Management

Management2: Past to Present (and Beyond)3: Global DimensionsPresent Like a Pro (time permitting)

Updates:Anything exciting happen (from an Organizational Behaviour perspective) over the past week?Any questions?Group projects?Lets focus on our reflection from last class

Development of Major Management TheoriesDevelopment of Management TheoriesHistoricalBackgroundpreclassicalcontri-butionsThe Early YearsclassicaltheoristsThe Early Yearshuman resourcesapproachThe Early YearsquantitativeapproachRecent YearsintegrativeapproachesScientificmanagementGeneraladministrativetheoristsEarly advocatesHawthornestudiesHuman relationsmovementBehavioralscience theoristsOperations researchManagementscienceProcessSystemsContingency

Historical BackgroundDivision of LabourAdam Smith (1776) - The Wealth of Nations Invisible hand of the market; also showed how division of labour could be successfully utilizedIndustrial Revolution - UKHenry Ford - Fordism

Classical ContributorsScientific ManagementFrederick W Taylor - ONE BEST WAYBethlehem/Midvale SteelPrinciples:1) Develop a Science for work2) Scientifically select, train, and develop workers3) Co-operate with workers to ensure all is done this way4) Divide work equallyA high priced man - Schmidt

One Best WayPOINT - COUNTER POINT

Do you agree that there is one best way to do any job?

General Administrative TheoristsProfessional MetaphorMax Weber (1890s) - Bureaucracy; Iron-cage of Rationality

Henri Fayol (1916) - 14 principles of Management

Mary Parket Follett (1933) - Spirit of compromise and co-operation

Human Resources ApproachElton Mayo - Hawthorne StudiesMaslow Hierarchy of needsMcGregor Theory X and YChester Barnard - Functions of the Executive - authority comes from willingness of subordinates to accept it.

Quantitative School

Post-WW 2Numbers DrivenOperations management; TQM; Cost Accounting;

Contemporary SchoolsSystemsEcology Contingency SchoolNo universal answerOutcomes depend on certain thingsCultural SchoolOrganizational cultureGlobal AwarenessKnowledge ManagementEvidence-Based MGMT

Next Metaphor??Where is business heading now?

Personal Management MomentLateral Thinking

26 = L of the A7 = D of the W1001 = A.N.12 = S of the Z

Cpt. 3 Global EconomyInventory of clothing where were your clothes made?Gildan: Gildan is a vertically-integrated marketer and manufacturer of quality branded basic apparel.

Key Terms (Understand them)Going Global: sourcing, export/import, licensing/franchising, joint ventures, strategic alliancesGlobal Environments: legal, political, trade agreements, barriers, alliancesEthical ChallengesCulture ShockNational Cultures / ValuesProject Globe

Goal: Increase your Cultural Intelligence!

Stranger in a Strange LandAward winning book (1961)The story focuses on a human raised on Mars and his adaptation to, and understanding of, humans and their culture.While we are from the same planet some things different cultures do will seem very strange to you!

Making the Strange FamiliarProblem based learningFocus: You will be leading a company in another countryTask: What skills do you need to have to be a successful international leader? What dangers do you need to watch out for as you lead in a foreign country?Come up with a list of learning points you would like to acquire.

Session Learning GoalsAppreciate the different ways to understand culture.Understand our own attitudes and perspectivesDevelop our Cultural Intelligence

Stages in becoming an International ManagerConfusion: first contacts leave you anxious, uncomfortable and in need of adviceSmall victories: interactions bring success, confidence growsThe honeymoon: a time of wonderment, local ways viewed positivelyIrritation and rage: negatives overwhelm positives, you become criticalReality: time of rebalancing, enjoy new culture while accommodating less desirable elements

Ways to look at Country CulturesHofstedeTrompenaarsLanguage ContextTime contextSpace context

NOTE: it is these similarities/differences to your culture that you will both adore and dislike about your international assignments!!

Power Distance: the degree to which a society accepts unequal distribution of powerHigh Power Distance:Respect for age, status, titlesTolerant of power by following rules and accept differences in rankChina, India, PhilippinesLow Power DistanceTendency towards informality, casual dress, Australia, Canada, USA

Individualism / Collectivism: the degree of individuals being integrated into groups Individualistic: cultures have members who are only loosely connected and who are responsible for themselvesCanada, USA, NZCollectivistic: cultures whose members are strongly integrated into groups or familiesChina, Mexico, Thailand

Masculinity / Femininity: explains in how far a society is characterized throughMasculine:extrovert and competitive behaviour

Japan, Mexico, Canada

Femininity:is expressed through caring attributes and the emphasis on harmony

Thailand, Sweden

Uncertainty Avoidance: tolerance towards uncertainties, change and risk High Uncertainty Avoidance These cultures have a preference for structure, order, planning and predictabilityCultures with high uncertainty avoidance often show their emotions more compared to cultures with low uncertainty avoidance. Japan, France

Low Uncertainty AvoidanceThese cultures display openness to change and innovationUSA, Sweden

Long-term / short-term orientation The degree that a culture focuses on long term or short term time horizons or goalsLong-termFocus on values of persistence thrift, patience and willingness to work for long-term successChina, India, JapanShort-termImpatient, desire for quick gratificationUSA, Canada, Netherlands

Hofstedes Five Dimensions of Culturefor Selected Countries

Contact Information:Institute/organisation:Alterra-ILRIContact person(s):Dr. ing. W. F. VlotmanAddress:P.O. Box 47, 6700AA Wageningen, The NetherlandsTelephone & Fax:+31(0)31749 55 76, +31(0)31749 55 90E-mail address:[email protected]: www.ilri.nl

International Institute forLand Reclamation and Improvement / ILRI

References:Walbeek, M.M. and Vlotman W.F. 2003. Institutional Strengthening in Egyptian Development Aid Projects. Paper no 125. Presented at the 9th International Drainage Workshop, September 10 13, 2003, Utrecht, The Netherlands.

Hofstede, G. 1991. Cultures and Organizations; Software of the Mind. New York, McGraw-Hill. 279 pp.

ITIM. 1993. Institute for Training in Intercultural Management.

Drainage for a secureenvironment and food supply

all

Country or RegionPDI ScoreIDV ScoreMAS IndexUAI ScoreLTO ScoreCDI

Values of 5 dimensions for countries and regions original IBM study (Hofstede 1991)

REGIONS ORIGINAL IBM STUDY

Arab Countries80385368-

East Africa64274152-

West Africa77204654-

COUNTRIES ORIGINAL IBM STUDY

Argentina49465686-1

Australia36906151312

Austria11557970-3

Bangladesh**----404

Belgium65755494-5

Brazil69384976656

Canada39805248237

Chile63232886-8

China**----1189

Colombia67136480-10

Costa Rica35152186-11

Denmark18741623-12

Equador7886367-13

El Salvador66194094-14

Finland33632659-15

France68714386-16

Germany FR356766653117

Great Britain358966352518

Greece603557112-19

Guatemala95637101-20

Hong Kong682557299621

India774856406122

Indonesia78144648-23

Iran58414359-24

Ireland (republic of)28706835-25

Israel13544781-26

Italy50767075-27

Jamaica45396813-28

Japan544695928029

Malaysia104265036-30

Mexico81306982-31

Netherlands388014534432

New Zealand227958493033

Nigeria**----1634

Norway3169850-35

Pakistan55145070036

Panama95114486-37

Peru64164287-38

Philippines943264441939

Poland**----3240

Portugal632731104-41

Singapore74204884842

South Africa49656349-43

South Korea601839857544

Spain57514286-45

Sweden31715293346

Switzerland34687058-47

Taiwan581745698748

Thailand642034645649

Turkey66374585-50

Uruguay613638100-51

USA409162462952

Venezuela81127376-53

Yugoslavia**76272188-54

Zimbabwe**----2555

** countries not mentioned in ITIM 1993

Estimated Values for Countries not included in the IBM Data (ITIM 1993)

REGIONS

Baltic Republics*40603050

Caucasian Republics*70205060

COUNTRIES

Albania*90208070

Arab Emirates*90255080

Bulgaria*70505080

Burkino Faso7015505520

China (see above)80155040114

Croatia72334080

Czech Rep.*35604060

Dominincan Republic65306545

Egypt80354070

Ethiopia*70206555

Ghana*80154065

Iceland*30601050

Iraq*95307085

Jordan7030456530

Kenya70256050

Kuwait*90254080

Honduras*80204050

Hungary19557983

Lebanon*75406550

Luxemburg*55706070

Malawi70304050

Namibia6530404535

Nepal7530424040

Nigeria*80306055

Poland*55557060

Romania*90204095

Russia & Ukraine95474075

Saudi Arabia95256080

Senegal7025455525

Serbia86254392

Sierra Leone*70204050

Slovenia71271988

Sri Lanka8035104545

Syria7535526035

Tanzania*7025405030

* - numbers are pure estimates based on correlated phenomena; the others numbers have some research base.

ITIM - Institute for Training in Intercultural Management. 1993.

Hofstede, G. (1991). Cultures and Organizations; Software of the Mind. New York, McGraw-Hill.

Selection 1

Country or RegionPDI ScoreIDV ScoreMAS IndexUAI ScoreLTO ScoreCDI

Arab Countries80385368-

East Africa64274152-

West Africa77204654-

Australia3690615131

Belgium65755494-

Brazil6938497665

Canada3980524823

China80155040114

Croatia72334080

Czech Rep.*35604060

Denmark18741623-

Egypt80354070

France68714386-

Germany FR3567666531

Great Britain (UK)3589663525

India7748564061

Indonesia78144648-

Iraq95307085

Iran58414359-

Israel13544781-

Italy50767075-

Japan5446959280

Malaysia104265036-

Netherlands3880145344

Nigeria8030605516

Pakistan551450700

Poland5555706032

Portugal632731104-

Singapore742048848

South Africa49656349-

South Korea6018398575

Spain57514286-

Sweden317152933

Switzerland34687058-

Taiwan5817456987

Thailand6420346456

Turkey66374585-

USA4091624629

ITIM - Institute for Training in Intercultural Management. 1993.

Hofstede, G. (1991). Cultures and Organizations; Software of the Mind. New York, McGraw-Hill.

Sheet3

Examples of ways of comparisons

Managerial ApplicationYou are a consultant helping a firm try to negotiate a partnership with a foreign company drawing from these 2 cultural perspectives what would you do to help the firm on how to negotiate to ensure success if the two sides were: Canada and ChinaIndia and AustraliaSaudi Arabia and FranceSouth Africa and Pakistan

Trompenaarss FrameworkUniversalism vs Particularismrules or relationships most importantIndividualism vs Collectivismthe individual or the group most importantNeutral vs Emotionalthe range of feelings expressedSpecific vs Diffusethe range of personal interaction (work and outside)Achievement vs Prescriptivehow status is accorded (merit or class)TimeSequential or synchronicEnvironmentControl of the environment versus working in harmony with nature

Context: how cultures use languageHigh Context: These cultures rely on nonverbal and situational cues as well as on spoken or written words in communicationOften, after relationships are established and a context for communication is exists is it possible to make business dealsThailand, MalaysiaLow Context:These cultures emphasize communication via spoken or written wordsFor example, these cultures say or write what they mean, and we mean what we sayUSA, Canada, Germany

How Cultures use TimeMonochronicPeople in these types of cultures tend to do one thing at a timePolychronicPeople from these cultures tend to try and accomplish many different things at onceExample: A Canadian visitor (monochronic culture) to an Egyptian client (polychronic culture) might be frustrated by continued interruptions as the client greets and deals with people flowing in and out of his office.

How Cultures use SpaceThis is a silent part of culturePersonal space how close to each other to people talk, stand?What is valued?How are public spaces organized?

Where you stand Determines your view

Cultural IntelligenceCQ your ability to work across culturesDrive interest in adapting to cross cultural issuesKnowledge understand cultural similarities and differencesStrategy draw from their awareness to think and planAction adapt own behaviour to other cultures

DriveAnswer each question using the scale and then total your score ________

1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

KnowledgeAnswer each question using the scale and then total your score ________

1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

StrategyAnswer each question using the scale and then total your score ________

1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

ActionAnswer each question using the scale and then total your score ________

1: Strongly agree, 2: Agree, 3: Neutral, 4: Disagree, 5: Strongly disagree

Cultural IntelligenceCQ your ability to work across culturesDrive interest in adapting to cross cultural issuesKnowledge understand cultural similarities and differencesStrategy draw from their awareness to think and planAction adapt own behaviour to other cultures

HOW did you do?Who are you now.

McCain Foods CaseOvercome the Challenges?Canadian managers / Chinese business colleagues?Clients own brand name?

Next DayCpt. 8: Organization Structures and Design;

First client visit; Contract Hand-in

Key to Presenting - Like a PRO

Purpose is to persuadePerceptions more powerful than factsPeople are inundated with dataPeople forget fast

Effective presentations are balancedAMMA (I am) a Good Presenter

Satisfy these:

Attention-gettingHow can I get the audience attention?MeaningfulHow can I make the message more meaningful?MemorableHow can I make the message more memorable?ActivatingWhat will move them to act on what I present?

Preparation

Know your audience - approach from their perspectiveStagesObjective Key points (with supporting info) 3 or lessPreview and SummaryOpenerCloser to do

Preparing... Continued

SequenceEasy to follow (chronological, topical, labels)ConnectedSupport pointsexamples, images, emotions, feelings, comparisons, quotations, findings, AV material

Optimal Effectiveness

Visual = 55%Vocal = 38%Verbal = 7%Non-verbal Communication

Head movementFacial expressionsEye contactHand movementsVoice

Other ...

AnxietyPreparedAffirmPracticeRelaxationQuestionsListenDetermine AffirmRespondFeel, Felt, Found

Satisfy these:

Attention-gettingHow can I get the audience attention?MeaningfulHow can I make the message more meaningful?MemorableHow can I make the message more memorable?ActivatingWhat will move them to act on what I present?

Preparation

Know your audience - approach from their perspectiveStagesObjective Key points (with supporting info) 3 or lessPreview and SummaryOpenerCloser to do

Preparing... Continued

SequenceEasy to follow (chronological, topical, labels)ConnectedSupport pointsexamples, images, emotions, feelings, comparisons, quotations, findings, AV material

Optimal Effectiveness

Visual = 55%Vocal = 38%Verbal = 7%Non-verbal Communication

Head movementFacial expressionsEye contactHand movementsVoice

Other ...

AnxietyPreparedAffirmPracticeRelaxationQuestionsListenDetermine AffirmRespondFeel, Felt, Found

*Fig. 2-1 Development of Major Management TheoriesManagement has been evolving for thousands of years.Management is a field that has only undergone systematic investigation, acquired a common body of knowledge and become a formal discipline of study, in the past several hundred years and most particularly, in the last century.Historical examples of contributors include Adam Smith (division of labor), the advent of the industrial revolution and the machine age, and the establishment of large business by such entrepreneurs as Carnegie and Rockefeller who helped to formalize management practices.The classical theorists are divided into two groups:SCIENTIFIC MANAGEMENT: Taylor and the one best way for a job to be done; the Gilbreths and their therbligs classification scheme; and Henry Gantt and his chart for managers used as a scheduling device for planning and controlling work.GENERAL ADMINISTRATIVE THEORISTS: Writers who developed general theories of what managers do and what constitutes good management practice.Henri Fayol developed 14 principles of management (p. 42) which he considered to be universal truths of management that are shared by all managers in all type of organizations and that can be taught in school.Max Weber developed a theory of the bureaucracy, an ideal type structure (p. 43). Like scientific management, it emphasizes rationality, predictability, impersonality, technical competence, and authoritarianism. His ideal type can be used to describe many contemporary organizations.