Mgt Functions(2)

8/12/2019 Mgt Functions(2)

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MANAGEMENT FUNCTIONS


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Seven Key Trends of the GlobalizingEconomy


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1) Borders Are Disintegrating The World Trade Organization

Formal structure for continued negotiations and forsettling trade disputes among nations.

Historical Developments: GATT 1947: Nations met to reduce tariffs resulting in the

General Agreement on Tariffs and Trade. WTO 1986/1993: Negotiations began in Uruguay to

continue reducing tariffs and established the World TradeOrganization.

1997: Trade ministers from countries representing 92%

of world trade agreed to eliminate tariffs on software,computer chips, telecommunication equipment, andcomputers.

WTO has some critics and not all countries areparticipating equally.


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Sell Anywhere, Locate Anywhere

Regional Trade Agreements European Union (EU) North American Free Trade Agreement (NAFTA) Asia-Pacific-Economic Cooperation (APEC)

Nearly half of the over $5 trillion in worldtrade is among the European union, the U.S.,and Japan the TRIAD


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2) Foreign Direct Investment Foreign Direct Investment (FDI) occurs when a

multinational company from one country has anownership position located in another country.

FDI increased by more that 36% between 1996and 2000.

Developed countries get the bulk of FDI (69%) whiledeveloping countries get around 30%.

Least developed countries get minimal FDI. Implications for managers:

significant opportunities around the world. Multinational managers should look at risk rating

of countries.


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3) Internet and InformationTechnology

Electronic Communication E-mail, World Wide Web, teleconferencing, etc. Allows multinationals to communicate with

company locations throughout the world. Multinationals can monitor worldwide operations.

Borderless financial market.


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4) Global Products and GlobalCustomers

The needs of customers for many productsand services are growing more similar,

e.g., McDonalds, Boeing, Toyota. Global customers search the world for their

supplies without regard for nationalboundaries.


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6) New Competitors are Emerging Free market reforms are creating a potential group

of new competitors. Korean, Russian, Taiwanese, and Mexican

companies are all emerging.

Chinese companies are also on the move. Global trade has two important effects indeveloping new competitors:

1. Multinationals facilitate the transfer oftechnology when developing countries are usedas low-wage platforms for high-tech assembly2. Aggressive multinationals from emergingmarkets are also expanding beyond their ownborders.


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PlanningDefining goals and

establishingaction plans

ControllingMonitoring activitiesto ensure that they

are achievingresults

LeadingGuiding andmotivating all

involved parties

OrganizingDetermining what

needs to be done, inwhat order, and by

whom

Management Activities(Management Functions)

EffectiveManagement

FOM 1.10


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Copyright 2005 PrenticeHall, Inc. All rights reserved.

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Management ProcessActivities

Exhibit 1.4

Management process: planning, organizing,leading, and controlling


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Management Processes Planning

Includes defining goals, establishing strategy, anddeveloping plans to coordinate activities

Organizing Includes determining what tasks

to be done, who is to do them,how the tasks are to begrouped, who reports towhom, and wheredecisions are to be made


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Management Processes (contd)

Leading Includes motivating employees, directing the

activities of others, selecting the most effectivecommunication channel, and resolving conflicts

Controlling The process of monitoring performance,

comparing it with goals, andcorrecting any significantdeviations


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FOM 1.15

Distribution of Managers Time

0 20 40 60

Planning

Organizing

Leading

Controlling

First-levelMiddle levelTop level


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Mintzbergs Managerial Roles

Interpersonal Figurehead Leader

Liaison Informational

Monitor Disseminator Spokesperson

Decisional Entrepreneur Disturbance handler

Resource allocator Negotiator

Exhibit 1.5Source: The Nature of Managerial Work (paperback) by H. Mintzberg. Table 2, pp. 92 93. Reprinted bypermission of Pearson Education Inc., Upper Saddle River, New Jersey.


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FOM 1.18

The Roles That Managers Play

High

Moderate

Low

Importance

Spokesperson Resource Allocator

EntrepreneurFigureheadLeader

Liaison, MonitorDisturbance HandlerNegotiator

Disseminator Entrepreneur

Small Firms Large Firms


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FOM 1.19

General Management Skills

POLITICAL TECHNICAL

INTERPERSONALCONCEPTUAL


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FOM 1.20

Conceptual Skills

Mental ability to analyze and diagnosecomplex situations

Allow Managers to see how things fit


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FOM 1.21

Interpersonal Skills

Ability to work with, understand, mentor andmotivate others

Both individually and as a group Many managers fail in this


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FOM 1.22

Technical Skills

Ability to apply specialized knowledge orexpertise

Engineer, accountant, etc


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