Management Midterm

Open - The Virtual Structure: An Internet-Connected Partner for a Temporary Project

"Strip away the highfalutin' talk," says one industry observer, "and at bottom the Internet is a tool that dramatically lowers the cost of communication. That means it can radically alter any industry or activity that depends heavily on the flow of information."82 One consequence of this is the virtual organization, an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections, while often appearing to customers and others to be a single, unified organization with a real physical location.83 The virtual organization allows the form of boundaryless structure known as the virtual structure, a company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary," according to one definition.84 The structure, in which members meet and communicate with each other by e-mail and videoconferencing instead of face to face, is valuable for organizations that want to grow through partnerships with other companies.85 For instance, Finnish phone-maker Nokia, which had trouble gaining market share in the United States, changed its strategy to develop phones in partnership with U.S. carriers, as by assigning product developers to AT&T and Verizon.

Major question for section 8.1

"What's your favorite movie?" the job interviewer asks you. "Your favorite website?" "What's the last book you read for fun?" "What makes you uncomfortable?" These are the four most frequently asked interview questions used by hiring managers, according to a survey involving 285,000 kinds of interview questions.9 For you as a job applicant, these questions might not seem to have much to do with your performance in previous jobs. Rather, they are designed to see whether you will fit in with the company's culture, or organizational culture, as we'll explain.10 What Does It Mean to "Fit"? Anticipating a Job Interview The kind of fit we are concerned with here is what is called person-organization fit, which reflects the extent to which your personality and values match the climate and culture in an organization. A good fit of this kind is important because it is associated with more positive work attitudes and task performance, lower stress, and fewer expressions of intention to quit ("I'm gonna tell em, 'Take this job and...'").11 How well an applicant will fit in with the institution's organizational culture is considered a high priority by many interviewers. Indeed, more than 50% of the evaluators in one study considered "fit" to be the most important criterion of the interview process.12 How can you determine how well you might fit in before you go into a job interview? You should write down your strengths, weaknesses, and values—and then do the same for the organization you're interviewing with, by researching it online and talking with current employees. You can then prepare questions to ask the interviewer about how well you might fit. Example: If being recognized for hard work is important to you, ask the interviewer how the company rewards performance. If the answer doesn't show a strong link between performance and rewards ("Well, we don't really have a policy on that"), you'll probably have a low person-organization fit and won't be happy working there. How an Organization's Culture & Structure Are Used to Implement Strategy How employees fit into an organization's culture is important to the larger picture of that organization's strategy. Strategy, as we saw in Chapter 6, consists of the large-scale action plans that reflect the organization's vision and are used to set the direction for the organization. To implement a particular strategy, managers must determine the right kind of (1) organizational culture and (2) organizational structure. Let's consider these terms. Page 227 Organizational Culture: The Shared Assumptions That Affect How Work Gets Done We described the concept of culture in Chapter 4 on global management as "the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people." Here we are talking about a specific kind of culture called an organizational culture. According to scholar Edgar Schein, organizational culture, sometimes called corporate culture, is defined as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.13 These are the beliefs and values shared among a group of people in the workplace that are passed on to new employees by way of socialization and mentoring, which significantly affect work outcomes at all levels.14 This is the "social glue" that binds members of the organization together. Just as a human being has a personality—fun-loving, warm, uptight, competitive, or whatever—so an organization has a "personality," too, and that is its culture. The culture helps employees understand why the organization does what it does and how it intends to accomplish its long-term goals. 3M sets expectations for innovation, for example, by having an internship and co-op program, which provides 30% of the company's new college hires. Culture can vary considerably, with different organizations having differing emphases on risk taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. And the elements that drive an organization's culture also vary. They may represent the values of the founder, the industry and business environment, the national culture, the organization's vision and strategies, and the behavior of leaders. (See Table 8.1.) TABLE 8.1What Drives an Organizational Culture? • Founder's values • Industry & business environment • National culture • Organization's vision & strategies • Behavior of leaders We thoroughly discuss organizational culture in Sections 8.2 and 8.3. Organizational Structure: Who Reports to Whom & Who Does What Organizational structure is a formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals. As we describe in Sections 8.4-8.6, organizational structure is concerned with who reports to whom and who specializes in what work. Whether an organization is for-profit or nonprofit, the challenge for top managers is to align the organization's vision and strategies with its organizational culture and organizational structure, as shown in the two orange boxes in the drawing below. (See Figure 8.1.) FIGURE 8.1 Drivers and flow of organizational culture Figure 8.1 shows that the consistency among these elements in turn impacts (see the three green boxes) group and social processes (discussed in Chapters 13-15), individual work attitudes and behaviors (discussed in Chapters 11-12), and the organization's overall performance. As you can see from the diagram, consistency across strategy, culture, and structure leads to higher performance. ●

This means an organization must stay ahead in four areas:

(1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency.

organizational cultures can be classified into four types:

(1) clan, (2) adhocracy, (3) market, and (4) hierarchy.

management is defined as

(1) the pursuit of organizational goals efficiently and effectively by (2) integrating the work of people through (3) planning, organizing, leading, and controlling the organization's resources.

The Manager's Roles: Mintzberg's Useful Findings

1. A Manager Relies More on Verbal than on Written Communication 2. A Manager Works Long Hours at an Intense Pace 3. A Manager's Work Is Characterized by Fragmentation, Brevity, & Variety

Four ways of transmitting culture to employees

1. A symbol is an object, act, quality, or event that conveys meaning to others. 2. A story is a narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value. 3. A hero is a person whose accomplishments embody the values of the organization. 4. Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.

Four common elements of an organization

1. Common Purpose: The Means for Unifying Members An organization without purpose soon begins to drift and become disorganized. The common purpose unifies employees or members and gives everyone an understanding of the organization's reason for being. 2. Coordinated Effort: Working Together for Common Purpose The common purpose is realized through coordinated effort, the coordination of individual efforts into a group or organizationwide effort. Although it's true that individuals can make a difference, they cannot do everything by themselves. 3. Division of Labor: Work Specialization for Greater Efficiency Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. Even a two-person crew operating a fishing boat probably has some work specialization—one steers the boat, the other works the nets. With division of labor, an organization can parcel out the entire complex work effort to be performed by specialists, resulting in greater efficiency. 4. Hierarchy of Authority: The Chain of Command The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time. If coordinated effort is to be achieved, some people—namely, managers—need to have more authority, or the right to direct the work of others. Even in member-owned organizations, some people have more authority than others, although their peers may have granted it to them. In addition, authority is most effective when arranged in a hierarchy. Without tiers or ranks of authority, a lone manager would have to confer with everyone in his or her domain, making it difficult to get things done. Even in newer organizations that flatten the hierarchy, there still exists more than one level of management.62 A flat organization is defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them. Finally, a principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one manager in order to avoid conflicting priorities and demands. Today, however, with advances in computer technology and networks, there are circumstances in which it makes sense for a person to communicate with more than one manager (as is true, for instance, with the organizational structure known as the matrix structure, as we'll describe).

Five ways of expanding internationally

1. Global Outsourcing 2. Importing, Exporting, & Countertrading 3. Licensing & Franchising 4. Joint Ventures 5. Wholly-Owned Subsidiaries

Industry

A collection of businesses with a common line of products or services

Organizational structure

A formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals

Benchmarking

A process by which a company compares its performance with that of high-performing organizations

Acquisition strategy

A process of finding those potential customers who are in the market and ready to buy. The attempt to lead customers to a web site and to welcome them, answer their questions and close the sale. Source: SEMPO

World Bank

One of three principal organizations designed to facilitate international trade: its purpose is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications

Tariffs

A trade barrier in the form of a customs duty, or tax, levied mainly on imports

Import quotas

A trade barrier in the form of a limit on the numbers of a product that can be imported

MNCs

AKA multinational corporation; A business firm with operations in several countries

Owners

All those who can claim the organization as their legal property

General environment

Also called macroenvironment; in contrast to the task environment, it includes six forces: economic technological, sociocultural, demographic, political-legal, and international

Five conclusions from research on organizational culture

An organization's culture matters. The type of organizational culture can be a source of competitive advantage. Employees are happier with clan cultures. Employees are more satisfied with and committed to organizations with clan cultures, which value flexibility over stability and control and which are more concerned with satisfying the needs of employees than those of shareholders or customers. Elements of these cultures can be used to boost innovation and quality. Managers can build into their organizations characteristics of some or all of these three cultures—clan, adhocracy, and market—to increase innovation and improve the quality of their products. Changing the organizational culture won't necessarily boost financial performance (but it might). There are no guarantees that making changes in a firm's organizational culture will lead to a jump in revenues and profits, although any changes that improve its competitive advantage may produce financial benefits. Market cultures tend to produce better results. As the chart shows, market cultures tend to lead to better outcomes in employee attitudes, performance, and organizational effectiveness, thereby leading to competitive advantage. Managers are encouraged, therefore, to consider how they might make their cultures more market oriented.

Organizing

Arranging tasks, people, and other resources to accomplish the work

Organization chart

Box-and-lines illustration of the formal relationships of positions of authority and the organization's official positions or work specializations

Greenfield strategy

Build a subsidiary from the ground up

Sustainability

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

International Monetary Fund (IMF)

One of three principal organizations designed to facilitate international trade: its purpose is to assist in smoothing the flow of money between nations

Competitive intelligence

Gaining information about one's competitors' activities so that one can anticipate their moves and react appropriately

Demographic forces

Influences on an organization arising from changes in the characteristics of a population, such as age

Open - The Hollow Structure: Operating with a Central Core & Outsourcing Functions to Outside Vendors

In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. (See Figure 8.11.) A company with a hollow structure might retain such important core processes as design or marketing and outsource most other processes, such as human resources, warehousing, or distribution, thereby seeming to "hollow out" the organization.80 A firm with a hollow structure might operate with extensive, even worldwide operations, yet its basic core could remain small, thus keeping payrolls and overhead down. The glue that holds everything together is information technology, along with strategic alliances and contractual arrangements with supplier companies. An example of a hollow structure is EndoStim, the medical device start-up we described earlier.

Vertical integration strategy

Integration with a business in the same industry but a supplier of the existing business

Three Types of Managerial Roles:

Interpersonal, Informational, & Decisional

Innovation

Introduction of something new or better, as in goods or services

World Trade Organization (WTO)

One of three principal organizations designed to facilitate international trade: its purpose is to monitor and enforce trade agreements

Controlling

Monitoring performance, comparing it with goals, and taking corrective action as needed

Leading

Motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals

Start-up

Newly created companies designed to grow fast

Cost-focus strategy

One of Porter's four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and to target a narrow market

Cost leadership strategy

One of Porter's four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and to target a wide market

Focused-differentiation strategy

One of Porter's four competitive strategies; offering products or services that are of unique and superior value compared to those of competitors and to target a narrow market

Differentiation strategy

One of Porter's four competitive strategies; offering products or services that are of unique and superior value compared with those of competitors but to target a wide market

Operational planning & examples

Operational planning by first-line management. Middle managers then pass these plans along to first-line managers to do operational planning—that is, they determine how to accomplish specific tasks with available resources within the next 1-52 weeks.

Expatriates

People living or working in a foreign country

Competitors

People or organizations that compete for customers or resources

Distributor

People or organizations that help another organization sell its goods and services to customers

Suppliers

People or organizations that provide supplies—that is, raw materials, services, equipment, labor, or energy—to other organizations

SWOT analysis Table 6.2

Strengths - inside; vision Weaknesses- inside; vision Opportunities - outside; competitive advantage Threats - outside; competitive advantage

Explain each of the boxes in Figures 5.1 and 5.2

Planning and strategic management: 1. establish the mission and vision 2. assess the current reality 3. formulate the grand strategy & strategic, tactical, and operational plans 4. implement the strategy 5. maintain strategic control Making plans: Mission statement: "What is our reason for being?" Vision statement: "What do we want to become?" Strategic planning: Done by top managements for the next 1-5 years Tactical planning: Done by middle managers for the next 6-24 months Operational planning: Done by first-line managers for the next 1-52 weeks

Crowdfunding

Raising money for a project or venture by obtaining many small amounts of money from many people ("the crowd")

Triple bottom line

Representing people, planet and profit (the 3 Ps)—measures an organization's social, environmental, and financial performance

Strategic planning & examples

Strategic planning by top management. Using their mission and vision statements, top managers do strategic planning—they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available. "Strategic planning requires visionary and directional thinking," says one authority. It should communicate not only general goals about growth and profits but also ways to achieve them. Today, because of the frequency with which world competition and information technology alter marketplace conditions, a company's strategic planning may have to be done closer to every 1 or 2 years than every 5. Still, at a big company like Boeing or Ford or Amazon (see Example box below), top executives cannot lose sight of long-range, multiyear planning.

Planning

Setting goals and deciding how to achieve them; also, coping with uncertainty by formulating future courses of action to achieve specified results

Entrepreneur

Someone who sees a new opportunity for a product or service and launches a business to try to realize it

Organizational culture

Sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members

SMART goals

Specific measureable attainable results oriented target dates

Sustainable competitive advantage

Strategic management provides a sustainable competitive advantage, which, you'll recall (from Chapter 1), is the ability of an organization to produce goods or services more effectively than its competitors do, thereby outperforming them. Sustainable competitive advantage occurs when an organization is able to get and stay ahead in four areas: (1) in being responsive to customers, (2) in innovating, (3) in quality, and (4) in effectiveness. Today technology has made achieving a sustainable competitive advantage nearly impossible in many industries, so the advantage may well be fleeting.

Tactical planning & examples

Tactical planning by middle management. The strategic priorities and policies are then passed down to middle managers, who must do tactical planning—that is, they determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months.

Competitive advantage

The ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them

The Most Valued Traits in Managers

The ability to motivate and engage others. The ability to communicate. Work experience outside the United States. High energy levels to meet the demands of global travel and a 24/7 world.

Ethnocentrism

The belief that one's group is of central importance, tendency to judge the practices of other groups by one's own cultural standards.

Good managers need to work on developing three principal skills.

The first is technical, the ability to perform a specific job. The second is conceptual, the ability to think analytically. The third is human, the ability to interact well with people.

Traditional - The Simple Structure: For the Small Firm

The first organizational form is the simple structure. This is the form often found in a firm's very early, entrepreneurial stages, when the organization is apt to reflect the desires and personality of the owner or founder. An organization with a simple structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization. (See Figure 8.6.)

Traditional - The Matrix Structure: A Grid of Functional & Divisional for Two Chains of Command

The fourth organizational form is the matrix structure. In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal. The functional structure usually doesn't change—it is the organization's normal departments or divisions, such as Finance, Marketing, Production, and Research & Development. The divisional structure may vary—as by product, brand, customer, or geographic region.

Open - The Modular Structure: Outsourcing Pieces of a Product to Outside Firms

The modular structure differs from the hollow structure in that it is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes (such as human resources or warehousing) of an organization. In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors. One article compares this form of organization to "a collection of Lego bricks that can snap together." For example, Bombardier (pronounced "bom-bar-dee-ay"), of Wichita, Kansas, makes an eight-passenger business jet, the Continental, that is designed in a dozen large modules that are built in various places around the world. The cockpit and forward fuselage are built by Bombardier Montreal. The center section is built in Belfast, the wing by Mitsubishi in Japan, the stabilizers and rear fuselage by Aerospace Industrial Development in Taiwan, the landing gear by Messier-Dowty in Canada, and the tailcone by Hawker de Havilland in Australia. The engines are provided by General Electric and the avionics gear by Rockwell Collins, both companies in the United States. The 12 modules are shipped to Wichita, where the parts are snapped together in just four days.81

Corporate social responsibility (CSR)

The notion that corporations are expected to go above and beyond following the law and making a profit, to take actions that will benefit the interests of society as well as of the organization

The planning/control cycle

The planning/control cycle has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely (a) by correcting deviations in the plan being carried out or (b) by improving future plans. The planning/control cycle loop exists for each level of planning—strategic, tactical, and operational. The corrective action in step 4 of the cycle (a) can get a project back on track before it's too late or (b) if it's too late, can provide data for improving future plans. ●

Exchange rates

The rate at which the currency of one area or country can be exchanged for the currency of another's

Traditional - The Functional Structure: Grouping by Similar Work Specialties

The second organizational form is the functional structure. In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)

Traditional - The Divisional Structure: Grouping by Similarity of Purpose

The third organizational form is the divisional structure. In a divisional structure, people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions. (See Figure 8.8.) Product Divisions: Grouping by Similar Products or Services Product divisions group activities around similar products or services. Examples: The media giant Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Customer Divisions: Grouping by Common Customers or Clients Customer divisions tend to group activities around common customers or clients. Examples: Ford Motor Co. has separate divisions for passenger-car dealers, for large trucking customers, and for farm products customers. A savings and loan might be structured with divisions for making consumer loans, mortgage loans, business loans, and agricultural loans. Geographic Divisions: Grouping by Regional Location Geographic divisions group activities around defined regional locations. Example: This arrangement is frequently used by government agencies. The Federal Reserve Bank, for instance, has 12 separate districts around the United States. The Internal Revenue Service also has several districts.

Globalization

The trend of the world economy toward becoming a more interdependent system

Customers

Those who pay to use an organization's goods or services

Traditional management pyramid

Top managers make long-term decisions, middle managers implement those decisions, and first-line managers make short-term decisions. Team leaders facilitate team activities toward achieving a goal.

1. Traditional Designs: Simple, Functional, Divisional, & Matrix Structures

Traditional organizational designs tend to favor structures that rely on a vertical management hierarchy, with clear departmental boundaries and reporting arrangements, as follows.

Vision & Mission statements

We discussed mission and vision in Chapter 5 and explain them further in the next section. The mission, you'll recall, is the organization's purpose or reason for being, and it is expressed in a mission statement. An organization's vision is its long-term goal describing what it wants to become, and it is expressed in a vision statement, which describes its long-term direction and strategic intent. The mission, we said, is the organization's purpose or reason for being; it is expressed in a mission statement. For example, the mission statement of McGraw-Hill, publisher of this book, is as follows: To serve the worldwide need for knowledge at a fair profit by gathering, evaluating, producing, and distributing valuable information in a way that benefits our customers, employees, authors, investors, and our society. An organization's vision, its long-term goal of what it wants to become, is expressed in a vision statement, which describes its long-term direction and strategic intent. For example, Walt Disney's original vision for Disneyland went in part like this: Disneyland will be something of a fair, an exhibition, a playground, a community center, a museum of living facts, and a showplace of beauty and magic. It will be filled with the accomplishments, the joys and hopes of the world we live in. And it will remind us and show us how to make those wonders part of our own lives.30 Although a vision statement can be short, it should be positive and inspiring, and it should stretch the organization and its employees to achieve a desired future state that appears beyond its reach. Google's vision, for example, is "to organize the world's information and make it universally accessible and useful." Former Google CEO Eric Schmidt estimated that it might take 300 years to achieve the company's vision, which would require Google to have strategic patience and to develop a grand strategy that is broad in focus.31 Guidelines for constructing powerful mission statements and vision statements are shown below. (See Table 6.1.) "Visions that have these properties challenge and inspire people in the organization and help align their energies in a common direction," says Burt Nanus of the University of Southern California's School of Business Administration. "They prevent people from being overwhelmed by immediate problems because they help distinguish what is truly important from what is merely interesting."32 ●

Seven challenges face any manager:

You need to manage for competitive advantage—to stay ahead of rivals. You need to manage for diversity in race, ethnicity, gender, and so on, because the future won't resemble the past. You need to manage for the effects of globalization and of information technology. You always need to manage to maintain ethical standards. You need to manage for sustainability—to practice sound environmental policies. Finally, you need to manage for the achievement of your own happiness and life goals.

licensing

a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.

A wholly-owned subsidiary is

a foreign subsidiary that is totally owned and controlled by an organization

A greenfield venture is

a foreign subsidiary that the owning organization has built from scratch.

Franchising is

a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.

organization

a group of people who work together to achieve some specific purpose.

team leader

a manager who is responsible for facilitating team activities toward achieving key results

countertrading

bartering goods for goods.

Strategic alliances

commercial agreements between transnational corporations, usually involving shared technologies, marketing networks, market research, or product development

Organizational design is

concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open boundaries between organizations.72

In a horizontal design, also called a team-based design, teams or workgroups,

either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries. For instance, when managers from different functional divisions are brought together in teams—known as cross-functional teams—to solve particular problems, the barriers between the divisions break down. The focus on narrow divisional interests yields to a common interest in solving the problems that brought them together. Yet team members still have their full-time functional work responsibilities and often still formally report to their own managers above them in the functional-division hierarchy. (See Figure 8.10.)

The opposite of a bureaucracy, with its numerous barriers and divisions, a boundaryless organization is a

fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors. This means that the form of the business is ever-changing, and business relationships are informal.79 Three types of structures in this class of organizational design are hollow, modular, and virtual structures.

A functional manager

is responsible for just one organizational activity.

A general manager

is responsible for several organizational activities

Efficient - the means

means of attaining the organization's goals; To use resources—people, money

Organizations, or people who work together to achieve a specific purpose, value managers because of the ________ effect: Good managers have an influence on the organization far beyond the results that can be achieved by one person acting alone.

multiplier

Unrelated diversification

operating several businesses under one ownership that are not related to one another.

Management process/four management functions

planning, organizing, leading, and controlling.

Globe Study's 9 cultural dimensions

power distance - how much unequal distribution of power should there be in organizations and society? Uncertainty avoidance—how much should people rely on social norms and rules to avoid uncertainty? Institutional collectivism—how much should leaders encourage and reward loyalty to the social unit? In-group collectivism—how much pride and loyalty should people have for their family or organization? Gender egalitarianism—how much should society maximize gender role differences? Assertiveness—how confrontational and dominant should individuals be in social relationships? Future orientation—how much should people delay gratification by planning and saving for the future? Performance orientation—how much should individuals be rewarded for improvement and excellence? Humane orientation—how much should society encourage and reward people for being kind, fair, friendly, and generous?

Global outsourcing, or offshoring, is defined as

using suppliers outside the United States to provide labor, goods, or services.

outsourcing is defined as

using suppliers outside the company to provide goods and services.

Effective - the ends

the goals; To achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals

Related diversification

which an organization under one ownership operates separate businesses that are related to one another

a joint venture/strategic alliance

with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country.

Management

the pursuit of organizational goals efficiently and effectively; the art of getting things done through people