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Published by soedito, 2018-07-12 12:58:15

041_MANAJEMEN_Meija_495

041_MANAJEMEN_Meija_495

Examples of Strategic Alliances

General Electric – Snecma of
France

 Toshiba – IBM
Mitsui – General Electric
 Toyota – GM, TRW
Canon – Hewlett-Packard
Mitsubishi – Caterpillar

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Basic Approaches to Managing an
International Subsidiary

Ethnocentric Approach

Polycentric Approach

Geocentric Approach

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Why International Assignments End in Failure

 Career blockage
 Culture shock
Lack of pre-departure cross-cultural training
Overemphasis on technical qualifications
Getting rid of a troublesome employee
Family problems

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Key Human Resource Management
Factors for Global Firms

 Selection

 Selection criterion should include cultural sensitivity

 Training

 Length of assignment determines depth of training
 Cross-cultural training is critical to success

Career Development

 International assignments should be part of career
advancement plan

Compensation and Benefits

 Incentives and quality-of-life concerns

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Three approaches to cross-cultural training

Impression Approach

Affective Approach

Information-Giving Approach

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics and Social Responsibility

Globalization greatly increases the possibility that
managers will face an ethical dilemma.

Different cultures have different notions of right
and wrong.

U.S. Foreign Corrupt Practice Act (1977).

Many firms and industry groups have developed
their own codes of conduct for foreign operations.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management Perspectives—

For the Manager

Firms are prevented from capitalizing on business
opportunities overseas by a lack of awareness of:

 How to enter foreign markets
 How to operate in diverse national settings

By developing a better appreciation of the unique
challenges that may confront them, managers can
learn how to function well overseas.

Groom managers for their role in globalization.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management Perspectives—

For Managing Teams

 Many firms are entering joint ventures with companies in
other countries.

 Joint ventures usually require teams made up of employees
from different nations.

 The ability of international teams to work together in a
climate of mutual respect is a key to success.

 This requires:

 Cross-cultural sensitivity.
 Understanding of the international context in which the firm

operates.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management Perspectives—

For Individuals

The career mobility of employees is likely to be
enhanced if they have international skills.

International savvy is increasingly valued.

Many firms require employees to have
international experience before they can move into
the upper management ranks.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

3

Managing Social Responsibility and Ethics

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After reading this chapter, you should be able to:

Apply the four key ethical criteria that
managers and employees should use when
making business decisions.

Understand why businesses establish codes of
ethics as a method of guiding employee
conduct.

Recognize ways to encourage ethical behavior
in business.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives(continued)

Make ethical decisions in morally challenging
situations.

Value corporate social responsibility.
Understand the influence of various

stakeholders on a company’s priorities, policies,
plans, and goals.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics and social
responsibility should be high-
priority concerns of all
members of an organization,
not just managers and
executives.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

What are Business Ethics?

Ethics are principles that explain what is right
or wrong, good or bad, and what is appropriate
or inappropriate in various settings

Business ethics provide standards or guidelines
for the conduct and decision making of
employees and managers.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

What are Business Ethics? (continued)

Without a code of ethics:

There is no consensus regarding ethical principles
Different people will use different ethical criteria in

determining whether a practice or behavior is ethical
or unethical

Business ethics are not the same things as
laws.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics Approaches

People utilize different ethical value systems

These systems are based on:

Personal experiences
Religious background
Education
Family training

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Approaches for Ethical Decision Making

Utilitarianism

A means of making decisions based on what is good for
the greatest number of people.

Individualism

The degree to which a society values personal goals,
autonomy, and privacy over group loyalty, commitment
to group norms, involvement in collective activities,
social cohesiveness, and intense socialization.

Individual self-interest should be promoted as long as it
does not harm others.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Approaches for Ethical Decision Making

(continued)

Rights approach

A means of making decisions based on the belief
that each person has fundamental human rights that
should be respected and protected.

Justice approach

An approach to decision making based on treating
all people fairly and consistently when making
business decisions.

 Distributive Justice
 Procedural Justice

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

A company needs to ensure agreement about the relevant criteria on which
to judge the ethics of a business decision so that people do not base
decisions on personal value systems.

Code of Ethics

Corporate Credos

Ethical Policy Statements

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Numerous companies have adopted ethical
policy statements that inform employees of

acceptable standards of conduct

St. Paul Companies

Employees may accept gifts of inexpensive pens or
appointment diaries, but not liquor, lavish
entertainment, travel, or clothing.

Eli Lilly and Company

Employees may not conduct business with a
company with which they or their relatives are
associated, unless Eli Lily has given specific
approval and authorization.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Company Examples (continued)

General Dynamics Corporation

Employees may not use or share inside information
(that is not available to the general public) for
personal gain.

J.D. Edwards and Company

Profanity and racial and sexual slurs are prohibited.
Language should convey a loving, caring, and

sensitive attitude toward other people.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill Managing Ethics

Ethics Training
Ethical Structures
Whistleblower Policies

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ethics Training

Usually contains three
elements:

Messages from top executives
emphasizing ethical business
practices

Discussion of Code of Ethics
Procedures for discussing or

reporting unethical behavior

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Ethical Structures

Ethical structures are the procedures and
divisions or departments within a company
that promotes and advocates ethical
behavior.

Two types of ethical structures:

Ethics Officer
Ethics Committee

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Whistleblower Policies Should Include the
Following Key Features

The policy encourages reporting
unethical conduct.

Meaningful procedure to deal fairly with
reported violations.

Those who report violations are protected from
retaliation.

Alternative reporting procedures.
Anonymous reporting to an ethics officer/committee.
Feedback to employees on ethics violations.
Top management support and involvement.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Eight Ways Mangers Can Influence the Ethical
Behavior of Associates

 Take actions that develop  Meet with employees to

trust. discuss and define what

is expected of them.

 Act consistently.  Ensure employees are
treated equitably.
 Be truthful and avoid
white lies and  Adhere to clear
manipulative actions. standards that are seen
as just and reasonable.
 Demonstrate integrity.
 Respect employees.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Four Examples of Ethical Dilemmas At Work

Performance
appraisal

Employee discipline

Office romance

Giving gifts in the
workplace

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Performance Appraisals

 Formal evaluations of an employee’s
performance provided on a recurring basis

 To perform effective evaluations, the
supervisor should devote substantial time to
collecting accurate performance
information

 Rating are used for:

 Letting employees know which skills they have
mastered and which require improvement

 A basis for pay increases, future work
assignments, promotions, and sometimes layoffs

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Discipline

Guidelines for giving employee
discipline in a fair and impartial
way:

 Notify employees in advance of a
company’s work rules and the
consequences for violating them

 Investigate the facts of an employee’s
misconduct before applying discipline

 Be consistent in the response to rule
violations

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Office Romances

Suggestions for ethical
employee conduct in a
romantic relationship in the
workplace:

Public displays of affection at
work should be eliminated

Employees should be prohibited
from dating people they directly
supervise

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Giving Gifts

Ethical test of accepting gifts:

 Think about how a manager or co-worker
would perceive the gift and the person who
gave it

 If you feel uncomfortable explaining the gift,
the discomfort probably means it would be
ethically problematic

The laws and ethics related to
giving gifts between parties as a
business practice are highly
diverse from culture to culture

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill Social Responsibility

 Do corporations have a
responsibility to conduct their
affairs ethically?

Should corporations be judged
by the same standards as
individuals?

 Should a business be concerned
with more than the pursuit of
profits for its shareholders?

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Benefits of Social Responsibility

Socially responsible companies:  Are more likely to influence
 Are good corporate citizens to stakeholders to become loyal
the community and to the customers and become
environment. advocates of the company’s
products.
 Policies can enhance the
image of a company as well as  Research shows that
its product brands from the corporate social responsibility
perspective of the consumers. is related to higher financial
performance and the ability to
 Have fewer conflicts with recruit better quality job
stakeholder groups who applicants.
disagree with the company
over how it uses its resources.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Costs of Social Responsibility

Socially responsible companies may:

Lose focus on the business goals while focusing on
goals related to good corporate citizenship.

Divert needed resources for improving the business
into other social responsibility projects which could
put a company at a competitive disadvantage.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Stakeholders

Owners Employees

Governments
Customers

Social Activist Community
Groups
Competitors
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Managing Stakeholders

Confrontation Damage Control

Accommodation Proactive Approach

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Strategies for Managing Stakeholders

(continued)

Confrontation strategies use courts, public relations,
and lobbying to fight a stakeholder group.

Damage control strategies admit mistakes and
attempt to improve public image and their relationship
with stakeholders.

Accommodation strategies accept social
responsibility for business practices and make
appropriate changes.

Proactive strategies signify a partnership with the
stakeholder and go beyond the groups expectations.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications: Management is Everyone’s Business—

For the Manager

It is critical for a manager to be seen as an ethical
person.

Managers are role models for other employees and
are held to a higher standard of personal conduct.

Managers are responsible for creating an
environment that supports ethical behavior and
discourages unethical behavior.

A manager should set goals for ethical conduct.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications: Management is Everyone’s Business—

For Managing Teams

Teams must place a high priority on behaving
ethically.

When teams or groups tolerate unethical conduct,
it can be very difficult to extinguish this norm.

Tolerance of unethical activities can lead to more
serious breaches of conduct that can damage the
reputation of the entire team.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications: Management is Everyone’s Business—

For Individuals

Front-page ethical test

 How would I feel if my decision became a headline in a local
newspaper?

 Would I feel comfortable describing my actions or decision
to a customer or stockholder?

Golden rule ethical test

 Would I be willing to be treated in the same manner?

Personal gain test

 Is an opportunity for personal gain clouding my judgment?

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

4

Managing Organizational
Culture and Change

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After reading this chapter, you should be able to:

 Build and maintain an appropriate company culture.
 Understand the roles of symbols, rites, ceremonies, heroes, and

stories in an organization's culture.
 Identify the various categories of organizational cultures and the

characteristics of people who fit best with them.
 Adapt to organizational change and the forces that drive change.
 Work with employees who resist change.
 Use tools to help implement change, including Lewin’s three-

step model of change and force field analysis.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Culture

A system of shared values, assumptions, beliefs,
and norms that unite the members of an
organization.

Reflects employees’ views about “the way things are
done around here.”

The culture specific to each firm affects how
employees feel and act and the type of employee
hired and retained by the company.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Levels of Visible Culture
Corporate Expressed Values
Culture
Core Values

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Functions Performed By
Organizational Culture

Employee Self-Management

Sense of shared identity
Facilitates commitment

Stability

Sense of continuity
Satisfies need for predictability, security, and

comfort

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Functions Performed By
Organizational Culture (cont)

Socialization

Internalizing or taking organizational values as
one’s own

Implementation Support of the
Organization’s Strategy

If strategy and culture reinforce each other,
employees find it natural to be committed to the
strategy

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Stages of the Socialization Process

Pre-arrival
Encounter

McGraw-Hill Metamorphosis

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Creating and Sustaining
Organizational Culture

Cultural Symbols Company Rituals and
Ceremonies

Company Heroes

Stories

Organizational Policies Language
and Decision Making
Leadership
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.


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