MANAGEMENT IN GLOBAL ENVIORNMENT PRESENTED BY: AARUSHI, AASIM, ACHINT, ADITYA, ADITI, ANA
Parochialism An obstacle for managers in global business world. Monolingualism should be abolished. Managers who follow “ours is better then their’s”;its difficult for them to compete with other managers. JAPANESE AMERICANS
THREE POSSIBLE GLOBAL ATTITUDES ETHNOCENTRIC POLYCENTRIC GEOCENTRIC
The WTO was formed in 1995.It has evolved from general agreement on Tariffs and Trade (GATT)
It deal with the rules of trade among nations and the total number of members are- 146
The function of WTO is help businesses (import and
It play an important role in monitoring and promoting
Different Type of Global Organizations 1.Multinational Company (MNC) This type of Organization has operation in multiple country but managed from home country. Characteristic of Ethnocentric attitude Example:- Sony , Deutsche Bank AG ,Merrill Lynch etc.
2.Transnational Corporation (TNC) Operational in more than one country but decentralizes management to local country. Polycentric Attitude Nestle , Frito -lay etc.
3.Borderless Organization Geocentric Attitude A firm that has eliminated structural divisions that impose artificial geographic barriers and is organized along business lines. IBM , Telefonica etc
National Culture Is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. May have more influence on an organization than the organization culture.
Data collected and analyzed from more than 100,000 people in more than 50 countries
He scored each country using a scale of roughly 0 to 100 for each dimension
INDIVIDUALISM VERSUS COLLECTIVISM POWER DISTANCE UNCERTAINTY AVOIDANCE QUANTITY VERSUS QUALITY OF LIFE LONG TERM AND SHORT TERM ORIENTATIONS
INDIVIDUALISM VERSUS COLLECTIVISM INDIVIDUALISM
PEOPLE PEFER TO ACT AS INDIVIDUALS
LOOK AFTER THEIR OWN INTERESTS AND THOSE OF THEIR IMMEDIATE FAMILY
A social framework in which people prefer to act as members of a group and protect other members of the group
personal needs are less important than the group's needs. This dimension influences the role government is expected to play in markets
A measure of the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally.
A high power distance society accepts wide differences in power in organizations.
Employees show a great deal of respect for those in authority. Titles, rank, and status carry a lot of weight.
In contrast, a low power distance society plays down
inequalities as much as possible
Superiors still have authority, but employees are not afraid off or in awe of the boss
UNCERTAINTY AVOIDANCE A low uncertainty culture allows individuals to cope better with risk and innovation. They're also relatively tolerant of behavior and opinions that differ from their own because they don't feel threatened by them. On the other hand, people in a society that's high in uncertainty avoidance feel threatened by uncertainty and ambiguity and experience high levels of anxiety, which manifests itself in nervousness, high stress, and aggressiveness.
QUANTITY VERSUS QUALITY OF LIFE Quantity of life-degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevails. Quality of life is a national cultural attribute that emphasizes relationships and concerns for others Again like Individualism and collectivism.
LONG TERM AND SHORT TERM ORIENTATIONS It looks at country’s orientation towards life and work. People in long term orientation culture looks to the future and value thrift and persistence. A short term orientation values the past and present and emphasizes respect for tradition and fulfilling social obligations.
The globe …. The GLOBE (Global Leadership & Organizational Behavior Effectiveness) is a multi-phase, multi-method research project in which investigators around the world examine the inter-relationships between societal culture, organizational culture & organizational leadership. The idea was conceived by Robert J. House in 1991 but the project fomally began in 1993.
The globe framework for assessing cultures Assertiveness Future orientation Gender differentiation
4) Uncertainty avoidance 5) Power distance 6) Individualism/ collectivism
Global management in today’s world “arguing against GLOBALIZATION is like arguing against THE LAW OF GRAVITY”- Kofi Annan Doing business globally today isn’t easy. Managers face serious challenges like: 1) Increased threat of terrorism 2) Economic interdependence of trading countries
3) Loss of investments in unstable countries 4) Americanization
Conclusion Successfully managing in today’s global environment will require incredible sensitivity & understanding. Managers need to be aware of how their decisions & actions will be viewed, not only by those who agree, but especially, by those who disagree. They’ll need to adjust their leadership styles & management approaches according to these diversities.
questions What is Global Perspective? How do organizations do business globally? Short notes (choose any two): 1) WTO 2) NAFTA 3) ASEAN MCQs : 1)Monolingualism is one of the key indicators of parochialism prevalence in a culture: a) true b) false 2) Which one of the following regional alliances was formed after the signing of the Masstricht Treaty? a) European Union b) ASEAN c) NAFTA 3) According to the GLOBE which country/countries rank the highest in Uncertainty Avoidance? a) Sweden b) Greece c) Kuwait d) Mexico 4) National culture is more influential than an organizational culture- is justified by: a) Legal-political environment b) Social environment c) Cultural environment d) Economic environment