Chapter 15
The Transferability
of Management
Definition of terms
• Concepts -are generally accepted
ideas or thought about management
• Principles -refers to the fundamental or
general truths of management
Definition of terms (con’t)
• Theories -are systematic syntheses of
concepts and principles
• Practice -the application of
management theory to reality in the light of situations
The need for Management Theory and practice
“We view management as the single most critical activity in connection with economic progress..” – Farmer and Richman
Two opposing views
• Culture – Bound Theory
- Gonzales and McMillan• Culture – Free Theory - Haire, Ghiselli & Porter - Harbison and Myers - Flores
What is transferable?
• Science -organized body of fundamental
knowledge as expressed in basic concepts, theories, and principles.
• Art -the application of these basic
concepts, theories and principles to a given situation.
Management and the Environment
• Farmer – Richman Model
-Educational Variables -Sociological – Cultural
Variables -Legal Political Variables -Economic Variables
Farmer – Richman Model
External Variables-Educational-Sociological-Cultural-Legal-Political-Economic
Elements of the Management
Process-Planning-Organizing-Staffing-Directing-ControllingPolicy making in operating
ManagementAnd
Managerial Effectiveness
System Efficiency Firm Efficiency
Determine
Determine
AFFECT
Negandhi – Estefan ModelMANAGEMENT
PHILOSOPHYManagement attitude
towards:
-employees-consumers-suppliers-stockholders-government-community
ENVIRONMENTAL FACTORS
-Socio-Economic-Educational-Political-Legal and Cultural
MANAGEMENT PRACTICES
-Planning-Organizing-Staffing-Motivating and Directing-Controlling
Management Effectiveness
Enterprise Effectiveness
AFFECT
Affect
Koonts Model Management Science-Concepts-Principles-Theory-Knowledge of General Application
EnterpriseFunction Science
-Marketing-Engineering-Production-FinanceHuman and Material
Resources
External Environment-Educational-Political-Legal-Economic--Technological-Sociological-Ethical
Non-Management Practices
-Marketing-Engineering-Production-Finance
Management Practices
-Approaches-Techniques-Objectives-Policies-Programs
Enterpris
eEffectiveness Effectiveness
due to management
factors
Effectiveness due to
management factors
AFFECT
AFFECT
Affect
AFFECT
Dueto
Chapter 16
InternationalManagement
• Exportation of goods and services
• Granting and Licensing agreement for producing foods
• Involvement of joint ventures
• Engaging in Management Contracts
• Setting up of wholly owned subsidiaries
The Need for International Managers
Managing International Operations
• Planning -the process of setting the
objectives to be accomplished by an organization during a future time period and deciding on the methods of reaching them
• Organizing -the process of grouping and
assigning activities and providing the necessary authority to carry out the activities
• Staffing -refers to the task of filling
positions with the most qualified people
•Motivating -getting people to contribute
their maximum effort towards the attainment of organizational activities
• Controlling -is the management activity
for ensuring the achievements of an organization’s objectives
Manager’s Role• First-he should never assume that western
methods are automatically superior
• Second-he should undertake an analysis of
possible problem areas…
• Third-he should develop techniques that
carefully dovetail with local situation and culture.
Chapter 17
Japanese Management :An Analysis
Different Areas
Corporate Paternalism
• oyabun (employer) -a person with a status of
oya(parent)• kobun (employee) - a person with a status of
ko(child)
1. Pre-Employment Training Program
2. New Employee Training Program
a. Orientation b. Work Experience c. Residency
Employment “Indoctrination” Training
• One of the ingredients of Japanese Managerial success
• Gives employees a sense of security
Employment for Life
• Prevents young people from becoming managers in Japanese companies.
• Pay is not set by kind of work done by the employee.
Seniority, Promotion, Pay
Collective Decision Making
• Decisions are generated from top to bottom
• Ringi -a decision making which begins
with a manager at a lower organization level sending out his decisions to his superiors
• Ringisho -document drafted by the
manager where he describes the matter to be decided and his recommendations
Quality Control Circles
• Performance - factor that has been
responsible for the extraordinary success of Japan• Works from bottom up
Government Support of Business
• MIT I(Ministry of International Trade and Industry)
-sets goals for specific industries and gives directions to much of Japan’s economic growth.
• Bank of Japan• Government’s Tax System
Japanese Propensity for Saving
• Japanese squirrel away 17% of their income in
savings account.
Kaizen
• On-going improvement• Aims for Total Quality of
product, process and people
~END~