CHAPTER 5

Managing in the global arena

The main discussion of this chapter is to define global management skill:-it refers to the way an
organization manages its business internationally, including its sales, marketing, and hiring and
finance practices.
The remaining section of this chapter is to discuss Fundamentals of international management,
Categories of organizations by international involvement, Management functions and
multinational corporations and International management.
Fundamentals of international management:- means the management of business operations
in an organization serving markets and operating in more than one country.
Categories of organizations by international involvement:-it includes many categories
involved in international arena. These are domestic organizations, international organizations,
multinational organizations, and transnational or global organizations.
Domestic organization: - are organizations that operating within one country.
International organizations:-are organizations that are established primarily with in one
country but continuing meaningful international transactions such as making sales and purchases
of materials in other countries.
Multinational organizations: - means a corporate organization that owns and controls the
production of goods or services in at least one country other than its home country.
Transnational or global organizations:-The transnational organization transcends any single
home country, with ownership, control, and management being from many different countries.
Transnational organizations represent the fourth, and maximum, level of international activity as
depicted on the continuum of international involvement.
Finally this section focuses on two special issues that can help to ensure management success in
the international arena: -maintaining ethics in international management, and preparing
expatriates for foreign assignments.
Chapter 6
Management and entrepreneurship
Entrepreneurship skill means the identification, evaluation, and exploitation of opportunities.

Fundamentals of entrepreneurship
Entrepreneur implies an individual who identifies, evaluates, and exploits opportunities.
Types of opportunities
First, opportunities arise from the creation of new products or services.
Second arise, from the discovery of new geographical markets in which new customers will value the new
product or service.
Third, opportunities may arise from the creation or discovery of new raw materials.
Fourth opportunities may emerge from the discovery of new methods of production.
In this section to describe four factors that influence the ability of individuals to identify opportunities:-
entrepreneurial alertness, information asymmetry, social networks, and the ability to establish means-ends
relationships.
Entrepreneurial alertness: - the ability to process information and signals from the environment
so that individuals can recognize business opportunities.
Information asymmetry: - is a condition under which one business party possesses more
information than the other party they are dealing with.
Social networks: - individuals vary in terms of their social networks, which represent
individuals’ patterns of social relationships. Some individuals have wide social networks, while
other individuals have narrow social networks.
The ability to assess means–end relationships; - means the performance of entrepreneurs to
understand how to turn a new technology into a product or service that will be valued by
consumers.
Finally this chapter describes corporate entrepreneurship and social entrepreneurship.
Corporate entrepreneurship: - is a process used to develop new businesses, products, services or
processes inside of an existing organization to create value and generate new revenue growth
through entrepreneurial thought and action.
Social entrepreneurship: - social entrepreneurship is the process by which individuals, startups
and entrepreneurs develop and fund solutions that directly address social issues.
Chapter7
Principle of planning
The main idea of this chapter is defining planning skill, planning and to describe the
characteristics of planning.
Planning skill: - means the ability to take action to determine the objectives of the organization as
well as what is necessary to accomplish these objectives.
Planning:- is the fundamental management function, which involves deciding beforehand, what
is to be done, when is it to be done, how it is to be done and who is going to do it.
Advantage of planning:-planning used future oriented, enhance decision coordination,
emphasizes organizational objectives.
The disadvantages of planning result from using the planning function incorrectly.
In addition this chapter describes the six planning process those are, State organizational
objectives, list alternative ways of reaching objectives, develop premises on which to base each
alternative, choose the best alternative for reaching objectives, develop plans to pursue the
chosen alternative and put the plans into action.
Chapter 8
Making decisions
This chapter access decision making skill, the fundamental of decision making, definition of
decision and its types.
Decision making skill:- means the ability to select alternatives that increase the likelihood of
achieving objectives.
Decision:- mean a choice apply between two or more available alternatives. Decision making is
the process of making choices by identifying a decision, gathering information, and assessing
alternative resolutions.
Types of decisions
Decisions are divided in to two those are programmable decision and non-programmable
decision.
Programmable decision: - those decisions that already have a plan or rule in place and are used to
reach a solution or conclusion. In other words, managers have already made such decisions
before and it's a repetitive and routine process.
Non programmable decision: - are ill-structured and one-time decisions. Problems or situations
that don't have a concrete set of rules or guidelines to follow rely on non-programmed decision-
making.
The other discussion in this chapter is five elements of the decision situation .first the decision
makers, goals to be served, relevant alternatives, ordering of alternatives and choice of
alternatives.
Chapter 9
Strategic Planning

Strategies, tactics, and competitive dynamics

This chapter describes strategic planning skill, Fundamentals of strategic planning, and defining
strategies.

Strategic planning skill:-the ability to engage in long-range planning that focuses on the
organization as a whole.

Fundamentals of Strategic Planning

This section presents the basic principles of strategic planning and discusses definitions of both
strategic planning and strategy in detail.
Strategic planning: - Strategic planning is the art of creating specific business strategies,
implementing them, and evaluating the results of executing the plan, in regard to a company’s
overall long-term goals or desires.
Strategy: - is an action that managers take to attain one or more of the organization’s goals.
Strategic management: - Strategic management is the process of setting goals, procedures, and
objectives in order to make a company or organization more competitive.
Tactical planning: - is a type of planning that involves breaking down a long-term strategic plan
into smaller and more distinct short-term plans.
Competitive dynamics: refer to the process by which firms undertake strategic and tactical
actions and how competitors respond to these actions.
Chapter 10
Plans and planning tools
In this chapter to describe defining planning tool skill ,plans ,types of plans and planning tools
Planning tool skill: - means the performance to employ the qualitative and quantitative
techniques necessary to help improve plans.
Plans: - is a specific action proposed to support the organization achieves its objectives.
Types of plans, its divided into two those are standing and single plans.
Standing plans: - are plans designed to be used again and again because it focuses on
organizational situations that occur repeatedly.
Single plan: - refer to plans that address a one-time project or event because it focuses on
unique or rare situations within the organization.
Planning tools: - are techniques managers can use to help develop plans. This chapter discusses
two types’ important planning tools of forecasting and scheduling.
Forecasting:- means the process of predicting future environmental happenings that will
influence the operation of the organization.
Scheduling:- refers the process of formulating a detailed listing of activities that must be
accomplished to attain an objective, allocating the resources necessary to attain the objective,
and setting up and following timetables for completing the objective.
Chapter 11
Fundamentals of organizing

This chapter focuses the description of organizing skill, and organization.

Organization skill:-means the ability to establish orderly uses for resources within the
management system.

Organization:- mean the structural framework of duties and responsibilities required of

personnel in performing various functions with a view to achieve business goals through
organization.

The importance of organizing:-the organization function is very important to the management

system because it is the primary tools of managers use to facilitate plan.
Classical organizing theory

Classical organizing theory comprises the cumulative insights of early management writers on
how organizational resources can best be used to enhance goal attainment. There are the major
components of classical organizing theory:-

1. Weber’s bureaucratic model: - implies bureaucracy to label the management system

that includes three primary components, that means detailed procedures and rules, a
clearly outlined organizational hierarchy, and impersonal relationships among
organization members.
2. Division of labor:-The division of labor refers to the segmentation of tasks, with each person
focusing on a specific part of the production process.
3. Structure: - refers to the designated relationships among resources of the management
system.

Chapter 12

Responsibility, Authority, and Delegation

This chapter focuses the meaning of responsibility and delegation skill, authority and delegation.

Responsibility and delegation skill: - means the performance to understand one’s obligation to
achieve assigned activities and to enlist the help of others to complete those activities.

Responsibility: - refers to an obligation to do something. It is the duty of the subordinate to

perform organizational tasks, functions or activities assigned to him.

Authority: - defined as the power and right of a person to use and allocate the resources
efficiently, to take decisions and to give orders so as to achieve the organizational objectives.

Delegation:- means someone with authority confers upon another person the power to do a particular
task. Or the actual process of assigning job activities and corresponding authority to specific individuals
within the organization.
CHAPTER 13

Human Resource Management

In this chapter describe the meaning of human resource management skill, defining appropriate
human resources and steps in providing human resources.

Human resource management skill: - the capability to take actions that increases the
contributions of individuals within the company’s.

Appropriate human resources: - refer to the individuals within the company to make a valuable
contribution to management system goal achievement.

Steps in providing human resources:-there are four steps, first recruitment, selection, and training
and performance appraisal.

Chapter 14

Organizational change

Stress, conflict, and virtuality

In this chapter to discuss organizational changing skill, defining changing an organization, the
factors of changing an organization and define stress, conflict and vertuality.

Organizational changing skill: - the ability to modify accompanies in order to develop its
contribution to reaching company goals.

Changing an organization:- is the process of modifying the existing companies to increase its
performance.

The factors of changing an organization are (1) the change agent, (2) determining what should be
changed,(3) the kind of change to make,(4) individuals affected by the change, and (5)
evaluation of the change.

Stress:- constitutes the factors affecting wear and tear on the body or a state of mental and
emotional pressure or strain, caused by challenging or unfavorable circumstances.
Conflict: - means a fight that results from opposing needs or feelings between two or more
people.

Virtual organization:- refer to essence of a traditional organization, but without some aspect of
traditional boundaries and structure.

Chapter 15

Influencing and Communication

This chapter describes the meaning of communication skill, defining influencing and
communication.

Communication skill: - the capacity to share information with other persons.

Influencing:- means the process of leading the activities of companies members in appropriate
directions. The process of influencing’s are leading, motivating, considering groups,
communicating, encouraging creativity and innovation, building corporate culture.

Communication: - is the process of sharing information with other individuals.

Chapter 16

Leadership

In this section leadership skill, leadership and situational approach to leadership are defined.

Leadership skill:- the ability to direct the behavior of others toward the achievement of
objectives.

Leadership:- means is the process of managing the behavior of others toward the achievement
of some objective.

Leader and managers both are not the same because a manager makes sure that a job gets done,
and a leader cares about and focuses on the people who do the job.

Situational approach to leadership:- implies based on the assumption that each illustration of
leadership is different and therefore requires a unique combination of leaders, followers, and
leadership situations.
Chapter 17

Motivation

This chapter includes defining motivation skill, motivation and the importance of motivating
organization members.

Motivation skill:-The capacity to create organizational situations in which individuals

accomplish organizational activities are simultaneously satisfying personal needs and helping the
organization achieves its goals. Motivation: -means managers encourage employees to be
productive, effective and to achieve goal. The importance of motivating organization members: -
minimize inappropriate behavior and maximize appropriate behavior among subordinates, thus
raising the probability that productivity will increase and lowering the probability that it will
decrease.

Chapter 18

Groups and Teams

In this chapter to describe the definition of groups, team and team skills.

Team skill:-The capacity to manage a collection of people so that they influence one another
toward the achievement of an organizational objective. Group: - is any number of people who
influence with one another, are psychologically aware of one another, and perceive themselves to
be a group. Groups in organization are divided in two, formal and informal groups

Formal groups:-refer a group that exists within accompanies by goodness of management order
to perform tasks that enhance the achievement of organizational objectives.

Informal groups: - refer a group of individuals whose common work experiences result in the
development of a system of interpersonal relations that extend beyond those established by
management. .

Team:-is a group whose members challenge one another toward the achievement of an
organizational objective.
Chapter 19

Managing Organization Culture

This chapter discusses defining organization culture skill, organization culture and types of
organization culture.

Organization culture skill:-the capacity to begin a set of shared values of organization members
regarding the functioning and existence of their organization to develop the probability of
organizational success.

Organization culture: - refer a group of shared values that companies members have regarding
the functioning and existence of their organization.

Types of organization culture are clan culture, adhocracy culture, hierarchy culture, market
culture

Clan culture: - refer companies culture distinguishes by a strong internal focus with a high level
of flexibility and discretion.

Adhocracy culture: - means a company’s culture characterized by flexibility and discretion

along with an external focus.

Hierarchy culture: - is an organization culture characterized by an internal focus along with an

emphasis on stability and control.

Market cultures:- is an organization culture that reflects values that emphasize stability and
control along with an external focus.

Chapter 20
Encouraging Creativity and Innovation
In this topic more discuss the definition of creativity and innovation skill, creativity and
innovation.

Creativity and innovation skill:- the capacity to create original ideas or new viewpoint on
existing ideas and to take steps to apply these new ideas.

Creativity is the capacity to create original ideas or new perspectives on existing ideas.

Innovation:- is the process of applying a new idea to the upgrade of companies processes,
products, or services.

Chapter 21

Controlling, Information, and Technology

This section to describe the idea of controlling skill, control, controlling, information and
technology.

Control skill:- a capacity to use information and technology to ensure that an event occurs as it
was planned to occur.

Control: - need ensuring that an event occurs as it was planned to occur.

Controlling:- is the process managers go through to control or the process of making things
happen as planned.

Information:- refers to details about a project or the set of ending derived from data analysis.

Technology: - consider any type of equipment or process that organization members use in the
performance of their work.

Chapter 22

Production and Control

These topics cover the definition of production skill, production, productivity, and operations
management and operations control.

Production skill:- the capacity to change organizational resources into products.

Production:- is the change of organizational resources into products.

Productivity - relationship between the total amount of goods or services being produced (output) and
the organizational resources needed to produce them (input).

Operations management:- is the capacity of managerial activities that involve selecting,

designing, operating, controlling, and updating production systems.

Operations control:- building sure operations activities are carried out as planned.