Professional Documents
Culture Documents
3. There are 3 basic levels of management. Do you know what they are?
Mintzberg’s research (2004) suggests that managers divide their time managing
information, running their divisions, and negotiating outside of their “areas”.
Communication skills are paramount.
What is culture?
Master of destiny
Fatalism
Innovation
Power distance
Uncertainty avoidance
Cultural imperialism
Paternalism
Expatriate
Profit centre
Cost Centre
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It becomes important to identify not just the obvious problem but also the root of the
problem: why the problem has occurred and if it is likely to occur again.
Step 1: analyze the situation and identify the need for making a decision
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Step 2: prioritize the problem(s)
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Step 3: figure out why the problem has occurred
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Step 4: come up with possible solutions/alternative courses of action
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Step 5: evaluate the options
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Step 6: come up with a solution and make a recommendation
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Step 7: implement
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Step 8: follow up/control/evaluate the validity of the recommendation
1. emotion
2. knowledge
3. uncertainty
4. risk
5. group factors
6. creativity
7. individual factors
8. others:
Programmed
Non-programmed
Intuitive
Systematic
Proactive
Reactive
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When do you think it would be a good idea to use groups to make a decision?
Brainstorming
Delphi Technique
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To make sound decisions it can be argued that internal and external environments need to
be analyzed. In a management context this is often referred to as a S.W.O.T. analysis.
This acronym stands for strengths, weaknesses (internal factors) and opportunities,
threats (external environmental factors).
External factors are complex enough when operating in one country but when the
organization expands beyond its borders the challenges multiply tremendously. An
environmental scan must be conducted frequently to find out where the threats and
opportunities to success lie and what they are. A scan includes a close scrutiny of the
following environments: economic, political, social/cultural, competitive, technological,
ecological, labour, and legal. Some scholars refer to this as a PEST or STEP analysis
(political/legal, economic, social and technological).
In the global economy, managers face very different opportunities and threats in different
locations. It is important then not to be ethnocentric, assuming what worked at home
will work elsewhere. Economically speaking alone, there are different economic stages
in different locations and each country has its own unique economic system. And, today
economic trade zones seem to be pulling nations together providing added opportunity
for member states but may threaten freer trade opportunities. The legal systems as well
will differ from location to location. Some less economically developed countries may
be less stable due to extreme political regimes and extreme poverty. Taking advantage of
less expensive foreign resources is often a primary reason for undertaking risky ventures.
As you reflect upon this subject and continue reading current events the magnitude of this
topic becomes self-evident.
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Module 3: Planning
Planning is the starting point. It is what gives the organization purpose. Goals direct all
actions and the actions are taken to achieve the goals. Planning may be formal or
informal. It addresses the following types of questions:
What do we want the future to be?
What goals should be set?
What must be done to assure success?
When, where, and how should everything be done?
Types of plans:
Tactical Planning
Operational Plan
Business-level Plan
Corporate level
Functional
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There are many names for plans. Here are some common ones:
Corporate level
1. Concentration
2. Growth
a. Market penetration
c. Product development
3. Integration
a. Horizontal
b. Vertical
4. Diversification
5. Investment Reduction
6. Entrenchment
1. Cost Leadership
2. Differentiation
3. Niche/Focus
Mission statements
Goals
Objectives
Profitability
Productivity
Quality
Innovation
Employee Attitudes
Managerial Behaviour
Social Responsibility
Market Share
Customer Service
Distribution
Others:
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Effective planners interpret current and relevant information and get input from many
sources. They see the “big picture”; they conceptualize and forecast. They are great
rational decision makers following the rational decision making model. They identify
the necessary resources required to successfully execute the plan. They establish
completion dates and establish standards by which to measure performance.
Today one of the hot topics in planning is the degree of decentralization and the level of
empowerment necessary to run effective organizations.
Going international is only going to add to the complexity of planning. One of the first
things is to decide who should have authority and be accountable for planning. This is a
question of how much should be centralized and decentralized. This question is never
easily resolved. It would depend on how unique the foreign environment is and the
strengths and weaknesses of the organization itself. These factors are always changing
and thus it is safe to assume that the answer is always changing as well.
Another key factor is to examine the corporate culture and the perspectives of the senior
management. Some organizations feel that it is possible to expand into foreign territories
without changing the plans that have worked in the past. This would be referred to as an
ethnocentric perspective if the underlying argument were “our way is the best way”. If
the foreign locations are very different (environmental scanning results) from the
domestic conditions, organizations might choose a multi-domestic approach to planning
so that planning reflects those unique conditions. With a global approach, centralized
decision-making is used for significant similarities and local adaptations or adjustments
are made to accommodate the significant differences. Technology has made it possible
for rapid expansion into global markets and for a transnational perspective.
Transnational organizations assume the market is seamless and emphasis is placed on
similarities. Their planning is based on input from everywhere and local autonomy is
encouraged since it is the cornerstone of transnational success.
Multi-domestic
Global
Transnational
According to Porter (1980), strategic objectives should be made in the following areas:
1. profitability,
2. resources,
3. market position,
4. employees,
5. social responsibility and ethics,
6. management performance,
7. overall productivity, and
8. innovation.
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Before entering a foreign market it is important to ask key questions like these:
Going international is risky. The risk must be weighed against the possible gain:
Direct export
Foreign branches
Subsidiary
Internet
Management contract
Equity venture
Non-equity alliance
Licencing
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Planning for growth is one thing but there are also times when it is necessary to
restructure and divest. Some gurus have developed tools to assist managers in their
planning. These tools are based on an analysis of market conditions. Some examples
include:
Module 4: Organization
Once the planning has been done, it is time to get organized. Managers must design the
means to effectively and efficiently accomplish the set goals. They must know how to
1. Break the work down into “jobs”-- this results in the development of a
structure with departments and positions
2. Obtain the necessary resources
3. Assign tasks
4. Coordinate all efforts.
Division of labour
Delegation
Authority
Responsibility
Accountability
Centralization
Decentralization
Department
Committee
Matrix
Organic structure
Subsidiary
SBU
Conglomerate
Bureaucracy
Span of control/management
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Staff
Restructuring
Hierarchy
Formal organization
Informal organization
Flat structures
Tall organizations
Line
As the organization expands into foreign territories, structural changes are necessary.
Therefore, typical domestic structures evolve by adding:
Rationalization
Strategic alliance
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Module 5: Control
Control is not only good but also vital! Monitoring progress and setting targets are
necessary for not only profit attainment but also competitiveness and survival.
Control is necessary for production and operations, financial resources, human resources,
and organizational change and development. More specifically, the following table
pinpoints areas of control:
1. Set standards
2. Measure actual performance
3. Compare actual performance with standards
4. Make changes if necessary.
If there are significant variations between the standard and actual performance, it is
imperative to find out why.
The big question is “who” should be accountable for the control function? Should the
individual performing the task be empowered and held accountable? Should division
managers or headquarters set the standards? Should special “staff” be assigned the
control function?
The discussion is often reduced to a question of centralization and decentralization.
Centralization
Decentralization
Current thinking today suggests that headquarters must decide what needs to be
controlled, the best way to control and where the responsibility for control will lie.
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Financial controls: See appendix for ratios used in analyzing financial data
Time management
Governance
Just-in-Time systems
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Module 6: Leadership
Leadership is all about getting work done through others. It is about power and
securing the commitment of those who “follow”.
Power Sources:
1. autocratic
2. democratic
3. laissez-faire
1. task oriented
2. people oriented
and
1. proactive
2. reactive
Theories on leadership in the Western world have been developed by such prominent
people as
1. McGregor
2. Blake and Mouton
3. Likert
4. Hersey and Blanchard
5. Fiedler
6. Vroom, Yetton and Jago
Recently the term transformational leader has emerged. What does it mean?
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Being a good leader means being able to understand and make use of psychology,
sociology, and cultural differences. The expression “you can lead a horse to water but
you cannot make it drink” applies in this case.
In the western world today there seems to be a movement towards more participative
styles of management/leadership. However in many other parts of the world
authoritarian styles are necessary due to cultural expectations.
Cultural dimension:
Power distance
Uncertainty avoidance
Individualism
Masculine/feminine
The most frequently cited motivation theorists found in American management books
include Taylor, Mayo, Maslow, Herzberg, and McGregor.
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Communication:
1. Trust
2. Attitude
3. Social organization
4. Thought patterns
5. Roles
6. Language
7. Nonverbal communication
a. kinesis: body language
b. proxemics: distance/space needed
c. paralanguage: what is not said
d. object language: material objects “say a lot”
8. Appreciation of time
9. Context
a. high: assumptions and emotions must be taken into consideration
b. low: explicit expressions
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1. Discrimination
2. Substance abuse
3. Stress
4. Ergonomics
5. Aging workforce
6. Expatriate preparedness
7. Diversity
8. Migrant workers
9. Organized labour
10. Outsourcing
11. Alternative work schedules
1. Job factors
2. Cultural sensitivity
3. Family factors
4. Personal motivation
1. Language
2. Culture and life style
3. Geography
4. Political, legal, and economic realities
5. Exposure to people from that foreign culture,
Compensation must be acceptable and have some intrinsic motivational aspect that
satisfies both the needs of the organization and the individual. A big issue today may be
to provide adequate compensation for loneliness and high risk associated with some
assignments. Another question that needs to be addressed is: should host country
employees receive the same level of compensation as an expatriate would receive?
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Both logic and intuition will play a role in negotiations. Obviously, cultural differences,
language, organizational strengths and weaknesses are also critical factors.
3. Personal space
7. Social behaviours
It is difficult being ethical and socially responsible in your own country so it may be even
more difficult on a global scale.
Laws reflect the basic values of each society. These must be obeyed. However, there are
also corporate values and individual values and these may and do often conflict. In an
effort to standardize values, corporations tend to develop codes of ethics and determine
their social responsibilities. These need to be “controlled”. How an organization
conducts itself is often referred to as “governance”.
There are many philosophical arguments about ethics. Two common ones include
1. Relativism: a belief that ethical values are relative to the groups holding
them. Therefore, “when in Rome do as the Romans do” (a quote attributed to
Saint Ambrose) is the maxim to follow; to not respect the other value systems
would be unethical.
2. Normativism: a belief that there are universal standards of behaviour that all
individuals and organizations should uphold; one must assure that these
standards are upheld and that is the moral obligation of everyone.
Socrates asked: how do you want to live? Life style choices fall into 2 major
categories: 1. decisions concerning the common good such as air, water, limited
resources and overall benefits for society including the role of business organizations;
and 2. decisions concerning people, conflicting demands, and business operations.
Ralph Nader: in the 1960’s Nader accused General Motors of producing an unsafe
model, the Corvair. General Motors first response was to try to attack the integrity of
Nader in hopes of discrediting him. But, ultimately the Corvair was recalled. This was
the very first recall. Ralph Nader has been credited with the birth of the idea of corporate
social responsibility.
Of course people have known about the greed of businessmen and callous disregard of
employees, society, laws, and ecology in the pursuit of profit. Authors like Charles
Dickens in England and Sinclair Lewis in the USA wrote novels based on this them. The
term robber baron was coined in the early 1900’s and John D. Rockefeller is often cited
as a prime example.
Canada has not been immune to corruption and unethical practices. The building of the
famous Trans-Canada Railway in 1870-80 was rife with kickbacks, political corruption
and scandal.
The very heart of capitalism seems to be primed for unethical self-serving behaviour. In
1776 Adam Smith wrote The Wealth of Nations wherein the concept of laissez-faire was
expounded as necessary for economic efficiency. No government intervention was
needed since the “invisible hand” would regulate economies. The result, according to
Smith, would be many jobs, many consumer goods, much wealth, and improved
standards of living. By the 20th century, it was clear that government intervention was
necessary. Laws had to be introduced to curtail ruthless business practices.
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Canada has established the Institute for Sustainable Development. Its objective is to
figure out how to balance the need for economic growth with the needs of the
environment. There are also 1S0 14000 designations/standards that internationally based
organizations strive to achieve. In Davos, Switzerland annual conferences attended by
government, business reps and other world influential leaders focus on globalization and
ethical issues.
The problem really boils down to how companies or economies can continue to grow
without environmental degradation. David Suzuki has shown us mathematically how the
natural world can no longer support our growth rates. The rule of 72 suggests that if you
divide the rate of increase of any activity into 72 you get the number of years it takes to
double the result. For example, if the inflation rate is 6%, in 12 years it will double. The
rule seems to apply for pollution rates, population growth, energy consumption rates and
so on. Ask your grandparents if they can recall when gas was 3 cents a gallon; a movie
cost under a buck, a can of pop was less than a quarter and a new car might have cost
1000$. Our globe cannot sustain the kind of growth rates modern and developing
economies are demanding.
References
Ansoff’s Matrix. (2000-2006). MarketingTeacher. Retrieved June 5, 2006 from
http://Marketingteacher.com
Deresky, H. (2006). International management: managing across borders and cultures
(5th ed.). Upper Saddle River, New Jersey: Pearson Prentice-Hall.
Fuhrman, P. H. (1986). Business in the canadian environment. Canada: Prenctice-Hall.
Hawken, P. (1993). The ecology of commerce: a declaration of sustainability. New
York: Harper Business.
Hawken, P. (1987). Growing a business. Don Mills, Ontario: Collins.
Mintzberg, Henry. (2007). Wikipedia. Retrieved October 10, 2007 from
http://en.wikipedia.org/wiki/Henry_Mintzberg
MarketingTeacher. (2000-2006). Ansoff’s matrix. Retrieved June 5, 2006 from
http://Marketingteacher.com
Porter, M. (1980). Competitive Strategy: techniques for analyzing industries and
competitors. New York: Free Press.
Recklies, D. (2001). Porter’s five forces. The manager.org. Retrieved April 12, 2006,
from http://themanager.org/Models/p5f.htm.
Rodrigues, C. (2001). International Management: a cultural approach. Cincinnati:
SouthWestern.
Williams, C, Kondra, A.Z., and Vibert, C. (2004). Management. Toronto: Thompson-
Nelson.
Several of the illustrations were “googled” and searched for under “images”….
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Appendix: Grades
1. Planning:
a. Based on research, do a SWOT analysis for a business: may be done as an oral or
written presentation in groups of 3 (maximum) or solo.
b. Based on research, analyze the planning being done by a business: may be done
as an oral or written presentation in groups of 3 (maximum) or solo.
2. Organizing:
a. Based on research, analyze the organizational structure of a corporation: may be
done as an oral or written presentation in groups of 3 (maximum) or solo.
b. Based on research, follow up on one of the topics discussed in the module: may
be done as an oral or written presentation in groups of 3 (maximum) or solo.
3. Control:
Based on research, follow up on one of the topics discussed in the module: may be
done as an oral or written presentation in groups of 3 (maximum) or solo.
4. Leadership:
Choose a business “leader”. Focus on what the person has contributed to the
subject of leadership. Prepare a brief, properly referenced discussion. This would
not be a team effort. As to choice of assignments it will be based on “first come, first
served!” One person in the class will not need to do research but will act as editor to
properly compile this information into one electronic handbook for each student.
5. Choose one of the other modules and follow up on a topic it contains. It must be
research based and may be done as an oral or written presentation in groups of 3
(maximum) or solo.
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I. In the 1st section of the report, the business situation is analyzed in order to
discover the real problem or opportunity. A SWOT analysis is an integral
part. Some background information “sets the scene”.
II. In the 2nd section, the various options are examined. These are possible
solutions or courses of actions that could be taken. Each alternative is clearly
described and then analyzed in terms of the advantages and disadvantages.
Obviously, the same factors should be considered for each of the options so
that they can be compared logically. Words like ‘could’ or ‘would’ or ‘might’
or ‘may’ are used.
III. The 3rd section of the reports is developed after all of the options have been
examined. No new information is contained in this section. Now the
recommendation is made and words like ‘should’ or ‘must’ are used. A plan
of action that most logically addresses the original problem/opportunity is
presented. A plan of action is quite specific and addresses the ‘who’, ‘what’,
‘when’, ‘where’, and ‘why’ questions inherent in planning. Time limits are
established. Limitations of the recommended course of action are discussed.
Possible contingencies are suggested.
Use titles and subtitles for the main body of the report:
I. The 1st section could be Introduction and you may want to have further
subtitles, like A. SWOT Analysis and B. Problem Discussion.
II. The 2nd section could be entitled Alternative Courses of Action. Each of
these is analyzed separately (usually first the advantages are listed and
discussed and then the disadvantages are “tackled”).
III. The 3rd section is usually Recommendation.
Consult page 41 of your APA manual for the standard format lettering and numbering
system. This format style is critically important and I am requesting a style like this:
I.
A.
1.
a.
i.
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Current situation, April 1: the bitter northeast wind howls around the 2 small tents,
precariously perched on a 24 000 foot ledge some 1 500 feet below the summit of the
Munchinhorn. This is Camp 6.
Inside one tent is
a. Paul Trincouni, muttering strange Ruritanian oaths as he nurses his severely
frost bitten hands
b. Sub-lieutenant Sidewinder who wakes every half hour or so to shout before
dropping off again, rather delirious
Inside the other tent is
a. Lieutenant Greenwich, British expedition leader, wide awake and
worried
b. Hukka, a Ruritanian mountain porter, sinister looking and an odd
fellow, sleeping peacefully
Hukka is physically fit but does not speak English. Greenwich does not speak
Ruritanian. Originally the group had intended to climb to the top of the mountain the
next day. Trincouni has said that Hukka would never make the final climb since most
native Ruritanians believed in the existence of an evil spirit residing there. When
Greenwich asked Hukka if he would climb up, the Hukka shook his head, which in
Ruritanian means yes. Possibly Trincouni does not want Hukka to make the ascent?
Mission: Make it to the top of the Munchinhorn Mountain. It was difficult to get local
approval for the expedition. England’s reputation is at stake. If the group fails, Russia
will make the attempt next year. It is important that the mission be a Ruritanian-British
joint effort all of the way. One Ruritanian must make it to the summit: 2 Ruritanian
climbers, Trincouni and Crampon, have big reputations but if either of them cannot get to
the summit, Hukka must. Loss of face should be avoided. A problem facing the mission
is the fact that the monsoon may be early this year and that would mean putting off the
climb.
Other factors:
1. There were many frustrating delays and misunderstandings right at the beginning.
As a result the group is not past camp 6 and the monsoon clouds are beginning to
fill the valleys below.
2. Crampon is at camp 5
3. There is no time to lose but who should be going up? No one can climb alone.
4. The amount of food left is limited: only a 4-man day ration left at Camp 6 thanks
to Sidewinder accidentally pushing a 6-man day pack over the edge of a ledge.
Adequate food stocks exist at Camp 5 but members at that camp are not aware of
this problem.
5. Camp 5 is separated from Camp 6 by a one hour descent and a 3 1/2 hour climb
up which is a full day’s work at this altitude
6. A hiking day is no longer than 6 hours at this altitude
7. The only way to communicate between camps is by messenger
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Paths to follow:
1. Going straight up is an extremely difficult and exposed climb containing a nasty
traverse called Hukka’s Drop. Hukka has seen many people “drop” and is
especially superstitious about this path. It should take 3 hours to climb and 2
hours to descend.
2. Following the widening ledge along to the right until it joins the West Col (from
which a long steady snow slope leads to the top) is the easiest route because there
is no actual climbing. But it is a long, hard slog through soft snow -- probably 8
hours up and 3 hours down. Once the monsoon thunder starts to roar the snow on
the West Col might break and avalanche. However, the West Col is the only
place above Camp 6 that offers any possibility for pitching a tent.
3. Going left along a narrowing ledge, one might well find enough holds to reach the
long, steep fissure known as Corny Crack. Corny Crack leads to the top but it is
not possible to know if it would be a good choice to follow or not since the path
can only be seen from the valleys far below. If rocks block the path the group
would be frustrated. If the ascent were not blocked, however, it would probably
take slightly longer than the Hukka Drop path: 5 – 6 hours ascent and descent.
Greenwich looks at his watch: 8:00, an hour of daylight gone already! It would take
another hour to get ready. That would mean there would only be 8 hours of daylight left.
Moving at night is not an option. The sky is blue and the wind has moderated slightly.
Below in the valleys he can see the monsoon clouds “boiling” and expects he has a 24-
hour window before the monsoon hits them. Anyone left above camp 5 would be in
grave danger if the monsoon hit.