Chapter 3 Flashcards
Global village
A boundary less world where goods and services are produced and marketed worldwide.
What does it mean to be global?
Exchanging goods and services with consumers in other countries
Using managerial and employee talent from other countries
Using financial sources and resources outside home country
Global sourcing
purchasing materials or labor from the cheapest source in order to maintain competitive edge
Exporting
an organizations product is made domestically and sold abroad
Importing
involves acquiring products made abroad and selling them domestically
Franchising
primarily used by service organizations that want to use another company name and operating methods
Foreign subsidiary
separate and independent facility or office
MNC
multinational corporation - any type of international company that maintains operations in multiple countries
Multi domestic corporation
management and other decisions are decentralized to the local country in which it is operating
Transnational (borderless) Organizations
An MNC where artificial geographical boundaries are eliminated
Global Corporation
An MNC in which management and other decisions are centralized in the home country.
Parochialism
a narrow focus in which managers see things only through their own eyes and from their own perspectives—not recognizing that countries have different values, morals, customs, political and economic systems, and laws—which can affect how a business is managed.
Global leadership and organizational behavior effectiveness
continues the ongoing cross-cultural investigation of leadership and national culture. GLOBE’s findings both extend Hofstede’s research and confirm the validity of his original dimensions.
Assertiveness
is the extent to which a society encourages people to be tough, confrontational, assertive, and competitive versus modest and tender. (The United States ranks high; Egypt ranks moderate; and Sweden ranks low.)
Future Orientation
indicates the extent to which a society encourages and rewards future-oriented behavior such as planning, investing in the future, and delaying gratification. (Canada ranks high; Slovenia ranks moderate; and Russia ranks low.)
Gender differentiation
captures the extent to which a society maximizes gender role differences. (South Korea ranks high; Italy ranks moderate; and Denmark ranks low.)
uncertainty avoidance
is a society’s reliance on social norms and procedures to alleviate the unpredictability of future events. (Germany ranks high; Israel ranks moderate; and Hungary ranks low.)
Power Distance
is the degree to which members of a society expect power to be unequally distributed. (Thailand ranks high; England ranks moderate; and South Africa ranks low.)
Individualism and collectivism
is the degree to which individuals are encouraged to integrate into groups within organizations and society. (Greece is highly individualistic; Hong Kong is moderately individualistic; and Singapore is collective.)
in - group collectivism
encompasses the extent to which members of a society take pride in their membership in small groups such as their family and circle of close friends and the organizations by which they are employed. (China ranks high; Qatar ranks moderate; and New Zealand ranks low.)
Performance Orientation
refers to the degree to which a society encourages and rewards group members for performance improvement and excellence. (Taiwan is high; Spain is moderate; and Greece is low.)
Humane Orientation
is the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. (Indonesia ranks high; Hong Kong ranks moderate; and France ranks low.)
Social Responsibility
refers to a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. Social responsibility adds an ethical imperative to do those things that make society better and to avoid those things that could make it worse.
Social Obligations
are activities a business engages in to meet certain economic and legal responsibilities. It does the minimum that the law requires and only pursues social goals to the extent that they contribute to its economic goals.
Social Responsiveness
is characteristic of the business firm that engages in social actions in response to a popular social need. Managers in these companies are guided by social norms and values and make practical, market-oriented decisions about their actions.
Sustainability
defined as company’s ability to achieve its business goals and increase long term shareholder value by integrating economic, environmental, and social opportunities in into its business strategies
Ethics
commonly refers to a set of rules or principles that defines right and wrong conduct.
The Utilitarian view of ethics
ethical decisions are made solely on the basis of their outcomes or consequences. The goal of utilitarianism is to provide the greatest good for the greatest number of people.
rights view of ethics
individuals are concerned with respecting and protecting individual liberties and privileges such as the right of free consent, the right to privacy, and the right of free speech. Under this view, making ethical decisions is simple because the goal is to avoid interfering with the rights of others who might be affected by the decision.
theory of justice view of ethics
, an individual is equitable, fair, and impartial in making decisions. For instance, such a manager would pay individuals of similar skill, performance, or responsibility level the same wage and wouldn’t base that decision on gender, personality, or favoritism.
What determines ethical behavior?
Morality Values Personality Experience Organization's culture Issue being faced
Three ways that managers promote ethical behavior?
Establishing a code of ethics
Providing ethical leadership
Offering ethics training
Code of ethics
Should be specific enough to guide organizational members in what they’re supposed to do, yet loose enough to allow for freedom of judgement
Ethical Leadership
which sets the tone for employee behavior. Managers must be good ethical role models both in words and, more importantly, in actions, which send even stronger signals to employees
Critics
value systems learned in youths
proponents
values can be learned and ethical problem solving increases ethical behavior, moral development, awareness
Diversity
is visible in age, gender, race, physical attributes, styles of dress, and personality type
workforce diversity
the ways in which people in an organization are both different from and similar to one another
generational difference
present challenges ranging from appearance to technology and management style, which can be accommodated by flexibility
