CSC 350 Learning Management Systems COMSATS Institute of

CSC 350: Learning Management Systems COMSATS Institute of Information Technology (Virtual Campus)

Lecture # 4 Managing System in the Global Arena 2

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

Topics of Discussion 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 4

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

Risk and the MNC • 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 12

The Workforce of MNCs • 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 13

MNC Workforce Challenges • 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 14

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

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

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

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

Transnational Organizations • 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 19

International Management Special Issues • 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 20

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

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

Thank You 23