Principles of management: Part 2 The environment of management

Standards that govern how members of a profession, trade, or creaft should conduct themselves when performing work-related activities

medical & legal ethics

Personal standards and values that determine how people view their responsibilities to others and how they should act in situations when their own sel-interests are at stake

Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders. 

Top managers play a crucial role in determining a company's ethics. 

The way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole. 

1. Obstructionist approach
2. Defensive approach
3. Accommondative approach
4. Proactive approach

Companies and their managers choose not to behave in a social responsible way and instead behave unethically and illegally

Companies and their managers behave ethically to the degree that they stay withing the law and strictly abide by legal requirements. 

Companies and their managers behave legally and ethically and try to balance the interest of different stakeholders as the need arises

Companies and their managers actively embrache socially responsible behavior, going out of their way to learn about th eneeds of different stakeholder groups and using organizational resources to promote the interest of all stakeholders

1. Demonstrating its social responsiblility helps a company build a good reputation
2. If all companies in a society act socially, the quality of life as a whole increases

a manager is responsible for communicating an teaching ethical standards to all employees and monitoring their conformity to those standards

Dissimilarities or differnces among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, education, experience, physical appearance, capabilities /disabilities and any other characteristic that is used to distinguish between people

Effectively managing diversity can improve organizational effectiveness

A metaphor alluding to the invisible barriers that prevent minorities and women from being promoted to top corporate positions. 

• carefully appraise a subordinate's performance
• Take into account any environmental obstacles to high performance
• Ignore irrelevant personal characteristics 

• Variety of point of view and approaches to problems and opportunities can improve managerial decision making
• diverse employees can provide a wider range of creative ideas
• Diverse employees are more attuned to the needs of diverse customers
• diversity can increase the retention on valued organizational members
• Diversitiy is expected / required by other firms

An organization that operates and competes in many different countries

Characteristics

Operation in the global environment is uncertain and unpredictable because it is complex and changes constantly. 

- The set of forces and conditions that originates with suplliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and sipose of its inputs. 

These forces and conditions influence managers daily. 

Suppliers are individuals and organizations that provide an organization with the input resources it needs to produce goods and services. (input resources are raw material, component parts, employees, capital. 

possible opportunities and threats are: 
- Change in nature, number or type of suppliers (1/n suppliers)

- global oursourcing

belong to the task environment

are organizations that help other organizations sell their goods or products to customers

powerful distributors can limit access to markets through its control of customers in those markets

Individuals and groups that buy the goods and services an organization produces

Organizations that produce goods and services that are similar to a particular organization's goods and services

Economies of scale (EOS): Cost advantages associated with large operations
& 
Brand loyalty: Customers' preference for the products of organizations currently exisitn in the taks environment. 
Government regulations: Government policies that create barriers to entry and limit imports of goods from companies abroad. 

It is part of the general environment and affect the general heealth and well-being of a country or world region . They include interest rates, inflation, unemployment and economic groth and other factors

Is part of the general environment and is the combination of tools, machines, computers, skills, information and knowledge that managers use to design, produce, and distribute goods and services. 

Technologial forces are the ourcomes of changes in that technology

they are part of the general environment and are pressures coming from the social structure of a country or from the national culture. 

social structure is the traditional system of relationhip established between people and grous in society.

national culture is the set of values that a society coniders important and the norms of behavior that are approved or sanctioned in that society. 

Are part of the general environment and are outcomes of changes in, or chaning attitudes toward, the characteristic of a population, such as age, gender, ethinic, origin, race, sexual orientation, and social class

are part of the genearal environment. political and legal forces outcomes of changes in laws and regulations, such as deregulation of industries, privatization of organizations, and increased emphasis on environmental protection. 

Deregulation, privatization, and the removal of legal barries to trade and many others are examples.