Title: Due dates for the three case summaries
1Due dates for the three case summaries
- September 24 (Markham Stouffville Hospital)
- October 15 (Child Health Network)
- November 19 (Health Care Equipment Corporation
Managing in Korea)
2Group project
- 3-4 students form a group by yourself
- For students who are left out, tell me by October
10
3New Group presentation - bonus
4Managing in Todays world
- Objectives
- Describes three waves in modern social history
and their implications for organizations - Understand the current challenges faced by
managers
5Three views of management
- The process approach (e.g.Henri Fayol)
- The system approach (e.g. Chester Barnard)
- The contingent approach
6Process approach to management
- Management activities include planning,
organizing, leading, and controlling - These activities are circular and continuous
- Not explicitly focus on the environment
- Organizations like a close system
7System approach to management
- An organizations is an open system
- Organizations are affected by internal factors as
well as external factors (i.e., environment)
8An example (NY World trade center attack)
- Airline industry
- Continental Airlines lay off 12, 000 workers
- Insurance industry
- Sports industry
- Entertainment
- Stock market
- World economy
- More
9Contingent approach to management
- More complicated view of management activities
- Intervening factors (i.e., contingency variables)
affect management performance - Some contingency factors include size of the
company, personal factors, economic factors, etc.
10Questions raised
- Are there any universal best management
practices? - How to evaluate management performance?
11How the economic development affects management
practices
- Alvin Toffliers three waves
- Agriculture
- Industrialization
- New Economy
12First wave
- Most people engaged in agriculture-related jobs
- Low productivity (productivity constrained by the
natural environment, handwork using simple tools) - Family management (small scale with the aim to
meet the basic living needs)
13Second wave
- Advent of machines, mass production, and
efficient transportation - New group of workers blue-collar workers
- Labor and capital are two forces for the economic
growth - Management theories emerged (effectiveness and
efficiency)
14Old economy New economy
National borders limit cooperation Limited information access Blue-collar workers Homogeneous population Business estranged from its environment Large corporations dominant Customers no choice National borders become meaningless Information become more accessible Knowledge workers Diverse population Social responsibilities Small entrepreneurial firms Customer needs drive business
15What is new economy?
The term New Economy refers to a set of
qualitative and quantitative changes that have
transformed the structure, functioning, and rules
of the economy. The New Economy is a knowledge
and idea-based economy where the keys to job
creation and higher standards of living are
innovative ideas and technology embedded in
services and manufactured products. It is an
economy where risk, uncertainty, and constant
change are the rule, rather than the exception.
16More people work in offices and provide services
- 93 million workers (80 workforce in the U.S.)
process or generate information, or provide
services to people - Since 1969, virtually all jobs lost in goods
production and distribution sectors have been
replaced by office jobs.
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18 19High-wage, high-skill Jobs have grown, but so
have low-wage, low-skill jobs
- While there were fewer than 5,000 computer
programmers in America in 1960, there are over
1.3 million today. - While the share of jobs requiring moderate-term
training is expected to decline by 1.1 percent,
the share of jobs requiring only short-term
training (e.g., cashiers, janitors, and waiters)
is expected to decline only 0.3 percent.
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21Trade is an increasing share of the New Economy
- The dramatic expansion of trade means more robust
competition, which makes constant innovation more
critical to success. - World economy is transforming from a series of
local industries locked in closed national
economies to a system of integrated global
markets contested by global players.
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23Foreign Direct Investment (FDI) is on the rise
around the world
- FDI includes corporate activities such as
business building plants or subsidiaries in
foreign countries, and buying controlling stakes
or shares in foreign companies. - FDI describes the extent to which businesses
invest all the over the globe to access markets,
technology, and talent.
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25The Economy is spawning new, fast-growing
entrepreneurial companies
- The degree to which the economy is composed of
new rapidly growing firms is indicative of
innovative capacity. - Not just small firms, but also Gazelles
(companies with sales growth for at least 20
percent per year for four straight years)
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28Fierce business competition
- Increased competition is being driven by many
factors, including the emergence of a global
market, the increased number of firms, new
technology that makes it easier for firms to
enter a new market, and pressures to raise
shareholder value. - In 1965, IBM faced 2,500 competitors for all its
markets. By 1992, it faced 50,000.
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31Coopetition collaboration among competitors
- Collaborative dynamic of networks, partnerships,
and joint ventures is a main organizing principle
in the New Economy. - Social capital (network, shared norms, and trust)
is as important as physical capital (plant,
equipment)) and human capital (intellect and
training) in driving innovation and growth.
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33The New Economy is constantly churning
- As the number of firms being born and dying every
year, there is a constant churning of job
creation and destruction. - Turbulent environment is a major driver of
economic innovation and growth.
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35Consumer choices are exploding
- You can have a Model T in any color as long as
its black. not in the New Economy - Flexible and agile (constantly developing new
products and services to gain a new market). An
example is Dells make-to-order
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37Speed is becoming the standard
- The ability to innovation and get to market
faster is becoming a more important determinant
of competitive advantage.
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39- Autos 6 years in 1990, now 2 years
- 77 of Hewlett Packards revenues are from
products less than 2 years old - IBM had over 30 of its 1995 patents incorporated
into products by 1995.
40Microchips are everywhere
- Cars, phones, kitchen appliances, medical
services, etc. - Impacts convenient, comfortable, speedy,
accurate, and efficient.
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42Computing costs are plummeting
- Moore's Law (named after Gordon Moore, a founder
of Intel), which says that the processing power
of microchips doubles every 18 months, has a
corollary the cost of computing is dropping by
nearly 25 percent per year. - By 1985, the 386 cost 0.11 cents per transistor
and 50 per million instruction per second
(MIPS). Ten years later, the Pentium Pro's
introductory price amounted to 0.02 cents per
transistor, and 4 per MIPS. And the prices are
expected to continue to fall.
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44Data transmission costs are plummeting
- The dropping cost of data transmission enables
the instantaneous global communications. - Technologies for transmitting data are also
getting more and more powerful. For example,
technology recently developed by Lucent transmits
3.2 terabits -which is approximately equal to
90,000 volumes of an encyclopedia- per second.
45Managerial challenges
- Managing diversity
- Managing change
- Customer-centered
- Social responsibility
46Managing diversity
- Cultural differences
- Geert Hofstedes culture dimensions
individualism, power distance, uncertainty
avoidance, and quantity versus quality of life - Does culture change?
47- How to make people from different culture
background work together? - Policies and regulations (no discrimination
toward minority) - Flexible work arrangements (flexible working
hours, telecommuting, parent leave, etc.) - Various training programs (language and skills)
- Managers attitudes and behaviors (respect
culture and religious differences)
48Managing change
- Why change
- Increased competition (e.g., new entrants)
- Globalization
- Technological change
- Policy change
49- How to manage change
- Continuous change
- Quantum change (work process engineering)
- Retain core employees
- Create a flexible and responsive system
(part-time workers, contract workers, etc.) - Creating innovative working environment
(encourage intrapreneurs, continuous training and
education, etc.)
50Customer-oriented
- Retain customers and enhance customer loyalty
- Increase product quality (TQM)
- Produce unique products
51Social responsibility
- Why?
- External pressure
- Long-term development
- Public image
- Differences between social obligation and social
responsibility
52- How to social responsible
- Ethics view (utilitarian, rights, and theory of
justice) reflected from the code of ethics - Management practices