Environmental Challenges of International Management

International management functions
Political / legal environment

1. Government stability
2. Incentives for international trade
3. Controls on international trade
4. Economic communities

Economic environment

1. Economic system
2. Natural resources
3. Infrastructure

Cultural environment

1. Values, symbols, beliefs and language
2. Individual differences across cultures

An Integrative Framework of Management Perspectives

Effective and efficient management
Systems Approach
Recognition of internal interdependencies
Recognition of environmental influences

Contingency Perspective
Recognition of the situational nature of management
Response to particular characteristics of situation

Classical Management Perspective
Methods for enhancing efficiency and facilitating planning organizing and controlling.

Behavioral Management Perspectives
Insights for motivating performance and understanding individual behavior groups and teams and leadership.

Quantitative Management Perspective
Techniques for improving decision making resource allocation and operations.

Management Ethics

Employees to Organization

• Conflict of interest
• Secrecy and confidentiality
• Honesty

Organization to Employees

• Hiring and firing
• Wages and working conditions
• Privacy and respect

Subject To Ethical Ambiguities

1. Advertising and promotions
2. Ordering and purchasing
3. Bargaining and negotiation
4. Financial disclosure
5. Shipping and solicitation

Other business relationships

1. Economic Agents
2. Customers
3. Competitors
4. Stockholders
5. Suppliers
6. Dealers
7. Unions

Individual Differences Across Cultures

Individual Differences Across Cultures

Social Orientation

Relative importance of the interests of the individual vs. the interests of the group.

- Individualism

The interests of the individual take precedence

- Collectivism

The interests of the group take precedence

Power Orientation

The appropriateness of power / authority within organizations

- Power Respect

Authority is inherent in one’s position within a hierarchy

- Power Tolerances

Individuals assess authority in view of its perceived rightness or their own personal interest

Uncertainty Orientation

An emotional response to uncertainty and change

- Uncertainty Acceptance

Positive response to change and view opportunities

- Uncertainty Avoidance

Prefer structure and a consistent routine

Goal Orientation

What motivates people to achieve different goals

- Aggressive Goal Behavior

Value material possessions, money, and assertiveness

- Passive Goal Behavior

Value social relevance, quality of life and the welfare of others

Time Orientation

The extent to which members of a culture adopt a long-term or a short-term outlook on work and life

- Long-Term Outlook

Value dedication, hard work and self-image

- Short-Term Outlook

Place less emphasis on hard work

The Administrative Management

Emerged in 1916 by Henri Fayol POCCC

Fayol’s 14 Principles of Management

1.Division of Work

2.Authority

3.Discipline

4.Unity of Command

5.Unity of Direction

6.Subordination of individual interest to the general interest

7.Remuneration

8.Centralization

9.Scalar chain

10.Order

11.Equity

12.Stability and tenure of personnel

13.Initiative

14.Esprit de corps

Steps in Scientific Management

1.Develop a science for each element of the job to replace old rule-of-thumb methods.

2.Scientifically select employees and then train them to do the job as described in step 1.

3.Supervise employees to make sure they follow the prescribed methods for performing their jobs.

4.Continue to plan the work but use workers to actually get the work done.