Global insight exam 1

what is management

planning, organizing, controlling, leading

2 major subfields of management

organizational behavior, strategic management

3 levels of management

individual level (personality, motivation, perception)

Group level (leadership, communication, teams)

organization level (org. structure, org culture, org strategy)

international management

economic

legal

political

cultural

MNC

(multinational corporations) Corporations that operate in multiple countries

V

U

C

A

Volatility

Uncertainty

Complexity

Ambiguity

A widely used framework for understanding today’s uncertain and rapidly changing business world

globalization

The social, political, economic, cultural, and technological integration of the world (thinking of the world as a single place)

CPTPP

comprehensive progressive agreement for trans pacific partnership

Outsourcing

obtain (goods or a service) from an outside or foreign supplier,

globalization advantages

Advantages:

• Economic growth (enhanced quality of products)

• Access to jobs, resources, ability for nations to specialize

• Increased global cooperation

• Increased cross-border investment

• Improvement in human rights

globalization disadvantages

Disadvantages:

• Increased competition

• Disproportionate growth

• Environmental concerns

• Job insecurity caused by outsourcing

offshoring

moving business operations from one country to another

Central and Eastern Europe and Russia are trying to make

stable transitions to ______________(vs. ________________)

market economy vs command economy

collectivism

Views the needs and goals of society at large as more important than individual desires

ethics

the study of morality and standards of conduct (how we should behave)

ethical dilema

situations in which none of the available alternatives seems ethically possible (choosing between right and wrong seems impossible)

Major issues for business and firms

ethical behavior

Enron

Volkswagen emissions

Lehman brothers

bp

uber scandal

CSR

corporate social responsibility (actions a firm can take to benefit society beyond legal requirements

sustainability

development that meets humans’ needs without harming future generations

what is culture

acquired knowledge that people use to interpret experience and generate social behavior

6 major chracteristics of the nature of culture

learned

shared

transgenerational

symbolic

patterned

adaptive

Culture is acquired by learning and experience.

• Culture is not specific to single individuals.

• Culture is cumulative; Passed down from one generation to the next.

• Culture is based on the human capacity to symbolize.

• Culture has structure.

• Culture is based on the human capacity to change or adapt

model of acculturation

The psychological and cultural adjustment that occurs within individuals, families,

and cultural groups who come into contact with others from different cultural

backgrounds

A major challenge of doing business internationally is to respond and adapt

effectively to different cultures.

• Importance of ___________

local culture

GLOBE

Global

leadership

organizational

behavior

effectiveness

artifacts

the visible environment of a firm, architecture, technology, and office layout

espoused values

the reason and or rationalazations for why members behave the way they do in an organization

underlying assumption

unconscious beliefs that determine how group members perceive, think, and feel

If you focusing on national culture, you may ignore

• ______________________

• _____________________

subculture

individual differences

convergence vs divergence

convergence- countries are becoming more similar over time in economic, social, and political indicators

Divergence means they are becoming more different

Values in culture

• A major dimension in the study of culture.

• Basic convictions that people have regarding what is right and wrong, good and

bad, important and unimportant.

• Cultural values affect management practices.

• Values change over time

National Culture Comparison Tools:

1. Hofstede’s study

2. The GLOBE study

Hofstede’s Study

• Identified 6 dimensions of culture:

1. Power Distance

2. Uncertainty Avoidance

3. Individualism (vs. Collectivism)

4. Motivation towards Achievement and Success (MAS)

(formerly Masculinity vs. Femininity)

5. Time Orientation (short-term vs. long-term)

6. Indulgence (vs. Restraint)

Globe study

• Extends and integrates the previous analyses of Hofstede and other studies.

• Over 17,000 middle managers from 951 organizations in 62 countries.

• Cultural dimensions measured both as practices and values.

• Practices- how things actually are.

• Values- how people think things should be.

• Identified 9 dimensions of cultural variation.

Cultural distance

a composite index of national level cultural distance

• Overall degree of similarity-dissimilarity

between different countries.

People use ___ to simplify information

obtained from the environment.

mental categories

in group

When people identify themselves with a particular social group,

they place boundaries around their own group

outgroup

people who do not identify with social groups

attribution theory

Consciously (or unconsciously), we use causal attributions when we seek to

explain the causes of behavior.

ultimate attribution bias (in-group)

• desirable actions by in-group members to internal causes, but negative actions by in-group

members to external causes.

ultimate attribution bias (out-group)

• desirable actions by out-group members to external causes, but negative actions by

outgroup members to internal causes.