GMS200 FINAL

Globalization

The worldwide interdependence of resourceflows, product markets, and businesscompetition that characterize our economy

Corporate Governance

Board of directors hold top management responsible for organizational performance

Board of directors

makes sure the organizationis run well

Top managers

are responsible for performanceof an organization as a whole or for one of itsmajor parts

Middle managers

oversee large departmentsor divisions

Team leaders

supervise non-managerialworkers

Line managers

are responsible for workactivities that directly affect organization'soutputs

Staff managers

use technical expertise toadvise and support the efforts of line workers

Functional managers

are responsible for a single area of activity

General managers

are responsible for more complex units that include many functional areas

Administrators

work in public and non-profit organizations

QWL Indicators

• Respect
• Fair pay
• Safe working conditions
• Opportunities to learn and use new skills
• Room to grow and progress in a career
• Protection of individual rights

Functions of Management

Planning, Organizing, Leading, Controlling

Characteristics of managerial work

• Long hours
• Intense pace
• Fragmented and varied tasks
• Many communication media
• Filled with interpersonal relationships

Agenda setting

Develops action priorities for accomplishing goals and plans

Networking

Process of building and maintaining positive relationships with people who can help advance agendas

Social Capital

Capacity to attract support and help from others

Katz' essential managerial skills

technical, human, and conceptual

value creation

• Businesses earn a profit
• Nonprofit organizations add wealth to society

Managers must have

technological competency, information competency, analytical competency

Information exchanges with the external environment

• Gather intelligence information
• Provide public information

Information exchanges within the organization

• Facilitate decision- making
• Facilitate problem- solving

Performance threat

something is wrong or has the potential to go wrong - when actual performance is less than desired or is moving in an unfavourable direction.

Performance opportunity

situation offers the chance for a better future if the right steps are taken, for e.g. it turns out better then anticipated

Systematic thinking

approaches problems in a rational, step-by-step, and analytical fashion

Intuitive thinking

approaches problems in a flexible and spontaneous fashion

Multidimensional thinking

applies both intuitive and systematicthinking

Structured problem

familiar,straightforward, and clear with respect to information needs

Unstructured problems

are ones that are full of ambiguitiesand information deficiencies

Certain environment

offers complete information onpossible action alternatives and their consequences

Uncertain environment:

lacks so much information that it isdifficult to assign probabilities to the likely outcomes ofalternatives

Risk environment:

lacks complete information but offersprobabilities of the likely outcomes for possible actionalternatives

The Decision-Making Process

Step 1—Identify and Define the Problem
Step 2—Generate and Evaluate Alternative Courses of Action
Step 3—Decide on a Preferred Course of Action
Step 4—Implement the Decision
Step 5—Evaluate the Results

Availability bias:

bases a decision on recent information orevents

Representativeness bias:

bases a decision on similarity to othersituations

Anchoring and adjustment bias

bases a decision on incremental adjustment from a prior decision point

Framing Error

trying to solve a problem in the context perceived,positive or negative

Confirmation Error

focusing on information that confirms adecision already made

Escalating Commitment

continuing a course of action eventhough it is not working

Global management

Managing business and organizations with interests in morethan one country

Types of market entry strategies

• Global sourcing
• Exporting
• Importing
• Licensing agreement
• Franchising

Joint venture

operates in a foreign country through co-ownership by foreign and local partners

Strategic alliance

a partnership in which foreign anddomestic firms share resources and knowledge for mutualgains

Owned subsidiary

local operation completely owned by aforeign firm

Political risk

Potential loss in value of a foreign investmentdue to instability and political changes in the host country

Political risk analysis

Forecast political disruptions that threaten the value of a foreign investment

Global corporation

MNE (multinational enterprise) or MNC(multinational corporation) with extensive businessoperations in more than one foreign country

Transnational corporation

A global corporation thatoperates worldwide on a borderless basis

Mutual benefits for host country and global corporation orMNC

• Shared growth, income, learning, development, opportunities

Walmart in South Africa

• Historical background important
• Need to adapt
• Expansion needs to take into account organization, hostcountry and entry market

Ethical challenges for Global Businesses

• Corruption
• Sweatshops
• Child Labour
• Conflict minerals

Ethnocentrism

Tendency to consider one's own culture as superior to othersand not caring about others culture

Stages in adjusting to a newculture

• Confusion
• Small victories
• The honeymoon
• Irritation and anger
• Reality

Low context cultures

emphasize communication via spokenor written words
• United States
• Canada
• Germany

High context cultures

rely on nonverbal and situational cuesas well as on spoken or written words
• Thailand
• Malaysia

Monochronic cultures

people tend to do one thing at atime

Polychronic cultures

time is used to accomplish manydifferent things at once

Proxemics

study of how people use space to communicate

Cultural tightness-looseness

Tolerance for any deviation from norms

Values and national cultures (Hofstede):

• Power distance
• Uncertainty avoidance
• Individualism-collectivism
• Masculinity-femininity
• Time orientation

Comparative management

How management practicessystematically differ among countries and/or cultures

Classical Approach to Management - Scientific Management (Frederick Taylor)

1. Create Efficient Processes: Develop rules and standardized tools for each job to ensure efficiency and proper working conditions.
2. Select the Right Workers: Choose workers who have the right skills and abilities for the job.
3. Train and Motivate Workers: Train workers thoroughly and provide incentives to encourage them to follow the efficient processes.
4. Support Workers: Plan their work carefully and help make their job easier.

Classical Approach to Management - Administrative Principles (Henri Fayol)

1. Foresight: Plan for the future.
2. Organization: Gather and use resources.
3. Command: Lead and evaluate workers.
4. Coordination: Ensure teamwork and solve problems.
5. Control: Keep things on track and fix issues

Classical Approach to Management - Bureaucratic organization (Max Weber)

Ideal Organization: Efficient and rational.
Principles: Logic, order, and authority.
Structure: Clear roles, hierarchy, rules, and merit-based careers.
Challenges: Excessive paperwork, slow processes, rigidity, resistance to change, and employee apathy.

Behavioural Management Approaches - Organization as communities (Mary Parker Follett)

Combine Talents: Groups allow individuals to achieve greater outcomes together.
Cooperating Communities: Organizations function as communities where managers and workers collaborate.
Manager's Role: Managers help employees cooperate and align their goals.
Ownership Sense: Making employees owners fosters collective responsibility.

Behavioural Management Approaches - Hawthorne Studies (Mayo and Roethlisberger)

Examined economic incentives and physical conditions on worker output.
Psychological Factors: Influenced results significantly.
Observation Effect: Workers performed better when they knew they were being observed.
Human Relations: Good relationships led to higher productivity.
Social Setting and Human Relations Study:
Manipulated Physical Conditions: Assessed impact on output.
Minimized Psychological Factors: Designed to reduce psychological influences from the previous experiment.

Behavioural Management Approaches - Theory of human needs (Maslow)

Self-Actualization Needs: Achieving one's full potential and personal growth.
Esteem Needs: Self-respect, recognition, and accomplishment.
Social Needs: Social relationships, love, and friendship.
Safety Needs: Protection, security, and stability.
Physiological Needs: Basic needs like food, water, shelter, and sleep.

Behavioural Management Approaches - McGregor's Theory X and Y

Theory X: Workers are lazy, need control. Management is authoritative.
Theory Y: Workers are self-motivated, enjoy work. Management is supportive.

Behavioural Management Approaches - Personality and Organization (Argyris)

Psychological success occurs when people define own goals

Contingency Thinking

No "one best way" to manage

Evidence-Based Management

Making management decisions on "hard facts" about what really works

Quality Management

Managers and workers in progressive organizations are quality conscious, Quality and competitive advantage are linked

Strategic plans

set broad, comprehensive, and longer-term action directions for the entire organization or amajor division

Tactical plans

specify how the organization's resourcesare used to implement strategy

Functional plan

indicate how different componentswithin the organization will help accomplish the overallstrategy

Operational plans

describe short-term activities toimplement strategic plans

Contingency planning

Identifying alternative courses of action to take whenthings go wrong, contain trigger points to indicatewhen to activate plan

Scenario planning

A long-term version of contingency planning

Benchmarking

Use of external and internal comparisons to betterevaluate current performance

Participatory Planning

unlocks the motivational potential of goal setting

Strategic management

the process of formulating andimplementing strategies to accomplish long-term goals andsustain competitive advantage

Sustainable competitive advantage

one that is difficult orcostly for competitors to imitate (

Strategic analysis

process of analyzing the organization, the environment, its competitive positioning, mission, stakeholders, core values and current strategies

Globalization strategy

World is one large market; standardize products andadvertising as much as possible

Multidomestic strategy

Customize products and advertising to local marketsas much as possible

Transnational strategy

Balance efficiencies in global operations andresponsiveness to local markets

Strategic planning failures

failures of substance and failures of process

Strategic controls

Makes sure strategies are well implemented and that poor strategiesare scrapped or modified

Strategic leadership

Inspires people to continually change, refine, and improve strategiesand their implementation

Position power

Based on a manager's official status in the organization'shierarchy of authority

Personal power

Based on the unique personal qualities that a person brings tothe leadership situation

Visionary leadership

A leader who brings to the situation a clear andcompelling sense of the future, as well as an understanding of the actionsneeded to get there successfully

Classic leadership styles

• Autocratic style: Emphasizes task over people
• Human relations style: Emphasizes people over task
• Laissez-faire style: Shows little concern for task
• Democratic style: Committed to both task and people

Fiedler's Contingency Model

Effective leadership depends on matching the leader's style to the specific demands of the situation.

Hersey-Blanchard situational leadership model

leaders should adjust their style (Delegating, Participating, Selling, or Telling) based on their followers' readiness, which includes ability, willingness, and confidence.

House's path-goal leadership theory

Directive Leadership: Give clear instructions and standards (Use for ambiguous tasks).
Supportive Leadership: Make work pleasant, show concern (Use when confidence is low).
Achievement-Oriented Leadership: Set challenging goals, show confidence (Use when tasks lack challenge).
Participative Leadership: Involve in decisions, seek suggestions (Use when incentives are poor).

Leader-Member Exchange Theory (LMX)

In-Groups: High LMX, favorable personality, high competency, good compatibility.
Out-Groups: Low LMX, unfavorable personality, low competency, low compatibility.
Key Point: Leaders do not treat all followers the same.

Vroom-Jago leader-participation theory

helps leaders choose the best decision-making method (authority, consultative, or group) based on problem factors such as decision quality, acceptance, and time. Authority decisions work well when leaders have expertise and little time, while group decisions are best for complex problems requiring team input and commitment. Participative methods improve decision quality and acceptance but may reduce efficiency for urgent problems.

Superleaders

Persons whose vision and strength of personalityhave an extraordinary impact on others

Charismatic leaders

Develop special leader-followerrelationships and inspire others in extraordinary ways