Escolar Documentos
Profissional Documentos
Cultura Documentos
• Scientific Management
• Frederick W. Taylor
• Standard rules, processes, working conditions for every job – ‘one best way’
• Selection of workers
• Training of workers
• Incentives for workers
• Support for workers
• Frank Gilbreth
• Lillian Gilbreth
• Time and motion studies
• Lillian pioneered industrial psychology
• Administrative Principles
• Henri Fayol
• Planning
• Organising
• Commanding
• Coordinating
• Controlling
• Mary Parker Follett
• Groups as mechanisms for combining individual talents for a greater good.
• Organisations as cooperating ‘communities’ of managers and workers
• Employee ownership
• Private profits relative to public good
• Bureaucracy
• Max Weber
• Rational authority not personal/family/religious
• Rational authority based on structure and positions
• Therefore, rules and written records provide continuity
• Clear definitions of authority and responsibility
• Positions are organised hierarchically.
• Selection and promotion based on technical qualifications
• Administrative acts and decisions are recorded
• Management is separate from ownership.
• Rules and procedures are uniformly applied to all employees.
• Disadvantages
• Excessive paperwork or ‘red tape’
• Slowness in handling problems
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• Hawthorne Studies
• Series of experiments
• Illumination Study
• Both control (no change) and experimental group (illumination change)
increased productivity
• Relay Assembly Room
• Piece-work for 8 weeks
• Productivity went up
• Two five-minute rest periods for 5 weeks
• Productivity went up
• Rest periods lengthened to 10 minutes
• Productivity went up
• Provided with a free hot meal at the first break
• Productivity went up
• Dismissed at 4:30pm instead of 5:00pm
• Productivity/ output went up
• Dismissed at 4:00pm instead of 4:30pm
• Output remained the same
• Finally, all improvements removed
• 48 hour week, no piece-work
• Work Saturdays
• No extra breaks, no free meal
• Highest productivity ever – lasted 12 weeks
• Reasons for productivity increase:
• Group Atmosphere
• Participative Supervision
3. Quantitative Management Approaches
• Management Science
• Application of mathematics, statistics and other quantitative techniques to
managerial problems
• Also called Operations Research
• Techniques:
• Mathematical forecasting
• Inventory modelling
• Linear programming
• Queuing theory
• Network models
• Simulation
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• Contingency theory
• Solving organisational problems depends on managers identifying key variables in
the situation at hand
• Classical perspective = universalist
• Contingency view = each situation is unique (Eg industry, technology, the
environment and international cultures)
• To define leadership
• Leadership: the process of inspiring others to accomplish important tasks.
• To distinguish between leaders and managers and to understand the impact of different
sources of power on leadership
• Power : the ability to get someone else to do something you want or to make things
happen the way you want.
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• Economic conditions
• The overall health of the economic system
of the country (countries) and regions in
which the organisation operates
• Sociocultural conditions:
• The customs, social values,
educational trends and demographic
characteristics of the society in which
the organisation functions
• Legal-political conditions
• The prevailing philosophy of the
political system and party or parties
running government as well as the
general relationship between business
and government, including government
regulation of business in general
• Technological conditions
• The development and availability of technology in the
industry and society at large, including advances in the methods available for
converting resources into products and services
• Natural environment conditions
• The general state of the natural environment, including levels of public concern
expressed through environmentalism
• International conditions
• Events originating in foreign countries, as well as opportunities for local
organisations in other countries
• To identify and analyse the conditions that make up the specific environment of an
organisation
• Customers
• Consumer or client groups, individuals and organisations that purchase the
organisation’s goods and/or services
• Suppliers
• Provide the human, information and financial resources and raw materials that the
organisation uses to produce its output
• Competitors
• Other organisations in the same industry or type of business that offer the same
or similar goods and services to the same consumer or client groups
• Regulators
• Specific government agencies and representatives that enforce laws and
regulations affecting the organisation’s operations
• To understand organisational culture as a major factor in the internal environment of an
organisation, including both observable culture and core culture
• The internal environment comprises factors inside the boundaries of the organisation
• Internal environments are important because they affect what people think, feel and
do at work
• A key component of the internal environment is organisational culture, which is the
system of shared beliefs and values that develops within an organisation and guides
the behaviour of its members
• Observable culture!
• What can be observed directly in the daily life of an organisation
• Seen = Surface level
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• Occupational
• Functional
• Ethnic
• Racial
• Generational
• Gender.
• The presence of subcultures which have values that do not support the core
values of the organization may make it more difficult to respond in appropriate
ways to the external environment
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• Corporate-level strategies
• Growth Strategies = Expansion of organisation’s current operations
• Concentration
• Growth in same business area
• Diversification
• Growth in new or different business areas
• Vertical Integration
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• Advantages
• Economies of scale and efficient resource use
• Task assignment consistent with expertise and training
• In-depth training and skill development within functions
• Clear career paths within functions
• High quality technical problem solving
• Disadvantages
• Poor communication and coordination across functions – ‘functional chimneys
problem’
• Slow response to external changes
• Decisions concentrated at top leading to delay
• Responsibility for problems difficult to pinpoint
• Limited view of organisational goals by employees
• Limited general management training for employees
• Divisional Structures
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• Group together people who work on the same product or process, serve similar
customers and/or are located in the same area or geographical region
• Common in complex organisations
• Avoid problems associated with functional structures.
• Advantages
• Fast response, flexible in uncertain environment
• Expertise focused on specific customers, products or regions
• Improved coordination across functional departments
• Easy to pinpoint responsibility for product problems
• Develops general management skills
• Disadvantages
• Duplication of resources across divisions
• Less technical depth and specialisation
• Poor coordination across divisions
• Less top management control
• Competition between divisions for corporate resources
• Emphasis on division goals to detriment of organisation as a whole
• Matrix Structures
• Combines functional and divisional structures to gain advantages and minimise
disadvantages of each
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• Advantages
• Better interfunctional cooperation
• Increased flexibility
• Better customer service
• Better performance accountability
• Improved strategic management
• Improved decision making at the team level
• Develop generalists and specialists
• Disadvantages
• Frustration and confusion for matrix members from dual chain of command
• Power struggles between functional supervisors and team leaders
• Many meetings, more discussion than action
• Team loyalties may cause loss of focus on organisational goals
• Increased cost of adding team leaders to the matrix structure
• Team Structures
• Cross-functional teams to solve problems and complete special projects – may be
permanent or temporary
• Advantages
• Reduced barriers among departments
• Quicker decisions
• Improved morale due to cross-functional interaction
• Disadvantages
• Conflicting loyalties
• Time and resources spent on meetings
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• Network Structures
• A central core that is linked through networks
of relationships with contractors and outside suppliers of essential services
• Advantages
• Organisations can work with fewer full-time employees and less complex
internal systems
• Reduced operating costs and increased efficiency
• Disadvantages
• Control and coordination problems may arise from network complexity
• Potential loss of control over outsourced activities
• May lack cohesive corporate culture
• Boundaryless Organisations
• Eliminates internal boundaries among parts and external boundaries with the
external environment
• Combination of team and network structures
• Internally
• Teamwork and intense communication take the place of formal lines of
authority
• Externally
• Shifting mix of outsourcing contracts and operating alliances that form and
disband with changing circumstances
• To describe organisational design and distinguish the two major choices in organisational
design (mechanistic vs adaptive designs)
• Organisational design
• Choosing and implementing structures that best arrange resources to serve the
organisation’s mission and objectives
• Chandler argued structure should follow strategy
• Two broad choices:
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• To explain the contingency factors that influence the choice of organisational design
• To identify contemporary organising trends
• Shorter chains of command
• Less unity of command
• Wider spans of control
• More delegation and empowerment
• Decentralisation with centralisation
• Reduced use of staff
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• Off-the-job training
• Management development
• Performance Management Systems
• Sets standards, assesses results and plans for performance improvements
• Important component of Performance Management System is Performance
Appraisal:
• Process of formally evaluating performance and providing feedback to the job
holder
• Evaluation purpose
• Manager acts in judgmental role
• Development purpose
• Manager acts in counseling role
• Performance Appraisal methods:
• Graphic rating scales
• Behaviourally anchored rating scale
• Critical-incident technique
• Multiperson comparisons
• New approaches
• eg peer appraisal, upward appraisal, 360º feedback
• To distinguish between the corporate-level strategies that organisations can adopt for
their international operations and to understand when each strategy is appropriate
• Type of corporate strategy selected will have an impact on the selection and
implementation of the business-level strategies (low cost or differentiation)
• Four Corporate-Level Strategies for International Operations
• International Strategy
• Transfer core competencies to foreign markets lacking these
• Centralise product development at home
• Establish manufacturing facilities and marketing function in host countries
• Very limited local customisation, if any
• Strong home country, head office control over foreign operations
• Multidomestic Strategy
• Strategy and operating decisions are decentralised to strategic business units
(SBU) in each country
• Products and services are tailored to local markets
• Business units in each country are independent of each other
• Assumes markets differ by country or regions
• Focus on competition in each market
• Prominent strategy among European firms due to broad variety of cultures and
markets in Europe
•
• Global Strategy
• Products are standardised across national markets
• Decisions regarding business-level strategies are centralised in the home
office
• Strategic business units (SBU) are assumed to be interdependent
• Emphasises economies of scale
• Often lacks responsiveness to local markets
• Requires resource sharing and coordination across borders (which also makes
it difficult to manage)
• Transnational Strategy
• Seeks to achieve both global efficiency and local responsiveness
• Difficult to achieve because of simultaneous requirement for strong central
control and coordination to achieve efficiency and local flexibility and
decentralisation to achieve local market responsiveness
• Must pursue organisational learning to achieve competitive advantage
High
Need for
Global
Integration:
Cost
Pressures International
Low
Low High
Need for Local Market Responsiveness
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• To identify the modes of entry into foreign markets and to understand when each mode is
appropriate
• Exporting
• Common way to enter new international markets
• No need to establish operations in other countries
• Establish distribution channels through contractual relationships
• May have high transportation costs
• May encounter high import tariffs and other trade barriers
• May have less control over marketing and distribution
• Difficult to customise products
• Licensing
• Firm authorises another firm to manufacture and sell its products
• Licensing firm is paid a royalty on each unit produced and sold
• Licensee takes risks in manufacturing investments
• Least risky way to enter a foreign market
• Licensing firm loses control over product quality and distribution
• Relatively low profit potential
• A significant risk if the licensor learns technology and competes when license
expires
• Strategic Alliances
• Enable firms to shares risks and resources to expand into international ventures
• Most joint ventures (JVs) involve a foreign company with a new product or
technology and a host company with access to distribution or knowledge of local
customs, norms or politics
• May experience difficulties in merging disparate cultures
• May not understand the strategic intent of partners or experience divergent goals
• Acquisitions
• Enable firms to make most rapid international expansion
• Can be very costly
• Legal and regulatory requirements may present barriers to foreign ownership
• Usually require complex and costly negotiations
• Potentially disparate corporate cultures
• New Wholly-Owned Subsidiary
• Most costly and complex of entry alternatives
• Achieves greatest degree of control
• Potentially most profitable, if successful
• Maintain control over technology, marketing and distribution
• May need to acquire expertise and knowledge that is relevant to host country
• Could require hiring host country nationals or consultants at high cost
• Management theories are not universal – most theories in this course are framed
from a North American and Western European perspective
• Cross-cultural differences mean management practices cannot always be
transferred successfully from one national culture to another
•
•
• To describe how political risk, economic risk and ethics affect the management of
international operations
• Political risk
• Possible loss of investment or control over a foreign asset because of political
changes in the host country
• Economic risk
• Exchange rate fluctuations and differences in inflation rates may affect ability to
compete
• Ethics
• Corruption, sweatshops, child labour, sustainable development
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• BUT…research shows that being first-to-market is not always best. Often it’s the
fast second or third follower who goes on to be the market leader.
• Why?
• Fast followers learn from the costly mistakes of the pioneer in product
development and can watch how the market responds
• Also, the 2nd mover usually does not suffer from ‘public backlash’ because
they are not in the limelight. For example, Adidas versus Nike, Burger King
versus McDonalds
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• To explain the innovation process, including the roles and uncertainties within that
process
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• Change agent
• A person or group who takes leadership responsibility for changing the
existing pattern of behaviour of another person or social system.
• Change leadership
• Forward-looking
• Proactive
• Embraces new ideas.
• Managing Change
• Resistance to change
• Causes:
• Eg: Fear of the unknown, disrupted habits, loss of control, poor timing,
work overload
• Methods for dealing with resistance:
• Eg: Education and communication, participation, facilitation and
support, implicit or explicit coercion
• To understand the connection between innovation and organisational change
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