Chap011 Management Decision and ControlInternational Management Culture,Strategy and Behavior 国际企业管理文化、战略与行为课件

1、Management Decision and Controlchapter elevenMcGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.Chapter Objectives:PROVIDE comparative examples of decision- making in different countries.PRESENT some of the major factors affecting the degree of decision-making au

2、thority given to overseas units.COMPARE and CONTRAST direct controls with indirect controls.DESCRIBE some of the major differences in the ways that MNCs control operations.DISCUSS some of the specific performance measures that are used to control international operations. Decision-Making Processes a

3、nd ChallengesManagerial decision-making processes: method of choosing a course of action among alternatives Process is often linearLooping back is commonManagerial involvement in procedure depends on structure of subsidiaries and locus of decision-making Decision-Making ProcessFactors Affecting Deci

4、sion Making AuthorityComparative Examples of Decision MakingDecision-making philosophies and practices from country to country:Do international operations use similar decision-making norms?French and Danish managers used different approaches to decision-making; each more adept at different stages of

5、 the process. French do not value time as much as counterparts German co-determination: managers focus more on productivity and quality of goods/services than on managing subordinates. Comparative Examples of Decision MakingMost evidence indicates overall decision-making approaches used around the w

6、orld favor centralizationMNCs based in U.S.Use fairly centralized decision making in managing overseas unitsEnsure that all units are operating according to overall strategic planProvide necessary control for developing a worldwide strategyTotal Quality Management (TQM)Organizational strategy and ac

7、companying techniques resulting in delivery of high quality products or services to customersCritical to achieve world-class competitivenessManufacturing is primary areaU.S. automakers have greatly improved quality of their cars in recent yearsJapanese have continuously improved quality and still ha

8、ve the industry leadTotal Quality ManagementConcurrent engineering/inter-functional teamsDesigners, engineers, production specialists, and customers work together to develop new productsEmpowermentGive individuals and teams resources, information, authority needed to develop ideas and effectively im

9、plement themMany successful TQM techniques applied to manufacturingMNCs use TQM techniquesTailor output to customer needsRequire suppliers use same approachTotal Quality ManagementISO 9000 CertificationIndirectly related to TQMInternational Standards Organization (ISO) to ensure quality products and

10、 servicesAreas examined include design, process control, purchasing, service, inspection and testing, and training. Ongoing TrainingWide variety of forms such as statistical quality control and team meetings -designed to generate ideasObjective is to apply kaizen (Japanese term for continuous improv

11、ement)Quality ConcernsComparative Examples (continued)Japanese make heavy use of ringisei (decision making by consensus)Other Japanese decision-making terms:Tatemae: “doing the right thing” according to the normHonne: “what one really wants to do” The Control ProcessMNC methods to control overseas o

12、perationsMost combine direct and indirect controlsSome prefer heavily quantifiable methods; some prefer qualitative approachesSome prefer decentralized approaches; others greater centralizationControl ProcessThree common performance measures:Financial performance: typically measured by profit and re

13、turn on investmentQuality performance: often controlled through quality circlesPersonnel performance: typically judged through performance evaluation techniques.Three Models of PC Manufacturing:Models of PC ManufacturingModels of PC ManufacturingThe Controlling ProcessMNCs may experience control pro

14、blemsObjectives of overseas operation and MNC may conflictObjectives of joint venture partners and corporate management may not agreeDegree of experience and competence in planning vary widely among managers running overseas unitsBasic philosophic disagreements about objectives and polices of intern

15、ational operations may existTypes of ControlTwo common complementary types:Internal or external control in devising overall strategyLooking at ways organization uses direct and indirect controlsTypes of Control: External/Internal:Internal and external perspectives of control one is often given more

16、attention than the other.External control focus needed to find out what customers want and be prepared to respond appropriatelyManagement wants to ensure market for goods and services existTypes of Control: External/InternalTypes of Control: Direct ControlsUse of face-to-face personal meetings for p

17、urpose of monitoring operationsExamples: top executives visit overseas affiliates to learn of problems and challenges; design structure that makes unit highly responsive to home-office requests and communicationsTypes of Control: IndirectUse of reports and other written forms of communication to con

18、trol operations at subsidiariesFinancial statementsFinancial statement prepared to meet national accounting standards prescribed by host countryStatement prepared to comply with accounting principles and standards required by home countryStatement prepared to meet financial consolidation requirement

19、s of home countryThe Controlling ProcessDifferences across countries:Great BritainFinancial records are sophisticated and heavily emphasizedTop management tends to focus on major problem areas; not involved in specific matters of controlControl used for general guidance more than surveillanceOperati

20、ng units have large amount of marketing autonomy The Controlling Process (continued)FranceManagers employ control systems closer to that of German than BritishControl used more for surveillance than guidanceProcess centrally administeredLess systematic and sophisticated than in German companiesThe C

21、ontrolling ProcessU.S. vs. Europeans:U.S. firms rely much more on reports and other performance-related dataAmericans make greater use of output control; Europeans rely more heavily on behavioral controlControl in U.S. MNCs focus more on quantifiable, objective aspects of foreign subsidiary; control

22、 in European MNCs used to measure more qualitative aspects.Planning and ControlControl TechniquesFinancial performanceMost important part of ROI calculation is profit; often manipulated by managementAmount of profit directly related to how well or poorly a unit is judged to performControl Techniques

23、Financial performance (continued):Bottom line (i.e., profit) performance of subsidiaries can be affected by a devaluation or revaluation of local currencyIf a country devalues its currency, subsidiary export sales will increasePrice of goods will be lower for foreign buyers with currencies that have greater purchasing powerIf country revalues its currency, export sales will declinePrice of goods for foreign buyers rises since currencies now have less purchasing power in subsidiarys country Control TechniquesQuality performance: Why Japanese goods of higher qu