Overview of Management Multinational Enterprises

“Management is set of activities including planning and decision making. financial. Ricky W. directed at an organization’s resources . leading and controlling. physical and information.with the aim of achieving organizational goals in an efficient and effective manner”. –Mary Parker Follet 2. organizing. Management is getting things done by and through others.MANAGEMENT : AN OVERVIEW 1. Griffin .human.

efficiently accomplish selected aims”.MANAGEMENT : AN OVERVIEW • 3. “Management is the process of designing and maintaining an environment in which individuals. -Heinz Weihrich and Harold Koontz . working in a group.

• Management is a dynamic process. • Management concerns with productivity which is achieved through efficiency and effectiveness. . • Management applies to all levels of organization. Every firm or act of any nature requires management to achieve the goals in an effective and efficient way. • Management is a set of activities.Features of Management • Management is a universal knowledge. • Management creates surplus. • Management is a process.

Delegation of Authority.Functions of Management • • Planning (and Decision –making) Organizing – – – – – – Departmentation Organization Structure and Chart. Span of Supervision Centralization and Decentralization of authority. Staffing • Leading – Communication – Motivation – Leadership • Controlling .

Take corrective action if necessary. • 2.Continues • Controlling is the process of ensuring conformity of actual performance with actual performance. Measure actual performance. Set / plan standard performance. • 3. Compare actual performance with planned performance. . • 4. • Involved Activities • 1.

Griffin.. • Organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals.ORGANISATION • What is Organisation? • Organization is the assemblage of role-related people with a common goal. . Barnard..Chester I.Ricky W. -Edger Schein. • Organization is a system of consciously coordinated activities or forces of two or more persons.

. mutually agreed purpose. A Coordinated Activity. A Pattern of Behaviour/ action.Characteristics of organization • • • • • • • • • A Group of Role-related people.e. Differentiation i. A Conversion System. A Highly Differentiated System of Operation. A Continuing System A Consciously Rational activity. A Common Goal i.e. An interactional operation.

Multinational Enterprise: Concept • Multinational Enterprise (MNE): Multinational Enterprise is a company that takes a global approach to foreign markets and production. It is willing to consider market and production locations anywhere in the world. Multinational Corporation (MNC): Same as Multinational Enterprise. • • .

large and small. • Such as Wal-Mart Stores. Toyota motor etc.Continues • Multinational company is any company that engages in business functions beyond its domestic borders. – Cullen and Parboteeah (2008) • This definition includes all types of companies . . Ford motos. that engage in international business.

. – Is an organization in which capabilities and contributions may differ by country but are developed and integrated into its worldwide operations.Continues • c) Transnational Company (TNC): – Is a company owned and managed by nationals in different countries.

while its marketing is multidomestic. but production is global. – Production is global. . • e) Multi-domestic Company / Locally Responsive Company – Allows each Unit for doing its foreign-country operations and to act fairly independently.Continues • d) Global Company/ Globally Integrated Company – Integrates its operations that are located in different countries. – Product is locally adjusted.

• But it is a mixed blessings for the world today. • Globalization allows companies to compete anywhere. • Globalisation is the worldwide trend of the economies of the world becoming borderless and interlinked. source their raw materials or R&D anywhere and produce their products anywhere. .Globalizing Economy: A changing environment for business. • Globalization refers to the worldwide trend of economic integration across borders t hat allows businesses to expand beyond their domestic boundaries.

Reasons for Globalisation • • • • Disintegrating borders/ falling borders. • Rise of global standards of quality and production. • Privatization of government companies. • Emergence of new competitors in the world market. Rise of global products and customers. Growing cross-border trade and investment. Growing use of internet and sophisticated information technology. .

• A long range perspective. • The ability to manage change and transition. • The ability to crate systems for learning and changing organisations. • Emotionally intelligent.Next Generation of Multinational Managers : Characteristics • A global mindset • The ability to work with people from diverse backgrounds. • The ability to manage change and transition. .

• An understanding of national cultures. • The willingness to seek overseas assignments. . • Accomplished negotiating skills.Continues • The talent to motivate all employees to achieve excellence.

• To formulate strategies applicable anywhere in the world and to implement with complex management systems beyond national boundaries. • To deal and win hypercompetition. .Why should we study multinational management? • To make a person capable to deal with constantly evolving global economy and to develop the skills necessary to succeed as multinational management.

• To orient people to flexibility rather than size that matters most in managing multinational companies.Continues • To develop an orientation to emphasis on innovation with local knowledge and to compete globally by making learning organization. .

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