April 30 2012
Introduction to global Management:
Exam is from discussion and the book
Organization and resources:
- Organization is a collection of people working together to achieve a common purpose
- mOrganizations provide useful goods and/or services that return value to society and satisfy
- Transform resources input to finish good.
- Categories of Organization
o Physical resources
Buildings, Boards, projectors, any physical asset
o Human resource
o Financial resources
- Organizations are open systems
Challenges of working in the new economy: TALENT
- People and their talents are important foundation of organization performance
- A knowledge worker’s mind is a critical asset to employers
- Intellectual capital: the collective brainpower or shared knowledge of a workforce that can
be used to create value.
- Employees- past and present
- What are the challenges regarding talent?
o Many have potential but it takes time
o Difficult to evaluate
o Hard to acquire the knowledge
o Hard to get them to work together
o Employee Retention may be harder if competitors want to take your employee
Challenges of working in the new economy: DIVERSITY
- Diversity is the differences with respect to gender, age, race, ethnicity, religion, sexual
- Both challenges and offers opportunities to employers.
- Does diversity create opportunity or challenges in the organization? o Gives an equal chance to difference races
o Bias for gender
o Helps a company to expand for multinational company.
o Diversity creates innovation
o Research shows the effect of culture and diversity – they had less innovation, the quality
of innovations was higher.
o When culture differences were too much there was too much of a barrier and hence
communication errors occurred. But for those that were able to successfully
communicate with each other the quality of innovation was much higher than
something else. This is because of their cognitive knowledge is very different.
How diversity bias can occur in the workplace?
- Prejudice: preconceived judgements toward people or a person- having attached a label to
- Glass ceiling effect: “the unseen barrier that keeps minorities and women from rising to the
upper levels of the corporate ladder, regardless of their qualifications or achievements”. Can
be women, minorities, disable etc.
Challenges of working in the new economy: GLOBALIZATION
- Globalization is the worldwide interdependence of resource flows, product markets, and
business competition that characterize the new economy.
- Disappearance of national boundaries of world business.
- What are the advantages and one disadvantages of globalization?
Increases Profit (larger market- larger number of products)
If not intertwined in globalization- in a recession it would still be independent
and not affected.
Unemployment of domestic workers may be higher.
When one area is affected it sprawls to affect other in the same industry
because they are intertwined. (like the euro decrease)
Globalization increases competition because there are companies globally.
Challenges of working in the new economy- TECHNOLOGY
- Continuing transformation of the modern workplace through:
o The Internet & World Wide Web
o Computer networking
o Information technology
o Telecommuting/virtual teaming/ mobile offices - Another challenge: Increase demand for knowledge workers with the skills to fully use
What are pros and cons of technology for organization?
o Its quick and efficient
o To keep yourself up to date with technology
Challenges of working in the new economy: ETHICS
What is Ethical?
- Ethics is the code of moral principles that set standards of conducts of what is good and
Ethical Expectations for modern businesses:
- Integrity and ethical leadership at all levels
- Sustainable development ( to preserve resources for future use- using in the most useful
- Natural environment protection
- Consumer protection
- Human rights
A Firm’s Ethical Responsibilities to Its Stakeholders**********
- Owners/shareholders- Rightfully expect some form of return on their investment
- Employees: rightfully expect to be treated with dignity and respect for devoting their
energies to the enterprise
- Customers- rightfully expect a seller to provide them with a reliable, safe product or service
- Suppliers: rightfully expect to have an equitable relationship with firms they supply and be
- Community: rightfully expect businesses to be good citizen in their community.
Example: Nutella sued for 3M dollars for false advertising.
Challenges of working in the new economy: CAREERS
- Challenge of graduates: finding full time job:
o Difficult in economic crisis
o Remember importance of online resume & job searches o Power of Social networking (Linkedin)
o Internship as a pathway for first job
- 3 Types of career
o Full-Time Core Worker
o Part-Time Temporaries
o Independent Contractor
- Probable to change job, so: be prepared to be any one of these types of workers.
- Like surfer
- People must make sure that their skills are portable and of current value in employment
Critical skills for success in the new workplace:
- Mastery (be able to contribute something of value)
- Love of technology
- Passion for ren