Chapter 1 Managers and Management1.Who Are Managers? Where Do They Work?anization: A deliberate arrangement of people brought together to accomplish aspecific purpose.Common Characteristics of Organizations:-Distinct purpose-People working together-A deliberate systematic structure1.2.How Are Managers Different from Non-managerial Employees?•Non-managerial Employees-People who work directly on a job or task and have no responsibility for overseeing the work of others.-Examples, associates, team members•Managers-Individuals in organizations who direct the activities of others.1.3.What Titles Do Managers Have?•Top Managers-Responsible for making decisions about the direction of the organization.-Examples; President, Chief Executive Officer, Vice-President•Middle Managers-Manage the activities of other managers.-Examples; District Manager, Division Manager•First-line Managers-Responsible for directing non-managerial employees-Examples; Supervisor, Team Leader-2.What Is Management?2.1. Management: The process of getting things done effectively and efficiently, withand through people2.2. Effectiveness: “Doing the right things”, doing those tasks that help an organizationreach its goals2.3. Efficiency: Concerned with the means, efficient use of resources like people, money,and equipment3.What Do Managers Do?3.1.Four Management Functions （重要）•Planning — Defining the organizational purpose and ways to achieve it•Organizing — Arranging and structuring work to accomplish organizational goals •Leading — Directing the work activities of others•Controlling — Monitoring, comparing, and correcting work performance3.2.What Roles Do Managers Play? (10)3.3.What Skills Do Managers Need? (4)•Conceptual Skills — Used to analyze complex situations•Interpersonal Skills — Used to communicate, motivate, mentor and delegate•Technical Skills — Based on specialized knowledge required for work•Political Skills — Used to build a power base and establish connections3.4. Is the Manager’s Job Universal?•Level in the Organization — Top level managers do more planning than supervisors •Profit vs. Nonprofit — Management performance is measured on different objectives•Size of the Organization – Small businesses require an emphasis in the management role of spokesperson•National Borders – These concepts work best in English-speaking countries and may need to be modified in other global environmentsChapter 2 Managers and ManagementFactors Controlling organizational environment1.External environment1.1. General environment（PEST）•The general environment refers to the non-specific elements of an organization’ssurrounding that might affect the organization indirectly.1.1.1. Political environment: The political or legal environment refers to thegovernment laws, regulations, policies and activities which are designed toinfluence organizations indirectly and set boundaries on what they can or cannotdo.1.1.2. Economic environment: Economic environment includes the impact ofeconomic factors like interest rates, inflation, monetary & fiscal policy, taxes,wage rates, GDP, etc.1.1.3. Social environment: There are some important socio-cultural factors thatorganizations must analyze.1.1.4. Technological environment: Technological environment refers to the changesin technology that affect the way that organizations operate and the services theyprovide.1.2. Task environment1.2.1.owners: Owners expect managers to watch over their interests and provide areturn on investments.1.2.2.suppliers: Suppliers are the people or organizations who provide the rawmaterial that a particular organization use to produce their output. A supplier’spricing strategy affects the revenue the organization earns.1.2.3.costumers: Customers are the final purchasers of a good or service, or absorbsthe organizational output. Studies or analyses of the expectations of the targetedcustomer base helps organizations deliver.bor: Labor market includes the people available for hire. Qualities, skills andknowledge possessed by the employees affect the performance of an organization to a great extent.petitors: Competitors present challenges as they vie for customers in amarketplace with similar products or services. The management of anorganization should be prepared to respond to the competitor policies.1.2.6.pressure groups: It is also necessary for organizations to identify specialinterest groups that attempt to influence it.1.3.Incremental Vs discontinuous change1.3.1.Incremental change – Changes that do not alter the basic nature of competitionin the task environment1.3.2.Discontinuous change – Changes that fundamentally transforms the nature ofcompetition in the task environment1.3.3.Punctuated Equilibrium – A view of industry evolution asserting that longperiods of equilibrium are punctuated by periods of rapid change when industrystructure is revolutionized by innovation1.4.Environmental UncertaintyThe environment is not only constantly changing, the nature of change is frequentlydifficult to predictManagement tries to deal with this by:•Collecting Information–Marketing Research–Competitive Intelligence•Exerting control2.Internal Environmentanization of the firm2.1.1.Defining Culture and Its Impact•(重要)Organizational culture is the shared values, principles, traditions, and waysof doing things that influence the way organizational members act•Important because it influences what a manager can and cannot do and what isencouraged or discouraged by the organization•Organizational culture isn’t concerned with whether members like it.•Employees describe the culture in similar terms despite their diversity.2.1.2.How Does Culture Affect What Employees Do?•A strong culture reflects employee acceptance of, and commitment to, theorganization’s key values.•The stronger the culture, the more it affects employee and manager actions.•A strong culture preempts the need for formal rules and regulations.2.1.3.Managerial Decisions Affected by Culture (in the Exhibit)2.1.4.Where Does Corporate Culture Come From? •Founder or early leader•Influential individual or work group•Policies, vision, or strategies•Traditions, supervisory practices,employee attitudes•The peer pressures that exist•Organizational politics•Relationships with stakeholders•Company’s approach to people management2.1.5.dimensions of culture2.2.Employees•human capital, mainly at knowledge, skills & capabilities 2.3.ResourcesTangible resources – physical assetsIntangible resources – non-physical assetsChapter 3 Globalization1.Globalization1.1.What Is Globalization and How Does It Affect Organizations?•Global Village — The concept of a boundaryless world where goods and services are produced and marketed worldwide•Multinational Corporation (MNC) — Any type of international company thatmaintains operations in multiple countries.•Multidomestic Corporation — An MNC that decentralizes management and otherdecisions to the local country where it’s doing business.•Global Corporation — An MNC that centralizes management and other decisions in the home country•Transnational (Borderless) Organization — A structural arrangement for globalorganizations that eliminates artificial geographical barriers1.2.How Do Organizations Go Global?•Global Sourcing — Purchasing materials or labor from around the world wherever it is cheapest•Exporting — Making products domestically and selling them abroad•Importing — Acquiring products made abroad and selling them domestically•Licensing — An agreement primarily used by manufacturing businesses in which an organization gives another the right, for a fee, to make or sell its products, using itstechnology or product specifications•Franchising — An agreement primarily used by service businesses in which anorganization gives another organization the right, for a fee, to use importing its name and operating method•Global Strategic Alliance — A partnership between an organization and a foreigncompany partner(s) in which resources and knowledge are shared in developing new products or building production facilities•Joint Venture — A specific type of strategic alliance in which the partners agree toform a separate, independent organization for some business purposes•Foreign Subsidiary — A direct investment in a foreign country that involves setting up a separate and independent facility or office (wholly-owned subsidiaries vs jointventures2.Global Environment2.1.What Do Managers Need to Know?•Parochialism — A narrow focus in which managers see things only through theirown eyes and from their own perspective•All countries have different values, morals, customs, political and economic systems, and laws, all of which can affect how a business is managed•Ethnocentrism is the notion that people in one’s own company, culture, or country know best how to do things.2.2.Hofstede’s Framework (在中文书P58)Studied differences in culture and found that managers and employees vary on five value dimensions of national culture:•Power Distance•Individualism vs. Collectivism•Achievement vs. Nurturing•Uncertainty Avoidance•Long-term vs. Short-term OrientationPower Distance Index•Measures the tolerance of social inequality, that is, power inequality between superiors and subordinates within a social system.–High PDI cultures tend to be hierarchical, with members citing social roles, manipulation, and inheritance as sources of power and social status.–Low PDI cultures tend to value equality and cite knowledge and achievement as sources of power.Individualism/Collectivism Index•Refers to the preference for behavior that promotes one’s self-interest–High IDV cultures reflect an “I” mentality and tend to reward and accept individual initiative–Low IDV cultures reflect a “we” mentality and generally subjugate the individual to the groupUncertainty Avoidance Index•Measures the tolerance of uncertainty and ambiguity among members of a society–High UAI cultures are highly intolerant of ambiguity, experience anxiety and stress, are concerned with security and rule following, and accord a high level of authority to rules as a means of avoiding risk.–Low UAI cultures are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks.Long-term vs. Short-term Orientation•Long-term orientation, which is the degree to which people look to the future and value thrift and persistence•short-term orientation, which is the degree to which people value the past and present and emphasizes respect for tradition and fulfilling social obligations.2.3.GLOBE Findings (Global Leadership and Organizational Behavior Effectiveness)•An ongoing cross-cultural investigation of leadership and national culture•Identified nine dimensions on which national cultures differ•Confirm that Hofstede’s dimensions are still valid, and extend his research rather than replace it3.What Does Society Expect from Organizations and Managers?Green Management•When managers recognize and consider the impact of their organization and itspractices on the natural environment•The idea of being environmentally friendly or green affects many aspects of business3.1.How Can Organizations Demonstrate Socially Responsible Actions?•Social Responsibility — A business firm’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society•Social Obligation — When a business firm engages in social actions because of itsobligation to meet certain economic and legal responsibilities•Social Responsiveness — When a business firm engages in social actions in response to some popular social needStakeholders are any constituencies in an organization’s environment that are affected by the decisions and actions of that organization.3.2.How Can Organizations Demonstrate Socially Responsible Actions?•Ethics — Commonly refers to a set of rules or principles that defines right and wrong conduct•Code of Ethics — A formal document that states an organization’s primary valuesand the ethical rules it expects managers and nonmanagerial employees to follow。
