Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
FOUNDATIONS OF MANAGEMENTFall 2008
Reading AssignmentJones and George
Chapter 2, Chapter 3, pp. 97-110Chapter 4, pp. 133-143Chapter 6, pp. 205-209
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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…
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
– 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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?
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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.
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• Americans say they want to “Buy American”
• Country of manufacture– where the product is made– Consumers don’t know or care.
• Country of origin– company’s home country– Customers confuse country of
origin with country of manufacture.
Americans Want American-Made Goods
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Trade Rules and Agreements
Tariff andNon-Tariff
Trade Barriers
TradeAgreements
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Trade Barriers
Nontariff Barriers
Nontariff Barriers
TariffTariff
Voluntary export restraintsVoluntary export restraints
Government import standards Government import standards
Customs classificationCustoms classification
QuotasQuotas
SubsidiesSubsidies
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Trade Agreements
Regional Trading Zones
Regional Trading Zones
General Agreementon Tariffs and Trade
(GATT)
General Agreementon Tariffs and Trade
(GATT)
European UnionEuropean Union
NAFTA NAFTA
ASEAN and APECASEAN and APEC
FTAAFTAA
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
World Trade Organization (WTO)
Location: Location: Geneva, Geneva, SwitzerlandSwitzerlandEstablished: Established: 1 January 19951 January 1995Created by: Created by: Uruguay Round Uruguay Round negotiations (1988-1994)negotiations (1988-1994)Membership:Membership: 146 countries 146 countries (as of 4 April 2003)(as of 4 April 2003)Budget: Budget: 154 million Swiss 154 million Swiss francsfrancsfor 2003for 2003Secretariat staff: Secretariat staff: 550550Head: Head: Supachai Panitchpakdi Supachai Panitchpakdi (director-general(director-general
Functions:Functions: Administering WTO trade Administering WTO trade
agreementsagreements Forum for trade Forum for trade
negotiationsnegotiations Handling trade disputesHandling trade disputes Monitoring national trade Monitoring national trade
policiespolicies Technical assistance and Technical assistance and
training for developing training for developing countriescountries
Cooperation with other Cooperation with other international international organizationsorganizations
http://www.wto.org
http://www.wto.org
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Regional Trade Agreements
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• Originally, 12 (now 15) European countries
• 13 other countries haverecently 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)
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
NAFTA
• North American Free Trade Agreement between Canada, United States, & Mexico
• Liberalizes trade among these three nations
• Eliminates most tariffs and barriers
http://www.mac.doc.gov/nafta/http://www.mac.doc.gov/nafta/
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
http://www.ftaa-alca.org
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
ASEAN and APEC
http://www.aseansec.orghttp://www.aseansec.org
• 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)
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
How to go GlobalWays in Which Companies can enter the Global Market Place
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
CooperativeContracts
StrategicAlliancesExporting
WhollyOwned
Affiliates
GlobalNew
Ventures
Forms for Global Business
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Allows companies to earn profits withoutinvesting more money
The licensor invests in production equipment and facilities
Helps companies avoid tariff and nontariff barriers
Allows companies to earn profits withoutinvesting more money
The licensor invests in production equipment and facilities
Helps companies avoid tariff and nontariff barriers
Advantages
Licensor gives up control over quality ofthe product or service sold by the foreign licensee
Licensees can eventually become competitors
Licensor gives up control over quality ofthe product or service sold by the foreign licensee
Licensees can eventually become competitors
Disadvantages
Licensing
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Fast way to enter foreign markets
Good strategy when a company’sdomestic sales have slowed
Fast way to enter foreign markets
Good strategy when a company’sdomestic 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Strategic Alliances
StrategicAlliance
StrategicAlliance
An agreement in which companies combine key resources, costs, risk, technology, and people
An agreement in which companies combine key resources, costs, risk, technology, and people
JointVenture
JointVenture
A strategic alliance in which twoexisting companies collaborate toform a third, independent company
A strategic alliance in which twoexisting companies collaborate toform a third, independent company
StrategicAlliance
StrategicAlliance
An agreement in which companies combine key resources, costs, risk, technology, and people
An agreement in which companies combine key resources, costs, risk, technology, and people
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Joint Ventures
Help companies avoid tariff and nontariff barriers to entry
Participating companies bear only partof the costs and risks
Advantageous to smaller local partners
Help companies avoid tariff and nontariff barriers to entry
Participating companies bear only partof 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Wholly Owned Affiliates (Build or Buy)
Parent company receives all of the profits and has complete control
Parent company receives all of the profits and has complete control
Advantages
Expense of building new operationsor buying existing business
Losses can be immense if the venture fails
Expense of building new operationsor buying existing business
Losses can be immense if the venture fails
Disadvantages
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Finding the Best Business Climate
Access toGrowingMarkets
Access toGrowingMarkets
Location to
Build
Location to
BuildMinimalPolitical
Risk
MinimalPolitical
Risk
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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.
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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.
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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…
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Organizational Culture
The Sociocultural Environment
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Organizational Culture
• Cultural factors are more complex than political and economic factors.
• It is imperative that international managers understand and deal with local cultures.
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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.
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
The Role of National Culture
Norms– Informal, unwritten rules and codes of
conduct that prescribe how people should act in particular situations.
• Folkways—routine social conventions of everyday life
• Mores - norms that are considered to be central to functioning of society and to social life
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Value System
Multiple beliefs that are compatible and supportive of one another
Greatly affect how a manager: Views other people/groups, thus
influencinginterpersonal relationships
Perceives situations and problems Goes about solving problems Determines what is and is not ethical
behavior Leads and controls employees
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Factors Affecting Organizational Culture
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Symbolic artifacts
Behaviors
Symbolic artifacts
Behaviors1. Surface Level1. Surface Level SEENSEEN
What people say
How decisions are made
What people say
How decisions are made
2. Expressed Values and Beliefs
2. Expressed Values and Beliefs HEARDHEARD
Beliefs and assumptions
Rarely discussed
Beliefs and assumptions
Rarely discussed
3. Unconsciously Held Assumptions and Beliefs
3. Unconsciously Held Assumptions and Beliefs
BELIEVEDBELIEVED
Levels of Organizational Culture
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Socialization
Organizational socialization – process by which newcomer’s learn an organization’s values and norms and acquire the work behaviors necessary to perform jobs effectively
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
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 company’s culture
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Becoming Aware of Cultural Differences
Cultural Dimensions
(Geert Hofstede)
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Preparing for an International Assignment
Language andCross-Cultural Training
Considerationof Spouse, Family,
and Dual-Career Issues
Language andCross-Cultural Training
Considerationof Spouse, Family,
and Dual-Career Issues
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Language and Cross-Cultural Training
Documentary TrainingDocumentary Training
Cultural SimulationCultural Simulation
Field ExperiencesField Experiences
Adaptability ScreeningAdaptability Screening
Intercultural TrainingIntercultural Training
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Domestic and International Diversity
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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– Diversity’s positive effect on organizational
performance– The continuing bias toward diverse
individuals
Domestic and International Diversity
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Diversity Concerns
• The ethical imperative for equal opportunity
• Effectively managing diversity can improve organizational effectiveness
• The continuing bias toward diverse individuals
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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 Poor
Components of Diversity
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
Sources of Diversity in the Workplace
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• 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
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
• Steps in Managing Diversity Effectively (cont’d)– 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 (cont’d)
Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 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 andSocial Responsibility
UNIT 4 – Planning as aDecision-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 MANAGEMENTUNIT 2 - International Management and Diversity
FOUNDATIONS OF MANAGEMENTFall 2008 - The End
Dr. Eliot S. Elfner
Professor of Business Administration
St. Norbert College
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