Chapter 3 - MNGT 414

post industrial society implications

-Dominance of service sector; knowledge based -Almost complete absence of agricultural -Significant decline in mfctg -Emphasis on quality-of-life -Non economic incentives favored -Post-materialist values, individual expression, and movement toward more a humane society

important implications of econ systems based on

-dominant market type -market transitions

3 key + 2 social institutions that influence business environe

-econ system -level of industrialization -types of religions -education -level of social inequality

multinational implications of market transtiions

-need to turn around inefficient state owned previously to cost-effective companies -motivational issues with workers -interpersonal trust, teams, metirocracy

islam multinationals

-prohibits profiting by exploiting others -prohibits payment or receipt of interest -limited role for women

instutitional context may encourage adoption of values INCONSSITENT with antional cultures

TRUE

understanding the instutional context is critical to effective multinational mngt

TRUE

index of econ fredom

absence of govt coericaon or constraint on production, distribution, consumption of goods beyond necessary extent to protect and matain liberty istelf; 10 indicatiors i.e. trade and taxation, propreoty rights, govt intervention etc. where 5 is bad and 0 is the best

preindustrial society

agricultre dominant, religions norms and tradition emphsaized

islam

based on submission to will of Allah/god - prophet Muhammad messenger of Allah second largest of world religions and growing -islamic laws or Shari'ah, 5 Pillars -pray 5x/day, Ramadan fast

christianity

based on teachings of JEsus -most practiced religion in world -emphasizeds welath and hard work -10 commandemnts = ethical behavior guidelines dingity of human life, labor, happiness

hinduism

broad an dinclusive religion, no single found -based on Vedic scriptures -ancient traditions of India -760 mill world wide -quest for ultimate reality and truth -live according to Dharmar, righteousness and moral order -belief in karma and recincarnation

chirstiianity for multinationals

business environemnet conducive to these values sunday = holiday, no work for prayer

extremes of econ sysyems

captialism and socialism

caveat of hinduism

caste system

market transitions

changes societies expereiece as move from socialist to market econ

preindustrial conuntries implications

cheap labor and untapped markets BUT poor business infrastrucutre traditional and coomuncal values

most popular religions

chrsitianity, islam, hinduism and buddhism = 71% world population 20% nonreligious

mixed econ

combined aspects of socialist and capitalist i.e. Sweden, France, Denmark, India, Italy

social institutions

complex of positions, roles, norms and values lodged in particular types of social structures and organizing stable patterns of human resources regarding funademntal problems in sustaining viable soceity structures in given environ

national context

composed of the respective national ciltures and social institutions of a soceity entertwined with -economic system -religion -education

industratilaization

culatural and econ changes that occur because of how procudtion is organ and stiributed in society

social inequalitty

degree to which people have privileged access to rescources and positions within societies

caveat of christiantiy

dignity of human life > separate black and white churches?

there is a _______ correspondence b/w indsutrializaiton and econ development

direct

industrial society

domanince of mftgc or secondary sector technological developemtn

3 elements of national context

econ system religion education

what is the central element in orgainzation of society

education

3 elements of institutional context

education govt legal system

post industrial society

emphasis on service sectors, need highly skills workers with speicalized skilsl

buddhism for multinationlas

encourages hard work, laziness negative empahsiszed teamwrokd, all beings interconencted

criticisms of MNCs for social inequality

exploting low wages, child labor realized soical repsonbilitiy also in own hands

high social inequality

few indivudals have ability to control and use imoprtant resources, few use access to acquire more and thus pepeturate growing gap

mangaerial implications for education

gives an idea of skill level more educated = more skilled workers math & science, R&D

institutional context

includes other elements of society esides national culture like -education -govt -legal system

multinational managers should consider _______ for econ system implications

index of econ freedom

social instutuionis affect _____ & ____________

individuals and organizations

industrial societes favor ___ &____

innovation and indivudualism -govts provide favorable environ -educated labor force

it is important to understand the dominant _____ of any society and appreciate its influence on peoeple and orgs

intsitutional context

implications for MNC on social inequality

key ethical issues arise in countries considere the GINI index on dgree of social ineq recognize that ineq = more demoarlized workers

at a basic level, a manager cannot compeltely understand any society without examining ______ & _________

national culture & institutional context

econ systems

network or system of belifs, arcitivites, orgs, and reltionaships that provide good and serviecs of society

education

organized networks of socialization expereiences which prepare people to ac t in society

stages of industrialization

pre industrial industrial post industrial

capitatlist/market econ

production is decentralized to private property rights owners who act to make profits in competitive market

socialist/command econ

production resources owned by the state and production decisions are centrally coordinated

social institutions have profond effects on people's life conditions and provide context for _________ diffs among people

psychological

buddhism

religions that focuses on reality of world suffering and how to be freed -craving and desires produce suffereing -dominant in Asia

religion

shared set of beliefs, activities and instutitions based on faith in superantural forces

hinduisim for mutinationals

spiritual achievemtn is importnat respect for elders, age and wisdom clear guidelines for ethical behavior -inequality in caste system and social structure in india

caveat of islam

violence against enemies

dominant market type

whether the market and econ system are predominantly socialist, capitaist, or mixed