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
