Wednesday, June 13, 2018

PART 2 - Foundations of Planning and Strategic Management

PART 2 - Foundations of Planning and Strategic Management by George on Scribd

PART 1 - Foundations of Management and Organizations and Global Management



Foundations of Management Learning Outcomes


Explain why managers are important to  
  organizations

Tell who managers are and where they work

Describe the functions, roles, and skills of 
  managers

Describe the factors that are reshaping and
  redefining the manager’s job

Explain the value of studying management


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Why are Managers Important?


Organizations need their managerial skills and 
  abilities more than ever in these uncertain,
  complex, and chaotic times.

Managerial skills and abilities are critical in
  getting things done.

The quality of the employee/supervisor
   relationship is the most important variable in
   productivity and loyalty.


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Who Are Managers?

Manager : 
Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished

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Classifying Managers


First-line Managers - Individuals who
   manage the work of non-managerial
   employees.

Middle Managers - Individuals who manage
   the work of first-line managers.

Top Managers - Individuals who are
   responsible for making organization-wide
   decisions and establishing plans and goals
   that affect the entire organization.


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Exhibit 1-1: Levels of Management


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Where Do Managers Work?


Organization - A deliberate arrangement of people assembled to accomplish some specific purpose (that individuals independently could not accomplish alone).
Common Characteristics of Organizations
qHave a distinct purpose (goal)
qAre composed of people
qHave a deliberate structure

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Exhibit 1-2:

Characteristics of Organizations


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What Do Managers Do?


Management involves coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively.

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Effectiveness and Efficiency


Efficiency
  - “Doing things right”
  - Getting the most output for the least inputs

Effectiveness
  - “Doing the right things”
  - Attaining organizational goals

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Exhibit 1-3:

Efficiency and Effectiveness
in Management




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Management Functions


Planning - Defining goals, establishing strategies to achieve goals, and developing plans to integrate and coordinate activities.
Organizing - Arranging and structuring work to accomplish organizational goals.
Leading - Working with and through people to accomplish goals.
Controlling - Monitoring, comparing, and correcting work.

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Exhibit 1- 4: Four Functions of Management  





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Management Roles



Roles are specific actions or behaviors expected of a manager.

Mintzberg identified 10 roles grouped around interpersonal relationships, the transfer of information, and decision making.

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Management Roles



Interpersonal roles
Figurehead, leader, liaison
Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Entrepreneur, disturbance handler, resource allocator, negotiator

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Skills Managers Need

Technical skills Knowledge and proficiency in a specific field

Human skills The ability to work well with other people

Conceptual skills The ability to think and conceptualize about abstract and complex situations concerning the organization

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Exhibit 1-6:
Skills Needed at Different
Managerial Levels

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Exhibit 1-7: 
Important Managerial Skills
Managing human capital
Inspiring commitment
Managing change
Structuring work and getting things done
Facilitating the psychological and social context of work
Using purposeful networking
Managing decision making process
Managing strategy and innovation
Managing logistic and technology

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The Importance of Customers

Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all managers and employees.
Consistent high quality customer service is essential for survival.

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The Importance of Innovation

Innovation
Doing things differently, exploring new territory, and taking risks.
Managers should encourage employees to be aware of and act on opportunities for innovation.

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The Importance of
Sustainability

Sustainability -
  a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.

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Why Study Management?

Universality of Management
The reality that management is needed
in all types and sizes of organizations
at all  organizational levels
in all organizational areas
in all organizations, regardless of location

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Global Management
Learning Outcomes

Contrast ethnocentric, polycentric, and geocentric attitudes toward global business
Discuss the importance of regional trading alliances and global trade mechanisms
Describe the structures and techniques organizations use as they go international
Explain the relevance of the political/legal, economic, and cultural environments to global business

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What’s Your Global  Perspective?

Parochialism - viewing the world solely through your own perspectives, leading 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.

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More Global Perspectives

Polycentric Attitude - the view that the managers in the host country know the best  work approaches and practices for running their business.
Geocentric Attitude - a world-oriented view that focuses on using the best approaches and  people from around the globe.

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Trading Alliances

European Union (EU) - a union of 27 European nations created as a unified economic and trade entity
Euro - a single common European currency


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Exhibit 3-1:
European Union Map


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Trading Alliances (cont.)

Nations (ASEAN) - a trading alliance of 10 Southeast Asian nations.
North American Free Trade Agreement (NAFTA) - an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated

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Exhibit 3-1:
ASEAN Map



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Global Trade Mechanisms

World Trade Organization (WTO) - a global organization of 153 countries that deals with the rules of trade among nations.
International Monetary Fund (IMF) - an organization of 185 countries that promotes international monetary cooperation and provides advice, loans, and technical assistance.

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Global Trade Mechanisms
(cont.)

World Bank Group - a group of five closely associated institutions that provides financial and technical assistance to developing countries.
Organization for Economic Cooperation and Development (OECD) - an international economic organization that helps its 30 member countries achieve sustainable economic growth and employment.

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Types of International
Organizations

Multinational Corporation (MNC) - a broad term that refers to any and all types of international companies that maintain operations in multiple countries.
Multidomestic Corporation - an MNC that decentralizes management and other decisions to the local country

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Types of International
Organizations (cont.)

Global Company - an MNC that centralizes management and other decisions in the home country.
Transnational or Borderless Organization - an MNC in which artificial geographical barriers are eliminated

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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

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Going Global (cont.)

Importing - acquiring products made abroad and selling them domestically.
Licensing - an organization gives another organization the right to make or sell its products using its technology or product specifications.
Franchising - an organization gives another organization the right to use its name and operating methods.
Strategic Alliance - a partnership between an organization and one or more foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities.
Joint Venture - a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.

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Exhibit 3-3:
How Organizations
Go Global



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The Economic Environment

Free Market Economy - an economic system in which resources are primarily owned and controlled by the private sector.

Planned Economy - an economic system in which economic decisions are planned by a central government

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The Cultural Environment

National Culture - the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important.

Global Leadership and Organizational Behavior Effectiveness (GLOBE) program - a research program that studies cross-cultural leadership behaviors

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Contemporary Issues

Cultural Intelligence - cultural awareness and sensitivity skills.

Global Mind-Set - attributes that allow a leader to be effective in cross-cultural environments

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Exhibit 3-7:
A Global Mindset



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"Introduction to Management and Business"
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