MANAGEMENT BY MARY COULTER PART 3 (SUMMARY)

Omnipotent view of management: the view that managers are directly responsible for an organization success or failure

Symbolic view: the view that much of an organization success or failure is due to external forces outside manager’s control

Organizational culture: the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. Every company has an organizational culture.

How do employees learn about culture? Rituals, symbols, language and stories

Culture can be defined as all the behaviours, ways of life, arts, beliefs and institutions of a population that are passed down from generation to generation.(values, heroes, rituals, cultural network even within a company)

Innovative culture: Give the employees enough freedom, trust, join decision-making, etc.

Strong cultures: organizational cultures in which the key values are intensely held and widely shared Weak cultures: organizational cultures in which the key values are less intensely held and easier to change compared to a strong culture.

 Multinational Corporation: connect global perspective.

Companies expand but why? Different economies of scale on existing products, opportunities/unserved market, attack competitor in its home market, spread investment in new products.

Parochialism: viewing the world solely through one’s own eyes and perspectives and not recognizing that others have different ways of living and working. Parochialism leads to an inability to recognize differences between people.

Ethnocentric attitude: the parochialistic belief that the best work approaches and practices are those of the home country. (Global company, centralized management, global efficiency)

Polycentric attitude: the view that the managers in the host country know the best work approaches and practices for running their business. (Multi-domestic cooperation, decentralized management in different countries).

Geocentric attitude: a world-oriented on using the best approaches and people from around the globe. (Transnational/borderless organizations, eliminates geographic barriers, also in organizational structure).

How organizations go international

Global sourcing: purchasing materials or labor from around the world based on lowest cost

Exporting: making products domestically and selling them abroad.

Importing: purchase products made abroad and sell them domestically

Licensing: an agreement in which an organization gives another organization the right to make or sell its products, using its technology or product specifications.

Franchising: an agreement in which an organization gives another organization the right to use its name and operating methods.

Strategic alliance: a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

·         Makes it easy to buy and sell goods between the members of the alliance

·         Makes it harder for other countries to sell into the alliance

A trade alliance has quotas- limit on the amount of goods that can be sold in the country

Taxes- have tariffs on import products to make the product more expensive.

Social obligation: a firms engaging in social actions because of its obligation to meet certain economic and legal responsibilities

Classical view: the view that managements only social responsibility is maximize profits Socioeconomic view: the view that management social responsibility goes beyond making profits and includes protecting and improving society’s welfare

Social responsiveness: a firm engaging in social actions in response to some popular social need Social responsibility; a business intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.