Fundamentals of Managem

DMG 1043

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Learning Outcomes

Understand and explain the nature

and purpose
of management

Describe the structure and level of

management in organizations

Identify the function of leadership,

organizing, controlling and
planning in an organization

Prepare on forming the strategic

goal, setting objectives and
implementing and executing the
strategy

EmphasisMegatech
on International
issues
related to
College

Recommended Texts
Robbins & Decenzo (2010) Fundamentals
of Management, 7th ed Prentice Hall
Daft R (2006) The New Era of
Management International edition,
Thomson South-Western
David C Thomas Essentials of
International Management , 1st ed, SAGE
Publications
Slides Robbins & Decenzo (2010)
International College
FundamentalsMegatech
of Management,
7th ed

UNIT 2 MANAGING IN CULTURAL

AND ETHICAL ENVIRONMENT

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Three Waves That Changed

the
World
Agriculture
Until the late nineteenth century, all
economies were agrarian.

Industrialization
From the late 1800s until the 1960s, most
developed countries moved from agrarian
societies to industrial societies.

Information
Information technology is transforming society
from its manufacturing focus to one of service.

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The Changing Economy

Old Economy

New Economy

National borders serve to limit National borders no longer

competition
define an organizations
operating boundaries
Technology reinforces rigid
Technology opens up
hierarchies and limits access
to information
organizations and makes
information more accessible
Job opportunities are for blue Job opportunities are for
collar industrial workers
knowledge workers
Population is relatively
Population is characterized by
homogeneous
cultural diversity
Business is estranged from its
Business accepts its social
environment
responsibilities
Economy is driven by large
Economy is driven by small
corporations
entrepreneurial firms
Customers get what business
Customer needs drive business
chooses to give them
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Society and Business

Social responsibility
A firms obligation, beyond that required by
the law and economics, to pursue long-term
goals that are beneficial to society

Social obligation
The obligation of a business to meet its
economic and legal responsibilities and no
more

Social responsiveness
The ability of a firm to adapt to changing
societal conditions
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Arguments for and against Social Responsibility

Arguments for:
Public expectations
Long-run profits
Ethical obligation
Public image
Better environment
Discouragement of further
government regulation
Balance of responsibility
and power
Stockholder interests
Possession of resources
Superiority of prevention
over cures

Arguments against:
Violation of profit
maximization
Dilution of purpose
Costs
Too much power
Lack of skills
Lack of accountability
Lack of broad public
support

Source: Adapted from R. J. Monsen Jr., The Social Attitudes of Management,

in J. M. McGuire, ed. Contemporary Management: Issues and Views (Upper
Saddle River, NJ: Prentice Hall, 1974), p.616; and K. Davis and W. Frederick,
Business and Society: Management, Public Policy, Ethics, 5th ed. (New York:
McGraw-Hill, 1984), pp.2841.

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Societys Expectations
from Organizations and
Managers

Managers regularly make decisions about

issues with a social dimension
In competitive environment,
organizations cannot afford to be seen as
socially irresponsible

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Relationship Between Social

Responsibility and Economic
Performance

Research studies show positive

relationship
General public perception that companies
who behave in a socially responsible way
have better business performance

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Managers Becoming More

Socially Responsible
It is the collective behaviour and actions
of managers that make a company
socially responsible
Managers who make the right decisions
are described as being or behaving
ethically

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Ethics and Business

Ethics
A set of rules or principles that defines right
and wrong conduct

Code of ethics
A formal document that states an
organizations primary values and the ethical
rules it expects managers and operatives to
follow
Usually written
Must state in detail acceptable behaviours
and actions
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Three Views of Ethics

Utilitarian view of ethics
Making decisions solely on the basis of their
outcomes or consequences.

Rights view of ethics

Respecting and protecting individual liberties
and privileges

Theory of justice view of ethics

Fairly and impartially imposing and enforcing
rules.
Source: Adapted from G. F. Cavanaugh, D. J. Moberg, and M. Valasquez, The Ethics
of Organizational Politics, Academy of Management Journal (June 1981): 36374.

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Moral Development
Is a measure of an individuals
independence as his/her moral judgment
becomes less and less dependent on
outside influences
Stages start with making a choice
between right and wrong based on
personal consequences
(continued)

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Moral Development
(continued)
As development evolves, moral judgment
is less dependent on outside factors
Individuals with highly-developed moral
development can make clear distinctions
to define moral principles separate from
any authority

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Values
Basic convictions about what is right and
wrong
Influence ethical behaviour
Values are developed in early years

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Organizational Factors That Affect Ethical

And Unethical Behaviour
Organizational
Culture

Moderators

Structural
Variables

Robbins et al., Fundamentals of Management, 4th Canadian Edition

2005 Pearson Education Canada, Inc.

03 Pearson Education Canada Inc. Megatech International College

Ethical/Unethical
Behaviour

Determinants Of Issue Intensity (Exhibit 2.3)

Source: Management, Seventh Canadian Edition, by Stephen P.

Robbins, Mary Coulter, and Robin Stuart-Kotze, page 113. Copyright
2003. Reprinted by permission of Pearson Education Canada Inc.

Robbins et al., Fundamentals of Management, 4th Canadian Edition

2005 Pearson Education Canada, Inc.
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ation Canada Inc.

Businesses Improving
Ethical Behaviour
Strong emphasis on corporate
governance
Companies refocusing efforts on business
ethics
New legislation to hold boards of
directors more accountable

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Managers Improving
Ethical Behaviour
Hire individuals with high ethical
standards
Establish codes of ethics and
decision rules
Lead by example
(continued)

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Managers Improving
Ethical Behaviour
(continued)
Delineate job goals and

performance review mechanisms

Provide ethics training
Conduct social audits
Provide support to individuals
facing ethical dilemmas

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Management
Responsibility Relating to
Codes
ofdevelop
Ethics
If possible,
codes with active

involvement of everyone in the

organization
All levels of management must support
and continually reaffirm the importance
Consistently discipline those who break
the code
Set an example by behaviour and action

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What Is Entrepreneurship?
Entrepreneurship
The process of initiating a business venture,
organizing the necessary resources, and
assuming the risks and rewards

Steps in the entrepreneurial process

Exploring the entrepreneurial context.
Identifying opportunities and possible
competitive advantages
Starting the venture.
Managing the venture
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Diversity and the

Workforce
Increasing workforce diversity
More variation in the background of
organizational members in terms of gender,
race, age, sexual orientation, and ethnicity

Characteristics of the future workforce

More heterogeneous/diverse
Increasingly older
More multicultural

Diversity will require more managerial

sensitivity to individual differences.
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Mars Incorporated Diversity Philosophy

Distinctive voices working together within a common culture is
one of the ways we have described how we do business at Mars.
We believe that the success of our business can be enhanced by
having a workforce made up of associates from many different
backgrounds, much as our society and consumer base consist of a
wide variety of individuals. We value the talents and contributions
of our diverse workforce in reaching toward our future and in
playing responsible leadership roles.

Source: www.mars.com/other_policies/diversity.as

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Labor Supply and Demand

Adjustments
Downsizing
An activity in an organization designed to
create a more efficient operation through
extensive layoffs

Rightsizing
Linking staffing levels to organizational goals

Outsourcing
An organizations use of outside firms for
providing necessary products and services

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Workforces
Core employees
The small group of full-time employees of an
organization who provide some essential job
tasks for the organization

Contingent workforce
Part-time, temporary, and contract workers
who are available for hire on an as-needed
basis

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Contingent Workers
Part-time employees
Work fewer than 40 hours a week
Are a good source of staffing for peak hours.
May be involved in job sharing

Temporary employees
Are generally employed during peak periods
Can fill in for employees for an extended period of
time
Create a fixed labor cost during a specified period

Contract workers
Are hired by organizations to work on specific projects.
Are paid when the firm receives particular
deliverables.
Are a labor cost that is fixed by contract
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Making a Companys Culture

More Customer-responsive
Actions that create employees with the
competence, ability, and willingness to
solve customer problems as they arise:
Selection: hiring the right personalities and
attitudes
Training: developing the customer-focus
employees
Organizing: creating customer-friendly controls
Empowerment: allowing employees
independence in relating to customers
Leadership: demonstrating commitment to the
customer-focus vision
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Shaping a CustomerResponsive
Culture

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Increased Concerns for

Quality
Continuous improvement
Organizational commitment to constantly
improving the quality of a product or service
Joseph Juran
W. Edwards Deming

Kaizen
The Japanese term for an organization
committed to continuous improvement

Work process engineering

Radical or quantum change in an
organization
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Summary
Concerns about social responsibility and
managerial ethics are growing
Entrepreneurship steps involved
Diversity of the workforce
Quality and continuous improvement

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Question and Answer Session

Q&A
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Next Lecture
UNIT 3 DECISION MAKING

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