Parochialism: viewing the world solely through one’s own eyes and perspectives and not

recognizing that others have different ways of living and working. Parochialism leads to an
inability to recognize differences between people.
Ethnocentric attitude: the parochialistic belief that the best work approaches and practices are
those of the home country. (Global company, centralized management, global efficiency)
Polycentric attitude: the view that the managers in the host country know the best work
approaches and practices for running their business. (Multi-domestic cooperation,
decentralized management in different countries).
Geocentric attitude: a world-oriented on using the best approaches and people from around
the globe. (Transnational/borderless organizations, eliminates geographic barriers, also in
organizational structure).
How organizations go international?
Global sourcing: purchasing materials or labor from around the world based on lowest cost.
Exporting: making products domestically and selling them abroad.
Importing: purchase products made abroad and sell them domestically.
Licensing: an agreement in which an organization gives another organization the right to make
or sell its products, using its technology or product specifications.
Franchising: an agreement in which an organization gives another organization the right to use
its name and operating methods.
Strategic alliance: a partnership between an organization and a foreign company partner in
which both share resources and knowledge in developing new products or building production
facilities.

 Makes it easy to buy and sell goods between the members of the alliance.

 Makes it harder for other countries to sell into the alliance.

A trade alliance has quotas- limit on the amount of goods that can be sold in the country Taxes-
have tariffs on import products to make the product more expensive.
Foreign Subsidiary: directly investing in a foreign country by setting up a separate and
independent production facility or office.
Free Market Economy: an economic system in which resources are primarily owned and
controlled by the private sector.
Planned Economy: an economic system in which economic decisions are planned by a central
government.
National Culture—the values and attitudes shared by individuals from a specific country that
shape their behavior and beliefs about what is important.
Cultural Intelligence: cultural awareness and sensitivity skills.
Global Mind-Set: attributes that allow a leader to be effective in cross-cultural environments.
This Chapter is about managing diversity.
Workforce diversity means similarities and differences among employees in terms of age,
cultural background, physical abilities and disabilities, race, religion, gender, and sexual
orientation.
Surface-level diversity: Easily perceived differences that may trigger certain stereotypes, but
that do not necessarily reflect the ways people think or feel.
Deep-level diversity: Differences in values, personality, and work preferences.
People Management
• Better use of employee talent
• Increased quality of team problem-solving efforts
• Ability to attract and retain employees of diverse backgrounds
Organizational Performances
• Reduced costs associated with high turnover, absenteeism, and lawsuits
• Enhanced problem-solving ability
• Improved system flexibility
Workforce diversity also occur in Age and Gender.
Workforce diversity also occur in Disability/Ability and Religion.
Workforce diversity also occur in Race and Ethnicity.
Managing diversity have many challenges at Personal Bias, Stereotyping and discrimination:
• Bias: a tendency or preference toward a particular perspective or ideology.
• Prejudice: a preconceived belief, opinion, or judgment toward a person or a group of
people.
• Stereotyping: judging a person based on a perception of a group to which that person
belongs.
 • Discrimination: when someone acts out their prejudicial attitudes toward people who
are the targets of their prejudice.
Glass ceiling: is a metaphor referring to an artificial barrier that prevents women and minorities
from being promoted to managerial- and executive-level positions within an organization.
A Mentor is someone who offers his or her knowledge, wisdom, and advice to someone with
less experience. ... In a business mentor program, both the mentor and the mentee gain
personal and professional experience.
Diversity Skills Training: specialized training to educate employees about the importance of
diversity and to teach them skills for working in a diverse workplace.
This chapter is about Managing Social Responsibility and Ethics.
Social obligation: a firms engaging in social actions because of its obligation to meet certain
economic and legal responsibilities.
Classical view: the view that managements only social responsibility is maximize profits.
Socioeconomic view: the view that management social responsibility goes beyond making
profits and includes protecting and improving society’s welfare.
Social responsiveness: a firm engaging in social actions in response to some popular social
need.
Social responsibility: a business intention, beyond its legal and economic obligations, to do the
right things and act in ways that are good for society.
The organizations are also socially involved like:
Social screening: Applying social criteria (screens) to investment decisions for the organization.
A Green management: a form of management in which managers consider the impact of their
organization on the natural environment.
And the organization go green by these types of approaches:
• Legal (light green) approach
• Market approach
• Stakeholder approach
• Activist approach
Ethics are principles, values, and beliefs that define right and wrong behavior.
Ethical behaivior can be influenced by:
An organization’s structural design
Goals
Performance appraisal system
Reward allocation
Employee selection as value based management:
Value Based Management (VBM) is the management philosophy and approach that enables
and supports maximum value creation in organizations, typically the maximization of
shareholder value. VBM encompasses the processes for creating, managing, and measuring
value.
Ethics Trainings: More organizations are setting up seminars, workshops, and similar ethics
training programs to encourage ethical behavior.
Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for
the dignity and rights of others. It is thus related to concepts such as trust, honesty,
consideration and fairness.
Social entrepreneurship is an approach by individuals, groups, start-up companies or
entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues.