Principles of Management Lesson 14 Flexibility/Agility: Life Cycle of Firm, Diversity, Global Dimensions of Business (Material from Management by Schermerhorn)

Principles of Management

Lesson 14Flexibility/Agility: Life Cycle of Firm,

Diversity, Global Dimensions of Business

(Material from Management by Schermerhorn)

From Chapter 9: Flexibility in Strategy

Incrementalism Modest and incremental changes in

strategy occur as managers learn from experience and make adjustments.

Emergent strategies Develop progressively over time in the

streams of decisions that managers make as they learn from and respond to work situations.

From Chapter 8: Contingency Planning

Contingency planning Identifying alternative courses of action

that can be implemented to meet the needs of changing circumstances.

Contingency plans anticipate changing conditions.

Contingency plans contain trigger points.

From Chapter 8: Scenario Planning

Scenario planning A long-term version of contingency

planning.

Identifying alternative future scenarios.

Plans made for each future scenario.

Increases organization’s flexibility and

preparation for future shocks.

From Chapter 2: Contingency Thinking

Contingency thinking Tries to match managerial responses with

problems and opportunities unique to different situations.

Especially individual or environmental differences.

No “one best way” to manage. Appropriate way to manage depends on

the situation.

From Chapter 2: Peters and Waterman’s Eight Attributes of Performance Excellence

Eight attributes of performance excellence: A bias toward action Closeness to the customer Autonomy and entrepreneurship Productivity through people Hands-on and value-driven Sticking to the knitting Simple form and lean staff Simultaneous loose-tight properties

From Chapter 2: The Learning Organization

Contemporary businesses must learn to become learning organizations.

Core ingredients of learning organizations: Mental models Personal mastery Systems thinking Shared vision Team learning

From Chapter 6: Life Cycle of Firm

Life cycle of entrepreneurial firms Birth stage Breakthrough stage Maturity stage

Each stage poses different managerial challenges and requires different managerial competencies.

Acceptance Stage

• Establishing the firm• Getting customers• Finding the money

Maturity Stage

• Refining the strategy• Continuing growth

• Managing for success

Breakthrough Stage

• Working on finances• Becoming profitable

• Growing

Fighting for existenceand survival

Investing wiselyand staying flexible

Coping with growthand takeoff

Life Cycle Stages of A Firm

From Chapter 4: How is diversity managed in a multicultural organization?

Diversity: Describes differences among people at work. How diversity is handled in the workplace

reflects the organization’s culture. Respect and inclusion. Disrespect and exclusion.

A potential source of competitive advantage.

From Chapter 4: How is diversity managed in a multicultural organization?

Characteristics of multicultural organizations: Pluralism Structural integration Informal network integration Absence of prejudice and

discrimination Minimum intergroup conflict

Affirmative Action Create upward mobility

for minorities andwomen

Valuing DifferencesBuild quality

relationships withrespect for diversity

Managing DiversityAchieve full

utilization of diversehuman resources

From Affirmative ActionTo Managing Diversity

DIVERSITY IN TEAMS

• Improved creativity –

more ideas, perspectives

• Less groupthink –

multiple viewpoints open

discussion• More concentration –

everyone tries hard

• Mistrust • Negative

stereotyping• Misunderstanding• Inefficiencies• Stress as

pressure to perform builds

What should happen Why it may not

From Chapter 2: What are continuing management themes of the 21st century?

Global awareness Pressure for quality and performance excellence

is created by a highly competitive global economy.

Has promoted increasing interest in new management concepts.

Process engineering Virtual organizations Agile factories Network firms

Adoption of Theory Z management practices.

From Chapter 5: What are the forms and opportunities of international business?

Reasons for engaging in international business: Profits Customers Suppliers Capital Labor

From Chapter 5: What are the forms and opportunities of international business?

Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments.

Types of market entry strategies: Global sourcing Exporting Importing Licensing agreement Franchising

From Chapter 5: What are the forms and opportunities of international business?

Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations.

Types of direct investment strategies: Joint ventures Foreign subsidiaries

POPULAR CULTURE“Differences that the Traveler Notices”

• Time -- monochronic vs. polychronic

• Space -- interpersonal distance & proxemics

• Language -- high context vs. low context

• Religion -- traditions and respect for them

CULTURE SHOCK -- discomfort felt whenexperiencing cultural differences

From Chapter 5: What is culture and how does it relate to global diversity?

Popular dimensions of culture: Language

Low-context cultures and high-context cultures

Interpersonal space Time orientation

Monochronic cultures and polychronic cultures Religion Contracts and agreements

From Chapter 5: What is culture and how does it relate to global diversity?

Values and national cultures

(Hofstede): Power distance

Uncertainty avoidance

Individualism-collectivism

Masculinity-femininity

Time orientation

From Chapter 5: What is culture and how does it relate to global diversity? Understanding cultural differences

(Trompenaars): Relationships with people:

Universalism versus particularism Individualism versus collectivism Neutral versus affective Specific versus diffuse Achievement versus prescription

Attitudes toward time — sequential and synchronic views.

Attitudes toward environment — inner-directed and outer-directed cultures.