CSC350: Learning Management Systems COMSATS Institute of Information Technology (Virtual Campus)

Lecture # 4 Managing System in the Global Arena 2

1.Understanding ‘social responsibility’ 2.Social responsiveness of an organization 3.Meeting social audit challenges 4.How to meet philanthropy challenges 5.Ways for building sustainable organizations 6.Appreciation of the role played by ethics in management Review of the Previous Lecture

1.Understanding international management 2.Categorizing organizations by level of international involvement 3.Constituting a multinational corporation 4.Information about those who work in multinational corporations 5.Relating management functions to multinational corporations 6.Transnational organizations 7.Issues impacting managing in the international system Topics of Discussion 4

Performing management activities across national borders Reaching organizational activities by extending management activities to include an emphasis on organizations in foreign countries Fundamentals of International Management 5

International Management Trends 6

U.S. Foreign Investments 7

European Countries U.S. Investments 8

Organizations By Level Of International Involvement 9

Multinational Corporations – MNCs 10

Multinational Corporations – Complexities of MNCs 11

Requires a substantial investment in foreign operations Expectations of investments Lack of understanding risks Uncertainty of achieving desired outcomes Serious financial problems resulting from poor investment Risk and the MNC 12

Expatriates – Organization member living in a country where they do not have citizenship Host-Country Nationals – Organization member who is a citizen of the country where the foreign-based organization is located Third-Country Nationals – Organization member who is a citizen of one country and works for an organization headquartered in another country The Workforce of MNCs 13

Workforce Adjustments – Expatriates & Third-Country Nationals need to adjust to a new culture Adjusting to a New Culture – Food, weather, language, attitudinal, perceptual differences Repatriation – Bringing expatriates back home MNC Workforce Challenges 14

Planning – Determining how the organization will achieve its objectives Imports/Exports License Agreements Direct Investing Joint Ventures International Market Agreements – EU – NAFTA - APEC Management Functions & MNCs 15

Organizing – Organizational Structure – Selection of Managers – Managerial Attitudes Toward Foreign Operations Ethnocentric Polycentric Geocentric Management Functions & MNCs 16

Influencing – Culture – Hofstede’s Cultural Values Power Distance Uncertainty Avoidance Individualism & Collectivism Masculinity & Femininity Short-Term & Long-Term Orientation Management Functions & MNCs 17

Controlling – Labor Costs – Product Quality – Inventory Management Functions & MNCs 18

Global organizations National boundaries are consequential Primary goal is doing business wherever it makes sense Pursue business activities globally and claim no loyalty to any one country Transnational Organizations 19

Maintaining Ethics – What seems ethical in a manager’s home country might be unethical in a different country – Respecting core human rights – Respecting local traditions – Determining right from wrong situationally International Management Special Issues 20

Preparing Expatriates for Foreign Assignments – Culture profiles – Cultural adaptation – Logistical information – Application International Management Special Issues… 21

Conclusions  Think of the sum-up and listen to me carefully. 22

Thank You 23