MGT 305 EXAM 1

golden rule

"do unto others as you want them to do unto you" or "don't do anything to anyone that you would not want someone to do to you"

when working in the "global village" the following are to be AVOIDED:

-ETHNOCENTRISM -PAROCHIALISM -STEROTYPING

Three Levels of Corporate Social Responsibility (CSR):

-LEGAL CSR -ETHICAL CSR -BENEVOLENT CSR

DECISION MAKING STYLES:

-REFLEXIVE SYLE -REFLECTIVE STYLE -CONSISTENT STYLE

Three Levels of Organizational Culture:

-behavior -values and beliefs -assumptions

responsibilities to stakeholders:

-companies must provide employees with safe working conditions and with adequate pay and benefits -for customers the company must provide safe products and services with customer value -for society, the company should improve the quality of life, or at least not destroy the environment -must compete fairly with competitors, work with suppliers in a cooperative manner -it must abide the laws and regulations of government -the company must strive to provide equal employment opportunities for the labor force, the company must provide shareholders with reasonable profit

what is social responsibility?

-conscious effort to operate in a manner that creates a win-win situation for all stakeholders -doing good and doing no harm

methods to help ensure ethical behavior:

-guides to ethical behavior -ethics test -golden rule -rotary international four way test -stakeholders approach -discernment and advice

top managers

-have titles such as CEO, president, or Vice President. -they are responsible for managing an entire organization or major parts of it. -they develop and define the organizations purpose, objectives, and strategies

middle managers

-have titles such as sales manager, branch manager, or department head -responsble for implementing top management strategy by developing short term operating plans -report to executives and supervise the work of first line managers

Six Artifacts of Organizational Culture:

-heroes -stories -slogans -symbols -rituals -ceremonies

organization resources:

-human (most important) -financial -physical -informational

Four Components of Systems Process

-inputs -transformation -outputs -feedback

Three elements

-personality (individual, inherited, learned) -culture (specific to groups, learned) -human nature (universal, biological)`

four management functions include:

-planning -organizing -leading -controlling

Hofstede's Cultural Dimensions

-power distance (inequality vs. equality) -individualism (vs. collectivism) -assertiveness (vs. nurturing) -uncertainty avoidance (vs. acceptance) -long term orientation (vs. short term orientation)

REFLEXIVE STYLE DECISION MAKING

-quick decisions without taking the time to get the information that may be needed and without considering many alternatives -Pros = decisive and does not procrastinate -Cons = making quick decisions can lead to waste and duplication

first line managers

-responsible for implementing middle managers' operational plans -report to middle managers -DOES NOT supervise other managers, they supervise operative employees

REFLECTIVE STYLE DECISION MAKING

-takes plenty of time to make decisions, gathering considerable information and analyzing several alternatives -Pros = does not make hasty decisions -Cons = may procrastinate, lose opportunities, and waste valuable time and other resources

discernment and advice

-talk to your boss, higher level managers and other people have high ethical standards

management skills include:

-technical (hard skills) -interpersonal (soft skills) -decision making (soft skills)

CONSISTENT STYLE DECISION MAKING:

-tends to make decisions without either rushing or wasting time -They know when they have enough information and alternatives to make a sound decision

brainstorming

-the process of suggesting many possible alternatives without evaluation

three levels of management

-top manager -middle manager -first line manager

view of ethics:

-utilitarian view -right view -justice view

DECISION MAKING CONDITIONS

1. Certainty 2. Risk 3. Uncertainty

DECISION MAKING MODEL:

1. Classifying and defining the problem or opportunity: 2. Setting objectives and criteria 3. Generating creative and innovative alternatives 4. Analyzing alternatives and selecting the most feasible 5. Planning and implementing the decision 6. Controlling the decision

External Environment Factors:

1.customers 2. competition 3. suppliers 4. labor force 5. shareholders 6. society 7. technology 8. the economy 9. governments

multinational corporations (MNC)

Has ownership in operations in two or more countries

parochialism

Having narrow focus or seeing things solely from one's own perspective

DECISION MAKING TYPES:

RATIONAL VS. BOUNDED RATIONAL DECISIONS

importing

a domestic firm buys products from foreign firms and sells them at home

exporting

a domestic firm sells its products to foreign buyers

licensing

a licensor agrees to give a license the right to make its products or services or use its intellectual property in exchange for a royalty

globalization

a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems

transactional company

a type of MNC that eliminates artificial geographical Barries without having a real single national headquarters

political skills

ability to develop a power base and connections needed to gain resources for their group

strategic alliances

an agreement to share resources that does not necessarily involve creating a new company -companies remain separate and independently controlled but share resources to sell products and services in other countries to develop new or improved products and/or build production facilities

inputs

are an organizations resources that are transformed into products or services

outputs

are the products or services offered to customers

assumptions

are values and beliefs that are deeply ingrained that are considered unquestionably true and taken for granted. because assumptions are shared, they are rarely discussed. they serve as an "automatic pilot" to guide behavior. most stable and enduring part of culture and are difficult to change

decision making skills

based on the ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities

international company

based primarily in one country but transacts business in other countries

customers

business is based on customer relationships and providing the product customers want. without giving customers value, you don't have a business

partial ownership

buying stocks in a foreign company or through a strategic alliance

technology

changed the speed in the manner in which organizations conduct and transact business, and they are often a major part of a firms systems process

slogans

communicative values

subsidiary

company owned and controlled by another company, making up a combined company called the holding company or parent company

domestic business

conducts business in only one country

transformation

converse of inputs into outputs

joint ventures

created when two or more firms share ownership of a new company -companies remain separate and independent but share ownership and control of new company through partnership

stakeholders approach to ethics

creating a win-win situation for all relevant stakeholders so that everyone benefits from the decision

"not invented here" (NIH) syndrome

described as a negative attitude toward knowledge/technology/products from other external sources

society

determines what are acceptable business practices. individuals and activist groups have formed to pressure business for changes

external environment

everything outside an organization's boundaries that might affect it

Benevolent CSR

focus on profitability and helping society through philanthropy

LEGAL CSR

focuses on maximizing profits while obeying the law

ethical CSR

focuses on profitability and doing what is right, just, and fair

ethics test

guides to help individuals and groups consider ethical issues and make good decisions

contracting

having a foreign country actually make the entire product for you

global sourcing

hiring others outside the firm to perform work worldwide

organizational culture

how the firms achieve the commission by living its values and beliefs on a daily basis

behavior culture

includes the observable things that people do and say or the actions employees take. (all six artifacts are part of this)

interpersonal skills

involve the ability to understand, communicate with, and work well with individuals and groups through developing effective relationships

technical skills

involve the ability to use methods and techniques to perform a task

Rotary international Four Way Test:

is it the truth? it is fair to all concerned? will it build goodwill and better friendship? will it be beneficial to all concerned? ***"service above self" is a great motto to live by bc this mentality will improve relationships

mission

its purpose or reason for being. it states why the firm exists and what greater good it serves

strong cultures

know the shared assumptions, consciously know the values and beliefs, agree with the shared assumptions, values, and beliefs, and behave as expected

guides to ethical behavior

leads the way for others by example

stories

narratives, they are a good way to convey cultural knowledge.they are often about founders and others who have made extraordinary efforts

governments

national, state, local governments all set laws and regulations that businesses must obey and when they change, businesses must conform to the changed environment

parochial view of ethnocentrism

negative sterotype

economy

no organization has control over economic growth, inflation, interest rates, foreign exchange rates, and so on but they clearly affect business operations

brainstorming rules

o Everyone participates o No criticism is allowed during the process o Wild ideas are encouraged o More is better o Build on the ideas of others o Notes must be taken

nominal grouping steps:

o Listing - each participant generates ideas in writing o Recording - each member presents one idea at a time, and the leader records these ideas where everyone can see them. This continues until all ideas are posted o Clarification - alternatives are clarified through a guided discussion, and any additional ideas are listed o Ranking - each employee rank orders the ideas and identifies what he or she sees as the top three, low ranked alternatives are eliminated o Discussion - rankings are discussed for clarification, not persuasion. Participant should explain their choices and reasons for making them o Vote - secrete vote is taken to select alternative

SATISFICERS (blend of satisfy and suffice)

o Make bounded rational decisions o Quickly choose the option that fills the minimum criteria ***We "Satisfice" to make a decision that is "good enough" when our ability to use rational decision making is bounded - the decision isn't really that important or we simply don't have the time to go through the entire rational decision process***

rational maximizers

o Make rational decisions o Take their time o Weigh a wide range of options before choosing

procedure, rules, and policies:

o Policies - general guidelines to be followed when making decisions o Procedures - sequence of actions to be followed in order to achieve an objective (ex. Procedures for how to recruit, interview, and select a new employee) o Rules - statements of what a manager should or should not do o Policies, procedures, and rules are especially useful in programmed decision making

suppliers

organizations buy resources from suppliers. therefore a firms performance is affected is affected by its suppliers

competition

organizations must compete for customers

total quality management

process that involves everyone and the principles of TQM are focusing on delivering customer value and continually improving the system and its processes

feedback

provides a means of control to ensure that the inputs and transformation process are producing the desired results

global village

refers to companies conducting business worldwide without boundaries

Ethnocentrism

regarding one's own ethnic group or culture as superior to others

what is a managers responsibilty?

responsible for achieving organizations objectives through efficient and effective utilization of resources

environmental scanning

searching the environment for important events or issues that might affect the firm

what are ethics?

standards of right and wrong that influence behavior

code of ethics or conduct:

state the importance of conducting business in an ethical manner and provide moral standard guidelines

utilitarian view

states that ethical decisions should be based on creating good for society (provide greater good for the greatest number based on consequences/outcomes of actions)

justice view

states that ethical decisions should be made to treat everyone fairly and impartially (don't discriminate). the goal is to be equitable, fair, and impartial in making decisions

right view

states that ethical decisions should respect and protect individual privileges (right to free speech, privacy, consent). the goal is to avoid interfering with the rights of those who might be affected by the decision.

rituals

such as a high five, chest bump, ringing a gong after making a deal

ceremonies

such as award dinners for top achievers

symbols

such as company logos, team mascots, plaques, pins, jackets, and so on

direct investment

the building or buying of operating facilities in a new foreign country

global business

the buying and selling of goods and services among different countries

labor force

the employees of an organization have a direct effect on its labor force outside its boundaries. some jobs are easy to fill, whereas there is a shortage of some highly skilled workers

internal environment

the events and trends inside an organization that affect management, employees, and organizational culture

stereotyping

the extension of belies about a group of individuals based on your own beliefs

franchising

the franchiser licenses the entire business to the franchisee for a fee and royalties

shareholders

the owners of the corporations, known as shareholders, influence management. they vote for the directors of the corporations, who hire and fire top management

organizing

the process of delegating and coordinating tasks and allocating resources to achieve objectives

nominal grouping

the process of generating and evaluating alternatives using a structured voting method

leading

the process of influencing employees to work toward achieving objectives

controlling

the process of monitoring and measuring progress and taking corrective action when needed to ensure that objectives are achieved

planning

the process of setting objectives and determining in advance exactly how the objective will be met

the systems process

the technology used to transform inputs into outputs to make and deliver products and services (it has four components)

structure refers to:

the way in which an organization groups it resources to accomplish its mission

weak cultures

those who do not behave

heroes

those who have made outstanding contributions to their organizations

how is organizational culture learned?

through observing people and events. you watch and listen to people and learn the culture of what you should and shouldn't do

values and beliefs

values represent the way people ought to behave. values and beliefs guide decision making and shape the behavior that results in a level 1 culture. slogan expresses key values

organizations culture consists of:

values, beliefs, and assumptions about appropriate behavior that members of an organization share

why do people behave unethically?

we respond to incentives and can usually be manipulated to behave ethically or unethically if we find the right incentive

UNCERTAINTY

you cannot accurately determine probabilities because you lack information or knowledge

RISK

you do not know the exact outcome of each alternative in advance but can assign probabilities to each outcome

CERTAINTY

you know the outcome of each alternative in advance and can usually take quick actioN

problem solving:

· A problem exists whenever objectives are not being met · Problems solving is the process of taking corrective action to meet objectives · Decision making is the process of selecting a course of action that will solve a problem

Uncertainty Avoidance (vs. Acceptance):

· The degree to which people in a country prefer structured over unstructured situations and whether people are willing to take risks and accept ambiguity

Individualism (vs. Collectivism):

· The degree to which people in a country prefer to act as self-sufficient individuals rather than first as members of in-groups

Assertiveness (vs. Nurturing):

· The degree to which people in a country value "quantity of life" (assertiveness, accumulation of money and material goods) vs. the "quality of life" (relationships, showing sensitivity and concern for the welfare of others).

Long-term Orientation (vs. Short-Term Orientation):

· The degree to which people in a county look to the future and value thrift and perseverance vs. valuing the past and the present, fulfilling short-term social obligations, and immediate gratification.

Power Distance (Inequality vs. Equality):

· the degree to which people in a country ACCEPT that power in institutions and organizations is distributed unequally