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UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global.

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Presentation on theme: "UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global."— Presentation transcript:

1 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 1 FOUNDATIONS OF MANAGEMENT Fall 2008 Reading Assignment Jones and George Chapter 2, Chapter 3, pp Chapter 4, pp Chapter 6, pp

2 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 2 A very different phase of globalization Rapid pace of technological advances Emerging Markets Globalization of finance Global sourcing / Offshoring Diversity of IB participants: Born Globals (international entrepreneurship), SMEs, Logistics firms… Internationalization of services Corporate social responsibility & ethics... Content: The New Realities…

3 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 3 –Globalization is a mega trend with profound implications –Together with the other megatrend -- advances in technology -- it has transformed business, the marketplace, and diplomacy. –The Internet and the IT provide: –Connectivity mitigating physical distance –Virtual communities and relationships –Efficiency in value adding activities –Universal and instantaneous access to knowledge Globalization

4 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 4 Globalization - 2 –Globalization is best characterized as a force that connects national economies, a macro concept; industries are also globalizing –Internationalization of the individual firm is a direct consequence of globalization –Globalization can be studied as a driver, process, or consequence –Globalization brings about both convergence and divergence –It has profound implications for economic welfare, environment, politics –Globalization is controversial –CSR and ethical conduct are real challenges for the manager

5 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 5 Phases of Globalization 1st Phase: 1830, peaking around 1880; Aided by railroads, ocean transport; resulting in the rise of manufacturing and trading companies 2nd Phase: 1900, peaking late 1920s; Fueled by electricity and steel; early MNEs 3rd Phase: 1948, peaking around 1970; GATT, end of WW II, Marshall Plan; gradual reduction of barriers to trade 4th Phase: 1980, peaking around 1997; Fueled by Internet and other technologies: rapid liberalization in Emerging Markets Next phase?

6 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 6 Diversity of Participants IB participants are a diverse set –Focal firms: manufacturers or service firms –Channel intermediaries –Facilitators IB is not just MNE activity: SMEs, BGs –Born global companies –Smaller enterprises with entrepreneurial drive Service firms are very active in IB –Professional service firms such as engineering/design firms, accounting, banking, advertising, research, etc.

7 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 7 Global Business GLOBAL BUSINESS –The buying and selling of goods and services by people from different countries –Includes Foreign Investment in U.S. & U.S. Investment Abroad Companies from many countries own U.S. businesses U.S. companies have made large direct foreign investments throughout the world Direct foreign investment worldwide is worth 1 trillion a year Direct foreign investment is an important and common method of conducting global business

8 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 8 American Companies No Longer Dominate the World Markets U.S. has a 31 percent share of the global high-technology market U.S. producers are leading suppliers of high-tech products globally U.S. companies product 30 percent of the world GNP Only 5.3 percent of multinational corporations are U.S. based Global Integration

9 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 9 Americans say they want to Buy American Country of manufacture –where the product is made –Consumers dont know or care. Country of origin –companys home country –Customers confuse country of origin with country of manufacture. Americans Want American-Made Goods

10 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 10 Trade Rules and Agreements Tariff and Non-Tariff Trade Barriers Trade Agreements

11 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 11 Trade Barriers Nontariff Barriers Tariff Voluntary export restraints Government import standards Customs classification Quotas Subsidies

12 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 12 Trade Agreements Regional Trading Zones General Agreement on Tariffs and Trade (GATT) General Agreement on Tariffs and Trade (GATT) European Union NAFTA ASEAN and APEC FTAA

13 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 13 GATT GATT made it easier and cheaper for consumers in all countries to buy foreign products –By 2005, average tariffs will be cut worldwide by 40 percent –Tariffs were eliminated in 10 specific industries GATT established protections for intellectual property

14 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 14 World Trade Organization (WTO) Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations ( ) Membership:146 countries (as of 4 April 2003) Budget: 154 million Swiss francs for 2003 Secretariat staff: 550 Head: Supachai Panitchpakdi (director-general Functions: Administering WTO trade agreements Administering WTO trade agreements Forum for trade negotiations Forum for trade negotiations Handling trade disputes Handling trade disputes Monitoring national trade policies Monitoring national trade policies Technical assistance and training for developing countries Technical assistance and training for developing countries Cooperation with other international organizations Cooperation with other international organizations

15 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 15 Regional Trade Agreements

16 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 16 Originally, 12 (now 15) European countries 13 other countries have recently been included Transformed these different countries into the European Union Opened up trade among member nations Created the Euro currency Maastricht Treaty of Europe – (EU)

17 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 17 NAFTA North American Free Trade Agreement between Canada, United States, & Mexico Liberalizes trade among these three nations Eliminates most tariffs and barriers

18 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 18 FTAA Free Trade Area of the Americas Proposed agreement to establish a free trade zone through out the Western Hemisphere –Reduce trade barriers to zero –Standardize financial markets –Process for handling trade disputes

19 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 19 ASEAN and APEC ASEAN –Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam APEC –Australia, Canada, Chile, China, Hong Kong, Japan, Korea, Mexico, New Zealand, Papua New Guinea, Peru, Russia, Taiwan, United States, and ASEAN members (except Cambodia, Laos, and Myanmar)

20 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 20 How to go Global Ways in Which Companies can enter the Global Market Place

21 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 21 Consistency or Adaptation? When a multinational company has offices/plants indifferent countries and uses the same rules, guidelines, policies, and procedures Global Consistency When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies Local Adaptation

22 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 22 International Expansion Basic Question –To what extent do we customize products and marketing for different national conditions? Global strategy –Selling the same standardized product and using the same basic marketing approach in each national market Multi-domestic Strategy –Customizing products and marketing strategies to specific national conditions Helps gain local market share Raises production costs

23 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 23 Cooperative Contracts Strategic Alliances Exporting Wholly Owned Affiliates Global New Ventures Forms for Global Business

24 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 24 Less dependence on home market sales Greater degree of control over research, design, and production decisions Less dependence on home market sales Greater degree of control over research, design, and production decisions Advantages Many exports are subject to tariff and nontariff barriers Transportation costs can increase price Companies may depend on foreign importers for product distribution Many exports are subject to tariff and nontariff barriers Transportation costs can increase price Companies may depend on foreign importers for product distribution Disadvantages Exporting

25 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 25 Cooperative Contracts A domestic company receives royalty payments for allowing another company to produce its product, sell service, or use its brand name in a specified foreign market Licensing Franchising A collection of networked firms in which the manufacturer or marketer of a product/service licenses the entire business to another person or organization

26 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 26 Allows companies to earn profits without investing more money The licensor invests in production equipment and facilities Helps companies avoid tariff and nontariff barriers Allows companies to earn profits without investing more money The licensor invests in production equipment and facilities Helps companies avoid tariff and nontariff barriers Advantages Licensor gives up control over quality of the product or service sold by the foreign licensee Licensees can eventually become competitors Licensor gives up control over quality of the product or service sold by the foreign licensee Licensees can eventually become competitors Disadvantages Licensing

27 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 27 Fast way to enter foreign markets Good strategy when a companys domestic sales have slowed Fast way to enter foreign markets Good strategy when a companys domestic sales have slowed Advantages Franchisors face a loss of control Franchising success may be culture-bound Franchisors face a loss of control Franchising success may be culture-bound Disadvantages Franchising

28 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 28 Strategic Alliances Strategic Alliance An agreement in which companies combine key resources, costs, risk, technology, and people Joint Venture Joint Venture A strategic alliance in which two existing companies collaborate to form a third, independent company Strategic Alliance An agreement in which companies combine key resources, costs, risk, technology, and people

29 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 29 Joint Ventures Help companies avoid tariff and nontariff barriers to entry Participating companies bear only part of the costs and risks Advantageous to smaller local partners Help companies avoid tariff and nontariff barriers to entry Participating companies bear only part of the costs and risks Advantageous to smaller local partners Advantages Companies must share profits Joint venture represent a merging of four cultures With equal ownership, power struggles and a lack of leadership Companies must share profits Joint venture represent a merging of four cultures With equal ownership, power struggles and a lack of leadership Disadvantages

30 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 30 Wholly Owned Affiliates (Build or Buy) Parent company receives all of the profits and has complete control Advantages Expense of building new operations or buying existing business Losses can be immense if the venture fails Expense of building new operations or buying existing business Losses can be immense if the venture fails Disadvantages

31 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 31 Finding the Best Business Climate Access to Growing Markets Location to Build Location to Build Minimal Political Risk

32 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 32 Themes to Address: Emerging Markets Some 30 high-growth, high-potential developing economies have fueled the most recent phase of globalization Market liberalization, rapid industrialization, modernization, and urbanization are trademarks Unique countries in terms of dominance of family conglomerates, political risk, partnering styles, cultural idiosyncrasies, etc.

33 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 33 Emerging Market Dynamics Source of customers, suppliers, ideas, and human capital. One billion new consumers will enter the global markets in the next decade! Household income will reach threshold level of $5,000 in many EMs. Consumer spending will increase from $4 trillion to more than $9 trillion by 2015, nearly matching Western Europe.

34 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 34 Attractions and Challenges of EMs Dynamic, rapidly transforming Low competitive intensity Dominated by family conglomerates Political instability Bureaucracy, redtape, lack of transparency Legal, institutional vacuum Safeguarding intellectual property Cultural distance…

35 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 35 The emerging world now accounts for over half of global economic output. They are driving global growth. –the economic power is shifting away from the advanced economies towards emerging ones, especially in Asia. Their share of exports has jumped to 43%. –the emerging markets have now become low-cost source countries. In the footwear industry, besides China, Vietnam, Brazil, Romania, in Asia, India, and Thailand have become low-cost source countries. Attractions and Challenges of EMs

36 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 36 The Aspiring Consumer in EMs Young demographics Rapidly urbanizing Middle class coming into its own Engaged in technological leapfrogging Exposed to western brands Rising expectations Eager to consume material things Highly brand conscious

37 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 37 Growing Markets Purchasing Power –comparison of a standard set of goods and services in different countries –more means greater growth potential Degree of Global Competition –the number and quality of companies already in the market

38 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 38 Outsourcing vs. Offshoring Outsourcing - the process of contracting with another organization to accomplish a non-critical responsibility more efficiently for a firm, either domestically or overseas –Payroll, Distribution, Fabrication Offshoring - the process of outsourcing to firms in foreign countries –Generally involves exploiting the competitive advantage of cheaper labor

39 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 39 Choosing Facilities Locations Quality factors –work force quality –company strategy Quantity factors –kind of facility –tariff and nontariff barriers –exchange rates –transportation and labor costs

40 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 40 Minimizing Political Risk Political uncertainty –risk of major changes in political regimes Policy uncertainty –risk associated with changes in laws and government policies directed at businesses Strategies –avoidance –control –cooperation

41 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 41 Organizational Culture The Sociocultural Environment

42 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 42 The shared knowledge, beliefs, ideals, values, common modes of behavior and ways of thinking in a society Shared set of beliefs, expectations, values, norms, and work routines that influence how members of an organization relate to one another and work together to achieve organizational goals The shared set of beliefs, expectations, values, norms and work routines that influence the ways in which individuals, groups and teams interact with one another and cooperate to achieve success Organizational Culture

43 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 43 Organizational Culture Cultural factors are more complex than political and economic factors. It is imperative that international managers understand and deal with local cultures.

44 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 44 The Role of National Culture Values –Ideas about what a society believes to be good, desirable and beautiful. Provides conceptual support for democracy, truth, appropriate roles for men, and women. Usually not static but very slow to change.

45 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 45 The Role of National Culture Norms –Informal, unwritten rules and codes of conduct that prescribe how people should act in particular situations. Folkwaysroutine social conventions of everyday life Mores - norms that are considered to be central to functioning of society and to social life

46 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 46 Value System Multiple beliefs that are compatible and supportive of one another Greatly affect how a manager: Views other people/groups, thus influencing interpersonal relationships Perceives situations and problems Goes about solving problems Determines what is and is not ethical behavior Leads and controls employees

47 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 47 Attitudes, Moods and Emotions Attitude –A collection of feelings and beliefs Organizational Commitment –The collection of feelings and beliefs that employees and managers have about their organization as a whole Mood –A feeing or state of mind Emotions –Intense, relatively short lived feelings

48 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 48 Factors Affecting Organizational Culture

49 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 49 Symbolic artifacts Behaviors Symbolic artifacts Behaviors 1. Surface Level SEEN What people say How decisions are made What people say How decisions are made 2. Expressed Values and Beliefs HEARD Beliefs and assumptions Rarely discussed Beliefs and assumptions Rarely discussed 3.Unconsciously Held Assumptions and Beliefs BELIEVED Levels of Organizational Culture

50 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 50 Behavioral addition –is the process of having managers and employees perform a new behavior Behavioral substitution –is having managers and employees perform a new behavior in place of another behavior Change visible artifacts –such as the office design and layout, company dress codes, etc. Changing Organizational Cultures

51 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 51 Socialization Organizational socialization – process by which newcomers learn an organizations values and norms and acquire the work behaviors necessary to perform jobs effectively

52 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 52 Cultural Differences Recognize cultural differences Decide how to adapt your company to those differences Do not base adaptations on outdated and incorrect assumptions about a companys culture

53 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 53 Becoming Aware of Cultural Differences Cultural Dimensions (Geert Hofstede)

54 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 54 Preparing for an International Assignment Language and Cross-Cultural Training Consideration of Spouse, Family, and Dual-Career Issues Language and Cross-Cultural Training Consideration of Spouse, Family, and Dual-Career Issues

55 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 55 Language and Cross-Cultural Training Documentary Training Cultural Simulation Field Experiences Adaptability Screening Intercultural Training

56 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 56 Domestic and International Diversity

57 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 57 The Increasing Diversity of the Workforce and the Environment –Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities Diversity Concerns and Issues –The ethical imperative for equal opportunity –The illegality of unfair treatment –Diversitys positive effect on organizational performance –The continuing bias toward diverse individuals Domestic and International Diversity

58 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 58 Diversity Concerns The ethical imperative for equal opportunity Effectively managing diversity can improve organizational effectiveness The continuing bias toward diverse individuals

59 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 59 AGE – Demographic Changes and Legal Constraints GENDER – Glass Ceiling, Pay Differentials RACE and ETHNICITY – Differential Growth Rates for Minority Populations RELIGION – Different Religious Holidays CAPABILITIES and DISABILITIES – Reasonable Accommodation SOCIOECONOMIC BACKGROUND – Widening Differentials b/w Rich and Poo r Components of Diversity

60 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 60 Sources of Diversity in the Workplace

61 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 61 Glass Ceiling –A metaphor alluding to the invisible barriers that prevents minorities and women from being promoted to top corporate positions. 2008: Projected New Entrants in the U.S. Labor Force Workforce Diversity

62 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 62 What a Diversity of Employees Provides –A variety of points of view and approaches to problems and opportunities can improve managerial decision making. –Diverse employees can provide a wider range of creative ideas. –Diverse employees are more attuned to the needs of diverse customers. –Diversity can increase the retention of valued organizational members. –Diversity is expected/required by other firms Managing Diversity

63 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 63 Steps in Managing Diversity Effectively –Secure top management commitment –Strive to increase the accuracy of perceptions –Increase diversity awareness –Increase diversity skills –Encourage flexibility –Pay close attention to how organizational members are evaluated –Consider the numbers How to Manage Diversity

64 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 64 Steps in Managing Diversity Effectively (contd) –Empower employees to challenge discriminatory behaviors, actions, and remarks –Reward employees for effectively managing diversity –Provide training utilizing a multipronged, ongoing approach –Encourage mentoring of diverse employees –Mentoring A process by which an experienced member of an organization (the mentor) provides advice and guidance to an less experienced member (the protégé) and helps the less experienced member learn how to advance in the organization and in his or her career. How to Manage Diversity (contd)

65 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity Global Business - globalization - trade agreements - how to go global - why go global Organizational Culture - National Differences - Changing Organizational Cultures Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 2 - International Management and Diversity Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 65 FOUNDATIONS OF MANAGEMENT Fall The End Dr. Eliot S. Elfner Professor of Business Administration St. Norbert College


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