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Ryerson University
Global Management Studies
GMS 200
Shavin Malhotra

Lecture 1 GMS Notes Overview of the 21 century workplace • Organizations must adapt to rapidly changing society • Economy is global and driven by innovation and technology • High performing companies gain extraordinary results from people working for them • Interdependent, knowledge based What are the challenges of working in the new economy? Intellectual capital • - people are the ultimate foundations of organizational performance • - intellectual capital is the collective brainpower or shared knowledge of a workplace that can be used to create value • - a knowledge worker adds to the intellectual capital of an organization Globalization • - National boundaries are the worldwide interdependence of resource flows, product markets, and business competition that characterize the new economy. Technology • - continuing transformation of the modern workplace through: o the internet o world wide web o Computers o Information technology • - increasing demand for knowledge workers with the skills to fully utilize technology. Diversity • Workforce diversity reflects differences with respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness • A diverse and multicultural workforce both challenges and offers opportunities to employees Ethics • Code of moral principles • Society requires businesses to operate according to high moral standards • Emphasis today on restoring the strength of corporate governance Careers • Career of 21 century won’t be uniformly full-time and limited to a single larger employer • Skills must be portable and always of current value What are organizations like in the new workplace? • Critical skills for success in the new workplace o Mastery o Contacts o Entrepreneurship o Love of technology o Marketing o Passion for renewal Organization • A collection of people working together to achieve a common purpose • Organizations provide useful goods and/or services that return value to society and satisfy customer needs Organizations are open systems • Composed of interrelated parts that function together to achieve a common purpose • Interact with their environments • Transform resource inputs into product outputs (goods and services) • Environmental feedback tells organization how well it is meeting the needs of customers and society Organizational performance • Value is created when an organizations operations adds value to the original cost of resource inputs. • When value creation occurs: o Businesses earn a profit o Non-profit organizations add wealth to society • Productivity o An overall measure of the quantity and quality of work performance with resource utilization taken into account • Performance effectiveness o An output measure of task or goal accomplishment • Performance efficiency o An input measure of the resource costs associated with goal accomplishment • Workplace changes that provide a context for studying management o Belief in human capital o Demise of “command-and-control” o Emphasis on teamwork o Pre-eminence of technology o Embrace of networking o New workforce expectations o Concern for work-life balance o Focus on speed • Importance of human resources and managers o Toxic workplaces treat employees as costs o High performance organizations treat people as valuable strategic assets o Managers must ensure that people are treated as strategic assets Who are managers and what do they do? • A manager is a person in an organization who supports and is responsible for the work of others • The people who managers help are the ones whose tasks represent the real work of the organization • Levels of management: o Top managers – responsible for performance of an organization as a whole or for one of its larger parts o Middle managers – in charge of relatively large departments or divisions o Project managers – coordinate complex projects with task deadlines o Team leaders or supervisors – in charge of a small work group of non-managerial workers. • Responsibilities of team leaders: o Plan meetings and work schedules o Clarify goals and tasks, and gather ideas for improvement o Appraise performance and counsel team members o Recommend pay raises and new assignments o Recruit, develop, and train team members o Encourage high performance and teamwork o Inform team members about organizational goals and expectations o Inform higher levels of work unit needs and accomplishments o Coordinate with others teams and support the rest of the organization • Types of managers o Line managers are responsible for work activities that directly affect organizations outputs o Staff managers use technical expertise to advise and support the efforts of line workers o Functional managers are responsible for a single area of activity o General Managers are responsible for more complex units that include many functional areas. o Administrators work in public and non-profit organizations • Managerial performance and accountability o Accountability is the requirement of one person to answer to a higher authority for relevant performance results o Effective managers fulfill performance accountability by helping others to achieve high performance outcomes and experience satisfaction in their work. • Quality of work life (QWL) o An indicator of the overall quality of human experiences in the workplace o QWL indicators  Fair pay  Safe working conditions  Opportunities to learn and use new skills  Room to grow and progress in a career  Protection of individual rights  Pride in work and in the organization • High performing managers o Build working relationships with others o Help others develop their skills and performance competencies o Foster teamwork o Create a work environment that is performance driven and provides satisfaction for workers. • The organization as an upside down pyramid o Each individual is a value-added worker o A manager’s job is to support workers’ efforts o The best managers are known for helping and supporting What is the management process? • Management is the process of planning, organizing, heading, and controlling the use of resources to accomplish performance goals. • All managers are responsible for the four functions. • The functions are carried on continually. • Functions of management o Planning  The process of setting objectives and determining what actions should be taken to accomplish them o Organizing  The process of measuring work performance, comparing results to objectives and taking corrective action as needed. • Managerial activities and roles o Interpersonal roles  Involve interactions with persons inside and outside the work unit o Informational roles  Involve giving, receiving and analyzing of information o Decisional roles  Involve using information to make decisions in order to solve problems or address opportunities • Characteristics of managerial work o Managers work long hours o Managers work at an intense pace o Managers work at fragmented and varied tasks o Managers work with many communication media o Managers work largely through interpersonal relationships • Managerial agendas and networks o Agenda setting  Development of action priorities for ones job  Include goals and plans that span long and short time frames o Networking  Process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas How do you learn the essential managerial skills and competencies? • Essential managerial skills o Skill – the ability to translate knowledge into action that results in desired performance o Technical skill – the ability to apply a special proficiency or expertise to perform particular tasks. o Human skill – the ability to work well in cooperation with others o Conceptual skill – the ability to think critically and analytically to solve complex problems • Managerial competency o A skill based capability that contributes to high performance in a management job o Managerial competencies are implicit in:  Planning, organizing, leading and controlling  Informational, interpersonal, and decisional roles  Agenda setting and networking • Competencies for managerial success o Communication o Teamwork o Self-management o Leadership o Critical thinking o Professionalism Lecture 2 GMS Notes – Information and Decision Making Information technology and the new workplace • Knowledge and knowledge workers provide a decisive competitive factor in today’s economy • Knowledge worker o Intellectual capital o Knowledge and intellectual capital are irreplaceable organizational resources o The productivity of knowledge and knowledge workers depends on:  Computer competency &  Information competency. IT & New Workplace • Electronic commerce (B2C, e-commerce, B2B e –commerce) • Stages of development in e-commerce: o Secure an online identity o Establish a web presence o Enable e-commerce o Provide e-commerce and customer relationship management o Utilize a service application model o IT facilitates communication and information sharing, reduction in the number of middle managers, better organizational structure and excellent coordination and control. • IT builds relationships with external environment • IT has changed the new workplace (email, P2P – peer-to-Peer file sharing) • Data is raw facts and observation • Information is data made available for decision making • Good information must be timely, high quality, complete, relevant and understandable. The role of information in the management process • data – information – decision making • information exchanges with the external environment and within the organization • information system • management information system (MIS) • Decision support system (DSS) • Artificial intelligence (AI) • Expert systems (ES) • Intranets and corporate portals • Extranets and enterprise portals • Electronic data interchange (EDI) • Advantages of IT o Planning advantages o Organizing advantages o Leading advantages o Controlling advantages • The manager is the processing nerve centre. Information and decision making • A performance deficiency is actual performance being less than desired performance • A performance opportunity is actual performance being better than desired performance • Problem solving is the process of identifying a discrepancy between actual and desired performance and taking to correct it • A decision is a choice among possible alternative course of action. o Certain environments o Risk environments o Uncertain environments • Problem solving styles o Problem avoiders, solvers, seekers. • Systematic versus intuitive thinking o Rational vs. Flexible o A combinational of both systematic and intuitive thinking leads to excellent problem solving. Steps in the decision making process: • Identify and define the problem • Generate and evaluate the possible solutions • Choose a preferred course of action and conduct the “ethics double check” • Implement the decision • Evaluate results Current issues in managerial decision making • Types of heuristics for simplifying decision making: o Availability heuristic o Representativeness heuristic o Anchoring and adjustment heuristic • Escalating commitment • Ways to avoid escalation trap o Set advance limits and stick to them o Make your own decisions o Carefully determine why you are continuing a course of action o Remind yourself of the costs o Watch for escalation tendencies • Potential advantages of group decision making: o Greater amounts of info, knowledge, and expertise are available o More action alternatives are considered o Increased understanding and acceptance of outcomes o Increased commitment to implement final plans • Potential disadvantages of group decision making: o Pressure to conform o Minority domination may occur o Decision making takes longer • Knowledge management • Chief knowledge officer (CKO) • Knowledge management requires a culture that values learning fosters a learning organization • Ethical decision making • Ethical decisions satisfy the following criteria: o Utility o Rights o Justice o Caring Lecture 3 GMS Notes Culture and its relationship with global diversity • Values and national cultures (hofstede): o Power distance o Uncertainty avoidance o Individualism collectivism o Masculinity femininity o Time orientation The international management challenges of globalization • Key concepts in the challenges if globalization: global economy, globalization, international management, global manager • Europe – European union • The Americas – NAFTA, FTAA • Hopefully i can make one i get real bored without talking to • Asia and pacific • Africa – SADC (south Africa development community), ECOWAS (economic community of west African states) Forms and opportunities of international business • Reasons for engaging in international business: profits, customers, suppliers, capital, labor • Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments • Types of market entry strategies: o Global sourcing o Exporting o Importing o Licensing agreement o Franchising Lecture 4 GMS Notes Common forms of international business – from market entry to direct investment strategies. Market entry strategies: global sourcing, exporting and importing, licensing and franchising Direct investment strategies: joint ventures, foreign subsidiaries • Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations • Types of direct investment strategies o Joint ventures o Foreign subsidiaries • Criteria for choosing a joint venture partner: o Familiarity with your firm’s major business o Strong local workforce o Future expansion possibilities o Strong local market for partners own products o Good profit potential o Sounds financial standing • Complications in the global business environment: o Environment is complex, dynamic and highly competitive o Global business executives must deal with differences in the environment of business in different countries o World trade organization resolves trade and tariff disputes among countries o Protectionism can complicate global trading relationships. Definition of multinational corporations • A multinational corporation (MNC) is a business with exclusive international operations in more than one foreign country • Mutual benefits for host country and MNC: o Shared growth opportunities o Shared income opportunities o Shared learning opportunities o Shared development opportunities • Complaints about MNC by the hose countries: o Excessive profits o Domination of local economy o Interference with local government o Hiring the best local talent o Limited technology transfer o Disrespect for local customs • MNC complaints about host countries o Profit limitations o Overpriced resources o Exploitative rules o Foreign exchange restrictions o Failure to uphold contracts • Ethical issues for MNCs: o Corruption – illegal practises that further one’s business interests o Sweatshops – employing workers at low wages for long hours and in poor working conditions o Child labor – full time employment of children for work otherwise done by adults o Sustainable development – meeting current needs without compromising future needs Culture and its relationship with global diversity • Culture o The shared set of beliefs, values, and patterns of behaviour common to a group of people. • Culture shock o Confusion and discomfort a person experiences in an unfamiliar culture • Ethnocentrism o Tendency to consider one’s own culture as superior to others. • Stages in adjusting to a new culture: o Confusion o Small victories o The honeymoon o Irritation and anger o Reality • Popular dimensions of culture: o Language  Low context cultures and high context cultures o Interpersonal space o Time orientation  Monochronic cultures and polychronic cultures o Religion o Contracts and agreement • Understanding cultural differences (trompenaars): o Relationships with people  Universalism vs. Particularism  Individualism vs. Collectivism  Neutral vs. Affective  Specific versus diffuse  Achievement versus prescription o Attitudes toward time – sequential and synchronic views o Attitudes toward environment – inner directed and outer directed cultures The transfer of management practices and learning across cultures • Comparative management • Global managers • Planning and controlling • Organizing and leading • Managing theories are not universal: o North American management theories may be ethnocentric o Not all Japanese management practices can be applies successfully abroad • Global organizational learning: o Companies can and should learn from each other o Readiness for global organizational learning varies based on managerial attitudes  Ethnocentric attitudes  Polycentric attitudes  Geocentric attitudes o Be alert, open, inquiring, but always cautious Lecture 5 GMS Notes Classical school of thought: • Approaches include: o Scientific management o Administrative principles o Bureaucratic organization • Scientific management (Frederick Taylor) o Develop rules of motion, standardized work implements, and proper working conditions for every job. o Carefully select workers with the right abilities for the job o Carefully train workers and provide proper incentives o Support workers by carefully planning their work and removing obstacles • Scientific management (the gilbreths) o Motion study, eliminating wasted motions improves performance • Administrative principles (henri fayol) rules of management: o Forecast, planning organization, command, coordination, control • Key principles of management: o Scalar chain, unity of command, unity of direction • Administrative principles (mary parker follett) o Groups and human cooperation o Forward looking management insights • Bureaucratic organization (max weber) o Bureaucracy  An ideal intentionally rational, and very efficient form of organization  Based on principles of logic, order, and legitimate authority
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