Managment

Five most common unethical behaviors at work

1. Misusing company time 2. Abusive behavior 3. Employee theft 4. Workplace cheating 5. Violating corporate internet policies

Ethics

Standards of right and wrong that may vary among countries and cultures.

Ethical behavior

Actions that are accepted as right and wrong according to standards.

Ethical dilemma

A situation in which you have to decide to pursue a course of action that may benefit you or your organization but is unethical or even illegal.

Two conflicting value systems an organization may have

The value system stressing financial performance and the value system stressing cohesion and solidarity in employee relationships.

The utilitarian approach

Guided by what will result in the greatest good for the greatest number of people.

The individual approach

Guided by what will result in the individual's best long-term interests.

The moral-rights approach

Guided by respect for the fundamental rights for humans shared by everyone.

The justice approach

Guided by respect for impartial standards of fairness and equity.

The rock star theory hypothesis

Variation in outcomes will primarily be a result of expectations, endowments, engagement, or environments, meaning differences will arise due to initial conditions.

Feedforward control

Focuses on preventing future issues.

Concurrent control

Entails collecting performance information in real-time.

Feedback control

Uses information about past results to identify and fix issues.

Total Quality Management (TQM)

The philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs.

ISO 9000

Ethical procedures a company must adhere to but doesn't include environment.

ISO 14000

Extends ISO 9000 concept by identifying standards for the environment.

The four developmental processes

1. New strategy 2. New capabilities 3. New business development 4. New product development.

Balance Scorecard

Strategy implementation tool that harnesses multiple internal and external performance metrics in order to balance financial and strategic goals.

The four types of balance scorecards

1. Customer satisfaction 2. Internal processes 3. Innovation and improvement activities 4. Financial measures.

The four growth strategies

Market penetration, market development, product development, diversification.

Managing Cooperative Strategies

Cost minimization and opportunity maximization.

Cost minimization

A firm's goal of producing a specific quantity of output at minimum cost.

Opportunity maximization

Intended to maximize value-creating opportunities by sharing of ideas and resources, based on trust, respect, and transparency.

Three kinds of change from least to most threatening

Adaptive, innovative, radically innovative.

Lewin's Change Model for the individual

1. Unfreezing 2. Changing 3. Refreezing 4. Feedback loop.

Lewin's Change Model for development

1. Diagnosis 2. Intervention 3. Evaluation 4. Feedback loop.

To be innovative a product must

Be commercialized and make a profit.

Code of values

Standards a company abides by.

Value Chain

The steps it takes to develop a code of values.

Joint Venture

A way for a company to form a strategic alliance with a foreign company to share risks and rewards.

Strategic alliance

Firms combine some resources for the purpose of creating a competitive advantage.

Franchising

Firm using contract relationship to describe and control sharing of resources with its franchises.

Licensing

Allows foreign companies to pay a fee to make and sell its products/services.

Globalization

Trend of world economy toward becoming a more interdependent system.

Rise of globalization is due to

1. Rise of global village and ecommerce 2. World becoming one market 3. Rise of megafirms and internet minifirms worldwide.

Global village

The 'shrinking' of time and space as communication becomes easier globally.

Ecommerce

The buying and selling of goods and services over the internet.

Ethnocentric

Belief in the superiority of one's nation or ethnic group.

Polycentric

Belief that managers in the host country know the best approaches.

Geocentric

Belief that both countries have valid ideas and the best approaches vary based on the circumstance.

Free trade

International trade free of government interference.

Protectionism

National policies designed to restrict international trade, usually to protect domestic businesses.

World Trade Organization (WTO)

Designed to monitor and enforce trade agreements.

World Bank

An international bank that offers low-interest loans, advice, and information to developing nations.

Trading blocs

A group of neighboring countries that promote trade with each other and erect barriers with other blocs.

Low-context culture

Shared meanings derived primarily from written and spoken words, includes the USA.

High-context culture

People rely heavily on situational cues for meaning when communicating.

Stakeholders

The people whose interests are affected by an organization's activities.

Stakeholders exist in 3 organizational environments

1. Internal (owners, employees, board of directors) 2. External- task 3. External- general.

Social Responsibility

The manager's duty for ethics and corporate social responsibility.

Benchmarking

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

Control Chart

A time-ordered diagram used to determine whether observed variations are abnormal.

Control process steps

1. Establish standards 2. Measure performance 3. Compare performance to standards 4. Take corrective action, if necessary.

Control standard

The desired performance level for a given goal.

Deming management

Proposed ideas for making organizations more responsive, democratic, and less wasteful.

Financial Ratios

Calculations used to track a business's liquidity, efficiency, and profitability over time.

Incremental budgeting

A method of budget making that involves adding new funds onto the amount previously budgeted.

Backward/forward integration

Occurs when a firm owns or controls the inputs it uses.

Market power

The ability of a single economic actor to have a substantial influence on market prices.

Diseconomies of scale

The situation in which a firm's long-run average costs rise as the firm increases output.

Economies of scale

A proportionate saving in costs gained by increased production.

Diversification strategies

Emphasize both new products and new markets to achieve growth.

Organic growth

Growth achieved through the expansion of current business activities.

Unrelated diversification

A growth strategy whereby a new business lacks any common elements with the present business.

Countertrading

A complex form of bartering involving several countries exchanging goods or services.

Cross-cultural awareness

The ability to interact effectively with people from different language and cultural backgrounds.

Dumping

Selling products in a foreign country at lower prices than those charged in the producing country.

Embargo

An official ban on trade or commercial activity with a particular country.

Exchange rate

The measure of how much one currency is worth in relation to another.

Expatriate

A migrant worker who is a professional or skilled worker in his or her profession.

Expropriation

Forced transfer of assets from a company to the government with compensation.

Foreign Corrupt Practices Act

A law that prohibits U.S. corporations from making illegal payments to foreign officials.

Global outsourcing

Using suppliers outside the US to provide labor, goods, or services.

GLOBE project

A massive cross-cultural investigation of 9 cultural dimensions involved in leadership.

Greenfield venture

Establishes a foreign subsidiary by building an entirely new operation.

Hofstede model of four cultural dimensions

Power distance, uncertainty avoidance, individualism, masculinity.