Overview of Management Multinational Enterprises

MANAGEMENT : AN OVERVIEW
1. Management is getting things done by and through others. Mary Parker Follet 2. Management is set of activities including planning and decision making, organizing, leading and controlling, directed at an organizations resources - human, financial, physical and information- with the aim of achieving organizational goals in an efficient and effective manner. Ricky W. Griffin

MANAGEMENT : AN OVERVIEW
3. Management is the process of designing and maintaining an environment in which individuals, working in a group, efficiently accomplish selected aims. -Heinz Weihrich and Harold Koontz

Features of Management
Management is a universal knowledge. Every firm or act of any nature requires management to achieve the goals in an effective and efficient way. Management is a set of activities. Management is a process. Management creates surplus. Management applies to all levels of organization. Management concerns with productivity which is achieved through efficiency and effectiveness. Management is a dynamic process.

Functions of Management
Planning (and Decision making) Organizing
Departmentation Organization Structure and Chart. Span of Supervision Centralization and Decentralization of authority. Delegation of Authority. Staffing

Leading
Communication Motivation Leadership

Controlling

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Controlling is the process of ensuring conformity of actual performance with actual performance. Involved Activities 1. Set / plan standard performance. 2. Measure actual performance. 3. Compare actual performance with planned performance. 4. Take corrective action if necessary.

ORGANISATION
What is Organisation? Organization is the assemblage of role-related people with a common goal. -Edger Schein.

Organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals.- Ricky W. Griffin. Organization is a system of consciously coordinated activities or forces of two or more persons.- Chester I. Barnard.

Characteristics of organization
A Group of Role-related people. A Common Goal i.e. mutually agreed purpose. A Continuing System A Consciously Rational activity. A Pattern of Behaviour/ action. Differentiation i.e. A Highly Differentiated System of Operation. A Coordinated Activity. A Conversion System. An interactional operation.

Multinational Enterprise: Concept

Multinational Enterprise (MNE): Multinational Enterprise is a company that takes a global approach to foreign markets and production. It is willing to consider market and production locations anywhere in the world. Multinational Corporation (MNC): Same as Multinational Enterprise.

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Multinational company is any company that engages in business functions beyond its domestic borders. Cullen and Parboteeah (2008) This definition includes all types of companies , large and small, that engage in international business. Such as Wal-Mart Stores, Ford motos, Toyota motor etc.

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c) Transnational Company (TNC):
Is a company owned and managed by nationals in different countries. Is an organization in which capabilities and contributions may differ by country but are developed and integrated into its worldwide operations.

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d) Global Company/ Globally Integrated Company
Integrates its operations that are located in different countries. Production is global, while its marketing is multidomestic.

e) Multi-domestic Company / Locally Responsive Company

Allows each Unit for doing its foreign-country operations and to act fairly independently. Product is locally adjusted, but production is global.

Globalizing Economy: A changing environment for business.

Globalization refers to the worldwide trend of economic integration across borders t hat allows businesses to expand beyond their domestic boundaries. Globalisation is the worldwide trend of the economies of the world becoming borderless and interlinked. Globalization allows companies to compete anywhere, source their raw materials or R&D anywhere and produce their products anywhere. But it is a mixed blessings for the world today.

Reasons for Globalisation

Disintegrating borders/ falling borders. Growing cross-border trade and investment. Rise of global products and customers. Growing use of internet and sophisticated information technology. Privatization of government companies. Emergence of new competitors in the world market. Rise of global standards of quality and production.

Next Generation of Multinational Managers : Characteristics

A global mindset The ability to work with people from diverse backgrounds. Emotionally intelligent. A long range perspective. The ability to manage change and transition. The ability to manage change and transition. The ability to crate systems for learning and changing organisations.

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The talent to motivate all employees to achieve excellence. Accomplished negotiating skills. The willingness to seek overseas assignments. An understanding of national cultures.

Why should we study multinational management?

To make a person capable to deal with constantly evolving global economy and to develop the skills necessary to succeed as multinational management. To formulate strategies applicable anywhere in the world and to implement with complex management systems beyond national boundaries. To deal and win hypercompetition.

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To develop an orientation to emphasis on innovation with local knowledge and to compete globally by making learning organization. To orient people to flexibility rather than size that matters most in managing multinational companies.