1. How the external environment affects managers?

1. Job and employment: managers need to know which employee is permanent

and which is temporary.
2. Assessing environmental uncertainty: degree of change and complexity in an
org. environment.
3. Managing stakeholder relationships : leads to improve the organization’s
performance, more successful innovations, greater degree of trust among stakeholders.

2. Dimension of organization culture:

1. Attention to detail: degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
2. Outcome-oriented: focus on results rather than how outcome are achieved
3. People-oriented: effects of people in the organization
4. Team-oriented: whether individual or team
5. Aggressiveness: more like a competitive relationship
6. Stability: decision and action maintain the status
7. Innovation and risk-taking: encourage to be innovative and take risks

3. How do organizations go international?

1. Global sourcing: purchasing cheapest materials or labor from world
2. export/Import: export (producing products domestically and selling it abroad), import
(selling items from abroad inside the country)
3. Licensing: right to make or sell using the technology/product specifications.
4. Franchising: the right to use the name of the company and operating methods
(mostly used by service organizations)
5. Strategic Alliance / Joint Venture: partnership with a foreign company to share
resources and knowledge, a type of strategic alliance is joint venture
6. Foreign Subsidiary: directly investing in a foreign country through a separate
production facility.

4. Why is managing workforce diversity so important?

1. Ppl Management: better use of employee talent, increased quality of team problem
solving efforts, ability to attract and retain employees of diverse backgrounds

2. Org. performance: reduced costs associated with high turnover, absenteeism, and
lawsuit, enhanced problem solving ability, improved system flexibility

3. Strategic: Increased understanding of the marketplace, which improves to better

market to diverse consumers, potential to improve sales growth and increase market
share, potential source of competitive advantage because of improved innovation
efforts, viewed as moral and ethical, the right thing to do
5. Social responsibility and ethics issues in today's world
1. social responsibility:
a. Managing ethical lapses and social irresponsibility
b. Social entrepreneurship
c. Promoting positive social change
2. How to deal?
- Ethical leadership: be a good leader that behave ethically because what
managers do have a strong influence on employees’ decisions whether to
behave ethically.
- Protecting those who report wrongdoing: there are two actions:
§ Set up toll-free ethics hotlines: let whistleblower report it anonymously
§ Have in place a “procedurally just process”: which means making sure
decisionmaking process is fair and that employees are treated respectfully about
their concern

6. Why do people resist to change?

1. Uncertainty:
2. Habit
3. Concern over personal loss
4. The belief that the change is not in the organization’s best interest

7. Choosing a Competitive Strategy

managers select a strategy that will give the organization a competitive advantage, either
from having lower costs than all other industry competitors or by being significantly different
from competitors.
1. Cost Leadership strategy: When an organization competes on the basis of having
the lowest costs (costs or expenses, not prices) in its industry, it's following a cost
leadership strategy.
2. Differentiation strategy: A company that competes by offering unique products
that are widely valued by customers is following a differentiation strategy.