Principles of Management 2

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Principles of Management 2
2013-04-09 12:59:45
principles management

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  1. Market Growth Potential
    • measured by: purchasing power- compare the relative cost of standard set of goods and services in different countries.
    • global competition- the number and quality of companies that already compete in foreign market.
  2. Political Uncertainty
    the risk of major change sin political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
  3. policy uncertainty
    the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business
  4. strategies for dealing with political risk
    avoidance, control, cooperation
  5. Five dimensions of culture
    power distance, individualism, masculinity/femininity, uncertainty avoidance, short-term/long-term orientation
  6. organizational structure
    the vertical and horizontal configuration of departments, authority, and jobs within a company.
  7. organizational process
    the collection of activities that transform inputs into outputs that customers value
  8. functional departmentalization
  9. geographic departmentalization
    departmentalization based on location. but may lead to duplication of resources and difficult coordination
  10. matrix departmentalization
    departmentalization based on products and then functions. 2 criteria
  11. chain of command
    vertical line of authority that clarifies who reports to whom throughout the organization
  12. line authority
    the right to command immediate subordinates in the chain of command
  13. staff authority
    the right to advise but not command others who are not subordinates in the chain of command
  14. line function
    an activity that contributes directly to creating or selling the company's products
  15. staff function
    does not contribute directly to creating or selling the company's products, but instead supports line activities
  16. centralization of authority
    most authority is at the upper levels of the organization
  17. decentralization
    delegate authority to lower levels
  18. standardization
    solve problems by consistently apply the same rules, procedures, and processes.
  19. basic compensation strategies
    financial and non-financial rewards
  20. Job evaluation-
    determines the worth of each job by determining market value of skills required to perform it.
  21. pay variability decisions
    • the extent to which employees' pay varies with individual and company performance
    • (piecework, commission, profit sharing, employee stock ownership plans, stock options)
  22. pay level decisions
    decisions about whether to pay workers at a level above, below, or current market wages.
  23. pay structure decisions
    concerned with internal pay distribution, hierarchical pay structures, compressed pay structures
  24. employment separation
    • a broad term covering the loss of an employee for any reason:
    • involuntary¬†
    • voluntary
  25. downsizing
    the planned elimination of jobs in a company, may actually decrease productivity and lead to loss of skilled workers.
  26. early retirement incentive program
    • offer financial benefits to employees to encourage them to retire early.
    • reduces number of employees, lower costs. creates new openings
  27. phased retirement
    employees transition to retirement by working reduced hours before completely retiring.
  28. employee turnover
    the loss of employees who choose to leave the company
  29. functional turnover
    you lose the people you want to lose
  30. dysfunctional turnover
    people who are doing well quit