mgt functions(2)
TRANSCRIPT
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MANAGEMENT FUNCTIONS
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Seven Key Trends of the GlobalizingEconomy
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1) Borders Are Disintegrating The World Trade Organization
Formal structure for continued negotiations and forsettling trade disputes among nations.
Historical Developments: GATT 1947: Nations met to reduce tariffs resulting in the
General Agreement on Tariffs and Trade. WTO 1986/1993: Negotiations began in Uruguay to
continue reducing tariffs and established the World TradeOrganization.
1997: Trade ministers from countries representing 92%
of world trade agreed to eliminate tariffs on software,computer chips, telecommunication equipment, andcomputers.
WTO has some critics and not all countries areparticipating equally.
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Sell Anywhere, Locate Anywhere
Regional Trade Agreements European Union (EU) North American Free Trade Agreement (NAFTA) Asia-Pacific-Economic Cooperation (APEC)
Nearly half of the over $5 trillion in worldtrade is among the European union, the U.S.,and Japan the TRIAD
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2) Foreign Direct Investment Foreign Direct Investment (FDI) occurs when a
multinational company from one country has anownership position located in another country.
FDI increased by more that 36% between 1996and 2000.
Developed countries get the bulk of FDI (69%) whiledeveloping countries get around 30%.
Least developed countries get minimal FDI. Implications for managers:
significant opportunities around the world. Multinational managers should look at risk rating
of countries.
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3) Internet and InformationTechnology
Electronic Communication E-mail, World Wide Web, teleconferencing, etc. Allows multinationals to communicate with
company locations throughout the world. Multinationals can monitor worldwide operations.
Borderless financial market.
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4) Global Products and GlobalCustomers
The needs of customers for many productsand services are growing more similar,
e.g., McDonalds, Boeing, Toyota. Global customers search the world for their
supplies without regard for nationalboundaries.
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6) New Competitors are Emerging Free market reforms are creating a potential group
of new competitors. Korean, Russian, Taiwanese, and Mexican
companies are all emerging.
Chinese companies are also on the move. Global trade has two important effects indeveloping new competitors:
1. Multinationals facilitate the transfer oftechnology when developing countries are usedas low-wage platforms for high-tech assembly2. Aggressive multinationals from emergingmarkets are also expanding beyond their ownborders.
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PlanningDefining goals and
establishingaction plans
ControllingMonitoring activitiesto ensure that they
are achievingresults
LeadingGuiding andmotivating all
involved parties
OrganizingDetermining what
needs to be done, inwhat order, and by
whom
Management Activities(Management Functions)
EffectiveManagement
FOM 1.10
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Copyright 2005 PrenticeHall, Inc. All rights reserved.
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Management ProcessActivities
Exhibit 1.4
Management process: planning, organizing,leading, and controlling
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Copyright 2005 PrenticeHall, Inc. All rights reserved.
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Management Processes Planning
Includes defining goals, establishing strategy, anddeveloping plans to coordinate activities
Organizing Includes determining what tasks
to be done, who is to do them,how the tasks are to begrouped, who reports towhom, and wheredecisions are to be made
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Copyright 2005 PrenticeHall, Inc. All rights reserved.
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Management Processes (contd)
Leading Includes motivating employees, directing the
activities of others, selecting the most effectivecommunication channel, and resolving conflicts
Controlling The process of monitoring performance,
comparing it with goals, andcorrecting any significantdeviations
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FOM 1.15
Distribution of Managers Time
0 20 40 60
Planning
Organizing
Leading
Controlling
First-levelMiddle levelTop level
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Copyright 2005 PrenticeHall, Inc. All rights reserved.
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Mintzbergs Managerial Roles
Interpersonal Figurehead Leader
Liaison Informational
Monitor Disseminator Spokesperson
Decisional Entrepreneur Disturbance handler
Resource allocator Negotiator
Exhibit 1.5Source: The Nature of Managerial Work (paperback) by H. Mintzberg. Table 2, pp. 92 93. Reprinted bypermission of Pearson Education Inc., Upper Saddle River, New Jersey.
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FOM 1.18
The Roles That Managers Play
High
Moderate
Low
Importance
Spokesperson Resource Allocator
EntrepreneurFigureheadLeader
Liaison, MonitorDisturbance HandlerNegotiator
Disseminator Entrepreneur
Small Firms Large Firms
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FOM 1.19
General Management Skills
POLITICAL TECHNICAL
INTERPERSONALCONCEPTUAL
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FOM 1.20
Conceptual Skills
Mental ability to analyze and diagnosecomplex situations
Allow Managers to see how things fit
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FOM 1.21
Interpersonal Skills
Ability to work with, understand, mentor andmotivate others
Both individually and as a group Many managers fail in this
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FOM 1.22
Technical Skills
Ability to apply specialized knowledge orexpertise
Engineer, accountant, etc
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Copyright 2005 PrenticeHall Inc All rights reserved
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Efficiency and Effectiveness
Exhibit 1.3