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About this Document

I took this class last semester with Professor Mary Young. These are the notes from the PowerPoint lectures, The Cultural Intelligence book, and the Harvard Business Review articles.
BUS 101 - First Step (Freshman Integrity, Responsibility, and Success through teamwork)
Mary Young
business, Cultural Intelligence, Harvard Business Review
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Date Created: 01/21/16
BUS 101 Lecture 1 Business in the Global Economy Business in the Global Economy ­ Phenomenon of Globalization • Globalization­ increase in the permeability of traditional boundaries, not just those around business  organizations but those around countries, economies, industries and people.  ­ *Globalization results in the interaction of people who are different* ­ environment of business is more complex, dynamic, uncertain, competitive. market volatility,  free trade vs protectionist, pressure in wages/ environmental pressure/ worker’s rights ­ faster, cheaper, better (digital communication, cheap transportation, technology, open markets  ­ more integrated and interdependent world economy ­ Accelerators of Globalization ­ The Internet ­ Teams (collaboration) ­ Uploading (blogs, tweets, podcasting) ­ Supply Chain  ­ Outsourcing (seeking services/ help from 3rd parties (other firms) ­ Offshoring (moving any business process to another country to be cost effective (produce in China) ­ Insourcing (establishing shared service centers within your own company. efficient, cost­saving,  standardized processes) ­ The Steroids (Digital, Mobile, Personal) ­ Culture: learned, shared, enduring, powerful, systematic, organized, invisible ­ language, social/religious customs, architecture, history, priorities, family, geography, food, gender ­ High Context  (Asia, S.America) VS Low Context (US, Switzerland) ­ High: people have close connections over long period of time. Aspects of cultural behavior are  not explicit because members know what to do/think from years of interactions with each other (who is  accepted as a group member, personable relationships, knowledge is confidential with closer relationship) ­Low: people tend to have many connections but for shorter duration, cultural behavior and  beliefs may need to be spelled out explicitly so that those coming into the cultural environment know how to behave (knowledge is open, results are top priority in decision making, precise and clear information) ­ much of culture is below the service, requires deep understanding of values and assumptions that  visible traditions/symbols express ­ Individualism VS CollectivismCollectivism ­ Individualist: most concerned about the consequences of actions for themselves, not others.  Individual rights (common in developed Western countries) ­ Collectivist: people view themselves as members of groves rather than as autonomous  individuals, look after group and protect them.  ­ knowledge of culture and cross­cultural interactions: knowing what culture is and how it affects  behavior ­ Mindfulness: ability to pay attention in a reflective and creative way to cues in cross­cultural  situations encountered and to one’s own knowledge and feelings (international EQ!) ­ Schwartz Value Survey (Egalitarianism, harmony, embeddedness, hierarchy, mastery, affective  autonomy, intellectual autonomy) p. 35 ­ an effective way to understand similarities and differences among cultures is to focus on their  underlying values - GLOBE Studies: which countries cluster together as culturally similar across these factors. Share language, religion, climate, geographic proximity (though not always), and shared political values p. 38 - Shalom Schwartz Value Survey: diagrammed different countries relative to each other on each of these dimensions. Rough guide as to countries that are culturally similar and culturally different p. 36 - Uncertainty Avoidance: degree to which people in a country prefer structured over unstructured situations. High degree: anxiety, emphasize laws, regulations, and controls that are designed to reduce uncertainty. - High Power Distance VS Low Power Distance (degree to which people in a country accept that power in institutions and organizations is distributed equally) - High: large inequalities of power and wealth and are tolerated. Follows class or caste system that discourages upward mobility of its citizens - Low: culture discourages differences between power and wealth. Stress equality and opportunity - Masculinity VS Femininity - Masculinity: favors traditional masculine roles (separate men and women. men dominating) - Femininity: little differentiation between male and female roles. - Long-term VS Short-term orientation: degree of a society’s long-term devotion to traditional values. - Long: look to the future and value thrift, persistence, and tradition ­ Short: here and now, change is accepted more readily Important pages with diagrams p.24, 36, 38, 40,  BUS 101 Lecture 2 Mindfulness ­ Cultural Cruise Control: utilizing built­in cultural assumptions or mental programs when we interact  with others, embedded social norms. do it without even consciously making a affirmative decision  (Americans shake hands) (common communication guidebook for all members of the culture) • Problem: not listening, observing, flagging potential cultures/sub­cultures or distinctions in  personality that may affect ability to communicate and understand • careful observation and social cues to adjust communication to account for differences in culture  (turn of CCC and be mindful of own behavior and other’s behavior/signaling • Knowledge, practice of mindfulness, development of cross­cultural skills ­ Mindfulness: paying attention to context, not just relying on your own assumptions or generalized  knowledge to understand other cultures ­ using all senses in perceiving situations, viewing the situation with an open mind, and attending to  the context to help interpret what is happening ­ pay attention to external situation, monitor own thoughts/feelings, adjust understanding depending  on situation and cultural knowledge ­ Cultural mindfulness: knowledge of what signals in another culture generally mean, and to then,  based on all facts and circumstances, determine how to read a particular situation ­  Cross­ cultural Skill: adjustments to your interactions to accommodate for cultural differences to  achieve effective interaction and communication (relate, tolerate uncertainty, empathize with others,  perceive signals, adapt to other person/culture) ­ EQ: being able to understand and read others and adjust your interactions to work with them  cooperatively ­ Top 5 ways Culture Affect Business Decision­making ­ 1) Negotiation: different cultures may view the purpose of negotiation differently ­ Signed contract?  Creation of a relationship between two sides? ­ 2) Communication: Direct VS Indirect ­ Direct: simple methods of communication (clear and definite response to proposals and  questions) (eye to eye, display emotions) ­ Indirect: circumlocutions, figurative forms of speech, facial expressions, body language (vague  comments, gestures, other signs. might not get definite rejection/commitment in first meeting)  (courteous, hesitant to give bad news, vague answers, come to own conclusion) ­ Rude—Blut—Direct—Indirect—Evasive ­ 3) Sensitivity to time: tensions around the value and use of time ­ Germans are punctual, Latinos are late. Japanese makes slow decisions, US makes quick  decisions ­ 4) Managing other Stakeholders: attitudes/behaviors about time, gender, hierarchy flex as  organizational culture and national culture engage. (different employees, suppliers, customers) ­ 5) Value across an Organization’s Culture: understanding of these differences should be helpful  in explaining and predicting behavior of employees from different countries Bus 101 Lecture 3 McDonald’s Case ­ Product Experience: customer’s want to ‘feel’ that the company values are the same, the product is  the same and therefore the trust they place in the brand is maintained ­ people use brands to navigate way through life, place huge trust in brand to facilitate a  satisfactory value exchange ­ trust must be built over time as we experience regular delivery of expected value ­ Global brands have a particular challenge to ensure that the experience delivered all over the  world is consistent, but with both the stated global positioning and values, and also the local  cultural ‘norms’ (UPS changed truck color, Coke Light (not Diet) in Japan, Honda’s meaning) ­ McDonald’s Experience ­ “Quality, Service, Cleanliness, and Value” ­ standardization, convenience ­ 1990­2000 feel pressure to restore corporate image (McDonaldlization: American Imperialism!) ­ stagnant product line/missteps triggered new adjustments for McDonald’s product portfolio ­ different kinds of menus, different recipes for different countries, delivery services, healthier  options ­ Factors that influenced McDonald’s challenges  ­ tenure of government committee (directors 17 years) ­ increase wages ­ healthy lifestyle choices  ­ pickier customers (no mayo, gluten­free) ­ changing one of the largest supply­chain is difficult ­ competition (in­n­out, five­guys, shake­shack) ­ Factors of Standardization and Factors of Adaptation ­ Standardization: economics of scale, high costs, high tech products, entering similar markets,  export, global competition, strong image of brand/producer/country ­ Adaptation: different conditions of use, differences in consumer/ purchasing behavior,  purchasing power, conditions in supplying production inputs, legislation ­ Standardization VS Adaptation ­ Standarization: standardization of products across markets and standardization of the marketing  mix worldwide (needs of global consumers, International travel, high quality lower price, global  branding) ­ Global localization: practice of global branding and localized marketing adaptation to  differences in local culture, legislation ­ Modular adaptation: offer parts (modules) that can be assembled worldwide in different  configurations, depending on market needs ­ Core Product Strategy: using standardized strategy for core product worldwide, but varyfying  certain aspects of the offering (ads, ingredients) from market to market ­ 4  Distinct Strategic Predispositions Towards Doing Things A Particular Way ­ Ethnoc entric: values of interest of the parent company guide all strategic decisions ­ Polyce ntric: decisions are tailored to suit cultures of the countries where the MNC operates ­ Regioc entric: firm tries to blend its own interest with those of the subsidiaries on a regional basis  ­ Geocen tric: company tries to integrate a global systemic approach to decision making BUS101­ Lecture 4 Corruption ­ What is corruption? ­ misuse of position of power, ­ gaining of advantage for those who actively and passively are parties to misuse ­ secrecy of transaction ­ undesirable effects on 3rd party ­ tangible or intangible benefits (money, protection, special treatment, promotion, favor) ­ Grand VS Petty Corruption - Grand: Illegal to purchase political influence of public servants, insider trading (stocks), Ponzi scheme - Petty: public interacting directly with low/mid-level bureaucrats who implements policies, fraud, cover-ups of wrongdoing - Fraud VS Corruption - Fraud: act/omission/misrepresentation that knowingly or recklessly (attempts to) misleads at party to obtain financial/other benefit or to avoid obligation - Asset misappropriation, financial statement irregularities, misrepresentation of self - Corruption: offering/giving/receiving/soliciting (directly/indirectly) of anything of value to influence improperly the actions of another party - bribery, embezzlement, extortion, influence peddling, unlawful gratuity or commission, illegal political contribution, nepotism - Cultural Divide - West: compliance with anti corruption is straight forward legal issue - China: “Guanxi” - special relationships due to existence of “particular ties”, stronger the tie, the better the learning and work outcomes. (can be extended to others but not easily transferred) - trust each other enough to do business without protection of legal agreement (contracts) - Corruption in developing countries - unfair/ illegal labor practices potentially threatens global economy - huge difference between wealth and income - insufficient institutions/practices - criminal activity sanctioned by public institutions - misuse/misallocation of scarce resources - encourages bureaucracy (unstable business environment) (hurts brand) - damages those at the bottom of the social scale - habitual corruption paves way for authoritarian regimes - undermines effort to do business with customer in mind - Operations in globalized economy= great potential but great responsibility - International companies can’t protect own interest unless they can understand and monitor what local partners do on their behalf - The Foreign Corrupt Practices Act (FCPA) 1977 ­ a law barring American companies from paying bribes to secure foreign business ­ signed after revelation of hundreds of US corporations making illegal payments to foreign  politicians, parties, and government officials ­ reinforcements: civil/criminal settlements, penalties/legal expenses for violations ­ “The government’s approach “creates barriers to US businesses seeking to sell their goods/services  in foreign markets” BUS 101 Lecture 5 Organizational Culture ­ Set of shared values, norms, guiding beliefs, business principles, ethical standards, understandings that  develop within organization (preached and practiced by management) (shared by members and  determines how they will react to various situations) ­ character of an organization’s internal work climate and personality ­ provides approaches to people management and problem solving ­ governs relationships with stakeholders, community,  customers, suppliers, governments, etc. ­ basic assumption invented/discovered/developed by a given group ­ Purpose of organizational culture ­ Internal Integration: integrate members so they know  how to relation to one another ­ sets collective identity, shape accepted behaviors,  reinforces commitment to organizational mission,  clarify and reinforce standards of behavior, promote social system stability ­ External Adaption: how organization meets goals and deals with outsiders (help organization  adapt to external environment) ­ Levels of Corporate Culture ­ Observable symbols  ­ Underlying values ­ common assumptions ­ company’s culture is grounded in and shaped by its core values, and the bar it sets for ethical  behavior ­ multinational company needs to build its corporate culture around its values and operating practices  that travel well across borders ­ Tools for transmitting culture ­ symbols, stories, jargon, ceremonies, statements of principle, code of ethics, recruitment, selection,  promotion, removal, role modeling, training, rewards, status, critical incidents, systems, procedures,  processes, design of physical space ­ Culture as Liability ­ barrier to change/diversity  ­ barrier to acquisitions and mergers ­ Types of Organizational Culture ­ Control culture: values role of senior executives to lead the organization ­ Performance culture: values individual and organization performance ­ Relationship culture: values nurturing and well­being ­ Responsiveness culture: values ability to keep in tune with external environment ­ Clan culture: cohesive, participative, leader as mentor, branded by loyalty/tradition/consensus,  strong emphasis on morale, success= high sensitivity to customers and concern for employees (ie:  Mary Kay) ­ Developmental/Adaptive culture: creative, adaptive, dynamic, leaser as risk­taker/innovator,  branded by entrepreneurship, strong emphasis on experimentation and innovation, success =unique  new products high levels of individuality and freedom (ie: Apple) ­ Hierarchical Culture: ordered/uniformed, leader as administration, bonded by formal rules and  policies, emphasis on predictability and consistency of process, success = smooth dependable  delivery of service (ie: Military, Civil Service) ­ Rational/Market Culture: Competitive/ Acquisitive, leader as goal oriented, bonded by high levels of competition, emphasis on winning, Success= Market Share and Penetration (ie: Goldman Sachs) ­ Amazon Study ­ Jeff Bezos ­ “I’m Peculiar” ­ Purposeful Darwinism­ fire staff in annual culling. Workers who are suffering for disease/  personal crises are evaluated unfairly, edged out rather than given time to recover ­ harsh working environment, workers are encouraged to tear apart each other’s ideas ­ What governs Amazon employees? “Disagree and commit” rip into colleagues’ ideas with  feedback that can be blunt to the point of painful before lining up behind a decision. embrace risk, strengthen ideas by stress test BUS 101 We Googled you ­ Mimi applying for a job (Fred impressed by skills and was going to hire her) ­ Virginia googled Mimi and found her protest stories  ­ anyone can put info up the internet ­ Virginia suggest to talk to lawyer first asking if it’s legal to google someone before Fred talked to  Mimi ­ Fred talked to wife “online posting never go away, someone can always dig it up” Business Finesse ­ content: the ability to master specific areas of knowledge or expertise and your skill in developing  concrete solutions or concepts or in performing defined tasks well (criteria is clear) ­ process: your ability to make things happen, the get things done (in the working world) being effective  more important than being right ­ success needs soft skills: interpersonal skills ability to influence and persuade others ­ leaders of org are responsible for context: creating environments in which others can excel at getting  the right things done ­ Three tips to be successful  • Optimism (think positively) • Initiative (why not do it yourself)  • Learning (make most of it) ­ Tricks to help you as you develop • appearing confident • dress for success  • understand your task ­ Strengths you can bring to leadership • look for new and better ways of doing things • help other employees be more effective • you prbly have more skills required to lead than older (more technology)  ­ has to work for other person (pragmatism): develop a good understanding ­ hidden logic: decode the unwritten rules: Motivators? Enablers? Triggers? ­ the importance of being perceived as purposeful Managing Your Career ­ mangers need to acquire expertise in technical, conceptual, and human  ­ leadership isn’t just about charisma, much of leadership is learned from social situations ­ Choosing the right position • How good is the fit between who you are and the position? • How good is the fit between who you are and who they want you to be? ­ choose appropriate position= successful  ­ Stretch assignments: ones in which the fit sin’t perfect therefore offers significant development opps BUS The Discipline of Teams  ­ teams and good performance are inseparable: one can’t work w/o other ­ team’s performance: includes both individual results and “collective work products” ­ teams develop momentum,  direction,  and  commitment by working  to shape a  meaningful  purpose ­ best teams  invest a lot  of time and  effort  exploring, shaping, and agreeing on a purpose that belongs to them individually and collectively BUS 101 Royal Dutch/ Shell in Nigeria ­ Brian Anderson: managing director ­ Kan Saro Wiwa: vocal critic of Shell and Nigerian government (writer, producer) ­ Importance of case based analysis  • demonstrates ability to critically think about problems now and in the future • construct a logical framework with which to explore the critical issues of case • prioritize issues and objectives • think outside the box (creativity may be what the interviewer is looking for) ­ Nigeria’s Challenges • poverty, disease, political instability, armed hostility ­ Factors contributing to improved African business environment ­ Improvements caused by: privatization of state­owned enterprises, increased openness to trade,  lower corporate taxes, strengthen regulatory and legal systems, improved physical infrastructure ­ Affected Industries: commodities (oil, diamond, agriculture, minerals), telecommunication,  transportation, consumer wholesale/retail ­ Building Brand’s international presence and market share ­ think globally and create comprehensive strategy ­ put yourself in the shoes of your new market BUS 101  Personal Branding, Generational Attitudes in Workplace  ­ Personal brand: differentiate and stand out from crowd by identifying and articulating unique  proposition and leveraging it across platforms with a consistent message and image to achieve a  specific goal (determines how people perceive you, who you are, who you are as a member of  workforce) ­ Values > Knowledge > Actions, Behaviors, Experiences > Personal Brand ­ Finding what you love • Goal1: Thoughtful, careful analysis of the right skill set “fit” for you  ­ Step 1:What is my skill set ­ Step 2: How would I describe myself as a person (activities I like/hate) • Becoming professional • Certain level of traits constructive in workplace: excitability, skepticism, cautiousness,  reservedness, boldness, diligence (can quickly turn into weakness too) (value individuality but  keep in mind of crafting professional persona) ­ Step 3: What are my hard work motivators (what makes you lose track of time) ­ jobs that intersect with your skill set and true authentic personality trigger hard work for  maximum fulfillment and success ­ Finding what you love: Intersection of Skill set, Personality, hard work motivators  ­ Generational Attitudes in Workplace ­ personal brand must be consistent with needs of the workplace ­ multiple generations working and competing for career opps ­ positive professional visibility creates opportunities and trust  ­ Generations in the workplace  ­ Traditionalists (1925­ 1945) ­ Baby Boomers (1946­ 1964) ­ Gen X (1965­ 980) ­ Millennials (Gen Y) (1981­ Present) ­ Millennials challenge  to older managers  because experience with 2008 economic downturn, idea that success is their birthright, technologically  savvy (thinks outside box), aren’t afraid to question status quo ­ Impacts on personal brand ­ 7 seconds to make first impression “competent, confident, trustworthy” ­ dress appropriately, non verbal communications (cues) ­ Keys for managing personal brand ­ Be authentic, aware (know the rules), share yourself, become known for one thing, value your  capital/ expertise but look for new opportunities, value and respect others, cultivate your brand,  empower others  ­ Resume Dimension • 5 things employers look to find qualifications and fit from a resume (Competence, skill set, work  ethic, leadership, personality)  • “i’m smart”: GPA, appropriate majors/ minors, scholarships, specialized course work, participation in groups • “I have skills”: prior work experience, specialized course work • “I work hard and can lead if necessary”: Work ethic, leadership • “I won’t embarrass you in front of clients”: personality (extra/ introvert), frat/sorority, lots of  community work  ­ The reputation economy ­ your value as influencer on social media is being calculated on Klout score (70+) based on how  often you tweet, connect, share, and comment ­ Klout defines influence as the ability to drive  action (disadvantage: Klout boils down complex  social interactions into a single, absolute  manner) ­ Johari Window ­ Open Area: things you know about yourself ­ Blind Area: Things you aren’t aware of, but are  known by others ­ Hidden Area: Things you know about yourself  that others don’t know ­ Unknown area: unknown by you or others  BUS 101 Teams and Diversity ­ Team: set of people who produce discrete work product though joint contributions of members  (collective work product), with individual and mutual accountability • require common commitment and ownership with individual and group obligation ­ Transition from Individuals to groups  • Individuals ­> group (synergy among individuals) ­> team (not only synergy but also people who  collaborate and work together toward common goal, greater than sum of any parts) ­ Importance of group dynamics  • changing economics prompted companies to downsize and restructure themselves into flatter and  more decentralized entities • corporations are built around teams that must find answers to novel and complicated business issues  • teamwork needed to implement and take advantage of more effective cross functional shared  services, implementation of new technological solutions, more external focused activities  ­ Groupthink: dangerous tendency in groups to focus on group conformity at expense of making good  decisions  ­ social loafing: individuals reduce their efforts to complete group tasks in the belief that others in the  group will compensate to get the job done ­ cultural distance: how different each group member feels from each other ­ How is a team composed • evaluate respective skill set of individuals as they relate to the group ­ Leadership: the ability to influence other people to strive willingly to reach a common goal  ­ How to know you’re a team: share a goal, cooperation, accept one another and differences, people who put team vision above their own benefit  ­ Decision made by authority without group discussion  • Strengths: minimal time to make decision, commonly used in organizations, high on assertive scale • weakness: no group interaction, team may not understand or be able to implement decision, low on  cooperation scale ­ Decision made by authority after group decision • Strengths: benefits from input of members, commonly used in organizations, high on assertive scale • Weakness: doesn’t develop commitment to implement decision, doesn’t resolve conflicts among  group members, members compete to impress leader and tell him what he wants to hear, low on  cooperation scale  ­ Decision made by expert • Strengths: less time, high on assertive scale • Weakness: no group interaction or commitment to implementing decision, difficult to determine  expert, low on cooperation scale ­ Decision made by averaging individual’s opinions • Strength: useful when its difficult to get group members to talk, useful for simple routine decisions,  high on assertiveness scale • Weakness: limited interaction to gain benefits of group discussion, unresolved conflict may damage  group effectiveness in the future, no commitment to implement decision, low on cooperation scale  ­ Decision by majority • Strengths: can be used when complete agreement by all members in not needed, decisions that are not highly important to group, high on assertiveness scale • Weakness: leaves alienated minority, encourages either/or thinking, full commitment is absent, full  benefit for group is not obtained, low on cooperation scale ­ Decision made by consensus  • Strengths: innovative/ creative/ high­quality decision, commitment by all members, resources from  all members, serious and complex decision (low on assertive) • Weakness: great deal of time, can’t be for emergency, can’t really get perfect consensus (high on  cooperative scale) ­ Diversity among teammates  • exploit a variety of perspectives and skills • better and more creative performance • generates various sorts of conflicts ­ Diversity: demographic, race, gender, ethnicity (informational differences, person’s education and  experiences, values and goals can affect the mission a person perceives at a meeting ­ Gender affects teams: teams with mixed gender perform better ­ Cross cultural teams • people with different backgrounds brought together to complete task, different ideas about what’s  important, how work should be organized, enabled by communication technologies and the mobile  worker ­ Guidelines • define and clearly communicate team’s goals • establish ground rules on how team operates • identify key roles for each member and set expectations accordingly • create guidelines for clear and concise communication  • utilize clear and accessible method for resolving conflict or disagreements in team meetings and  maintaining team focus  ­ Progression of a team • Forming: learning about each other and defining shared vision • Storming: working through disagreements • Norming: choosing ways to work together and figuring out group roles • Performing: working together smoothly, experiencing synergy ­ Value of diversifying teamwork • decentralized responsibilities (one person sick, doesn’t bring group down) • potential worldwide growth and reputation • efficient collaboration (more resources) • increased job satisfaction  • often has greater/more sustainable results  ­ To build a team leader needs to: • Create clear lines of responsibility  • create a team atmosphere based on trust • spend time as a team getting to know each interests and talents • ask good question of the process you have created (do they understand) • provide opportunity for dissenting feedback that is safe and respectful ­ Teams suffer when • individuals give priority to personal interest • roles and responsibilities are not clear and don't reflect member’s interest  • poor communication • lack of personal discipline ­ APEX (Attitude, Professionalism, Empathy, Excellence) ­ Best practices for team members (Negotiate, Communicate, Influence) ­ Culturally Intelligent Group Management  ­ Management support, rewards, group status ›


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