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MGMT exam 1 cph. 2
MGMT exam 1
Undergraduate 2

Additional Business Flashcards




What is globalization driven by?
the spread of economic logics centered on freeing, opening, deregulating, and privatizing economies to attract investment as well as technological innovations that are revolutionizing communication
What are the 4 challenges that managers must overcome in order to remain competitive?

1. Globalizing firms operations to compete in the global village

2. Leading a diverse workforce

3. Encouraging positve ethics, character and personal integrity. 

4. Advancing and implementing technological innovation in the workplace. 

transnational organization
an organization in which the global viewpoint supersedes national issues. 

the chinese practice of building networks for social change

*once guanxi is established, individuals can ask favors of each other with the expectation that the favor will be returned. 

*more common in socities with underdeveloped legal support for private businesses

international vs globalization

international is that the organizations nationality is held in a strong consciousness. 


globalization suggests that the world is free from national boundaries and is borderless. 

Multinational vs transnational

multinational are organizations that do business in several countries


transnational are organizations in which the global viewpoint supersedes national issues. 


trade barriers
issues that affect organizations from competing in a global market

European Union



integrated 15 nations into a single market by removing all trade barriers. 

by 2007, 11 more countries had joined.

North American Trade Agreement (NAFTA)


reduced trade barriers and organizations found new markets. 

*this agreement immediately eliminated many of these tariffs on US exports to Mexico and provided that the remaining tariffs be phased out over time. 

Entering global market requires _______ term stategies. 


*managers must think globally and adopt a long term view. 

Cultural Diversity

recognizing and appreciating the difference among cultures

**ex: McDonalds learns to appreciate diversity through accommodation of the varying types of value meals it offers depending on what country you are in instead of domination through offering the same meals globally. 

Micocultural differences

differences within cultures

**ex: the difference between gen X, and Y in our culture. 

ex: symbols: in US, thumbs up means good or okay while in Austrailia it is an obscene gesture. 


Holfstede's Dimensions of Cultural Differences


5 differences


**these researchers were able to study individuals from the same company in the same jobs but livinf in different countries. 

*study shows that national culture explains more differences in work related attitudes than does age, gender, profession, or position in the company.


1. individualism ( each individual is acting on his or her own, making their own choices, and to the extent they interact with the rest of the group, it's as individuals)      vs    collectivism ( Collectivism is the second way, and it views the group as the primary entity, with the individuals lost along the way.)

2. high power distance (In high power distance countries and organizations, people don't question the decisions of their leaders ex: india, venezuela, mexico)   vs low power distance (Low power distance organizations are looser, decentralized hierarchies, where employees or subordinates are considered equal, or nearly equal. There are fewer supervisors or leaders and they are willing to trust subordinates with important jobs and are willing to share the blame when problems arise. ex: denmark, austrailia)

3. high uncertainty avoidance ( such as italy,japan . Usually countries/cultures with a long history. 

. The population is not multicultural, i.e. homogenous.
. Risks, even calculated, are avoided in business.

avoid conflict and like security

. New ideas and concepts are more difficult to introduce.) vs low uncertainty avoidance ((such as the USA and England, austrailia, norway)  Usually a country with a young history, i.e. USA. 
. The population is much more diverse due to waves of immigration. 
. Risk is embraced as part of business. 
. Innovation and pushing boundaries is encouraged.

4. masculinity (ego oriented, money is very important, live in order to work, boys dont cry, boys fight, only men can be priests, religion most important in life, conflict solved through force, larger gender wage gap, fewer women in management)   vs feminity (relationship orientated, quality of people and life important, work in order to live, boys and girls both cry, neither fight, smaller gender wage gap, more women in management)


5. long term orientation (cultures values are oriented toward the future, -persistence and thrift

-ordering relationships by status and observing this order

-having a sense of shame ex:China )   vs short term orientation ( cultures values are oriented towards the past and present, -personal steadiness and stability

-protecting your ‘face’
-respect or tradition (past) and meeting social obligations (present)
-reciprocation of greetings, favors, and gifts ex: Russia)

ex: USA ranks highest in individualism out of any other country and ranks high in masculinity while it ranks low in long term orientation (This low LTO ranking is indicative of the societies' belief in meeting its obligations and tends to reflect an appreciation for cultural traditions.), has low uncertainty avoidance ( indicative of a society that has fewer rules and does not attempt to control all outcomes and results. It also has a greater level of tolerance for a variety of ideas, thoughts, and beliefs.), and has low power index (This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment.)



expatriate manager

a manager who works in a country other than his/her home country. 


Key Competencies of International Managers
  • integrity
  • courage to take a stand
  • ability to bring out the best in people
  • insightfulness
  • risk taking
Learning attributes for International Managers
  • cultural adventurousness
  • openness to criticism
  • desire to seek learning opportunities
  • sensitivity to cultural differences
  • flexibility
Ethnic Diversity

*By 2020, minorities will constitute more than half of the new entrants into the US workforce. 

*the risk of prejudices and stereotypes may prevent managers and employees from developing synergies to benefit the organization

Gender Diversity

*workforce includes a lot of women today. 65 million in 2008

*women are earning 49% of all doctorates, 60% of all master degrees, and 58% of all undergraduate degrees.

*however, there share in compensation and authority is not rising with their education

*only 25% of women hold top of the line positions such as CEOs. 

*american express rated best comp to work for for women. 

*women also receive fewer benefits.

*glass ceiling: keeps women from rising above a certain level in an organization. 

Age Diversity

*aging baby boomers contributed to the rise of the median age to 36. used to only be 30 years old. 

*the silent generation, the baby boomers, Gen X, Gen Y

Gen Y is less inclined to settle for work that is not complacent with their values, are more creative, impatient, and independent, technological savvy. 

Ability Diversity

*people with disabilities are an underutilized human resource.

*unemployment rate is exceeding 50%. 

American with Disabilities Act 1992: employers make reasonable accomidations to permit workers with disabilities to perform jobs. 


ex: McJOBS

Prejudice vs discrimination

prejudice: an attitude

discrimination: describes behavior

*both diminish organizational productivity

diversitys benefits and problems


  • attracts and retains the best talent 
  • improves marketing efforts
  • promotes creativity and innovation
  • results in better problem solving
  • enhances organizational flexibility
  • resistance to change
  • lack of cohesiveness
  • communication problems
  • interpersonal conflicts
  • slower decision making
What are the 3 types of ethical theories? 
  1. consequential (emphasize the consequences or results of behavior) John Stuart Mill's utilitarianism suggest that the consequences of an action determine whether it is right or wrong. Adam Smith is a proponet for an open-mkt competition and free trade. He proposed that people should be allowed to pursue what is in their economic self-interest and the natural efficiency of the marketplace would serve the well being of society. 
  2. rule based: emphasize the character of the act itself, not its effects, in arriving at universal moral rights and wrongs. ex: the bible is a rule based guide to ethical behavior. 
  3. character: emphasize the character of the individual and the intent of the actor instead of the character of the act itself or its consequences.  (aristotles approach)
Robert Solomon's 6 dimensions of virtue-ethics 
  1. community
  2. excellence
  3. role identity
  4. integrity
  5. judgement
  6. holism
cultural relativism
emphasizes that there is no universal ethical principles and that people should not impose their own ethical standards on others. 
5 ethical dilemmas facing modern organizations
  1. Employee Rights : (drug testing, free speech, downsizing, layoffs, due process, privacy issues related to computerized monitoring)
  2. sexual harrassment: (unwelcome verbal or physical sexual attention that affects an employee's job conditions or creates a hostile working environment. 

-gender harrassment: includes crude comments or behaviors that convey hostility toward a particular gender

-unwanted sexual attention: involves unwanted touching or repeated pressures for dates

-sexual coercion: consists of implicit or explicit demands for sexual favors by threatening negative job related consequences or promising job related rewards. 

3. Organizational Justice

-distributive justice: the fairness of outcomes that individuals receive in an organization. 

-procedural justice: the fairness of the process by which outcomes are allocated in an organization.

4. Whistleblowers: are employees who inform authorities of wrongdoings by their companies or coworkers

5. Social Responsibility: the obligation of an organization to behave ethically in its social environment. (ex: protecting the environment, promoting worker safety, supporting social issues, and investing in the community)

The Four Way Test

*developed by Paul Harris

  1. is it the truth?
  2. is it fair to all concerned?
  3. will it build goodwill and better friendships?
  4. will it be beneficial to all concerned?
the intellectual and mechanical processes used by an organization to transform inputs into products or services that meet its goals.
expert system
a computer based application that uses a representation of human expertise in a specialized field of knowledge to solve problems

the use of robots in organizations.

- japan is the leader in use of robotics.

-americans worry that robotics will replace labor jobs 






electronically transmitting work from a home computer to the office. 


the creative application of new technology 

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