Chapters 3-5 MQM 220
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Chapter 3 What39s you global perspective Narrow minded thinking Parochialism viewing the world solely through your own perspectives leading to an inability to recognize differences between people ex People that left the US and when they came back they had a different outlook of the US compared to the other country Ethnocentric Attitude the parochial istic belief that the best work approaches and practices are those of the home country Ex Where you look at things from your own prospective and believe we are the best More open minded thinking Polycentric Attitude the view that the managers in the host country know the best work approaches and practices for running their business Ex Where those businesses are located those are the best Geoce ntric Attitude a worldoriented view that focuses on using the best approaches and people from around the globe Ex Take the best practices anywhere and apply them Host country where you are going Ex Mexico Home country where you39re from Ex USA Understanding the global environment trading alliances European Union EU a union of 28 European nations created as a unified economic and trade entity with the Euro as a single common currency Higher level of grouping North American Free Trade Agreement NAFTA an agreement among the Mexican Canadian and US governments in which certain barriers to trade have been eliminated It involves trade How organizations go global lowest to highest commitment investment Lowest commitment investment 1 Global Sourcing purchasing materials or laborfrom around the world wherever it is cheapest Ex Use Mexican labor because it39s cheap 2 Exporting making products domestically and selling them abroad product in home country and sold in other countries 3 Importing acquiring products made abroad and selling them domestically made in other countries and bought in the home country 4 Licensing an organization gives another organization the right to make or sell its products using its technology or product you allow for a fee other companies domestic or abroad to be able to produce products with your name on it Ex Hello Kitty 5 franchising an organization gives another organization the right to use its name and operating methods it s a little bit more than licensing you have a little bit more control Ex McDonalds in other countries some things on the menu were similar to the ones in the USA such as the Big Mac and fries because it the signature burger Okay your welcome to use our name and adjust your menu how you like but you must have a Big Mac these fries and the cup bought from this manufacture with this logo on it doesn39t retain ownership 6 Strategic alliance a partnership between an organization and one or more foreign company partners in which both share resources and knowledge in developing new products or building production facilities Ex Apple computer and Disney start Pixar movies 7 Joint venture a spedfic type of strategic alliance in which the partners agree to form a separate independent organization for some business purpose Ex Sony was a separate company Ericson was a separate company when they made the Walkman grandparents iPod theyformed the Sony and Ericson company 8 Foreign subsidiary directly investing in a foreign country by setting up a separate and independent production facility or office Ex where you start an entirely standalone company and their fate is very tightly tied to your own their success and failure is going to have an effect on your success and failure retains ownership Highest commitment investment Managing in a Global Environment The politicalLegal Environment the environment you are accentually entering into so you can39tjust assume that the laws in your country are the same as in host countries Ex article about face book and the paternity leave the laws anywhere else have paid paternity leave already US managers are accustomed to a stable legal and political system Managers must stay informed of the spedfic laws in countries where they do business Some countries have risky political climates The Economic Environment Free market economy the USA use this An economic system in which resources are primarily owned and controlled by the private sector Ex there39s demand for produce or service that is a business opportunity for our perspective Planned economy An economic system in which economic dedsions are planned by a central government Ex the central government controls quite a few industries and a very small few have private organizations National culture The values and attitudes shared by individualsfrom a specific country that shape their behavior and beliefs about what is important Ex Japanese culture when you order really fresh food it39s sometimes alive and that s the culture there Hofstede39s framework for assisting cultures One of the most widely referenced approaches to helping managers better understand differences between national cultures TI him Pimple Ilaml a Er limeir mu and irrEIEE the gum in Maita and pl HEihan UnitEd 513525 Eanaih Au ralia lipan Thailand 1 diHEanes n pEF 39EI39 great Ella uni fur tll39lDEE39 n millurith Law dawn inequalitia emptygame FIE1 a aid tuappmazh mar are in E39Eh39E Hi line llama5 i in Law munEur EEBEE ll EHj39 Japan UmiiEEI SlatE Ewe at Eli 39 l39ltl39 ambiguityanill lanaiamen lith levels 1 il l iEty39 Law a r i a tE Emnfmtdnleui ih rift inlaant uni Eil FEIEHt hd airiur van minians am Italy FHI39IEE LlfffiEEl lifting aw Elna an lllrimd 513E EDWIN L Wt HHUE andquot ma am acquiring I39I39I l39lE39Ei39 and WEE vanEll mmpeij u l prEHail such a relaiiunsl39ipa and content in lathHE prELIEIil UnitEd 513525 Japan F a im Canada Green Men 5 Him Fmple ladr In the ume and vine if an Him SIMIan Imadman Ira iij n van the nail EMTterm at m m lli LhilEEl atE Canada What Are Americans Like Americans are very informal they tend to treat people alike even when great difference in age or sodal standing are evident We call people by theirfirst name Americans are direct they don t talk around things To some foreigners this may appear as abrupt or even rude behavior ask questions that others might think of as offensive or intrusive Americans are competitive some foreigners may find Americans assertive or overbearing action orientated and outcome orientated extremely competitive people Americans are achievers they like to keep score whether at work or at play They emphasize accomplishments Americans are independent and individualistic they place a high value on freedom and believe that individuals can shape and control their own destiny Americans are questioners they as a lot of questions even if it39s someone theyjust met Many may seem pointless quothow are you doingquot or personal questions quotwhat kind of work do you doquot Americans dislike silence they would rather talk about the weather than deal with silence in a conversation it scares us and makes us uncomfortable Americans value punctuality they keep appointment calendars and live according to schedules and clocks Americans value cleanliness they often seem obsessed with bathing eliminating body odors and wearing clean cloths standards for restaurants Global Management in Today39s World The challenge of openness The increased threat of terrorism by a truly global terror network Economic interdependence of trading countries Intense underlying and fundamental cultural differences differences that encompass traditions history religious beliefs and deepseated values Cultural intelligence Culture awareness and sensitivity skills Ex blowing your nose in public is offensive exdianging business cards in Japan are handed with thumbs up and read twice because it s a sign of respect Global mindset Attributes that allow a leader to be effective in crosscultural environments Being aware about how all of these things together come together Hofstede 5 dimensions amp cultural intelligence Chapter 4 What is Workplace Diversity Workforce diversity observable The ways in which people in an organization are different from and similar to one another Surfacelevel diversity Easily perceived differences that may trigger certain stereotypes but do not necessarily reflect the ways people think or feel Deeplevel diversity not observable Differences in values personality and work preferences Why Is Managing Workforce Diversity So Important People management Diversity is after all about people both inside and outside the organization Organizational performance Cost savings include reducing employee turnover absenteeism and the chance of lawsuits Strategic Workforce diversity is a key to extracting the best talent performance market share and suppliers from a diverse country and world Bene ts of Workforce Diversity Penplle Management a etter uae bf empleyee talent at Increaed tiulfit yr f tern prnblem enlltrfng effrta a ti39u Lbilityr tn attraart and retain n1 pl at if diaerte backgreuntle nganiaatjinnall Ferfnrmanee a Reduced teat3 39 fated with high 39lIUiit t tiEli lZIiEEtTlIEElEH t and lawauiia a Enhnized pteblemltring bflitr i li39i39ipl39mi ayatm TlEthlllty Etrategliit i Increaed nnderatanding bf the mtlltetblace which imprettea billitilir tn better nirltet t dltiElfSE ennauntere a Pntentfal t fmprae ealea grttrth and fncreae market Sl t lf 39 a Pntenijall EUUTCE if cmpeijijtte advantage became f impmeed innnttatjbn effan a Viewed at meral and ethiealg th quotrightquot thin ll a The Changing Workplace Characteristics of the US population Total population of the United States projected to increase to 438 million by the year 2050 current population in the US today is about 322 million badlt in 2014 it was 318 million Racialethnic groups Changes in the percentages of the Hispanic and white population Aging population Median age of 369 years up from 362 years in 2001 Global workforce changes 0 Total world population Estimated at over almost 7023 billion 0 An aging population Aging at an unprecedented people are having fewer amp fewer children rate Types of Diversity Found in Workplace surface visible observable deep invisible unobservable 0 Age surface 0 Gender surface 0 Race and ethnidty surface 0 Disability abilities both surface amp deep 0 Religion mostly deep 0 GLBT pretty much deep 0 Other income education level parental status military status marital status personality values work ethic deep Types of Workplace Diversity A82 Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibits age discrimination At the age of 40 your employers can39t discriminate against you because you39re 40 or over Gender Same motivation ability to eam Different women are more worried about work hours than men m The biological heritage including skin color and assodated traits that people use to identify themselves Ethnidty Social traits such as cultural background or allegiance that are shared by a human population Ex life style Disabilityabilities Anyone with a disability has the right to have the same work experience Religion Title VII of the Civil Rights Act prohibits discrimination on the basis of religion age race is also under this title GLBT sexual orientation and genderidentity US federal law does don t prohibit discrimination against employees on the basis of sexual orientation Other types of diversity Diversity refers to any dissimilarities or differences that might be present in a workplace Challenges in Managing Diversity Personal bias Bias a tendency or preference toward a particular perspective or ideology Prejudice A preconceived beliefs opinion orjudgment toward a person or a group of people Ste reotyping Judging a person based on a prejudicial perception of a group to which that person belongs Discrimination When someone acts out their prejudidal attitudes toward people who are the targets of their prejudice Glass ceiling The invisible barrier that separates women and minorities from top management positions Major Equal Employment Opportunity Laws 1964 amended in 1972 Civil Rights Act Title VII Prohibits discrimination based on race color religion national origins or gender 2009 Lilly Ledbetter Fair Pay Act Changes the statue of limitations on pay discrimination to 180 days 6 months from each paychedlt Chapter 5 From Obligation to Responsiveness to responsibility Social obligation the obligation of a business to meet its economic and legal responsibilities and nothing more Classical view the view that manage me nt s only social responsibility is to maximize profits Socioeconomic view the view that management s social responsibility goes beyond making profits to include protecting and improving society s welfare Social responsibility a business s intention beyond its legal and economic obligations to do the right things and act in ways that are good for society Should Organization Be Socially Involved Arguments For Public expectations Longrun profits Ethical obligation Public image Better environment Discou rage me nt of further governmental regulation Arguments Against Violation of profit maximization Dilution of purpose Costs Too much power Lack of skills Lack of accountability Green Management amp Sustainability 0 Green management managers consider the impact of their organization on the natural environment Focuses solely on environmental protection wind water air soil these kinds of protections Green Approaches Any positive or negative situation that would have an impact on the global environment Low Legal Approach Light Green Legal approach reactive Doing what law requires Market approach reactive Response to what consumers demand ex Duncan doughnuts cup didn t want to change from Styrofoam cup and it changed is because in the city of NY there was an ordinance passed that said no more Styrofoam in NYC So Duncan donuts said quotok for all our regional Duncan donuts in NYC we will use polypropylene cups and the rest of the country will us the Styrofoam cups Then the rest of the country caught wind that they were using a different product in NYC and heard about it and they said why them and not usquot so the customers then protested on social media and said ifyou can do it there you can do it everywhere So they ended up changing their cups not because there were legal required to do so for the rest of the country but because their market had spoken their customers said we demand this product Stakeholder approach reactive Maybe it39s not just the customers but maybe it s the supplier or employees and the shareholders there all asking for these changes to be more green more environmentally sensitive Activist approach proactive You are seeking out ways to be more environmentally friendly Managers amp Ethical Behavior Ethics prindples values and beliefs that define for us individually right and wrong behavior Many decisions managers make require them to consider both the process and who s affected by the result When managers make decisions they have an ethical component to them they have 2 basic things that they have to consider 1 the process by which the dedsion is being made 2 who is going to be affected by that decision These are the things that people weight when making ethical decisions Factors That Determine Ethical and Unethical Behavior Ethical dilemma The problem that has to be solved Stage of moral development Which basically says what level of dedsion making threshold of maturity that you have gotten too Moderators These are different things that effect that which would be structural variables do you think a company that is profitable or unprofitable is more likely be put into a position to act unethical ly People tend to steal when desperate organizational culture risk taking kind of culture stealing is risky individual characteristics some people see more ethically differently issue intensity how aware should you be that this is an immoral issue39 ex Grocery store and taken a grape which is stealing but do you think it was stealing No because you want to sample a grape before you buy it to make sure they are good Milgram experiments It was an experiment of obedience to see how many people would be willing to injure another person because someone else told them to do so and that they would be taking responsiblyfor your actions 196039s 3 months after the holocaust about 6065 of the people continued with the electric shock and well over halfwent through with killing people They conducted the experiment a generation later and the results were worst it was like 75 Stages of Moral Development Prinoiplod E Following oellat iooon otll39Iiiooll pirinoiplleo oyon ill ololloto tho low E l Toluinig nighlo of omolro and upholding olhooluto oolluoo and rights of mo mojo lyo opinion will Maintaian oomon onol orooli39 by ful lling ooliigolioiro to wllioh you quot llquot l 3 Living up to what io otool by people oluoo to you Filooorly on onol Following ruloo only whorl doing oo io in your immodlioto inlowoot l Etiolong to nuloo to mold ohyoiool ouniohmont Preconventional level Following rules strictly because it39s in your immediate interest to do so so that you avoid punishment ex Teaching a 3 year old where to appropriately place boogers when you see a cop you slow down and do the speed limit but as soon as their out of sight you speed right back up again Conventional level Which is okay I won39t do these things because society says its wrong the common practice common expectation is that I shouldn t do these things ex Living up to what people around you expect I don t want to embarrass my parents by having them stick my name in the newspaper because I stole or cheated or committed a crime so that s why you don t do things because the expectations are that you don t Principled level Where it doesn t matter what society says I think it39s wrong ex The case of Kim Davis I don t care what the law says I don t care what society say I39m going to do what I think is right Factors That Determine Ethical and Unethical Behavior continued Individualcharacteristics Values basic convictions about what is right and wrong Ego Strength a personality measure of the strength of a person s convictions Locus of Control a personality attribute that measures the degree to which people believe they control their own fate Ex You control you destiny if you work hard and study hard you39re going to get that good grade that 5 internal locus of control External locus of control is its out of your hands aka it39s in god39s hands the start quarter back who is destined to get a full scholarship through college and go pro and then has a car accident and is in a wheel car for the rest of his live the thinking to that is you know what everything happens for a reason and its god saying that that wasn t for you Organization s Culture Organization s culture consists of the shared organizational values These values reflect what the organization stands for and what it believes in as well as create an environment that in uences employee behavior ethically or unethically Valuesbased management the organization s values guide employees in the way they do theirjobs Ex Hobby Lobby is closed on Sunday because there are Christian owners make it mandatory to take it off even if you39re not Christian Issue Intensity six characteristics determine issue intensity or how important an ethical issue is to an individual Greatness of harm Consensus of wrong Probability of harm Immediacy of consequences Proximity to victims Concentration ofeffect Value intensity Brian and Rachel both work at chase bank and they have awesome pens that they supply their employees with them Brian takes a pen a day home because he really wantslikes the pen so at the end of the week he has 5 pens at home Rachel isforgetful and accidently brings the pen home and forgets to give it back and soon has 5 pens from working each day of the week Who39s going to jail longer for pen thief Brian because intension matters but at the end of the day 100 worth of pens were stolen nonetheless Rachel39s thief was no more then Brian thief The degree to which you see the person acting as wrong the intension the deliberate action Issue Intensity mueh agreement is there that this ee iun i e menu V I liter ie it Haw my pele y that thie eetien will be harmed will hm Geeseheme vhf Whining Pmbalaility ef Hem Greatness ef lllen39n leeiue intensity Geuheehtta en Df Effect l39nhrnieeyr ef aneeqlueneee Fmiimity m Victims HDWEj lief l I Willllta39lm39l belie itnmedietehr i39 v ie the etiieet Df the am the Hl tin EE Haw eleee the petemtia39ll 39ui elime Ethics in an International Context Ethical standards are not universal Social and cultural differences determine acceptable behaviors Ex Prochoice vs Prolife in different countries people don t view this as big deal or no significance Foreign Corrupt Practices Act It is illegal to corrupt a foreign offidal yet token payments to officials are permissible when doing so is an accepted practice in that country Ex n china students will bribe the teachers so that they pay more attention to them and help them get a better grade Encouraging Ethical Behavior Ex Chiquita banana was operated in Columba and they would export to USA The drug cartel would charge a toll to drive on their roads and if you didn t pay that toll your driver was never seen again So Chiquita paid the toll and they were convicted in US courts for essentially providing money to drug lords and the arguments from their side was having their drivers killed Isn39t a life more important than paying the toll You still must be held accountable to the US law and they were convicted Employee Selection an opportunity to learn about an individual s level of moral development personal values ego strength and locus of control Code ofethics a formal statement of an organization s primary values and the ethical rules it expects its employees to follow ex The interesting this about writing something down If you create a rule or regulations or policies or practices which is essentially what a code of ethics is it s a list of what we expect you can eliminate 8090 of any problem by simple saying this is what we expect by writing it down and communicating to people you can eliminate a lot of unethical behavior simply by having a visual of these rules and regulations Leadership doing business ethically requires a commitment from top managers because they re the ones who uphold the shared values and set the cultural tone they re role models in terms of both words and actions what they do is far more important than what they say EX You tell your kids do as I say and not what I do and that doesn t work because they see someone who is older and wise doing it so they want to do it too Leaders set the example of ethical behavior so what they do is far more important than what they say Job Goals and Performance Appraisal Unrealistic goals provide stress which may pressure ethical employees to do whatever is necessary to meet those goals f performance appraisals focus only on economic goals ends will begin to justify means To encourage ethical behavior both ends and means should be evaluated Ex If you don t make those sales numbers at the end of the week you39ll be let go so people will twice as hard to make those numbers Social Responsibility and Ethics Issue in Today39s World Managing Ethical Lapses and Sodal Irresponsibility One survey reported that among 5000 employees 45 percent admitted falling asleep at work and 22 percent said they spread a rumor about a coworker Another showed that 26 percent of college and university business majors admitted to quotserious cheating on exams and 54 percent admitted to cheating on written assignments Ex People train to improve everyone so do you think that training people to be more ethical does that actually work No studies have shown that introdudng ethical training does not result in greater ethics And here39s why people know what39s right and what39s wrong it39s not that they don t know it39s that they have a reason or a way to rationalize that dedsion In the case of the Nazi soldiers if I didn t kill them then they would kill me that way pretty much the argument they made so ethical training does not result in more ethical behavior The only reason they do it is because the company needs some defense if you behave unethically they can say it39s not our fault we trained them and gave them the toolsit does not create more ethical people Ethical Leadership managers must provide ethical leadership What managers do has a strong influence on employees decisions whether to behave ethically Protection of Employees Who Raise Ethical Issues WhistleBlower individuals who raise ethical concerns or issues to others have protection so they don t lose theirjobs even if they are proven wrong so you39re not out ofajob