Foundations of Management: Leadership, Organization, and Globalization
Unit 1: Foundation of Management
Leadership skills
Inspire and motivate a team to work towards a strategic goal. Effective communication and decision-making. Develop a vision and strategy. Encourage innovation and feedback. Cultivating a positive but diverse and inclusive workplace culture.
Modern Workplace- essential skills
Communication, Collaboration, Critical thinking and problem-solving skills, Adaptability and flexibility, Technological proficiency, Time management, Leadership and management, Continuous learning and development to stay relevant and competitive.
For-profit vs. Non-Profit
Goal of org – make $. Have shareholders. Non-Profit: Charities, have members, use $ – invest in cause. $ stays in Org – tax deductible.
Organization
Collection of people working together to achieve a strategic goal. Provide valuable services that return value to society and satisfy customer needs. Organizations: 1. Purpose: to produce a good or service of value 2. Division of Labour: different tasks to different people 3. Hierarchy of Authority: level-by-level arrangement of managers 4. Mission or vision statement
Organizations are open systems
Interrelated parts that function together to achieve a common purpose. Interact with their environments. Org: Transform resource inputs into product outputs (goods and services). Environmental feedback tells org how well it is meeting the needs of customers and society.
Organizations performance
Productivity: measure of the quantity and quality of work performance with consideration of resource utilization. Performance efficiency: (Input) An input measure of the resource costs associated with goal accomplishment. Performance effectiveness: (Output) The goal. An output measure of a task or goal accomplishment.
Entity
How easy is it to form and register? Explain
Cost of Formation (Low, Moderate, High)
Personal Liability
Continuity of the business
Tax treatment in Canada
Number of Owners
Transfer of ownership consent
Control of company
Advantages
Disadvantages
Who is this recommended for, provide specific examples
Sole Proprietorship
Easy- to start as it involves only one person who is the owner and is responsible for all business activities. No registration needed.
Low
Unlimited
Dependent on owner
Personal
Income tax
1
N/A
Owner
Easy to set up, low cost, full control
Unlimited liability, limited resources
Small businesses, self-employed individuals
Ex: freelance writing, landscaping, consulting services
Partnership
Easy- to form, involves two or more people who agree to carry on a business together. No requirement for registering and partners can simply start operating the business together
Moderate
Unlimited
Dependent on partners
Personal income tax
2 or more
By partnership agreement
Shared among partners
Shared resources and risk, additional skills and knowledge
Unlimited liability, potential conflict among partners
Small businesses, professional services firms
Ex: law firms, architecture firms, accounting firms
Corporation
Moderate – more complex – involves creating a separate legal entity that is distinct from its owners. Must file articles of incorporation with the government. Must also elect a board of directors and issue shares of stock. Subject to more regulatory requirements and formalities
High
Limited
Perpetual
Corporate and personal income tax
1 or more
By agreement and legal requirements
Board of directors and shareholders
Limited liability, perpetual existence, easier to raise capital
Complex to set up and maintain, double taxation, less control
Large businesses, high-risk industries
Ex: manufacturing, technology, retail
Crown Corporation
A Crown corporation is a type of corporation that is owned by the government. Hardest to set up
N/A
N/A
Perpetual
N/A
N/A
N/A
Government appointed
Public services and utilities
Dependence on government policies, limited profitability
Public services and utilities
Ex: Canada Post, CBC/Radio-Canada, Via Rail
Cooperative
Moderate -a group of people coming together to pool their resources and establish a business that is collectively owned and democratically controlled-registered
Low to high
Limited investment
Perpetual
Corporate and personal income tax
1 or more
By partnership agreement
Board of directors and members
Shared resources and risk, democratic decision-making
Limited personal benefits, slower decision-making
Member own businesses, agriculture consumer goods
Ex: agriculture co-op, consumer co-op, credit union
The business model best suited for Canadian farming is the cooperative model. This is because farming is often a community-based industry that relies on shared resources and knowledge. A cooperative allows farmers to pool their resources and collectively negotiate better prices for their products, while also sharing the risks and benefits of farming. The business model best suited for Canadian Hydro is the corporation model. This is because hydroelectric power generation is a capital-intensive industry that requires significant investment and specialized knowledge. A corporation can raise capital through the sale of stocks and issue debt, which allows for more flexibility in funding large-scale projects. The business model best suited for lawyers is the partnership model. This is because legal services often require specialized knowledge and expertise that is difficult to provide as an individual. A partnership allows lawyers to pool their resources and knowledge, while also sharing the risks and costs of running a law firm. Arguments for privatizing Crown corporations: Increased efficiency and profitability. Greater flexibility in operations
More accountability to shareholders and customers Arguments against privatizing Crown corporations: Public services may suffer due to profit-driven priorities
Loss of control over public assets. Loss of stable, unionized jobs with good benefits for workers
Bureaucratic organization (Max Weber). Clear division of labor theory – specialization – Clear hierarchy strong lines of authority and control. more efficient when each person works on specialized tasks. Formal rules and procedures- Impersonality. Adv:• very efficient form of org.• Based on logic, order, and authority. Disadv: lots of paperwork or “red tape”- Rigid and Resistant to change.
An organization is run from top down: clear hierarchy that defines roles, responsibilities, and reporting structures.
1.2
Managers
A person that is responsible for the work of others. The real work of the organization. Ensure people are treated as strategic assets
Work-Life Balance
A law that states that you are not expected to answer emails or phone calls regarding your job outside of work hours.
Efficiency quality speed cost
Overworked workers are more likely to ask for sick leaves, and be too exhausted to work efficiently.
Quality of work life (QWL)
An indicator of the overall quality of human experiences in the workplace:
Fair pay
Safe working conditions
Opportunities to learn and use new skills
Room to grow and progress in a career
Protection of individual rights
Pride in work itself and the organization.
Employee Turnover
Managers do not want new employees because training there is costly and takes lots of time and effort to fill in the knowledge gap.
Top managers
Top of the pyramid. Create the company’s vision, set the road map, set the overall direction of the company etc. These are known as C- level executives. Strategic planning – vision and direction.
Middle managers
Report to managers, carry out the plans that top managers develop and supervise lower-level managers. Project managers: coordinate complex projects with task deadlines. Functional managers: responsible for a single area of activity. Ex: marketing manager or branch manager.
Supervisors
Lower-level managers, Report to middle managers but oversee the front-line workers. Work on the floor, hands-on.
HEAL vs STEM Jobs
HEAL (Healthcare, Education, and Social Assistance) and STEM (Science, Technology, Engineering, and Mathematics)
Management skills
Technical; methods, processes, procedures, and techniques involved in achieving task. Human :(interpersonal) work with different personalities. Conceptual: (Problem-solving) Ability to think critically. Solve problems rationally and logically.
Traits of good managers
Build working relationships with others -Help others develop their skills and performance -Foster teamwork -Create a work environment that is-performance-driven and provides satisfaction for workers.
The Management process- 4 functions
Planning: Setting the vision for the company. Organizing: Matching the job to the experiences and skill set of the workers. Answers who, when, how, what questions, etc. Leading: Direct, lead, and motivate people to perform to the best of their abilities. Ensure employees meet deadlines Ensure staff is trained effectively. Controlling: Carry out plans and provide information. Assess how effectively the area of responsibility is performing. Awareness of what is happening in the business. Making corrections and adjustments to keep operations sticking to the goal.
Article : Underrepresentation of women and visible minorities in public companies and the absence of any significant representation of Indigenous peoples and those with disabilities in public company leadership positions.
Management Level
Role
Common Job Titles
Top-Level
Strategic
CEO, President, Vice President, Chief Financial Officer (CFO), Chief Operating Officer (COO)
Middle-Level
Tactical
General Manager, Director, Regional Manager, Dept Manager
Supervisor
Operational
Supervisor, Team Leader, Project Manager, Shift Manager
Front-Line
Operational
Front-Line Manager, Assistant Manager, Crew Leader, Sales Associate
Challenges of working in the new economy: Movement from manufacturing to service-based to technology and innovation.
Costly
Competition from global markets
Challenges of New Economy.
Changing technologies and industry trends. Increased competition and remote workers
High expectations for productivity and work-life balance. Lack of job security and traditional employee benefits. Need for continuous learning and upskilling. Limited face-to-face interaction. Complex legal and regulatory frameworks. Ethical concerns around data privacy and social responsibility. Difficulty in establishing a strong professional reputation in an online environment. Risk of burnout and mental health issues due to increased workload and pressure.
Globalization: world trade
National boundaries of world business have largely disappeared
What do large corporations in a globalized economy need to succeed?
Stay one step ahead of their competitors
Ex. Government activities, new developments, etc.
Canada’s trading partners: US, China, and Mexico.
Advantages of working remotely
Location. No commuting is needed. Comfortable in own environment.
Disadvantages of working remotely
Impersonal
Lack of communication, weaker bonds, Often distracting
Restructuring
The process of making major changes to the organization to make the company more efficient. Laying off workers. Getting rid of the middle man.
Flat organizations
Less supervision of employees. Employees are more inspired to hit their own goals. Minimal or non-existent hierarchy of management levels. Discourages managers and employees from concentrating on specific tasks. Encourages them to diversify the scope and extent of their expertise. In a flat organization, employees have more autonomy, decision-making power, and a greater ability to take initiative and solve problems on their own.
Ex: Shopify: This Canadian e-commerce company.
Article : How flat hierarchies help companies stay nimble and grow faster.
Cutting out layers of middle management doesn’t just save costs—it can empower employees to innovate: Corporate Travel Management Solutions. Zappos -have adopted Holacracy, a radical form of flat structure that does away with job titles.
Vertical Structure
Clear set of duties and responsibilities
Tall organizations
More supervision, and fewer responsibilities for the employees.
Diversity
Describes differences among people at work
With respect to gender, age, race, ethnicity, religion, sexual orientation, and able-bodiedness. A diverse and multicultural workforce offers both challenges and opportunities to employers. (Legally, a lot of companies have to hire a diverse workforce)
Challenges faced by minorities and women
Glass ceiling (women not being able to climb up the ladder and get hired for a higher position)
Misunderstanding and lack of sensitivity
Sexual harassment
Pay discrimination
Job discrimination
Business Ethics: Code of moral principles. Based on personal values. Values are concepts such as fairness, justice, good citizenship, and caring for others. Society requires businesses to operate according to high moral standards. Affect the relationships with the organization’s various stakeholders. Stakeholder is any person, group, or organization who may be affected by the activities of another organization. Ex: Customers, Shareholders, Employees, Suppliers.
What are some of the ethical challenges with operating a business globally?
Compliance with legal. fair labor – avoiding exploitation of workers. Ethical standards and social norms. discrimination and prejudice
Corruption – bribery and fraud
Balancing the interests, human rights.
Legal values
Age rule of law and government behavior (crimes that are not committed because it goes break a law)
Individualism view of ethics
Primary commitment is to one’s long-term self-interest
Absolute values
A person with perfect morals and values values that go beyond the law and that do not change.
The utilitarian view of ethics
Greater good to the greatest number of people
Actions are to be judged by their consequences
Moral rights view of ethics
Respects and protects the fundamental rights of all people
Workplace: privacy, due process, free speech, health and safety
Globally: human rights
Ethical behaviour in the workplace
Harassment
Bribery
Theft and fraud
Environmental protection
Harassment: Reasonable is known to be unwelcome repeated behavior. Can we do verbal or physical?
Policies prohibiting harassment and procedures for dealing with harassment complaints
Conduct training sessions to promote awareness and sensitivity training.
Ex. Harassment, bribery, theft/fraud, environment protection.
Active bribery: Offering or providing a bribe Passive bribery: Demanding or accepting s bribe
Bribing on the private sector: Is not illegal but unethical.
Cultural issues in ethical behavior
Cultural relativism: Ethical behavior is always determined by cultural context.
Ethical Imperialism: (opposite extremes) Behavior that is unacceptable in one’s home environment should not be acceptable anywhere else.
Corporate culture
A shared understanding of what individuals can and cannot do.
Internet use while working
The organization is not paying you to use the internet for personal reasons.
Managers need to provide employees with specific guidelines to follow on personal internet use.
Code of ethics
Communicates the purpose, values, and objectives of a business and outlines expected behavior for employees.
Whistleblowing
The act of turning against other employees or management for ethical infractions. Ethical dilemma. Morally correct. Expose misdeeds of others to:
Preserve ethical standards
Protect against wasteful, harmful, or illegal acts
Ethical dilemmas and the organization
An ethical dilemma occurs when choices, although having
potential for personal and/or organizational benefit, may
be considered unethical.
Factors influencing ethical behaviour include:
The person:
Family influences, religious values, personal standards, and personal needs.
The organizations:
Supervisor’s behaviour
Peer group and norms behaviour
And policy statements in written rules.
The environment:
Government laws and regulations
Social norms and values
The competitive climate in an industry
Human resource issues:
e.g. discrimination in hiring or promotion, nepotism,harassment
Employment equity:
The Employment Equity Act attempts to create equal opportunities for groups that were, historically, the victims of discrimination (women, indigenous people, people with disabilities, and members of visible minorities)
Outsourcing:
Hiring a 3rd party to perform services and create goods that traditionally were performed in-house by the company’s employees
Cost-cutting because hiring people from third-world countries are more affordable to be hired and get paid less.
Ex. repetitive tasks like data management, customer service, financial services, and other e-business tasks. outsourcing should be seen as a tool to enhance competitiveness, but not at the expense of ethical values and social responsibility.
Worker exploitation Environmental impacts Social responsibility: job loss.
Offshoring
Moving operations of a company to another country
for lower labor costs or more favorable economic
conditions in that other country.
Offshoring for Lower Costs
Dilemma:
Offshoring can have benefits for the company, such as cost savings and access to new markets, but it can also have negative consequences, such as job losses in the home country.
Maintaining high ethical standards: Ethics training
Structured programs help participants to understand the ethical aspects of decision-making.
Helps people incorporate high ethical standards into daily life.
Helps people deal with ethical issues under pressure.
Dealing with ethical dilemmas:
Recognize the ethical dilemma
Get the facts
Identify your options
Evaluate each option: is it legal? Is it right? Is it beneficial?
Decide which option to follow
Double-check the decision by asking the “spotlight” questions:
How would I feel if my family found out about my decision?
How would I feel about this if my decision were printed in the newspaper?
Take action.
Ethical role models:
Top managers serve as ethical role models
All managers can influence the ethical behaviour of people who work for and with them.
Government influence organizations:
Occupational safety and health
Fair labour practices
Consumer protection
Environmental protection.
Organizations influence government:
Campaigns
Signing partitions
Corporate social responsibility:
The initiative of the organizations to benefit society, environmental, or social wellbeing.
Classical view: Management’s only responsibility is to maximize
profits.
Socioeconomic view: Management must be
concerned for the
broader social welfare,
not just profits.
Is the organization truly interested in giving back and supporting the community?
Do the reasons matter, as long as a large organization is making a positive contribution to the community?
Argument AGAINST social responsibility:
Reduced business profits
Higher business costs
Dilution of business purpose
Arguments FOR social responsibility:
Adds long-run profits
Improved public image
Avoids more government
regulation
Businesses have resources
and ethical obligation. avoid lawsuits, or criminal
consequences
1.5
To succeed, companies need to know how to adapt to change.
A business will go out of business if they are not adaptable to the changing variables.
When competing with other businesses focus on maintaining market share and competitive advantage.
Challengers that cause change for businesses:
Trends
New technologies
Growth of the internet
Globalization
Trends:
Hard to predict
Last longer
Include more than one specific product
Fad:
Short life span
Often about one specific item.
Customer-driven organization:
Customer want:
High-quality products
Low price
On-time delivery
Key customer service lessons:
Protect reputation for quality products
Treat customers right
Web Presence:
Showcase and provide info on services and products
Provide contact information
Sell directly to customers
Provide customer service and support
Save money (more affordable than advertising through third-party advertising)
Attract local and global customers
Legal Considerations: PIPEDA (Personal Information Protection and Electronic Documents)
It is illegal for companies to sell your personal information.
1.6
Adaption Strategies
Force (authoritative)
Based on the belief that people need direction
A manager has the legitimate authority to direct employees to adapt to a change
Expects compliance
Negotiation (persuasive)
Advantage: quite by in
Disadvantage: Employees may not believe or support the change
Negotiation (persuasive)
Best suit when change needs to be made quickly and it only affects one department
Shared power (collaborative)
Collaborate on the means and methods of the implementation of the change
The employee can influence change with the least amount of negative impact on himself or herself as an individual.
Best suited when compliance and support for change are crucial and affect numerous departments.
Maslow’s hierarchy of needs: Important in the workplace
1.7
Globalization:
The integration of economies throughout the world through trade, financial flows, the exchange of technology and information, and the movement of people.
Causes of expansion of globalization:
Multilateral tariff reduction and trade liberalization efforts.
NAFTA (free trade agreement)
Benefits of globalization: For consumers
Increase competition
Wider choice of lower-price goods
Efficient use of global resources.
Disadvantages of globalization:
Unequal economic growth
Increases potential global recessions
Lack of local businesses.
Global Sourcing:
Sourcing from the global market for goods and services. Ex. Quality and lower cost.
Imports:
Refers to buying goods and services from foreign sources and bringing them back into the home country.
Exports:
Refers to selling goods and services from the home country to a foreign nation.
Types of market entry strategies:
Market entry strategies involve the sale of goods and services to foreign markets but do not require expensive investments.
Ethics in Global Sourcing:
Child labour
Dangerous working conditions and health and safety issues
Bribery and corruption
The exploitation of the workforce
Direct investment strategies:
Require major capital commitments but create rights of ownership and control over foreign operations.
Types of direct investment strategies: Joint ventures, foreign subsidiaries.
Joint ventures:
Combination of two or more parties to start a new business activity.
Mutual benefits for the host country and MNCs (Multinational corporations):
Shred growth opportunities
Shared income opportunities
Shared learning opportunities
Shared development opportunities
Host country complaints about MNCs:
Excessive profits for the home country
Domination of local economy
Interference with local governments
Hiring the best local talent
Disrespect for local customs
Polycentric attitudes:
A belief that the managers in the host country know the best work approaches and practices for running their business.
Geocentric (global) attitudes:
The global view emphasizes using the best approaches and people from around the globe.
Regiocentroc approach (Regional):
Selects managers from a different country within the same geographic area whose environment and culture closely match the host country.
Globalization 1.7
What are the international management challenges of
globalization : The challenges of globalization require international managers to be flexible, adaptable, and knowledgeable about different – language/communication barriers – cultures (differences in time zone, customs, and traditions, diverse workforce, ethical and social responsibility) – political and legal systems, and economic (currency fluctuations, trade barriers) conditions. They must be able to develop new strategies to face these challenges in order to compete in the global marketplace.
What are the forms and opportunities of international
business?
Forms of Intl Business
International business- trade of goods and services in different countries.
Forms -Exporting: sale of goods or services btwn countries
Importing: purchase of goods or services produced btwn countries.
Benefits of in international business include:
1.Increased market size: access to larger markets >increase sales and profits. 2. Access to more resources: ie) raw materials, labor, and technology that’s not available domestically. 3. Diversification: opportunities > reduce risk and increase profitability. 4. Competitive advantage: provides >better quality and lower cost products or services, lower costs. 5. Global branding: more opportunity to increase customer loyalty and market share.
What are multinational corporations and what do they
do?
Multinational corporations (MNCs)- big $$ and powerful companies that do business in multiple countries around the world. – significant impact on the global economy, – influence trade, invstmnt, and emplymnt
Global economy: cross-border trade of goods and services, technology, and flows of investment, people, and information. between countries. interconnected system
Globalization:the integration – interconnectedness and interdependence of economies between countries
What is causing expansion of globalization? Changing barriers of trade. Free trade
multilateral tariff reduction and trade liberalization
efforts – lower taxes and lessening quota restrictions.
International management:
managing operations and employees across multiple countries and cultures
Global manager: manager who overseeing operations in multiple countries and cultures
Globalization : interconnectedness of countries and their economies through increased trade, investment, and technology. Benefits:Increased economic growth and job opportunities. Access to a wider range of goods and services.
Greater cultural exchange and understanding.Increased technological innovation and development. Costs: Job losses and wage stagnation in some industries. Environmental degradation and increased carbon emissions. Widening income inequality and social tensions. Loss of cultural identity and traditional ways of life.
Winners: Developed countries with strong economies and resources. Multinational corporations (MNC) and wealthy individuals who benefit from increased profits and investment opportunities. Consumers who have access to a wider range of goods and services at lower prices. Losers: Workers in industries that face competition from imports or outsourcing.
Developing countries that lack resources and infrastructure to compete in global markets.
Local businesses and small-scale producers who struggle to compete with multinational corporations.
Communities and individuals who are negatively impacted by environmental degradation and social tensions.
Unit 1: Test outline.
1.1 Organization
1.2 Manager
1.3 Challenges in the New Economy
1.4 Ethics
1.5 Managing Change
1.7 Globalization