MGMT 351 - Wyld Ch 3, 4, & 5
Stakeholder relationship management is important for two reasons:
1) It can lead to improved predictability of environmental changes, more successful innovation, greater degrees of trust among stakeholders, and greater organizational flexibility to reduce the impact of change. 2) It is the "right" thing to do because organizations are dependent on external stakeholders as sources of inputs and outlets for outputs and the interest of these stakeholders should be considered when making and implementing decisions.
World Bank Group (WBG)
A collection of five agencies, the first established in 1945, with head offices in Washington DC. The WBG promotes development in medium- and low-income countries with project loans, structural-adjustment programs, and various advisory services.
strategic alliance
A partnership between an organization and a foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities
prejudice
A preconceived belief, opinion, or judgment toward a person or a group of people
Trans-Pacific Partnership (TPP)
A trade agreement among 12 Pacific Rim countries. Aims to eliminate more than 18000 tariffs that make cross national trade relationships costly.
Geocentric attitude
A world oriented view that focuses on using best approaches from best people around the globe- Managers with a global view and look at the best approaches and people from around the globe regardless of origin.
North American Free Trade Agreement (NAFTA)
Agreement that created a free-trade area among the United States, Canada, and Mexico. (Second largest GDP)
East African Community (EAC)
An economic and political union between five countries (Tanzania, Uganda, Burundi, Kenya, and Rwanda) - says goods can be sold across borders without tariffs.
Capitalism
An economic system based on private ownership of capital
Racial/Ethnic groups
By 2050, the percentage of white Americans will decrease by 20%. The percentage of Hispanic and Asian Americans is expected to double
Lilly Ledbetter Fair Pay Act of 2009
Changes the statute of limitations on pay discrimination to 180 days from each paycheck
Communism
Community ownership
Geert Hofstede's Cultural Dimensions
Countries have different cultures, just as organizations do. National culture is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. An approach developed by Geert Hofstede serves as a valuable framework for understanding differences between national cultures. 1. Hofstede studied individualism versus collectivism. Individualism is the degree to which people in a country prefer to act as individuals rather than as members of groups. Collectivism is characterized by a social framework in which people prefer to act as members of groups and expect others in groups of which they are a part of (such as a family or an organization) to look after them and to protect them. 2. Another cultural dimension is power distance, which measures the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally. 3. Uncertainty avoidance describes the degree to which people tolerate risk and prefer structure over unstructured situations. 4. Hofstede identified the dimension of achievement versus nurturing. Achievement is the degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevail. Nurturing emphasizes sensitivity in relationships and concern for the welfare of others. 5. Long-term and short-term orientation. People in countries having long-term orientation cultures look to the future and value thrift and persistence. Short-term orientation values the past and present and emphasizes a respect for tradition and fulfilling social obligations. 6.Countries have different rankings on Hofstede's cultural dimensions, and managers should be aware of the cultural differences present in countries in which they do business
Demographic Environment
Demographic conditions, including physical characteristics of a population (e.g., gender, age, level of education, geographic location, income, composition of family) can change, and managers must adapt to these changes. Common terms used to describe demographic groups include Baby Boomers, Gen Y, and Post-Millennials Baby Boomers. Born between 1946 and 1964, the sheer numbers of people in that cohort means they've significantly affected every aspect of the external environment Gen Y (or the "Millennials"). Born between 1978 and 1994, this age group is also large in number and making its imprint on external environmental conditions from technology to clothing styles to work attitudes. .Post-Millennials. The youngest identified age group has also been called the iGeneration, primarily because they've grown up with technology that customizes everything to the individual.
incivility
Disrespectful treatment, including behaving in an aggressive manner, interrupting the person, or ignoring his or her opinions
European Union
Economic and political partnership of 27 Democratic European countries (market economy)
Family and Medical Leave Act of 1993
Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons
South Asian Association of Regional Cooperation (SAARC)
Goal is to allow free flow of goods and services
Aging population
In 2015, the median age for the U.S. population was 37.8 years. By 2050, one in every five persons will be aged 65 or over. An aging workforce will be an important defining characteristic of the U.S. population.
Hofstede's Cultural Dimensions
Individualism-Collectivism Power Distance Uncertainty Avoidance Masculinity-Femininity Long-Term--Short-Term Orientation
licensing or franchising
One organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee based on sales
International Money Fund (IMF)
Organization of 188 counties that promotes international monetary cooperation and provides member countries with tech assistance, temporary loans, policy advice
Intimidation discrimination
Overt threats or bullying directed at members of specific groups of employees
Organization for Economic Cooperation and Development (OECD)
Paris based international economic organization whose mission is to help its 34 member countries achieve sustainable economic growth and employment and raise the standard of living
Benefits of Workforce Diversity
People Management •Better use of employee talent •Increased problem-solving efforts •Ability to attract and retain employees of diverse backgrounds Organizational performance: •reduced costs associated with high turnover, absenteeism, and lawsuits. •Enhanced problem-solving ability •Improved system flexibility Strategic: •Increased understanding of the marketplace, which improves ability to better market to diverse consumers •Potential to improve sales growth and increase market share •Potential source of competitive advantage because of improved innovation efforts •Vied as moral and ethical; the "right" thing to do
Impact of population trends
Population trends are likely to have a major impact on U.S. workplaces. These trends include the increasing number of foreign-born U.S. workers and an aging workforce. According to a recent analysis released by the U.S. Census Bureau, nearly one in seven American workers is foreign-born. While some of these jobs will be low paying, others will be white-collar jobs. Other developing trends concerning immigrant workers are that they are younger and more likely to be women and people of color. With such a diverse population, organizations can't expect employees to assimilate into the organization by adopting similar attitudes and values. Instead, they should value the differences that people bring to the workplace.
Nine GLOBE cultural dimensions
Power distance Uncertainty avoidance Assertiveness Humane orientation Future orientation Institutional collectivism Gender diff In-group collectivism Performance orientation
Civil Rights Act of 1964
Prohibits discrimination (on the basis of race, religion, gender, or national origin) in public accommodations, facilities, and schools. Prohibits discrimination in federally funded projects.
Americans with Disabilities Act of 1990
Prohibits discrimination against disabled individuals in employment decisions and requires that employers make accommodations for disabled workers to enable them to perform their jobs.
Genetic Information Nondiscrimination Act (GINA)
Prohibits discrimination against individuals on the basis of their genetic information in both employment and health insurance.
Americans with Disabilities Act of 1990
Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals
Age Discrimination in Employment Act of 1967
Prohibits discrimination against workers over the age of 40 and restricts mandatory retirement
Title VII of the Civil Rights Act
Prohibits discrimination on the basis of religion as well as race/ethnicity/country of origin/gender
Civil rights act of 1991
Reaffirms Title VII of the 1964 Civil Rights Act; reinstates burden of proof by employer, and allows for punitive and compensatory damages
Parochialism
Seeing things solely through one's own eyes and from one's own perspective; believing that one's own way is the best. leading to an inability to recognize differences between people. Ex - Monolingualism and ethnocentrism
Where does an organizational culture come from?
The original source of an organization's culture is usually a reflection of the vision or mission of the organization's founders. The culture is a result of the interaction between the founders' biases and assumptions and what the first employees subsequently learned from their own experiences. An organization's culture continues when: A culture is in place, practices help to maintain it. Hiring practices reflect the culture in terms of "fit." Actions of top executives help to maintain the culture. New employees learn the organization's way of doing things through socialization—the process that helps employees adapt to the organization's culture.
Global Leadership and Organizational Behavior Effectiveness (GLOBE)
The research program that studies cross-cultural leadership behaviors
Characteristics of the U.S. Population.
The total population of the United States was 322 million in 2015. It is projected to increase to 438 million by the year 2050. This increase will be due to immigrants and their U.S.-born descendants. Nearly one in five Americans will be an immigrant in 2050, compared with one in eight in 20115.
Total World Population stats
The total world population in 2016 is estimated at over 7.3 billion and is forecasted to hit 9 billion by 2050, at which point the United Nations predicts the total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. An Aging Population- The world's population is now aging at an unprecedented rate. People aged 65 and older will soon outnumber children under age 5 for the first time in history. Also, the world's population aged 80 and over is projected to increase 233 percent by 2040.
Polycentric attitude
The view that employees in the host country (the foreign country in which the organization is doing business) know the best work practices
African Union (AU)
To achieve greater unity among African states
Discrimination
When someone ACTS out their prejudicial attitudes toward people who are the targets of their prejudice. Example: an employee or job applicant is treated unfavorably because of his or her race, skin color, national origin, gender, disability, religion, or age.
organizational culture
Whether a company's culture is strong, weak, or somewhere in between depends on organizational factors such as size, age, employee turnover rate, and intensity of original culture. A culture has increasing impact on what managers do as the culture becomes stronger. Most organizations have moderate-to-strong cultures. In these organizations, high agreement exists about what is important and what defines "good" employee behavior, for example. Studies of organizational culture have yielded various results. One study found that employees in firms with strong cultures were more committed to their firm than were employees in firms with weak cultures. Organizations with strong cultures also used their recruitment efforts and socialization practices to build employee commitment. An increasing body of research suggests that strong cultures are associated with high organizational performance.
Mentoring
a process whereby an experienced organizational member (a mentor) provides advice and guidance to a less-experienced member (a protégé). Mentors usually provide two unique forms of mentoring functions—career development and social support. A good mentoring program should help diverse employees with high potential move up the organization's career ladder.
joint venture
a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose
Bias
a tendency or preference toward a particular perspective or ideology example: giving men raises because they are males
Association of Southeast Asian Nations (ASEAN)
a trade alliance that promotes trade and economic integration among member nations in Southeast Asia (biggest problem is members won't sacrifice for the common good)
World Trade Organization (WTO)
a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT), only global organization that deals with tariffs.
Importing
acquiring products made abroad and selling them domestically (minimal investment and risk)
Discriminatory policies or practices
actions taken by representatives of the organization that deny equal opportunity to perform or unequal rewards for performance
transnational organization
an MNC in which artificial geographical barriers are eliminated (geocentric view - best work policies from anywhere across the globe)
Global company
an MNC that centralizes management and other decisions in the home country (where headquarters is)
Multidomestic Corporation
an MNC that decentralizes management and other decisions to the local country (polycentric attitude - employees in a foreign host company know best)
planned economy
an economic system in which economic decisions are planned by a central government
free market economy
an economic system in which resources are primarily owned and controlled by the private sector
Organizational Culture
an organization's personality; Dimensions of Organizational Culture: a. Innovation and risk taking (the degree to which employees are encouraged to be innovative and take risks) b. Attention to detail (the degree to which employees are expected to exhibit precision, analysis, and attention to detail) c. Outcome orientation (the degree to which managers focus on results or outcomes rather than on the techniques and processes used to achieve those outcomes) d. People orientation (the degree to which management decisions take into consideration the effect on people within the organization) e. Team orientation (the degree to which work activities are organized around teams rather than individuals) f. Aggressiveness (the degree to which employees are aggressive and competitive rather than cooperative) g. Stability (the degree to which organizational activities emphasize maintaining the status quo in contrast to growth) *Strong culture- the key values are intensely held and widely shared
Stakeholders
any constituencies in the organization's external environment that are affected by the organization's decisions and actions. Example: Starbuck's decisions affect stakeholders; coffee bean growers, paper goods companies, competitors, employees.
multinational corporation (MNC)
any type of international company that maintains operations in multiple countries
global mindset
attributes that allow a leader to be effective in cross-cultural environments
External Environment
consists of those factors and forces outside the organization that affect the organization's performance. The external environment includes these broad external conditions that may affect the organization: economic, political/legal, sociocultural, demographic, technological, and global conditions.
workplace diversity
differences among coworkers including culture, race, age, gender, economic status, race, ethnicity, religion sexual orientation/gender identity, & disability
deep-level diversity
differences in values, personality, and work preferences that become progressively more important for determining similarity as people get to know one another better personality characteristics, values, beliefs, attitudes, work preferences, abilities
foreign subsidiary
directly investing in a foreign country by setting up a separate and independent production facility or office. Greatest risk and commitment of resources
surface-level diversity
easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel *differences you can see easily observed, demographic variables (gender, race, age, disablities)
exclusion
exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally
employee resource groups
groups made up of employees connected by some common dimension of diversity. These groups are usually formed by the employees themselves, not the organizations; however, it's important for organizations to recognize and support these groups. Employee resource groups are useful in that diverse groups have the opportunity to see that their existence is acknowledged and that they have the support of people within and outside the group. Examples: Military vets group LGBT groups- Generational group - grouped by age
diversity awareness training
identify and reduce hidden biases and increase awareness of the meaning and importance of diversity Diversity awareness training helps to make employees aware of the assumptions and biases they may have.
mockery and insults
jokes or negative stereotypes; sometimes the result of jokes taken too far
Stereotyping
judging a person based on a perception of a group to which that person belongs Examples: Married people are more reliable than single Red haired people have a bad temper Black people are lazy.
Exporting
making products domestically and selling them abroad (minimal investment and risk)
Omnipotent view
managers are directly responsible for an organization's success or failure - consistent with the stereotypical picture of the "take-charge" executive who can overcome any obstacle in carrying out the organization's objectives. -When organizations perform poorly, someone must be held accountable. According to the omnipotent view, that "someone" is the manager.
symbolic view of management
much of an organization's success or failure is due to external forces outside managers' control. -The influence that managers do have is seen mainly as a symbolic outcome. -Organizational results are influenced by factors outside of the control of managers, including the economy, customers, governmental policies, competitors' actions, the state of the particular industry, the control of proprietary technology, and decisions made by previous managers in the organization. -The manager's role is to create meaning out of randomness, confusion, and ambiguity. -According to the symbolic view, the actual part that management plays in the success or failure of an organization is minimal.
Predjudice
preconceived belief, opinion, or judgement toward a person or group of people Examples: Racism Sexism Homophobia Religious prejudice Ageism
Pregnancy Discrimination Act of 1978
prohibits discrimination against women in employment decisions on the basis of pregnancy, childbirth, and related medical decisions
Rehabilitation Act of 1973
prohibits discrimination on the basis of disability in programs conducted by Federal agencies, in programs receiving Federal financial assistance, in Federal employment, and in the employment practices of Federal contractors.
Equal Pay Act of 1963
prohibits pay differences for equal work based on gender
global sourcing
purchasing materials or labor from around the world wherever it is cheapest. Goal - take advtg of lower costs to be more competitive
Ethnicity
social traits (such as cultural background or allegiance) that are shared by a human population
cultural intelligence
someone's ability to adapt to different cultures and to understand people's values, beliefs, attitudes, and behaviors. Culturally intelligent people can then use this information to communicate, collaborate, and negotiate with people from diverse backgrounds. cultural awareness and sensitivity skills, encompasses knowledge of culture as a concept, mindfulness, and behavioral skills.
diversity skills training
specialized training to educate employees about the importance of diversity and to teach them skills for working in a diverse workplace Two types of diversity training: Diversity awareness training helps to make employees aware of the assumptions and biases they may have. Diversity skills training works with employees to learn specific skills on how to communicate and work effectively in a diverse work environment.
race
the biological heritage (including skin color and associated traits) that people use to identify themselves (white, Black, Indian)
Euro
the common currency used by member nations of the European Union
Environmental Uncertainty
the degree of change in an organization's environment and the degree of complexity in that environment Because uncertainty is a threat to organizational effectiveness, managers try to minimize environmental uncertainty. Degree of change is characterized as being dynamic or stable. In a dynamic environment, components of the environment change frequently. If change is minimal, the environment is called a stable environment.
glass ceiling
the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations.
environmental complexity
the number of components in an organization's environment and the extent of an organization's knowledge about those components. If the number of components and the need for sophisticated knowledge is minimal, the environment is classified as simple. If a number of dissimilar components and a high need for sophisticated knowledge exist, the environment is complex.
Ethnocentric attitude
the parochialistic belief that the best work approaches and practices are those of the home country (where headquarters are located)
national culture
the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important
workforce diversity
the ways in which people in an organization are different from and similar to one another
Central American Free Trade Agreement (CAFTA)
trade agreement designed to reduce tariff barriers between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States
sexual harassment
unwanted sexual advances and other verbal or physical conduct of a sexual nature that create a hostile or offensive work environment
Diversity skills training
works with employees to learn specific skills on how to communicate and work effectively in a diverse work environment.
