THE PROCESS OF MANAGEMENT IN INTERNATIONAL BUSINESS

1. THE PROCESS OF MANAGEMENT IN INTERNATIONAL BUSINESS LEVELS OF MANAGEMENT EVOLUTION OF ORGANIZATIONS AND MANAGEMENT MANAGING NOW AND IN THE FUTURE Memory Reed Harris County High School July 2008

2. How Businesses Differ In Management • Span of Control – The number of employees the manager supervises depends on the size and type of business. • Lines of Authority – Who is responsible to whom and for what. • Delegation of Authority and Responsibility – The balance of delegating authority and responsibility to others and retaining enough to not lose control. Memory Reed Harris County High School July 2008

3. Span of Control • Front-line Managers – Oversee day-to-day operations in specific departments. • Middle Managers – Oversee the work and departments of several front-line managers • Senior Managers – Oversee the work and departments of several middle managers • Chief Executive Officer (CEO) – Highest manager is responsible for everybody and everything that happens within the organization. Memory Reed Harris County High School July 2008

4. Lines of Authority • As the business grows the employees and the managers need to know who is responsible for what. • Everyone also needs to clearly understand the chain of command. • Chain of Command – Organizational chart – who reports to whom. • Whenever there is something that needs to be addressed it is important that everything goes through the chain of command and lower level employees don’t skip over the people above them to address it with a higher level manager. Memory Reed Harris County High School July 2008

5. Delegation of Authority and Responsibility • Managers must balance the amount of authority and responsibility they delegate to their employees. • Too little – autocratic management – rebellion • Too much – free-rein management – chaos • Degree of Centralization – The amount of control the managers distribute to their organizational units or employees. • Centralized authority – autocratic • Decentralized authority - participative Memory Reed Harris County High School July 2008

6. Evolution of Organizations & Management • Domestic Company • Operates completely within country of origin • Easiest to manage • Exporting Company • Company begins to sell in other countries • Company uses independent agents or distributors to handle export operations • Multinational/International Corporation • Company has sites in other countries • Much more complex, management have to adapt to the countries or regions in which they are assigned. • Global Corporation • Operates on a worldwide basis as if no country boundaries exist • Managers need broad skills to be able to adapt to many different situations Memory Reed Harris County High School July 2008

7. Managing Now and In the Future • Management is changing with globalization • Managers will need to be able to meet the needs of diverse groups of people – boards of directors, shareholders, employees, customers, suppliers, government officials, etc. • Managers will need to be multilingual & multicultural • Managers must develop global strategic skills • Must be able to manage transition and change in a culturally diverse world • Must have outstanding communication skills • Must be able to acquire and transfer knowledge • Must be able to quickly adapt to change Memory Reed Harris County High School July 2008

8. The Process of Management in International Business THE END! Memory Reed Harris County High School July 2008

9. Works Cited • Dlabay, Les, and James Calvert Scott. International Business 3E. Mason, Ohio: Thomson-Southwestern, 2006. Memory Reed Harris County High School July 2008