Principles of Management 3-6

Organisation Culture

A set of values, beliefs, behaviours, customs and attitudes that helps the members of the organisation understand what it stands for, how it does things, and what it considers important.

Espoused Valyes

What the organisation and its members say they value.

Enacted Values

Reflected in how the organisation’s members actually behave.

Schein’s Level 1

Artifacts, observable structures, processes, behaviours.

Schein’s Level 2

Espoused values, ideals, goals, values, aspirations, rationalisations.

Schein’s Level 3

Basic assumptions, unconcious, taken for granted beliefs, perceptions, thoughts, feelings.

Managing Organisation Culture

The ability to understand current culture and then decide whether it should be maintained or challenged and how.

Adaptive Cultures

Managers play close attention to all their constituents, managers initiate change when needed, managers care deeply about constituents, managers strongly value people and processes that can create useful change.

Adaptability Cuture

Embrace change, innovation, speed, flexibility, fast-changing and uncertain markets.

Achievement Culture

Deliver Results, targets, competition, winning, competitive and results driven markets.

Involvement Culture

Empower people, participation, collaboration, belonging, people-centred and service organisations.

Consistency

Do it right, rules, procedures, reliability, safety critical and regulated environments.

Cultural Leadership

Managers must communicate clearly and frequently to ensure employees understand values through both words and actions.

Globalisation

Increasing integration of economies around the world, particularly through the movement of goods, services and capital across borders.

Multinational Corporation (MNC)

Operates in multiple countries with a centralised head office directing strategy.

Levels of International Business Activities

Exporting and Importing, Licensing, Strategic Alliance, Direct Investment

Licensing

Arrangement whereby one company allows another company to use its brand, name, trademark, technology, patent, copyright in exchange for a royalty based on sales.

Strategic Alliance

Cooperative arrangement between 2 or more firms for mutual gain.

Direct Investment

When a firm builds or purchases operating facilities or subsidiaries in a different country from the one where it has its HQ.

Forces Shaping International Business

Economic, Legal-Political, Sociocultural.

Hofstede’s Dimensions

Power Distance, Individualism vs Collectivism, Masculinity vs Femineity, Uncertainty Avoidance, Long-Term Orientation, Indulgence vs Restraint.

Global Mindset

The ability to work with and influence people who are different from oneself.

Intellectual Capital

Knowledge of global business, industries, cultural differences and economic systems.

Psychological Capital

Openness to cultural difference, comfort with uncertainty, self-assurance in unfamiliar settings.

Social Capital

Building trust across cultures, empathy, diplomacy, networking across borders.

Ethics

The code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong.

Utilitarianism Approach

The ethical concept that moral behaviour produces the greatest good for the greatest number.

Moral Rights Approach

The ethical concept that moral decisions are those that best maintain the rights of those people affected by them.

Justice Approach

The ethical concept that moral decisions must be based on standard of equity, fairness and impartiality.

Practical Approach

Bases decisions on prevailing standards of the profession and larger society, taking the interests of all stakeholders into account.

Manager’s Role in Ethical Choice Level 1

Preconventional, follows rules to avoid punishment, acts in own interest, obedience for its own sake.

Manager’s Role in Ethical Choice Level 2

Conventional, lives up to expectations of others, fulfils duties and obligations of social system, upholds laws.

Manager’s Role in Ethical Choice Level 3

Postconventional, follows self-chosen principles of justice and right, aware that people hold different values and seeks creative solutions to ethical dilemmas.

Corporate Social Responsibility (CSR)

The commitment the organisation makes to its stakeholders to increase the positive impacts and decrease negative impacts.

Shareholder Approach

There is one and only one social responsibility, to use its resources and engage in activities designed to increase its profit.

Stakeholders Approach

A company owes a responsibility to a wider group of stakeholders, other than just shareholders.

CSR Greenwashing

Companies conveying an image of responsibility when in fact they are conducting business as usual. Companies portraying themselves they are eco friendly when they are not.

Sustainability

Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations.

Triple Bottom Line

Business must attend to 3 keys of sustainability, with the goal of corporate sustainability. Economic, Social and Environmental.

Direction Goals

Provides guidance and a unified direction for people in the organisation.

Planning Goals

Goal setting practices shape other aspects of planning.

Motivation

Serves as a source of motivation for employees.

Evaluation and control.

Provide an effective mechanism for measuring performance.

Types of goals

Mission, strategic, tactical, operational.

Strategic Plan

General plan outlining decisions about resource allocation, priorities, and action steps necessary to reach strategic goals.

Tactical plan

Aimed at achieving tactical goals, developed to implement specific parts of a strategic plan.

Operational plan

Focuses on carrying out tactical plans to achieve operational goals.

Policies

General guidelines for decision-making in recuring situations.

Standard Operating Procedures (SOPs)

Step by step instructions for specific tasks.

Rules and Regulations

Specific requirements describing exactly how activities are carried out.

Strategy

A strategy is a comprehensive and ongoing management process aimed at formulating and implementing effective strategies.

Porters Generic Stratagies

Differentiation, Cost Leadership, Focus.

Differentiation

Competing on quality, features or brand. Often charges more due to customers perceiving higher values.

Cost Leadership

Compete on price by keeping costs below competitors.

Focus

Concentrate on a specific segment, region or buyer group.