pursuing organizational objectives in international and cross-cultural settings.
A multinational venture centrally managed from a specific country.
a futuristic model of a global, decentralized network with no distinct national identity.
view that assumes the home countrys personnel and ways of doing things are best.
world-oriented view that draws upon the best talent from around the globe.
a populations taken-for-granted assumptions, values, beliefs, and symbols, which foster patterned behavior.
cultures in which nonverbal and situational messages convey primary meaning.
cultures in which words convey primary meaning.
cultures that emphasize individual rights, roles, and achievements.
cultures that emphasize duty and loyalty to collective goals and achievements.
a perception of time as a straight line broken into standard units.
a perception of time as flexible, elastic, and multidimensional.
the study of how organizational behavior and management practices differ across cultures.
negative feelings triggered by an expectations-reality mismatch.
guided experience that helps people live and work in foreign cultures.
coping with uncertainty by formulating courses of action to achieve specified results.
an objective plus an action statement.
determining how to pursue long-term goals with available resources.
determining subunits contributions using allocated resources.
determining how to accomplish specific tasks with available resources.
the elapsed time between planning and execution.
commitment to achieve a measurable result within a specified period.
management by objectives (MBO)
comprehensive management system based on measurable and participatively set objectives. priorities ranking goals, objectives, or activities in order of importance.
a minority of causes, inputs, or effort tends to produce a majority of results, outputs, or rewards.
the concept that the whole is greater than the sum of its parts.
buyer perceives unique and superior value in a product.
how the organization’s mission will be accomplished.
finding the organizations niche by performing a SWOT analysis.
identifying the organizations strengths and weaknesses.
Environment is unpredictable.
Impacts of environmental changes are unpredictable.
Consequences of decisions are unpredictable.
A temporary endeavor undertaken to achieve a particular aim.
A graphical scheduling technique.
Program Evaluation and review Technique (PERT)
A graphical sequencing and scheduling tool for complex projects.
A performance milestone.
Work in progress.
Weighted time estimates for completion of pert activities.
The most time consuming route through a pert network.
Level of sales at which there is no loss or profit.
Contractual cost that must be paid regardless of output or sales.
Costs that vary directly with production and sales.
Selling price per unit minus variable costs per unit.
corporate social responsibility
the idea that business has social obligations above and beyond making a profit.
identifying all parties possibly impacted by the organization.
iron law of responsibility
those who do not use power in a socially responsible way will eventually lose it.
reactive social responsibility strategy
denying responsibility and resisting change.
defensive social responsibility strategy
resisting additional responsibilities with legal and public relations tactics.
accommodative social responsibility strategy
assuming additional responsibilities in response to pressure.
proactive social responsibility strategy
taking the initiative with new programs that serve as models for the industry.
unselfish devotion to the interests of others.
a business ultimately helping itself by helping to solve societal problems.
charitable donation of company resources.
Abstract ideals that shape one’s thinking and behavior.
An enduring belief in a certain way of behaving.
An enduring belief in the attainment of a certain end-state.
the study of moral obligation involving right versus wrong.
managers who are neither moral nor immoral, but ethically lazy.
ethics specialist who plays a role in top-management decision making.
reporting perceived unethical organizational practices to outside authorities.
Three types of uncertinaty:
- 1. State uncertainty: Environment is unpredictable.
- 2. Effect uncertainty: Impacts of environmental changes are unpredictable.
- 3. Response uncertainty: Consequences of decisions are unpredictable.
- 1. Defines your organization for key stakeholders.
- 2. Creates an inspiring vision of what the organization can be and can do.
- 3. Outlines how the vision is to be accomplished.
- 4. Establishes key priorities.
- 5. States a common goal and fosters a sense of togetherness.
- 6. Creates a philosophical anchor for all organizational activities.
- 7. Generates enthusiasm and a "can do" attitude.
- 8. Empowers present and future organization members to believe that every individual is the key to success.
- A concise statement of the general nature and
- direction of the company. It is an outline of what the company will do and what it will be. Mission statements clearly specify the nature of the business:
- 1. Industry and product line – type of services provided
- 2. Firms position in the distribution channel.
- 3. Prime goals (quality, breadth of offerings, price, or service)
- 4. Target market (current and future)
Mission statements also include expressions of the firm’s management philosophy and underlying values that are most central and critical to the business
An encompassing explanation of why the organization exists and where it’s trying to go. A vision statement should . . .
- –Offer general direction for the
- business efforts of the firm.
- –Be crisp, clear, brief and
- meaningful – not a set of platitudes.
- –Be unique to our particular
- –Excite and energize people about
- the business and where it’s headed.
- –Give the organization a sense of
- purpose and values and unite workers in a common destiny.
The value of vision/mission statements:
- 1.It’s a communication to all stakeholders (owners, customers, employees, community members, financiers,
- suppliers, government leaders, etc.)
- 2.It’s a commitment that the owners of the
- firm have to the mission once it is printed and published.
3.It’s a compass from which will flow objectives and appropriate strategies for all segments of the company.
3 Problems with Mission Statements:
Too often they’re ….
Mission statements are frequently written by an organization’s top brass and then merely announced to the other employees.
- 2. Rushed. Upper management quickly goes through the process instead of taking time to come up
- with an appropriate statement that will truly provide long-term direction for
- the organization.
. Most mission statements end up merely being posted on a boardroom wall, instead of being used in strategic planning sessions.
An objective is “a commitment to achieve a measurable result within a specified period.”
Writing Good Objectives
- –Objectives should be expressed in
- quantitative, measurable, and concrete terms.
•What specific result is to be achieved?
•When is the result to be achieved?
•How is the result to be measured?
•Who will be responsible for achieving the result?
Management by Objectives (Peter Drucker)
“A comprehensive management system based on measurable, participatively-set objectives.”
The MBO Cycle
–Step 1: Setting objectives
–Step 2: Developing action plans
–Step 3: Periodic review
–Step 4: Performance appraisal
The Internationalization Process
- 1. Licensing
- –Definition: Global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (royalty).
- 2. Exporting/Importing
- –Getting into exporting/importing . . .
- •Government assistance
- •Trade shows
- •Contact foreign buyers directlyForeign distributors
- 3. Local warehousing and selling
- –Goods produced in one country are shipped to the parent company’s storage and marketing facilities located in overseas countries.
- 4. Local Assembly and Packaging
- –Components, rather than finished products, are shipped to company-owned foreign facilities for final assembly and sales.
- 5. Joint Venture
- –A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
•Ex: Honda and GE partnering on entering the manufacture of business jets.
- 6. Direct Foreign Investments
- –Directly investing in a foreign country by setting up a separate and independent production facility or office.
- – Subsidiaries can be purchased or started from scratch.
Attitudes Toward International Operations
•Cultural intelligence (CQ): ability to interpret and act in appropriate ways in unfamiliar cultural surroundings.
- •Ethnocentric Attitude:
- –The view that assumes the home country’s personnel and ways of doing things are best.
- •Polycentric Attitude:
- –The view that assumes local managers in host countries know best how to run their own operations.
- •Geocentric Attitude:
- –A world-oriented view that draws upon the best talent from around the world
High-Context Cultures/Low-Context Cultures
- •High-Context Cultures
- –Cultures in which nonverbal and situational messages convey primary meaning
•Status of an individual is of tantamount importance in determining relationships.
- •Low-Context Cultures
- –Cultures in which words convey primary meaning.
•Nonverbal messages are secondary to spoken words.
•The terms of the deal are more important than building a business relationship.
9 Dimentions of culture from the GLOBE project:
Should leaders have high or low power over others?
Hwo much should social norms and rules be used to reduce future uncertainties?
To what extent do individuals value loylty to their family or org.
To what extent do individuals value loyalty to their family or org?
- Assertiveness: How aggressive and confrontational should one be with others?
- Gender equality: How nearly equal are men and women?
How much should one work and save for the future, rather than just live for the present?
How much should people be rewarded for excellence and improvement?
How much should people be encouraged to be generous, kind, and fair to others?
Archie Carrol's Research
Companies have four main areas of responsibility:
1. Economic: Make a profit consistent with expectations for international business.
2. Legal: Obey the law of host countries as well as international law.
3. Ethical: Be ethical in its practices, taking host-country and global standards into consideration.
4. Phiolanthropic: Be a good corporate citizen, especially as defined by the host country's expectations.
Geert Hofstede's Research:
He recommended that American management theories be adapted to local cultures rather than imposed on them.
For/Against Social Responsibility
- 1. Public expectations
- 2. Long-run profits
- 3. Ethical obligation
- 4. Public image
- 5. Better environment
- 6. Discouragement of further governmental regulation
- 7. Balance of responsibility and power
- 8. Stockholder interests
- 9. Possession of resources
- 10. Superiority of prevention over cure
- 1. Violation of profit maximization
- 2. Dilution of purpose
- 3. Costs
- 4. Too much power
- 5. Lack of skills
- 6. Lack of accountability
Rationalizing unethical conduct:
- 1. Denial of responsibility
- 2. Denial of injury
- 3. Denial of victim
- 4. Social weighting
- 5. Appeal to heigher loyalties (We answer to a higher cause)
- 6. Metaphor of the ledger (Those who rationalize that they are entitled to indulge in deviant behaviors)
Encouraging Ethical Conduct
- •Ethics Training
- –Amoral managers: Managers who are neither moral nor immoral, but ethically lazy.
- –Key features of effective ethics programs
- •Support of top management.
•A clear focus on ethical issues.
•Integration of ethics into the organization.
•A mechanism for anonymously reporting ethical violationsRewarding of ethical conduct.
- •Ethical Advocate
- –An ethics specialist who plays a role in top management’s decision making.
- •Code of Ethics
- –Requirements for an effective code.
•Describes specific events as unethical.
•Is supported and equitably enforced by top management.
- –The reporting of perceived unethical matters.