mgmt 309 exam 1
World Trade Organization
An organization which currently includes 164 members nations in 24 Observer countries that requires members to open their markets to international trade in follow WTO rules
Evaluating social responsibility
Any organizations require employees to read guidelines or code of conduct and sign an agreement of compliance Evaluate response time for instances of questionable legal or ethical conduct Corporate social audit: a formal and thorough analysis f the effectiveness of a firm's social performance
Quantitative management perspective
Applied quantitative techniques to management Focuses on decision making, economic effectiveness, mathematical models, and the use of computers Concerned with being more effective with any means necessary Techniques for improving decision making, resource allocation, and operations Developed sophisticated techniques to assist in decision making. Increased awareness of complex processes
Political-legal environment
Government stability Incentives for international trade Controls on international trade Economic communities
political/legal environment
Government stability Incentives for international trade Controls on international trade Economic communities
Maquiladoras
Light assembly plants built in northern mexico close to the border that are given special tax breaks by the mexican government
Levels of international business activity
Lowest - Domestic business international business Multinational business Global business
Managing at different levels Top
Make up the small group of executives who manage the overall organization. CEO, President, Vice president Represent the organization to external environment by meeting with government officials and executive of other organizations
Two branches of Quantitative management perspective
Management science Focuses specifically on development of mathematical models which is a simplified representation of a system, process, or relationship Operations management Concerned with helping the organization more efficient produce its products and services
Board of directors:
governing body elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders interest
Regulation:
governments attempt to influence business by establishing laws and rules that dictate what businesses can and cannot do
Trends of globalization
importing exporting licensing strategic alliances direct investment
Procedural Organizational justice: :
individuals perception of fairness used to determine outcomes
Sarbanes oxley act:
law passed in 2002 that required CEOs and CFOs to personally vouch for the truthfulness and fairness of their firms financial disclosure
Degree of social responsibility
lowest obstructionist stance Defensive stance Accommodative stance proactive stance highest
Effective:
making the right decisions and successfully implementing them
Ethics:
one's personal beliefs about whether a behavior, actin, or decision in right or wrong
Distributive Organizational justice: :
people's perception of fairness with distribution of rewards
Management challenges
planning and decision making, organizing, leading, and controlling
The relationship between business and government is part of the ____ dimension.
political-legal
history
provides a sense of heritage and can help managers avoid the mistakes other have made in the past
Merger
question about rental car companies
Organizational justice:
the perceptions of people in an organization regarding fairness
General environment
the set of broad dimensions and forces in an organizations surroundings that create its overall context
Social responsibility:
the set of obligations an organization has to protect and enhance the societal context in which it functions
Accommodative stance
A social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these in selected cases
proactive stance
A social responsibility stance in which and organization views itself as a citizen in a society and proactively seeks opportunities to contribute
Behavioral management perspective
Emphasizes individual and behaviors and group processes Insight for motivating performance and understanding individual behavior groups and teams and leadership
The government influences business through
Environmental protection legislation Consumer protection legislation Securities legislation Tax codes
Marketing manager
Getting consumers and clients to buy or use the organization's products or services Areas include new product development, promotion, and distribution
Managing for non-profit seeking organizations
Goals are education, social services, public protection, and recreation Government organization; local state and federal Health care facilities Non Traditional setting; community, social. Spiritual groups Ex: girl scouts
Political-legal dimension
Government regulation of business and the relationship between business and government
Exporting
Making a product in the firms domestic marketplace and selling it to another country
Business influences government through
Personal contacts and networks Lobbying Political action committees Favors and other influence tactics
Regulators:
a unit that has potential to control, legislate, or otherwise influence the organizations policies and practices
Efficient:
using resources wisely and in a cost effective manner
Owners:
whoever can claim property rights to an organization
Entropy:
a normal process leading to system decline
Steps in scientific management: frederick taylor
1. Develop a science for each element of the job to replace the rule of thumb 2. Scientifically select employees and then train them to do the job as described in step 1 3. Supervise employees to make sure they follow the prescribed methods for performing their jobs 4. Continue to plan the work but use workers to get the job done
Steps to moral judgement
1. Gather relevant factual information 2. Determine the most appropriate moral and values 3. Make and ethical judgment based on the rightness or wrongness of proposed activity or policy
Defensive stance
A social responsibility stance in which an organization does everything that is required of it legally but nothing more
Steps in system perspective
1. Inputs from the environment; material, human, informational, and financial 2. Transformation process; technology, operating systems, administrative systems , and control systems 3. Outputs into the environment; products and services, profits and losses, employee behavior, and information outputs 4. Feedback 5. Back to 1.
Domestic business
A business that acquires all of its resources and sells all of its products and services within a single country Mom and pop business/ small business
Multinational business
A business that has a worldwide marketplace from which it boys raw materials, borrows money, where it manufactures its products, and to which it subsequently sells its products
Global business
A business that transcends national boundaries and is not committed to a single home country
Strategic alliances
A cooperative arrangement between two or more firms for mutual benefit Advantages Quick market entry Access to material and technology Disadvantage Shared ownership Joint venture Special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis
Pacific asia
A market system located in Southeast Asia
United states-mexico-canada agreement
A new treaty signed in 2018 that will eventually replace NAFTA
Glass ceiling
A perceived barrier in some organizations that keeps women from advancing to the top management positions
Theory X
A pessimistic view of workers consistent with the view of scientific management Assume that people don't like to work so managers have to control and then employees to get goals achieved
Economic communities
A set of countries that agree to markedly reduce or eliminate trade barriers among member nations Formalized market system EU NAFTA Latin american integration association Caribbean common market
Managerial skills Communication skills
Abilities to both effectively convey ideas and information to others and to effectively receive ideas and information from others
Managerial skills Interpersonal skills
Ability to communicate with understand and motivate both individuals and groups
Ethical ambiguities
Advertising and promotions Financial disclosure Ordering and purchasing Shipping and solicitations Bargaining and negotiation Business relationships
Nafta (north american free trade agreement
An agreement made by the United States, Canada, and Mexico to promote trade with one another
obstructionist stance
An approach to social responsibility in which firms do as little as possible to solve social or environmental problems
Licensing
An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for royalty based on sales Advantage Increased and extended profitability Disadvantage Inflexible and competition
Market economy
An economy based on the private ownership of business that allows market factors such as supply and demand to determine business strategy
Uncertainty orientation
An emotional response to uncertainty in change Uncertainty avoidance: Prefer stuture and consistent routine Uncertainty acceptance: Positive response to change and new opportunities
Values, symbols, beliefs, and language
Barbies dont sell in muslim countries bc immodesty Value time differently (monochronic is very prompt and polychronic about relationships) Language can pose barrier Spoken words and non verbal aspects of language can pose problems for managers
Controlling
Basic issues revolve around operations management, productivity, quality, technology and information systems A Lot of time issues and discrepancies bc polychromatic culture in other places
limitations to Behavioral management perspective
Behavior is difficult to predict Managers reluctant to adopt new concepts Research ineffectively communicated to managers
Ethic violation
Bernie madoff pawnsy scheme Even employees did not know it was all fake
Importing (first type of international business)
Bringing a good, service, or capital into the home country from abroad Advantage Small cash outlay Little risk No adaptation Disadvantage Tariffs and taxes High transportation Government restrictions
Arguments for social responsibility
Business creates problems and should therefore help solve them Corporations are citizens in our society Business often has the resources necessary to solve problems Business is a partner in our society, along with the government and the general population
international business
Business that is based primarily in a single country but acquires some meaningful share of its resources or revenues from other countries
Organizational leadership and culture
Can define the social responsibility stance adopted by an organization
Market system
Clusters of countries that engage in high levels of trade with one another
Scientific management
Concerned with improving the performance of individual workers Frank and lillian gibreth, henry gnat, harrington emerson Soldering Employees deliberately working at a slow pace Made people implement a piecework pay system
Internal environment
Conditions and forces within an organization Owners, board of directors, employees, physical environment, culture
Organizational behavior
Contemporary field focusing on behavioral perspective on management Current behavior perspective on management; knows that behavior is complex Important factors Satisfaction, stress, motivation, leadership, group dynamics, organizational policies, interpersonal conflict, structure
list of stakeholders
Customers Local community Suppliers Employees Interest groups Trade associations Owners/ investors Courts Colleges Foregin government State and federal governments Local government Creditos
Organizing
Degree of control allowed local managers influences difficulties of organizing
Environmental challenges of international management
Economic environment legal environment cultural environment
External environment
Everything outside an organization's boundaries that it might affect it Economic dimension, sociocultural dimension, political-legal dimension, international dimension, technological dimension Consist of general and task environment
Diversity
Exist in a group of organization when its members differ from one another along one or more important dimensions, such as age, gender, or ethnicity Changing demographics in the labor force Increased awareness that diversity improves the quality of the workforce
Mintzberg's 10 management roles
Figure head Leader Liaison monitor Disseminator Spokesperson Entrepreneur Disturbance handler Resource allocation negotiator
Manager allocates these resources
Human resources Managerial talent and labor Financial resources Capital used by an organization to finance both ongoing and long-term operations. Physical resources Raw materials, office and production facilities, and equipment Information resources Usable data needed to make effective decisions.
Incentives for international trade
Includes tax cuts, low interest rate, other subsidies
How organizations adapt to their environments
Information management Strategic response Mergers, acquisitions, alliances Organization design and flexibility Direct influence
Managing at different levels middle
Largest group of managers Plant manager, operations manager, division head responsible for implementing politics and plans developed by top managers and for supervising and coordinating the activities of lower levels
Managerial skills Decision making skills
Managers ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve a problem and capitalise on opportunities
Managerial skills Time management skills
Managers ability to prioritize work and to work efficient and to delegate appropriately
Managerial skills Conceptual skills
Managers ability to think in the abstract
Managerial skills Diagnostic skills
Managers ability to visualize the most appropriate response to a situation
Leading
Managers have to understand how cultural factors affect individuals, motivation, the role of leadership, communication, interpersonal and group processes
Planning and decision making
Managers need a broad understanding of the environment and competition in order to plan
Which of the following statements can be used to explain the growth of international business?
Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.
Charles babbage
Mathematical foundation of efficiency of production Believed in division of labor Early management pioneers
Limitation of classical management perspective
More appropriate for later developments in management theory Often prescribed universal proceeds that are not appropriate in some settings Viewed employees as tool instead of people
Government stability
Nationalized: taken over by the government Includes the ability to stay in power or as the permanence of policies towards business
Administrative managers
Not associated with any particular speciality Tend to be generalist; familiar with all aspects of management
Robert owen
One of the first managers to recognize the importance of human resources He raised working age for children and reduced hours, and supplied meals Early management pioneers
Manager allocates these functions
Planning and decision making Setting the organization's goals and deciding how best to achieve them Planning: setting and organization goal standing how best to achieve them Decision making: involves selecting a course of action from a set of alternatives Organizing Determining how best to group activities and resources Leading Motivating members of the organization to work in the best interest of the organization Controlling Monitoring and correcting ongoing activities to facilitate goal attainment
Theory y
Positive view of workers that represents the assumption that human relations advocates make Assume that work is a natural part of people's lives and people are internally motivated to achieve goals when they are committed
Art of management
Problems approached with intuition, experience, instinct, and personal insights. Relying on communication, interpersonal, and time skills. Free form
Science of management
Problems can be approached rationally, logically, objectively, and systematically. Managers can use data, facts, and objective information. Data driven
Social orientation
Relative importance of interest of the individual versus the interest of the group Collectivism: the interest of the group take precedence Individualism: the interests of the individual take precedence
Financial manager
Responsible for accounting, cash management, and investments
Code of ethics:
a formal, written statement of the values and ethical standards that guide a forms actions
Sources of management skills
Sound educational based: continued lifelong learning and educational experience Initial job experience: continues experiences through variety of job assignments Together these create successful acquisition and utilization of basic management skills
Task environment
Specific organizations or groups that influence an organization Customers, suppliers, strategic partners, regulators, competitors
Managing at different levels first line
Supervise and coordinate the activities of operating employees Supervisor, coordinator, ad office manager
Controls on international trade
Tariffs : A tax collected on Goods Shipped across National boundaries Quotas : a limit on the number of goods that can be traded Export restraint agreements: accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another Buy national legislation gives preference to domestic producers
Power orientation
The appropriateness of power within organization Power respect: authority is inherent in one's position within a hierarchy Power tolerance: individuals assess authority in view of its perceived rightness or their own personal interest
Multiculturalism
The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures
Sociocultural dimension
The customs, morals, values, and demographic characteristics of the society in which the organization functions
Whistle blowing
The disclosure by an employee of illegal or unethical conduct on the part of others within the organization
Managerial skills Technical skills
The skills necessary to accomplish or understand the specific kind of work being done in an organization
Lobbying
The use of persons or groups to formally represent an organizations or group of organizations before political bodies to influence the government
Ethics in organizational context
Unethical behavior most occurs in a conducive organizational context "Party firm" Peers, top managers and culture contribute Managers find himself under pressure and considered unethical actions
Individual ethics
Values and morals Peers Events Family
Cultural environment
Values, symbols, beliefs, and language Individual behaviors across cultures
Goal orientation
What motivates people to achieve different goals Aggressive goal behavior: value material possessions, money, and assertiveness Passive goal behavior: value social relationships, quality of life, welfare of others
Direct investment
When a firm headquarters in one country build or purchases operating facilities or subsidiaries in another country Advantage Enhanced control Existing infrastructure Disadvantage Complexity Greater economic risk Greater uncertainty
Informal organizational actions- managing social responsibility
Whistle blowing Organizational leadership and culture
New workplace
Work place is always changing due to recessions or pandemics or new technology Diversity Change in gender and ethnic groups and disabilities and age Managers must create an attractive environment and have incentives to motivate diverse workplaces Must be prepared to cope with change
theory
a conceptual framework for organizing knowledge and providing a blueprint for action Not constant or true all of the time Grounded in reality
What did chester barnard do
an American business executive, public administrator, and the author of pioneering work in management theory and organizational studies. His landmark 1938 book, The Functions of the Executive, sets out a theory of organization and of the functions of executives in organizations. The book has been widely assigned in university courses in management theory and organizational sociology.[2] Barnard viewed organizations as systems of cooperation of human activity, and noted that they are typically short-lived. According to Barnard, organizations are generally not long-lived because they do not meet the two criteria necessary for survival: effectiveness and efficiency.
Regulatory agencies:
an agency created by the government to regulate business activities
Competitor:
an organization that competes with other organizations for resources
Ethical behavior:
behavior that conforms to generally accepted social norms
unethical behavior:
behavior that does not conforms to generally accepted social norms
Quantitative management perspective limitations
cannot fully explain or predict the behavior of people and may come at the expense of other important skills
Classical management perspective:
consist of two distinct branches; scientific management and administrative management Method for enhancing efficiency and facilitating planning, organizing, and controlling Laid the foundation for later development in management theory
The advantage of direct investing is
enhanced control.
Opponents to the maquiladoras concept are most critical of its
exploitation of human resources.
Emerging ethical issues in technology
facebook hacking in 2016 election n
Interpersonal Organizational justice: :
fairness people see in how they are treated by others
Hugo Munsterberg
father of industrial psychology
Human resources manager
responsible for hiring and developing employees Involved in human resource planning, and recruiting, and selecting employees, training and development, and designing compensation or benefit systems, formulating appraisal systems, and discharging low performing employees
Managerial roles Decisional roles:
role of entrepreneur, disturbance handler, resource allocator, and negotiator which relate primarily to making decisions Entrepreneur: the voluntary initiator of change disturbance handler: handling problems such as trikes, copyright issues, or problems in public relations or with corporate image resource allocator: manager decides how resources are distributed and within who he or she will work most closely Negotiates with other groups or organizations as representative for company
Management:
set of activities directed toward an organization's resources with the aim of achieving organizational goals in an efficient and effective manner.
Culture:
set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization understand what it stands for, how it does things and what it considers important
Managing for profit seeking organizations
survival based on efficiency and effectiveness. Globalization and international management is very important. Large businesses Industrial firms, commercial banks, insurance firms, retailers, communication firms, service organizations Small businesses and start up International management
When one firm buys out another because it is thought that the two firms will complement each other in such a way that the output of the combined firms will be greater than the sum of the current individual outputs of the two companies, the managers are counting on
synergy.
Closed system:
system that does not interact with its environment
Administrative management
Focuses on managing the total organization Henri fayol First to identify four management functions Plan organize lead and control lyndall urwick Integrated scientific and administrative max weber Studied efficient organizational structure Bureaucracy chester barnard Wrote about acceptance of authority
Hawthorne studies
Found increased productivity in both control and experiential group By giving employees extra attention they worked harder regardless of changing factors Rate busters: over producers Chislers: under producers
Suppliers:
organization that provides resources for other organizations Strategic partners: organizations that work together with one or more than other organizations ina joint venture or similar arrangement
Ethical decision making
1. Data gather: Gather the facts concerning that act of policy 2. Analysis: Is the act or policy acceptable according to the four ethical norms a. Utility: does it optimize the best for all constituents b. Rights: does it respect the rights and duties of the individuals involved c. Justice: is it consistent with what is fair d. Caring: is it consistent with my responsibility to care 3. Judgement: is it ethical or unethical
GATT
A trade agreement intended to promote International Trade by reducing trade barriers and making it easier for all nations to compete an international market
Political action committees
An organization created to solicit and distribute money to political candidates
Basis goals
Are we going to promote trade flows by encouraging Nations to adopt non-discriminatory and predictable trade policy To reduce remaining trade barriers through multilateral negotiations To establish impartial procedures for resolving trade disputes among its members
Human relations movement
Argued that workers respond primarily to the social context of the workplace Basic assumption that if a managers concern for workers will lead to increased satisfaction and improved performance Abraham maslow (hierarchy of needs) and douglas mcgregor
Philanthropic giving
Awarding funds or gifts to charities or other worthy causes
Economic environment
Economic system Natural resources Infrastructure
All of the following were primary contributors to the behavioral management perspective EXCEPT
Henri Fayol
Formal organizational actions- managing social responsibility
Legal compliance Ethical compliance Philanthropic giving
Which of the following is NOT a topics in the field of organizational behavior?
Operations
Economic dimension
Overall health and vitality of the economic system in which the organization operates
Managerial ethics
Standard of behavior that guide individual managers in their work How an organization treat employees Hiring wages work conditions privacy and respect How employees treat the organization Conflict of interest, secrecy, confidentiality, honesty
Contingency perspective
Suggest that appropriate managerial behavior in a given situation depends on or is contingent on a wide variety of elements Not a universal perspective : an attempt to identify the "one best way" to do something Recognition of the situational nature of management and response to particular characteristics of situations
System perspective
System: Interrelated set of elements functioning as a whole Recognition of internal interdependencies and of environmental influences
Integrative framework
Systems perspective and contingency perspective Classical. Behavior. Quantitative management Effective and efficient management
Ethical compliance
The extent to which an organization and its members follow basic ethical standards of behavior
Legal compliance
The extent to which an organization complies with local, state, federal, and international laws
International dimension
The extent to which an organization is involved or is affected by business in other countries
Time orientation
The extent to which members of a culture adopt a long-term or short-term outlook on work and life Short term outlook: prefer more immediate rewards long term outlook: willing to work hard for many years
European Union
The first and most important international market system
Technological dimension
The methods available for converting resources into products or services
Many builders are using fiber-cement siding to build houses. This siding is best painted with a soy-based, environmentally friendly paint. Most paint is not biodegradable because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with the soy-based paint would be an example of which general area of social responsibility?
The natural environment
Arguments against social responsibility
The purpose of business in U.S. society is to generate profit for owners Involvement in social programs gioves business too much power There is potential for conflict of interest Business lacks the expertise to manage social programs
Organization:
a group of people working together in a structured fashion to achieve a set of goals.
Interest groups:
a group organized by its members to attempt to influence business
Cultural dimension
japan apples are really expensive
Informational Organizational justice: :
perceived fairness of information used for decisions
Organization stakeholders:
person or organization who is directly affected by the practices of an organization and has stake in its performance
Mary parker
pioneer of theory
Managerial roles Interpersonal roles:
roles of figurehead, leader, and liaison which involve dealing with other people. Figurehead; taking visitors to dinner, attending ribbon cutting Leader: hiring, training and motivating employees Liaison: coordinating among people group and organizations
Managerial roles Informational roles:
roles of monitor, disseminator, and spokesperson which involve the process of information Monitor: actively seeks information of value Disseminator of information, transmitting relevant information back to others in the workplace Spokesperson formally relays information to outside people the unit or outside the organization
Open system:
system that interact with its environment
Subsystem:
system within another system
Facebook has enabled people to stay in contact with friends. It also hurts relationships when too much information is shared. This reflects the ____ element of the general environment.
technological
synergy :
two or more subsystems working together to produce more than the total of what they might produce working alone
Customers:
whoever pays money to acquire an organization's products or services
