Examples of Strategic Alliances
General Electric – Snecma of
France
Toshiba – IBM
Mitsui – General Electric
Toyota – GM, TRW
Canon – Hewlett-Packard
Mitsubishi – Caterpillar
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Basic Approaches to Managing an
International Subsidiary
Ethnocentric Approach
Polycentric Approach
Geocentric Approach
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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
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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
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Three approaches to cross-cultural training
Impression Approach
Affective Approach
Information-Giving Approach
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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.
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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.
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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.
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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.
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Chapter
3
Managing Social Responsibility and Ethics
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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.
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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.
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Ethics and social
responsibility should be high-
priority concerns of all
members of an organization,
not just managers and
executives.
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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.
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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.
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Ethics Approaches
People utilize different ethical value systems
These systems are based on:
Personal experiences
Religious background
Education
Family training
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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.
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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Four Examples of Ethical Dilemmas At Work
Performance
appraisal
Employee discipline
Office romance
Giving gifts in the
workplace
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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
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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
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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
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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
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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.
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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.
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Organizational Stakeholders
Owners Employees
Governments
Customers
Social Activist Community
Groups
Competitors
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Strategies for Managing Stakeholders
Confrontation Damage Control
Accommodation Proactive Approach
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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.
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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.
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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.
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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?
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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.
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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.
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Levels of Visible Culture
Corporate Expressed Values
Culture
Core Values
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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
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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
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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.