?

Applying management concepts and techniques in multinational environment and adapting management practices to different economic cultural and political environments. Distinct form other forms of management in that the knowledge skills abilities and insights in different cultures are requisite for success.

The globe project attempted to answer the following question:

Are there leader behaviors, attributes, and organization practices that are universally accepted and affective across all/some cultures? How do attributes of societal and organizational culture affect the kinds of leader behaviors and organizational practices that are accepted and effective? What is the affect of violating cultural norms relevant to leadership and organizational practices? What is the relative standing of each of the culture studied on each of the nine core dimensions of culture? Can the universal and culture specific aspects of leader behaviors attributes and organizations practices be explained in terms of an underlying theory that accounts for systematic differences across culture?

GLOBE cultural variable results

Assertiveness: US scored high Uncertainty avoidance: US scored medium Collectivism/societal: US scored medium Performance orientation: US scored high

What is Theory Y?

Assumes that workers are not inherently lazy, don't naturally dislike work, and when given opportunity they will do whats good for organization. Characteristics of work setting determines whether workers consider work to be bad or good. Managers don't need to control behavior to works behavior or make them perform at high level because workers exercise self control when committed to organizational goals. Managers who believe workers are motivated to help organization reach its goals really end up giving them empowering employees.

What is the mechanistic structure?

Authority is centralized at the top of the managerial hierarchy. Vertical hierarchy of authroity sis main means used to control subordinate behavior. Most efficient way to operate in a stable environment. We think of administrative management theory hierarchy divisions of labor specialized jobs

What is the organic structure?

Authority is decentralized to middle and first line managers to encourage them to take responsibility and act quickly to pursue scarce resources. Provides mist efficient way to operate in a rapidly or constantly changing environment

Douglas McGregor proposed two different sets of assumptions about workers. What is Theory X?

Average worker is lazy, dislikes work, and will try to do as little as possible. To keep performance at high level the manager must look closely and control behavior and reward/ punishment when needed. Managers who accept assumption of theory x design the work setting to maximize the control of influence to control behavior and minimize worker control or influence over the pace of work Describes approach of how managers will treat employees

What are economic potential of emerging markets?

BRIC countries (Brazil, Russia, India, China) could be among the four most dominant by 2050 N-11 (the next wave of emerging markets): Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Phillipines, Turkey, south korea and Vietnman.

What are values?

Basic convictions that people have about - Right and wrong - Good and bad - Important or unimportant Learned from the culture in which an individual is raised in. Help with behavior.

Doing business in France

Believe it's more difficult to get along with french than any other Europeans. Reflects french culture which is different from US. Status conscious, sarcastic, determine trustworthiness based on first encounter 1. When shaking hands with a French person, use a quick shake with some pressure in the grip. 2. It is extremely important to be on time for meetings and social occasions. Being "fashionably late" is frowned on. 3. During a meal, it is acceptable to engage in pleasant conversation, but personal questions and the subject of money are never brought up. 4. Great importance is placed on neatness and taste. Visiting businesspeople should try very hard to be cultured and sophisticated. 5. The French tend to be suspicious of early friendliness in the discussion and dislike first names, taking off jackets, or disclosure of personal or family details. 6. In negotiations the French try to find out what all of the other side's aims and demands are at the beginning, but they reveal their own hand only late in the negotiations. 7. The French do not like being rushed into making a decision, and they rarely make important decisions inside the meeting. 8. The French tend to be very precise and logical in their approach to things and will often not make concessions in negotiations unless their logic has been defeated.

What is management science theory?

Contemporary appraoch ot managemnt that focuses on use of rigorous quantitative technique that helps managers make maximum use of organizational resources to produce goods and services. Many branches of management science, including IT which has significant impact on all kind of management practices. Each branch deals with specific set of concern

What is turnaround management?

Creation of a new vision for a struggling company using a new approach to planning and organizing to make better use of a company's resources to allow it to survive, and eventually prosper

There are shifting landscapes in the economic power due to...

Developing and emergin countries of the world are now predicting to occupy increasingly dominant roles.

Doing business in Arab countries

Distinctly different from Anglo cultures. American find it hard to do business in Arab countries 1. It is important never to display feelings of superiority, because this makes the other party feel inferior. Let one's action speak for itself and do not brag or put on a show of self-importance. 2. One should not take credit for joint efforts. A great deal of what is accomplished is the result of group work, and to indicate that one accomplished something alone is a mistake. 3. Much of what gets done is a result of going through administrative channels in the country. It often is difficult to sidestep a lot of this red tape, and efforts to do so can be regarded as disrespect for legal and governmental institutions. 4. Connections are extremely important in conducting business. 5. Patience is critical to the success of business transactions. This time consideration should be built into all negotiations. 6. Important decisions usually are made in person, not by correspondence or telephone. This is why an MNC manager's personal presence often is a prerequisite for success in the Arab world. Additionally, while there may be many people who provide input on the final decision, the ultimate power rests with the person at the top, and this individual will rely heavily on personal impressions, trust, and rapport.

Responding to the cultural needs of local opeations and customers, regional strategies can be used effectively in capturing and maintianing worldwide marketing niches

Ex in advertising - Germans: want factual and rational advertising and typical german spot is standard family - French: want to avoid reasoning or logic more based on emotion, drama, symbols - England: value human and laugher among all else, make fun of themselves mocking both advertiser and consumer

What is a maquiladora?

Factories in Mexico border towns that improt materias and equipments on a duty and tariff free basis for a assembly manufacturing and then export to US and Canada.

Labor groups and countries all over the world...

Fear that imports cost domestic workers their jobs and threaten national sovereignty. Some people argue that imports provide consumers more choices and cost savings and create domestic employment because consumers can take the money they save on imports spend it on more domestically produced products.

What is Total Quality Management? TQM (branch)

Focuses on analyzing an organizations input conversion and output activity to increase product quality

Started to develop and understand organizational behavior...

From this came the study of organizational behavior. The study of the factors that have an impact on how individuals and groups respond to and act in organizations

Do values change over time?

George England studied Japanese and US environment and found personal value systems are generally stable and do not change rapidly. However, changes are taking place in managerial values as result of culture and technology. Ex: Lifetime employment was once widely accepted in Japanese culture but obviously not in US. Job security was important however. Formal authority, obedience, and performance to hierarchical position are still important to Japan but not in US. Paternalism very important in Japan. Individualism in Japan in on the rise, indicating Japanese values are changing, they are embracing era of personal responsibility. Even china is beginning to undergo new era and moving away from collectivistic culture.

What are management information systems? MIS (branch)

Gives managers information about events occuirn ginside organization as well as in external environment which is info thats vital for effective decision making

What is the GLOBE Project?

Global Leadership and Organizational Behavior Effectiveness - Project extends and integrates previous analyses of cultural attributes and variables - Evaluate nine different cultural attributes using middle managers from 951 organizations in 62 countries representing three industries (financial services, food processing, and telecommunication)

What are departments?

Group of managers and employees who work together and possess similar skills or use the same knowledge, tools, techniques

Stereotyping from the cultural extremes

How we preceive french and us culture is through the extremes. Americans see the French as arrogant, flamboyant, emotional but that is such a small part of actual French culture. French see Americans as naive, aggressive, unprincipled, workaholic We focus on these extremes and we stereotype people based on the extremes

Doing business in Brazil

Important to highlight region since some characteristics make brazil different to manage compared to other latin countries 1. Physical contact is an acceptable form of communication. Brazilians stand close to others when having a conversation and may touch the person's back, arm, or elbow as a greeting or sign of respect. 2. Face-to-face interaction is preferred, so avoid email or telephone calls. Meetings may start 10 to 30 minutes late. Greet with a pleasant demeanor and accept refreshments. 3. Trust is not a given in Brazil, so be sure to form a strong relationship before bringing up business issues. Close relationships are very important because Brazilians will do anything for friends. 4. Appearance is very important. It reflects you and your company. Men should polish their shoes and wear conservative dark suits. Women should dress nicely, but avoid being too conservative or formal. Think fashion. 5. Patience is key. Many processes are long and drawn out, including negotiations. Expressing frustration or impatience and attempting to speed up processes may lose the deal. Brazilians will be very loyal and committed once the agreement is reached. 6. It is not acceptable to be ill-prepared. Presentations should be informative and expressive. Consistency is important. Be sure to state your case multiple times. Brazilians often bring multiple people to negotiations. Subsequent meetings may include members of higher management, requiring a rehashing of information.

What are some international trade and investment patterns?

In 2009 merchandise and commercial services exports declined Recent increases in merchandise exports and FDI

Safety vs. Risk

In some societies, organization decision makers are... Safety: In some societies, organizational decision makers are risk-averse and have great difficulty with conditions of uncertainty Risk: In others, risk taking is encouraged and decision making under uncertainty is common. AKA the US

Regiocentric Predisposition

Like an integration. Philosophy of management you blend your own way of doing things with those of the subsidiary on a regional basis. A little bit of you a little bit of me.

What are advantages of globalization?

Lower prices, availability of goods, better jobs, and access to technology

What are global economic systems?

Market economy: Where private enterprise reserves the right to own property and monitor production and distribution of goods and services while state supports competition and efficient practices Command economy: Comparable to a monopoly in the sense that the organization or govt has explicit control over price and supply of good or service Mixed economy: Combination of market and command while some aspects reflect private and other sectors are subject to government planning US is more of a mixed economy

Organizational Peformance

Measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals

Efficiency

Measure of how well or how productively resources are used to achieve a goal

Effectiveness

Measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals

Indulgence vs. Restraint (dimension added in 2010)

Measuring the freedom to satisfy ones natural needs and desires within a society. - Indulgent: A trait related to relative happiness based on instant gratification. Indulgent societies like US, have perceived happiness, positive emotions, and life in control - Restraint: Characteristic based on regulating and controlling behavior according to social norms. Restrained societies have more of a sense of helpless and less likely to remember positive emotions and basic needs are not always met

Burns and Stalker produced two basic ways in managers can organize and control organizations acitiviteis in order to respond to characteristics of external environment.

Mechanistic structure Organic structure

What are established economies?

North America: One of the four largest trading blocks in the world. Consist of US canada and mexico, combined purchasing power is more than 12 trillion dollars. Free market based economy that is attractive to private firms. United States: Foreign MNCs are finding US to be a lucrative expansion market Canada: US largest trading partner, most of largest foreign owned Canadian companies are heavily US owned, legal and business environment is similar to US Mexico: Strongest latin economy, 1994 Mexico became part of NAFTA and appeared to be on verge of becoming major economic power in latin America, now competitive with Asia for the US market EU: Alternate objective is to eliminate all trade barriers among member countries. Will have common customs duty regarding countries outside of union. Challenge is to absorb their eastern neighbors Japan: Ministry of International Trade and Industry government agency in japan that identifies and ranks commercial persuits and guides distribution of national resources

What are some regional agreements?

North American free trade association (NAFTA) US Central American free trade association (CAFTA) New opportunities for trade, investments, and working conditions

Who is Adam Smith?

Observed that firms manufactured pins in two ways. Craft style- each worker did all steps Production style- each worker specialized in one step Found that the performance of firms that specialize in only one or a few tasks was much greater

What is a differentiation strategy?

Obtain customers by making decisions that allows organization to create something exciting/unique good or service Ex: Luxury products

What are disadvantages of globalization?

Offshoring of jobs to lower wage countries Growing trade deficits Lack of responsiveness to economic Potential for a race to the bottom, companies and countries place downward pressure on lowering or reducing wages and worsening working condition

Who are Mary Parker Follet?

One of the first researchers of behavior management. She was concerned that taylor ignored the human side of organization and she suggested we include workers and get them to help in analyzing their jobs. They should have a say in how the task is being done.

What is a multinational company? (MNC)

Operations in more than one country, international sales, and a mix of nationalities among managers and owners.

What is the outcome of organization?

Organizational Structure: Formal system of taks and reporitng relationships that coordinate and motivate emploees so they work together to achieve organizational goal

Doing business in China

Peoples republic of china is trying to close the gap between itself and economically advanced nations and to establish itself as a power in the world economy. Member of WTO and manager trading partner of US. Many US and European multinationals have found doing business in china is long grueling process. 1. The Chinese place values and principles above money and expediency. 2. Business meetings typically start with pleasantries such as tea and general conversation about the guest's trip to the country, local accommodations, and family. 3. The Chinese host will give the appropriate indication for when a meeting is to begin and when the meeting is over. 4. Once the Chinese decide who and what is best, they tend to stick with these decisions. Although slow in formulating a plan of action, once they get started, they make fairly good progress. 5. In negotiations, reciprocity is important. If the Chinese give concessions, they expect some in return. 6. Because negotiating can involve a loss of face, it is common to find Chinese carrying out the whole process through intermediaries. 7. During negotiations, it is important not to show excessive emotion of any kind. Anger or frustration is viewed as antisocial and unseemly. 8. Negotiations should be viewed with a long-term perspective. Those who will do best are the ones who realize they are investing in a long-term relationship.

Value Similarities and Differences Across Cultures

Personal values have been the focus of numeral intercultural studies. The findings show both difference and similarities between work and managerial values in different cultural groups. Differences in work value have been found to reflect culture and industrialization. Value systems across national boundaries are often different but at the same time differences exist between cultures.

What is offshoring?

Process by which countries undertake activities at offshore locations instead of in their countries of origin. Many times we will offshore manufacturing.

What is operations management? (branch)

Provides managers a set of techniques they can use to analyze any aspect of an organizations productive system in order to increase efficiency.

What is the Hawthrone Studies?

Really started watching employees and observing employees and when they were watched they did a better job. Hawthorne effect suggests that managers behavior affects workers performance.

What are emerging economies?

Russia: Grow as poverty declines and middle class expands. direct investment in Russia is helping to raise GDP and decrease inflation which offsets the hyperinflation Hungary, Poland, Czech Republic: Also growing and attraction foreign investment China: GDP has remained strong growing continuously strong. Concerns about undervaluation of chinas currency which make china a complicated and high risk venture. trade relations remain tense South Korea: Major conglomerates called chaebols, very large family-held, are very large that have economic power, low unemployment Hong Kong: Part of people's republic of china has been headquarters for some of the most successful multinational corporations in Asia. Recent violence and protests in hong kong. Singapore: Solid foundation how to increase expanding Taiwan: Economy continues to grow steadily and now dominated by more technologically sophisticated industries.

Doing business in Russia

Russian economy has sever problems. Embassies can begin to tap into the potential opportunity. 1. Build personal relationships with partners. When there are contract disputes, there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement. 2. Use local consultants. Because the rules of business have changed so much in recent years, it pays to have a local Russian consultant working with the company. 3. Ethical behavior in the United States is not always the same as in Russia. For example, it is traditional in Russia to give gifts to those with whom one wants to transact business. 4. Be patient. In order to get something done in Russia, it often takes months of waiting. 5. Russians like exclusive arrangements and often negotiate with just one firm at a time. 6. Russians like to do business face-to-face. So when they receive letters or faxes, they often put them on their desk but do not respond to them. 7. Keep financial information personal. Russians wait until they know their partner well enough to feel comfortable before sharing financial data. 8. Research the company. In dealing effectively with Russian partners, it is helpful to get information about this company, its management hierarchy, and how it typically does business. 9. Stress mutual gain. The Western idea of "win-win" in negotiations also works well in Russia. 10. Clarify terminology. The language of business is just getting transplanted in Russia so double-check and make sure that the other party clearly understands the proposal, knows what is expected and when, and is agreeable to the deal. 11. Be careful about compromising or settling things too quickly because this is often seen as a sign of weakness. 12. Russians view written contracts as binding only if they continue to be mutually beneficial, so continually show them the benefits associated with sticking to the deal.

What is organizational environment theory?

Set of forces and conditions that operate beyond an organizations boundaries but they effect managers ability to acquire and utilize resources.

What are some problems with scientific management?

Some managers using this obtained increases in performance but rather than sharing performance gains through bonuses, they increased the amount of work that they were expected to do Also meant fewer jobs and greater threat of lay offs because fewer workers were needed

What are developing economies that are on the verge?

South america middle east and central asia africa

What is core competency?

Specific set of department skills, abilities, knowledge, and experience that allows one organization to outperform its competitors Skills for a competitive advantage All core competencies you want to keep internal

What are Standard Operating Procedures

Specific sets of written instructions about how to perform a certain aspect of the task

Administrative Management Theory

Study of how to create an organization structure and control system that leads to high efficiency and high effectiveness

What is the united steel workers of america?

Supports laborer's point of view

What is the open-system's view?

Synergy: Performance gains that result form combined actions of individuals and departments is only possible in an open/organized system.

What is the informal organization?

System of behavioral rules and norms that emerge in groups

Scientific Management

Systematic study for relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

What is foreign direct investment? (FDI)

Term used to indicate the amount invested in property plant, equipment, etc in another country. Economic potential of countrie like brazil russia india and china may constitute 4 of top 5 most dominant economies by 2050.

Power Distance

The extent to which less powerful members of institution accept that power is distributed unequally. - High power distance: people blindly obey superiors; centralized, tall organizational structures (Mexico, South Korea, India) Ex: Instead of referring to teacher by name Mexicans referred to her as teacher, by title. - Low power distance: The US. Structures are flatter, decentralized and smaller ratio from superviser to employee. Easier to rise from lower levels and up through organization, not stuck in any economic status.

Uncertainty Avoidance

The extent to which people feel threatened by ambiguous situations; create beliefs/institutions to try to avoid such situations - High uncertainty avoidance countries: Germany, Japan, Spain. high need for security, strong belief in experts and knowledge, structured activities, more rules, less risk taking. - Low uncertainty avoidance countries: Denmark, Great Britain, US. People more willing to accept risk related to the unknown, fewer written rules, more risk taking, higher labor turnover, more ambitious employees.

What is globalization?

The process of social political and economic cultural and technological integration among countries around the world

What is Behavioral Management?

The study of how managers should behave in order to motivate employees and encourage them to perform at high levels Started with Mary Parker and the Hawthorne studies that are related to management and performance. They talked about how older employees or tenured employees would beat new people to make them slow down production.

What are some global agreements?

The world trade organization: A global organization of countries that oversee rules general agreement on tariffs and trade:

As nations become more affluent

They start looking for countries with economic growth potential in which they can invest and emerging global community is becoming increasingly interdependent economically.

Globalization vs National Responsivess varies greately from culture to culture

To adjust global strategies for local markets, MNCs should - Stay abreast of local market condition and side step the temptation to assume that all markets are the same - Knowing the strengths and weaknesses of its subsidiaries so it can provide its units with assistance when needed when addressing local demands but back off when not needed - Giving subsidiary autonomy so it can respond to changes in local demand faster without having to get permission from the home office

The Environment

Trompenaar examined the ways in which people deal with their environment, specific attention was given to whether they believe in controlling outcomes (inner directed) or letting things take their own course (outer directed) go with the flow, flexible attitude. Trompenaar's research lends itself to cultural patterns or clusters

Doing business in India:

Unsaturated consumer markets and cheap labor have made India desirable market for global firms 1. It is important to be on time for meetings. 2. Personal questions should not be asked unless the other individual is a friend or close associate. 3. Titles are important, so people who are doctors or professors should be addressed accordingly. 4. Public displays of affection are considered to be inappropriate, so one should refrain from backslapping or touching others. 5. Beckoning is done with the palm turned down; pointing often is done with the chin. 6. When eating or accepting things, use the right hand because the left is considered to be unclean. 7. The namaste gesture can be used to greet people; it also is used to convey other messages, including a signal that one has had enough food. 8. Bargaining for goods and services is common; this contrasts with Western traditions, where bargaining might be considered rude or abrasive.

What is quantitative management? (branch)

Utilizes mathematical techniques, like linear programming, modeling, simulation, etc to help managers decide how much inventory to hold or where to locate a new factory or how to best invest in financial capital

Job Specialization

When workers specialize in only one or a few tasks Increasing job specialization increased efficiency and improves performance

Systems theorists like to argue that the...

Whole is greater than the sum of its parts. an organization performs at a higher level when its departments work together rather than separately.