Intellectual Capital, Globalization and Technology

• Intellectual Capital: The collective knowledge, skills, and brainpower of an organization's workforce.
• Intellectual Capital is a valuable asset leading to innovation and growth because people are key to organizational success.

Human Capital

• The value of employees' skills, knowledge, and experiences.

Globalization

• Worldwide interdependence of resource flows, product markets, and business competition.
• Market expansion and access to international customers are opportunities.
• Global partnerships and investments are opportunities.
• Access to cheaper resources and labor are opportunities.
• Knowledge and technology exchange are opportunities.
• Increased competition from international businesses is a challenge.
• Cultural and language barriers is a challenge.
• Legal and regulatory compliance in different countries is a challenge.
• Vulnerability to global economic fluctuations is a challenge.

Technology

• Digital communication allows faster and more efficient communication.
• Increased efficiency through AI and software platforms.
• Digital storage systems increase organization and allow easy access to shared information.
• Remote work increases work-life balance.
• Online Job Training is a key element.
• Improved productivity through automation and AI is an opportunity.
• Enhanced communication and collaboration tools are an opportunity.
• Innovation in products and services are an opportunity.
• Access to global markets via e-commerce platforms is an opportunity.
• Cybersecurity risks and data breaches are a challenge.
• High initial investment costs are a challenge.
• Rapid technological changes requiring constant adaptation are a challenge.
• The digital divide between developed and developing regions is a challenge.
• Increasing demand for knowledge workers with the skills to fully utilize technology.
• Knowledge worker: An employee whose primary job involves handling, processing, and applying information or knowledge rather than performing manual labor.

Ethics

• A code of moral principles guiding right and wrong conduct.
• Society requires businesses to operate according to moral standards.
• Building trust and brand reputation through ethical practices is an opportunity.
• Increased customer loyalty for socially responsible companies is an opportunity.
• Positive impact on society and the environment is an opportunity.
• Long-term sustainability is an opportunity.
• Balancing profit with social responsibility is a challenge.
• Dealing with corruption and bribery in certain regions is a challenge.
• Labor rights and fair wages in global supply chains are a challenge.
• Environmental sustainability concerns are a challenge.

Diversity

• Creativity and innovation from different perspectives is an opportunity.
• Better decision-making through diverse viewpoints is an opportunity.
• Improved brand image and customer satisfaction is an opportunity.
• Access to a wider talent pool is an opportunity.
• Communication and cultural misunderstandings are a challenge.
• Workplace discrimination or bias are a challenge.
• Managing diverse teams effectively is a challenge.
• Implementing inclusive policies is a challenge.

Work-Life Balance

• The balance between personal life and professional responsibilities.

Manager

• A person who supports, activates, and is responsible for the work of others.

Levels of Management

• Upper/Top Management oversees the performance of the organization, establishes objectives, and monitors the external environment (Ex: CEO, COO, CFO,VP HR).
• Middle Management oversees large departments, interprets top management direction, and motivates lower management (Ex: Department heads, HR director).
• Lower Management/Team Leaders reports to middle managers and supervises non-managerial workers (Ex: supervisor, asst manager).
• Team Leaders/Supervisors are in charge of a small work group of non-managerial workers.

Types of Managers

• Line Managers: Directly involved in producing the organization's output.
• Staff Managers: Provide support and expertise to line workers.
• Functional Managers: Responsible for a single area of activity (e.g., Marketing, Finance).
• General Managers: Responsible for more complex units that include multiple functional areas.
• Administrators: Managers in public or non-profit organizations.

The Four Functions of Management/Management Process

• Planning: Setting objectives and determining the actions to achieve them.
• Organizing: Arranging tasks, allocating resources, and arranging activities to implement plans.
• Leading: Inspiring and motivating people to work towards goals.
• Controlling: Measuring performance, comparing results to objectives, and taking corrective action.

Essential Managerial Skills

• Technical Skill: Ability to apply expertise in a specific area or task.
• Human Skill: Ability to work well with others.
• Conceptual Skill: Ability to think critically and solve complex problems.
• Competencies of a Successful Manager: Communication, teamwork, self-management, leadership, critical thinking, and professionalism.

Classical Management Approaches

• Assumes that people are rational and driven by economic concerns ($).

Scientific Management

• Frederick Taylor found that workers did their jobs their own way, without clear and uniform specifications.
• Training for worker and support from supervision (proper direction, work assistance, monetary incentives) are needed.
• Taylor’s Four Guiding Principles:
• Develop a science for every job that includes rules of motion and standardized work implements.
• Motion Study: the science of reducing a job to its basic physical motions.
• Carefully select workers with the right abilities for the job.
• Carefully train workers to do the job and give them incentives to follow the job science.
• Support workers by carefully planning their work and by smoothing the way as they go about work.
• The Gilbreths (Frank and Lillian) continued the efforts in motion studies and reduced motions to increase productivity.
• The Gilbreths established foundations for job simplification, work standard, incentive wage plans (all used today).

Administrative Principles

• Henry Fayol believed management could be taught.
• Fayol identified 5 duties of management:
• Foresight: plan for future.
• Organization: to have the right resources to implement the plan.
• Command: to lead, select, evaluate workers to get the best work.
• Coordination: to ensure information is shared and problems are solved.
• Control: to make sure things could happen according to plan and to take necessary corrective action.
• Guiding principles:
• Scalar Chain Principle: clear and unbroken line of communication from top to bottom of organization.
• Unity of Command Principle: each person should receive orders from ONLY 1 boss.
• Unity of Direction Principle: one person should be in charge of all activities that have the same performance objectives.
• Mary Parker Follet displayed an understanding of groups and a deep commitment to human cooperation.
• Groups: combine talents for the greater good.
• Organizations: think of as “communities”.
• Make every employer an owner in the business.
• Believed in public good .

Bureaucratic Organization

• Max Weber defined Bureaucracy as a rational and efficient form of organization founded on logic, order, and authority.
• Weber believed that bureaucracy could fix the fact that many individuals in positions of authority were there because of their social standing/stats and not skills.
• Disadvantages of bureaucracy include: excessive paperwork, resistance to change, employee apathy, ‘red tape’.
• Characteristics of ideal Bureaucracy:
• Clear Division of Labour: jobs are well defined, workers become skilled at performing them.
• Clear Heighercy of Authority: authority and responsibility are clearly defined (who reports to whom).
• Formal Rules and Procedures: written records of guidelines.
• Impersonality: rules/procedures are impartially and uniformly applied; no preferential treatment.
• Careers based on merit: workers are selected/promoted based on ability and performance.

Behavioural Management Approaches

• Assumes people are social and self-actualizing’

Hawthorne Studies

• Through the Western Electric Company study of individual productivity, Elton Mayo discovered:
• Group Atmosphere- shared pleasant interactions translated into wanting to do a good job.
• Participative Supervision- workers are made to feel important, given a lot of information were asked for their input on.
• Classical approaches focus on job/structure, Hawthorne focuses on social and human concerns.
• Hawthorne Effect: the tendency of persons singled out for special attention to perform as expected.
• The Hawthorne Studies contributed to the human relations movement in the 50s and 60s.
• Human Relations Movement: if managers establish good human relations, they will achieve maximum productivity.

Argyris’ Theory of Adult Personality

• If managers treat people positively, and as responsible adults they will achieve productivity.
• Managers should:
• Expand job responsibilities.
• Allow more task variety.
• Allow more employee participation to promote better human relations.
• Common problems like absenteeism, turnover(quitting), apathy, and alienation are the result of:
• Mismatch between workers’ mature personalities
• Outdated management practices

Maslow’s Hierarchy of Human Needs (lowest to highest)

• Psychological Needs: basic needs for food, water, shelter.
• Safety Needs: need for security, protection, and stability in day-to-day life.
• Social Needs: need for love, affection, sense of belonging in relationships.
• Esteem Needs: need for esteem in eyes of others, for respect, recognition, mastery.
• Self-Actualization Needs: highest level/ultimate goal, need for self-fulfilment to grow; reaching full potential.
• Based on 2 principles:
• Deficit Principle: a satisfied need is not a motivator for behavior; people act to satisfy deprived needs.
• Progression Principle: must satisfy lower-level needs before moving up to the next level.

McGregor’s Theory X and Y

• Theory X: assumes people dislike work, lack ambition, are irresponsible and prefer to be led.
• Theory Y: assumes people are willing to work, accept responsibility and are self-directed/create.
• People are capable of self control and focus.
• Theory X and Y will create self fulfilling prophecies: If a manager treats employees as independent, creative, responsible, they will rise to those expectations

What Are Organizations Focused On?

• Belief in human capital.
• Emphasis on teamwork.
• Focus on speed.
• Demise of “command and control”.
• Workforce expectations.
• Importance of networking.
• Importance and use of technology.
• Concern for work-life balance.

Organizations As Open Systems

• Composed of interrelated parts that function together to achieve a common purpose.
• Transform resource inputs into product outputs (goods and services).
• Environmental feedback tells organization how well it is meeting the needs of customers and society.
• Interact with their environments.