Management 2: Past to Present (and Beyond) 3: Global Dimensions Present Like a Pro (time permitting)

Updates: Anything exciting happen (from an Organizational Behaviour perspective) over the past week? Any questions? Let’s focus on our “reflection” from last class

Development of Major Management Theories Development of Management Theories Historical Background preclassical contri- butions The Early Years classical theorists The Early Years human resources approach The Early Years quantitative approach Recent Years integrative approaches Scientific management Operations research Process Fig. 2-1 Development of Major Management Theories Management has been evolving for thousands of years. Management is a field that has only undergone systematic investigation, acquired a common body of knowledge and become a formal discipline of study, in the past several hundred years and most particularly, in the last century. Historical examples of contributors include Adam Smith (division of labor), the advent of the industrial revolution and the machine age, and the establishment of large business by such entrepreneurs as Carnegie and Rockefeller who helped to formalize management practices. The classical theorists are divided into two groups: SCIENTIFIC MANAGEMENT: Taylor and the “one best way” for a job to be done; the Gilbreths and their therbligs classification scheme; and Henry Gantt and his chart for managers used as a scheduling device for planning and controlling work. GENERAL ADMINISTRATIVE THEORISTS: Writers who developed general theories of what managers do and what constitutes good management practice. Henri Fayol developed 14 principles of management (p. 42) which he considered to be universal truths of management that are shared by all managers in all type of organizations and that can be taught in school. Max Weber developed a theory of the bureaucracy, an ideal type structure (p. 43). Like scientific management, it emphasizes rationality, predictability, impersonality, technical competence, and authoritarianism. His “ideal type” can be used to describe many contemporary organizations. Early advocates Systems General administrative theorists Hawthorne studies Management science Contingency Human relations movement Behavioral science theorists

Historical Background Division of Labour Adam Smith (1776) - “The Wealth of Nations” Invisible hand of the market; also showed how division of labour could be successfully utilized Industrial Revolution - UK Henry Ford - “Fordism”

Classical Contributors Scientific Management Frederick W Taylor - “ONE BEST WAY” Bethlehem/Midvale Steel Principles: 1) Develop a Science for work 2) Scientifically select, train, and develop workers 3) Co-operate with workers to ensure all is done this way 4) Divide work equally A “high” priced man - Schmidt

One Best Way POINT - COUNTER POINT Do you agree that there is “one best way” to do any job?

General Administrative Theorists Professional Metaphor Max Weber (1890s) - Bureaucracy; Iron-cage of Rationality Henri Fayol (1916) - 14 principles of Management Mary Parket Follett (1933) - Spirit of compromise and co-operation

Human Resources Approach Elton Mayo - Hawthorne Studies Maslow – Hierarchy of needs McGregor – Theory X and Y Chester Barnard - “Functions of the Executive” - authority comes from willingness of subordinates to accept it.

Quantitative School Post-WW 2 Numbers Driven Operations management; TQM; Cost Accounting;

Contemporary Schools Systems Contingency School Cultural School Ecology Contingency School No universal answer Outcomes “depend” on certain things Cultural School Organizational culture Global Awareness Knowledge Management Evidence-Based MGMT

Next Metaphor?? Where is business heading now?

Personal Management Moment Lateral Thinking … 26 = L of the A 7 = D of the W 1001 = A.N. 12 = S of the Z

Cpt. 3 Global Economy Inventory of clothing – where were your clothes made? Gildan

Key Terms (Understand them) Going Global: sourcing, export/import, licensing/franchising, joint ventures, strategic alliances Global Environments: legal, political, trade agreements, barriers, alliances Ethical Challenges Culture Shock National Cultures / Values Project Globe

Goal: Increase your Cultural Intelligence!

Stranger in a Strange Land Award winning book (1961) The story focuses on a human raised on Mars and his adaptation to, and understanding of, humans and their culture. While we are from the same planet – some things different cultures “do” will seem very strange to you!

Making the Strange Familiar Problem based learning Focus: You will be leading a company in another country Task: What skills do you need to have to be a successful international leader? What dangers do you need to watch out for as you lead in a foreign country? Come up with a “list of learning” points you would like to acquire.

Session Learning Goals Appreciate the different ways to understand culture. Understand our own attitudes and perspectives Develop our Cultural Intelligence

Stages in becoming an International Manager Confusion: first contacts leave you anxious, uncomfortable and in need of advice Small victories: interactions bring success, confidence grows The honeymoon: a time of wonderment, local ways viewed positively Irritation and rage: negatives overwhelm positives, you become critical Reality: time of rebalancing, enjoy new culture while accommodating less desirable elements

Ways to look at Country Cultures Hofstede Trompenaars Language Context Time context Space context NOTE: it is these similarities/differences to your culture that you will both adore and dislike about your international assignments!!

Power Distance: the degree to which a society accepts unequal distribution of power High Power Distance: Respect for age, status, titles Tolerant of power by following rules and accept differences in rank China, India, Philippines Low Power Distance Tendency towards informality, casual dress, Australia, Canada, USA

Individualism / Collectivism: the degree of individuals being integrated into groups Collectivistic: cultures whose members are strongly integrated into groups or families China, Mexico, Thailand Individualistic: cultures have members who are only loosely connected and who are responsible for themselves Canada, USA, NZ

Masculinity / Femininity: explains in how far a society is characterized through Masculine: extrovert and competitive behaviour Japan, Mexico, Canada Femininity: is expressed through caring attributes and the emphasis on harmony Thailand, Sweden

Uncertainty Avoidance: tolerance towards uncertainties, change and risk High Uncertainty Avoidance These cultures have a preference for structure, order, planning and predictability Cultures with high uncertainty avoidance often show their emotions more compared to cultures with low uncertainty avoidance. Japan, France Low Uncertainty Avoidance These cultures display openness to change and innovation USA, Sweden

Long-term / short-term orientation The degree that a culture focuses on long term or short term time horizons or goals Long-term Focus on values of persistence thrift, patience and willingness to work for long-term success China, India, Japan Short-term Impatient, desire for quick gratification USA, Canada, Netherlands

Examples of ways of comparisons

Managerial Application You are a consultant helping a firm try to negotiate a partnership with a foreign company – drawing from these 2 cultural perspectives – what would you do to help the firm on how to negotiate to ensure success if the two sides were: Canada and China India and Australia Iran/Saudi Arabia and France South Africa and Pakistan

Trompenaars’s Framework Universalism vs Particularism rules or relationships most important Individualism vs Collectivism the individual or the group most important Neutral vs Emotional the range of feelings expressed Specific vs Diffuse the range of personal interaction (work and outside) Achievement vs Prescriptive how status is accorded (merit or class) Time Sequential or synchronic Environment Control of the environment versus working in harmony with nature

Context: how cultures use language High Context: These cultures rely on nonverbal and situational cues as well as on spoken or written words in communication Often, after relationships are established and a context for communication is exists is it possible to make business deals Thailand, Malaysia Low Context: These cultures emphasize communication via spoken or written words For example, these cultures say or write what they mean, and we mean what we say USA, Canada, Germany

How Cultures use Time Monochronic Polychronic People in these types of cultures tend to do one thing at a time Polychronic People from these cultures tend to try and accomplish many different things at once Example: A Canadian visitor (monochronic culture) to an Egyptian client (polychronic culture) might be frustrated by continued interruptions as the client greets and deals with people flowing in and out of his office.

How Cultures use Space This is a silent part of culture Personal space – how close to each other to people talk, stand? What is valued? How are public spaces organized?

Where you stand … Determines your view

Cultural Intelligence CQ – your ability to work across cultures Drive – interest in adapting to cross cultural issues Knowledge – understand cultural similarities and differences Strategy – draw from their awareness to think and plan Action – adapt own behaviour to other cultures

Drive Answer each question using the scale and then total your score ________ 1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

Knowledge Answer each question using the scale and then total your score ________ 1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

Strategy Answer each question using the scale and then total your score ________ 1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

Action Answer each question using the scale and then total your score ________ 1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

Cultural Intelligence CQ – your ability to work across cultures Drive – interest in adapting to cross cultural issues Knowledge – understand cultural similarities and differences Strategy – draw from their awareness to think and plan Action – adapt own behaviour to other cultures HOW did you do? Who are you now.

McCain Foods Case Overcome the Challenges? Canadian managers / Chinese business colleagues? Clients – own brand name?

Next Day Read Chapter Cpt. 4: Ethical Behaviour; and Cpt. 5: Entrepreneurship Discussion Assignment – Read Case 5 (p.168); do the “Further Research” question and be prepared to discuss your findings.