Principles of Management 2
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Principles of Management 2
Market Growth Potential
: 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.
the risk of major change sin political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business
strategies for dealing with political risk
avoidance, control, cooperation
Five dimensions of culture
power distance, individualism, masculinity/femininity, uncertainty avoidance, short-term/long-term orientation
the vertical and horizontal configuration of departments, authority, and jobs within a company.
the collection of activities that transform inputs into outputs that customers value
departmentalization based on location. but may lead to duplication of resources and difficult coordination
departmentalization based on products and then functions. 2 criteria
chain of command
vertical line of authority that clarifies who reports to whom throughout the organization
the right to command immediate subordinates in the chain of command
the right to advise but not command others who are not subordinates in the chain of command
an activity that contributes directly to creating or selling the company's products
does not contribute directly to creating or selling the company's products, but instead supports line activities
centralization of authority
most authority is at the upper levels of the organization
delegate authority to lower levels
solve problems by consistently apply the same rules, procedures, and processes.
basic compensation strategies
financial and non-financial rewards
determines the worth of each job by determining market value of skills required to perform it.
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)
pay level decisions
decisions about whether to pay workers at a level above, below, or current market wages.
pay structure decisions
concerned with internal pay distribution, hierarchical pay structures, compressed pay structures
a broad term covering the loss of an employee for any reason:
the planned elimination of jobs in a company, may actually decrease productivity and lead to loss of skilled workers.
early retirement incentive program
offer financial benefits to employees to encourage them to retire early.
reduces number of employees, lower costs. creates new openings
employees transition to retirement by working reduced hours before completely retiring.
the loss of employees who choose to leave the company
you lose the people you want to lose
people who are doing well quit