Principles of Management

1. Principles of Management Lesson 14 Flexibility/Agility: Life Cycle of Firm, Diversity, Global Dimensions of Business (Material from Management by Schermerhorn)

2. From Chapter 9: Flexibility in Strategy • Incrementalism • Modest and incremental changes in strategy occur as managers learn from experience and make adjustments. • Emergent strategies • Develop progressively over time in the streams of decisions that managers make as they learn from and respond to work situations.

3. From Chapter 8: Contingency Planning • Contingency planning • Identifying alternative courses of action that can be implemented to meet the needs of changing circumstances. • Contingency plans anticipate changing conditions. • Contingency plans contain trigger points.

4. From Chapter 8: Scenario Planning • Scenario planning • A long-term version of contingency planning. • Identifying alternative future scenarios. • Plans made for each future scenario. • Increases organization’s flexibility and preparation for future shocks.

5. From Chapter 2: Contingency Thinking • Contingency thinking • Tries to match managerial responses with problems and opportunities unique to different situations. • Especially individual or environmental differences. • No “one best way” to manage. • Appropriate way to manage depends on the situation.

6. From Chapter 2: Peters and Waterman’s Eight Attributes of Performance Excellence • Eight attributes of performance excellence: • A bias toward action • Closeness to the customer • Autonomy and entrepreneurship • Productivity through people • Hands-on and value-driven • Sticking to the knitting • Simple form and lean staff • Simultaneous loose-tight properties

7. From Chapter 2: The Learning Organization • Contemporary businesses must learn to become learning organizations. • Core ingredients of learning organizations: • Mental models • Personal mastery • Systems thinking • Shared vision • Team learning

8. From Chapter 6: Life Cycle of Firm • Life cycle of entrepreneurial firms • Birth stage • Breakthrough stage • Maturity stage • Each stage poses different managerial challenges and requires different managerial competencies.

9. Life Cycle Stages of A Firm • Maturity Stage • Refining the strategy • Continuing growth • Managing for success • Acceptance Stage • Establishing the firm • Getting customers • Finding the money • Breakthrough Stage • Working on finances • Becoming profitable • Growing Fighting for existence and survival Coping with growth and takeoff Investing wisely and staying flexible

10. From Chapter 4: How is diversity managed in a multicultural organization? • Diversity: • Describes differences among people at work. • How diversity is handled in the workplace reflects the organization’s culture. • Respect and inclusion. • Disrespect and exclusion. • A potential source of competitive advantage.

11. From Chapter 4: How is diversity managed in a multicultural organization? • Characteristics of multicultural organizations: • Pluralism • Structural integration • Informal network integration • Absence of prejudice and discrimination • Minimum intergroup conflict

12. From Affirmative Action To Managing Diversity Affirmative Action Create upward mobility for minorities and women Valuing Differences Build quality relationships with respect for diversity Managing Diversity Achieve full utilization of diverse human resources

13. Improved creativity – more ideas, perspectives Less groupthink – multiple viewpoints open discussion More concentration – everyone tries hard Mistrust Negative stereotyping Misunderstanding Inefficiencies Stress as pressure to perform builds DIVERSITY IN TEAMS What should happen Why it may not

14. From Chapter 2: What are continuing management themes of the 21st century? • Global awareness • Pressure for quality and performance excellence is created by a highly competitive global economy. • Has promoted increasing interest in new management concepts. • Process engineering • Virtual organizations • Agile factories • Network firms • Adoption of Theory Z management practices.

15. From Chapter 5: What are the forms and opportunities of international business? • Reasons for engaging in international business: • Profits • Customers • Suppliers • Capital • Labor

16. From Chapter 5: What are the forms and opportunities of international business? • Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments. • Types of market entry strategies: • Global sourcing • Exporting • Importing • Licensing agreement • Franchising

17. From Chapter 5: What are the forms and opportunities of international business? • Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations. • Types of direct investment strategies: • Joint ventures • Foreign subsidiaries

18. POPULAR CULTURE“Differences that the Traveler Notices” • Time -- monochronic vs. polychronic • Space -- interpersonal distance & proxemics • Language -- high context vs. low context • Religion -- traditions and respect for them CULTURE SHOCK -- discomfort felt when experiencing cultural differences

19. From Chapter 5: What is culture and how does it relate to global diversity? • Popular dimensions of culture: • Language • Low-context cultures and high-context cultures • Interpersonal space • Time orientation • Monochronic cultures and polychronic cultures • Religion • Contracts and agreements

20. From Chapter 5: What is culture and how does it relate to global diversity? • Values and national cultures (Hofstede): • Power distance • Uncertainty avoidance • Individualism-collectivism • Masculinity-femininity • Time orientation

21. From Chapter 5: What is culture and how does it relate to global diversity? • Understanding cultural differences (Trompenaars): • Relationships with people: • Universalism versus particularism • Individualism versus collectivism • Neutral versus affective • Specific versus diffuse • Achievement versus prescription • Attitudes toward time — sequential and synchronic views. • Attitudes toward environment — inner-directed and outer-directed cultures.