lunes, 5 de abril de 2010

LATIN AMERICA

In this blog I’m going to analyze the document EMANCIPATORY MANAGEMENT: THE CONTRADICTION BETWEEN PRACTICE AND DISCOURSE by MARCOS BARROS proposed by the teacher in the Latin America Module.
After more than ten years of critical management study, there is not a clear organization theory, therefore, the author is trying to strive through the combination of theory and practice the notion of Emancipator Management by conducting an study of communitarian organizations in Bahia (Brazil) and Quebec (Canada). These organizations were chosen especially because they defended a clear emancipatory discourse of participation, solidarity and collective well-being. For that reason, the research was focus on the congruence between these expressed values and their organizational practices in the light of their specific contextual constraints.
The research was conducted through an observation of 400 hours in each group. During this time, they looked the organizations’ members for significant events that should be characterized as an obstacle (limiting-situations) to the emancipation in their work environment. This stage was complemented by a document review and five different two-hour semi-structured interviews in each organization with members of different levels of hierarchy and organizational functions. The last stage was the codification and decodification of emancipation themes three-hour meeting in each organization. The selected situations were presented in a pictorial form that symbolized concrete and recognizable events of the organizational life that limited or defied emancipation. These meetings showed the limitations of the methodology. This method, does not take into account the bias forced by power inequality. Therefore, in both organizations, though in different manners, political aspects forced us to change the format of the discussion.

EMANCIPATORY CONTRADICTIONS AND CULTURAL CONTEXT

Quebecker Organization: The Individual and the Communitarian

NORTH AMERICA

In this blog I will explain the main characteristics of the American culture, trough some codes and trough the American Football metaphor

THE CODES
These codes are going to try to explain some of the fundamentals archetypes in American culture giving us a glimpse of why they do the things they do. These codes are the code for America, the code of work and money, and the code of quality and perfection.
For America
In this code, Americans see themselves as new, as adolescents; they say the only ancient things are the forests and canyons. They are always renewing, preferring to destroy things rather than preserve them.

Also the sense of size pervades in American culture. They are the masters of the macro-culture; they want everything in abundance, from their homes to their meals.
Another thing about America is that one can find diversity and unity. They have a great variety of landscape that changes dramatically across countries. They have the rocky coast, wide plains, expanses, concrete cities, and on the other hand you can find the same kind of things in all this places, the same Starbucks, the same Holly Day Inn, and the same Mc Donald.

The American cultural code for America is DREAM: of the explorers, of the entrepreneurs, of the immigrants, of the new explorers. For them also the constitution is a dream, a dream for a better society. Disney, Hollywood, and the internet were created to project Americans dreams to the world. They consider themselves as the product of dreams and as makers of dreams
Their notion of abundance is also a dream is the dream if limitless opportunities. Their need of constant movement is a dream in which they can do always more, always create and accomplish. Even their cultural adolescence is a dream, a dream in which they believe they are going to be always young and that they never have to grow up.
They have become the most powerful, the most influential culture, because they believe in the power of dreams. They have raise again after the Great Depression because of the Dream of the New Deal, and also raise back up from the 1970’s crisis because they believed in the dream of the new America of Reagan administration.
Remaining on code means supporting their dreams. They want to encourage people to have big ideas, to take risks, and to learn of their mistakes. They want to promote reinvention and starting over. This is American primarily mission, to keep the dream alive.
Work and Money

From the very begging of American culture their approach to work is to work hard, earn money and not resting. For Americans, work wasn’t simply something you did to make a living or because you have to do it. Even if they don’t want their work, it had a much powerful dimension, a life- defining dimension.
The American culture code for work is WHO THEY ARE: when you ask an American what she does for living, you are really asking who she is. They believed that they are what they do in their jobs. When they are unemployed they get depressed but not because they don’t have to pay their bills, but rather they think that if they are doing nothing they are nobodies. Even a billionaire still works sixty hour a week because he needs constant affirmation of who he is.
They also believed that they never have to be stuck in what you do. It is possible to be happy doing the same job for thirty years, but only if the job provides consistent changes. But if the work they do don’t provide them with the sense of who they are, it preferable to seek something else.
There is also an important connection between work and money in the American culture, and although we saw that they don’t work to make money, rather to feel they are somebody, it’s significant as well.
Money reminds them that their “business is a good one”, that they have work hard to get something, that they can carry their burdens, that they are appreciated, and that they are moving up to the next level. Not having money make them feel like if they were in a hole.
The American Culture Code for money is PROOF: this code shows that money isn’t a goal for most Americans. On the contrary it shows that they are good in what they do, and that they have true value in the world. Money is the barometer of success, if someone is doing a similar job, and the other person is making more money, unconsciously they believed that she or he is doing a better job.
Another important issue to take into account about Americans is that they are the most charitable people in the world, and according to their competition about who earns more money they also have a competition of who makes the largest donations.
Work is essentially part of who they are and they just want a chance to prove themselves and receive tangible evidence that they have succeed.
Quality and Perfection
The culture Code of Quality is IT WORKS: Americans have a simple and clear quality demand for their products. They need to work. They just need to make it sure that things operates the way it was supposed to.
The culture code of perfection is DEATH. The perfect car would be useless to Americans, because they wouldn’t have the excuse that their old car doesn’t work well enough anymore and they need to change it. Therefore the plan obsolescence, in which many manufacturers employ on building things that needs to be replaced in a relatively short period of time, is on Code with the American Culture.
Because Americans associate perfection with death, they don’t expect anyone to make the perfect product; they expect them to break down, but companies want to learn about their mistakes and continue improving. However, because the code of quality is it works, they expect problems to be resolved quickly and with a minimum of disruption. For Americans great service is more important than great quality.

The American Football: individualism and competitiveness specialization, huddling.
The American football is an appropriate metaphor to describe American culture and the manner in which business is practice by Americans. This sport captures many of the central values, beliefs and ideals of America society, and has progressively become an integral component of its community. The peculiar speed, the constant movement, the high degree of specialization, the consistent aggressiveness, and the intense competition in football, all typify the American culture.

Individualism and Competitiveness Specialization
Equality of opportunity, independence, initiative, and self-reliance are some values that have remain as basic American ideals through history. All of these values are expressive of a high degree of individualism. As a matter of fact, according to Hoftade’s (1991) 53 -nation study of cultural values, the United States ranks first on individualism. Those same ideals have been in professional football and have been so over the years.
Another important characteristic to take into account is the competitive specialization, which appears to be the most evident aspect of America. The notion of specializing to compete is the principal ideological ideal that Americans adhere to practice, safeguard and promote worldwide. Competitive specialization is the tool with which Americans tend to undertake in life’s main challenges. This tool is often serviced and maintain with high levels of emotional intensity and aggressiveness.
Competition seems to be more than a mean to an end in America and has apparently become a major goal. Just as over a half of the rules and regulations in professional football deal with protecting and enhancing competition in the league, so too in American antitrust laws and regulations are essentially created to safeguard competition and equality of opportunity for individual and groups.

Huddle
Another characteristic that represent the American football is the huddle (how offensive teams gather together before each play to call a certain plan into action). In the huddle there are different players from diverse backgrounds and with various levels of education. All have agreed that the only way to accomplish certain task is to put differences aside and cooperate objectively to achieve certain goal. After the game every player returns to his own world, living his own life in his own unique way. That is the essence of melting pot, a diversify group of people who forget their differences temporarily to achieve a common goal.
The huddling is necessarily in most American groups and organizations in order to handle their problems and achieve their objective. Although the huddle is quite different form many other countries. For example the Japanese normally socialize with coworkers after work and if major problem occurs they will sometimes go off-site for a drink, a dinner, informal friendship and finally discussion of the problem at hand and how to address it. Periodically they will repeat such sessions until the long-term problem is solved. Americans on the other hand, tend to huddle together in business meetings specifically to address and solve the problem at hand, after which they disperse to complete their other work-oriented activities. If additional meeting are necessary, they are normally conducted in the same way.
Americans tend to believe that any problem can be solved, as long as the solution process comprises a specific number of steps to follow and questions to answer. Likewise in football, no matter how complicated a situation may be, teams are convinced that they can overcome the complexities through a standardized planning process
Rapaille, Clotaire. The culture code: an ingenious way to understand why people around the world buy and live as they do. New York: Broadway books, 2006. 208p.
Gannon J., Matin (2007). Understanding Global Cultures: Metaphorical Journeys Through 29 Nations, Clusters of Nations, Continents, and Diversity, Fourth Edition. Chapter 16. Pgs 205-219.

"The HP Way"


The proposed case study for this module illustrates the importance of organisational culture in the context of the USA It also enables the reader to understand the strong relationship between national and organisational culture.
Based on the class presentations and the assigned case study, please answer the following questions:
1. List and explain 3 strategies used by HP in order to develop and sustain a strong organisational culture - "The HP Way".
3 of the strategies used to develop and sustain the HP organizational culture are:
1. Participative management style: in which they support individual freedom and initiative while emphasising unity of purpose and teamwork
2. Selection of new recruits: they recuit people who either share or can easily adapt to the HP company's values. There is an emphasis on adaptability and cultural ‘fit’ with HP and, once employed by the company, all employees were offered some degree of job security.
3. Formal and informal communication: communication of the company's values also helped to transmit and maintain its corporate culture. They implemented the ‘open door’ principle in which every employee had the right to seek advice from, and be counseled by, any member of HP management, concerning any personal or job related problem.
The company also encouraged informal communication through ritual coffee breaks and ‘Beer Busts’, where managers and employees came together and got to know each other and discussed projects and problems together.

2. By 2001, Carly Fiorina was facing a huge dillemma in terms of organisational culture. "Should Fiorina try to revitalize the HP way or attempt to replace it with a “better” culture than the one established by Dave Packard and Bill Hewlett in the 1940’s?". Explain your answer.
I do think that if the “HP way” has been working for so many years, I don’t consider it is necessary to change it. Many of the people that has been working there and are used to work with that culture won’t accept this kind of transformation and as the case said “a small number of HP middle managers elected to leave during 1999 and 2000, and also a number of long-standing employees begun to worry about the erosion of the HP Way, the revered corporate tradition of employee support and innovation. Even an anonymous HP employee, cited by Hamilton (2000) said:
‘The HP Way works and has seen us through difficult periods on the past. We must be careful that principles that this company was founded are not destroyed in the pursuit of short- term gains or cost-cutting to ramp up the company’s share price.’*
*Forster, Nick. 2002. “Managing excellence through corporate culture: the HP way” The Management Case Study Journal 2(1): 13-25.

AUSTRALIAN ORGANIZATIONAL CULTURE

Organizational culture, defined typically as the shared value system of an organization’s
members, is seen as an increasingly important factor affecting business activity and
success in the competitive and global environments of the late 20th and early 21st
centuries. Today we are going to focuse on the Australian Organizational culture and analyze some of it features according to the analysis made by Kevin Baird, Graeme Harrison, and Robert Reeve in its paper investigation: THE CULTURE OF AUSTRALIAN ORGANIZATIONS AND ITS RELATION WITH STRATEGY.

To do such analysis they based they research according to some organizational culture factors and component items, that are in the following table.


ORGANIZATIONAL CULTURE FACTORS AND COMPONENT ITEMS
(SARROS ET AL. 2002)



1. Performance Orientation


Having high expectations for performance
Enthusiasm for the job
Being results oriented
Being highly organized

2. Social Responsibility


Being reflective

Having a good reputation
Being socially responsible
Having a clear guiding philosophy

3. Supportiveness


Being team oriented
Sharing information freely
Being people oriented
Collaboration

4. Emphasis on Rewards


Fairness
Opportunities for professional growth
High pay for good performance
Praise for good performance

5. Stability


Stability
Being calm
Security of employment
Low conflict

6. Competitiveness


Achievement orientation
An emphasis on quality
Being distinctive
Being competitive

6 Innovation


Being innovative
Quick to take advantage of opportunities
Risk taking
Taking individual responsibility

The result of this investigation suggested that , Australia performance orientation was the most important factor amoung Australian organizations followed by Social Responsibility, Supportiveness and Emphasis on Rewards. Competitiveness and Innovation were ranked equal last by the respondent managers as characteristics of their organizations.
The high ranking of performance Orientation, a cultural factor characterised by values of having high expectations for performance and being results and action oriented, bodes well for the success of Australian business if, as theorised, organizational culture is an important determinant of managers’ and employees’ work attitudes, decisions and behaviour and, ultimately, an organization’s financial performance. Less auspicious is the low ranking of Innovation, a cultural factor characterised by a willingness to experiment, being innovative, being quick to take advantage of opportunities, and risk taking.
For some scholars there are reason to believed thata the low ranking of innovation migh have its roots on economical issues. In the economic aspect, the government removal of the protectionist policies, and being exposed to macro-economic and micro-economic reforms, including financial and labour market deregulation and tariff reforms, made Australian be more reserve to the innovation practices. Also in the Social aspect
With respect to Australian social or national culture, and its implications for organizational culture, the egalitarianism, mateship and individualism were shown as the most prominent characteristics of Australian society. The “mateship” characteristic of Australian national culture, “represents a leadership styl e that focuses on the group”. Egalitarianism (the belief that people should be treated the same and as equals) has consistently been identified as an Australian cultural trait, as “the ability of Australian leaders to engage socially with workers while also nurturing and developing their careers”. Individualism recognizes the egalitarianism aspect of Australian culture and describes a culture where people are regarded as independent of each other and self-reliant and self-directed

As a conclusion, we can say that although Australian organizational culture is well implemented, there are two important aspects to keep an eye on it and are: the competiveness and innovation. In order to be competitive, Australian companies, have to make attractive changes in their services and products to face today’s world challenges
- Baird, Kevin. 2007. The culture of Australian organizations and its relation with strategy. “International Journal Of Business Studies, 15(1).

Based on the film “Rabbit Proof Fence” (2002), and the information provided in class, please answer the following questions: When removed from their families, the children were prepared for “a better life”, how is that true or false when considering different perspectives?


Based on the perspective of the Aborigines and their families, this is a false statement. How are they going to have a better life taken away of their family at early ages? In addition they would never have the chance to be someone else beside servants; this was a kind of slavery. On the other hand, based on the Australian perspective, they thought that the Aborigines were wild people which were lazy and didn’t like to work, their weddings promoted the sexual abuse and also they destroy houses. White Australians didn’t want this kind of culture to influence theirs, and thus they took this Childs away to be educated without the influence of their “wild” community and to lose connection with their aboriginal culture. So according to, for a better life statement, it woul be true.


EUROPE: EUROPEAN UNION

The European Union is an economical and political union that covers a large portion of the European continent. Actually contains 27 sovereign member states: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg ,Republic of Malta, Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom. And It represents 30% of the world’s GDP, and has 23 official languages.
The European Union is founded upon numerous treaties but the European Coal and Steel Community in the Treaty of Paris (1951) was the beginning of this integration followed by the Treaty of Rome in which the European Economic Community (EEC) and Euratom where created (1957). In 1969 Heads of State or Government meet in The Hague to discuss completion of single market, greater integration and enlargement of the European Community. They agree to phase in economic and monetary union (EMU) by 1980, to speed up integration and cooperation on political matters, finally in 1992 the Maastricht Treaty on European Union was signed, founded "on the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law“
It objectives are the development of a common market where people, goods, services and capital can moved freely and also a customs union between its member states in which is apply a common external tariff on all goods entering the market.
There is a current discussion around the existence of the co-determinism principle in Germany. Select, define and explain 3 arguments in favor and 3 against such principle.

Co-determination is a practice whereby the employees have a role in management of a company. It began in Germany and at first there was only worker participation in management in the coal and steel industries. But in 1974, a general law was passed mandating that worker representatives hold seats on the boards of all companies employing over 500 people. 1
There are different points of view relating this matter, there are arguments in favor and against.
IN FAVOR:
1. On the assumption that the primary goal of employers is to maximise profits in the interests of shareholders, codetermination can reorient the company's goals in the interests of workers. A better balance may be struck so that the company interests are not so one sided. For unions, codetermination is part of democratising the economy. It is also a way for workers to better the terms and conditions of their contracts in an orderly and regulated way.
2. It can be an instrument for long term increase in productivity of the company. Some economists dispute this on the basis that the losses in efficiency in production outweigh any gains in productivity.
3.It can also foster innovation in the company, through the participation of all the member of the company
AGAINST:
1. Trade unions have long been calling for the clarification of supervisory duties and for the introduction of minority rights so that a disinterested majority is not able to allow management free run to do as it pleases. “Law on the Improvement of the Supervision and Transparency of Companies” 2
2. Many scholars have said that if the interest of the shareholder is to get profit, the principle of determinism is against that notion. The employees will make decisions according to their own benefit.
3. there is also an argument that although the co determinism principle try to give equity to all the members of the company the shareholder are going to have always one extra vote, making the decision making process unequal.

1. http://en.wikipedia.org/wiki/Co-determination
2.
http://www.boeckler.de/pdf/p_arbp_033.pdf

MIDDLE EAST: ISLAMIC BANKING

IMAGE SOURCE:robertbonnett.com


1. Explain what Islamic Banking is and its background.
Islamic banking is banking based on Islamic law (Shariah). It follows the Islamic rules and practices on transactions which come from the Quran and the Sunnah, and other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma’), analogy (qiyas) and personal reasoning (ijtihad). 1

2. What are the key principles of Islamic banking?
Islamic Banking is based on the principles of trade, partnership, sharing of gains and losses, and prohibition of out of control risk. It prohibits:
· Interest-based banking
· Gharar –unclear contracts
· Maysir–speculation
· Financing of haram transactions (alcohol, gambling, pork, etc.)2


3. Islamic law forbids institutions from charging interests on loans. How do they make profits when lending money?

Banks can profit from the buying and selling of approved goods and services. The principal means of Islamic finance are based on trading, and it is essential that risk be involved in any trading activity, so banks and financial institutions will trade in sharia-compliant investments with the money deposited by customers, sharing the risks, and the profits between them.
Although they cannot charge interest, the banks can profit from helping customers to purchase a property using ijara (leasing) or murabaha (sale on agreed upon profit) scheme. With an ijara scheme the bank makes money by charging the customer rent; with a murabaha scheme, a price is agreed at the outset which is more than the market value. This profit is deemed to be a reward for the risk that is assumed by the bank.


4. Explain the concept of ethical investments under Islamic law. Who is to determine whether an activity is allowed or not?
There are firm laws governing the types of business the banks can trade with. There should be absolutely no investment in unsuitable businesses, including those involved with armaments, pork, tobacco, drugs, alcohol or pornography.

IMAGE SOURCE:worldpoliticsreview.com
5. How does Islamic banking influence the economy in the Middle East?

The steady expansion of Islamic banks has been the hallmark of the Middle East financial landscape in the 1980s and 1990s. With a network that spans more than 60 countries and an asset base of more than $200 billion, Islamic banks are now playing an increasingly significant role in their respective markets. To this end, Islamic banks are rapidly gaining market shares in their domestic economies and their presence in highly sophisticated markets exemplifies the empirical success of the viability of eliminating fixed interest payments from financial transactions. Indeed, consolidation among banks, rising competition and continuous innovation
to provide financial services, all contribute to a growing interest in a detailed
critical evaluation of Islamic banks.
Islamic banks have the flexibility of becoming shareholders and creditors of firms, as well as the advantage of providing investment-banking services3 all this sums to attrack foreing direct investment to Middle East and foster its economy.
6. Based on your research and knowledge about this topic, what is the future of Islamic Banking in terms of global expansion and growth?
Even though the Islamic banking industry is relatively new compared to the conventional banking, Introduced 30 years ago, it was operating in a limited number of Muslim countries. Three decades ago, Islamic banking was targeting and planning to serve only Muslim clients keen to deal only on Shariah compliant base.
After this research I must say that the future of Islamic Banking is really promising,
Peolple perceived a banking concept based on transparency, win-win relationship and Ethical banking values and services, making them worth trustful.

VIDEO: http://www.videocrux.com/video/12920/Islamic-banks-show-growth-during-recession


1. http://www.bankinginfo.com.my/_system/media/downloadables/islamic_banking.pdf
2.
http://www.nzibo.com/islamic.html 3.http://www.irti.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IRTI/CM/downloads/IES_Articles/Vol%2011-1..A%20H%20Bashsir..Determinants%20of%20Profitability..dp.pdf
http://www.worldfinance.com/news/world-market/islamicfinance/article216.html
http://www.guardian.co.uk/money/2006/jun/13/accounts.islamicfinance
http://www.islamic-banking.com/islamic_banking_principle.aspx

AFRICA: BLOOD DIAMONS

Blood Diamonds, also known as “Conflict Diamonds” are stones that are produced in areas controlled by rebel forces that are opposed to internationally recognized governments. The rebels sell these diamonds, and the money is used to purchase arms or to fund their military actions. Blood Diamonds are often produced through the forced labor of men, women and children. They are also stolen during shipment or seized by attacking the mining operations of legitimate producers. These attacks can be on the scale of a large military operation. The stones are then smuggled into the international diamond trade and sold as legitimate gems. These diamonds are often the main source of funding for the rebels, however, arms merchants, smugglers and dishonest diamond traders enable their actions. Enormous amounts of money are at stake and bribes, threats, torture, and murder are modes of operation. This is why the term "blood diamonds" is used.
The flow of Conflict Diamonds has originated mainly from Sierra Leone, Angola, Democratic Republic of Congo, Liberia and Ivory Coast. The United Nations and other groups are working to block the entry of conflict diamonds into the worldwide diamond trade. Their approach has been to develop a government certification procedure known as the “Kimberly Process”. This procedure requires each nation to certify that all rough diamond exports are produced through legitimate mining and sales activity. All rough diamonds exported from these nations are to be accompanied by certificates. These certificates state that the diamonds were produced, sold and exported through legitimate channels. The certification process accounts for all rough diamonds, through every step of their movement, from mine to retail sale. Retail customers buying a cut diamond are encouraged to insist upon a sales receipt that documents that their diamond originated from a conflict free source.
Some cases of this conflict were:

Angola
Angola, colony of Portugal, gained independence on November 11, 1975. Although independent, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and the National Liberation Front of Angola (FNLA) fought in civil war from 1974 to 2001. Between 1992 and 1998, in violation of the 1991 Bicesse Accords, UNITA sold diamonds to to finance its war with the government. The UN recognized the role that diamonds played in funding the UNITA rebels, and in 1998, passed United Nations Security Council Resolution 1173 and United Nations Security Council Resolution 1176, banning the purchase of conflict diamonds from Angola.

Liberia
From 1989 to 2001 Liberia was engaged in a civil war. In 2000, the UN accused Liberian president Charles G. Taylor of supporting the Revolutionary United Front (RUF) insurgency in neighboring Sierra Leone with weapons and training in exchange for diamonds. In 2001 the UN applied sanctions on the Liberian diamond trade. In August 2003 Taylor stepped down as president, and after being exiled to Nigeria, now faces trial in The Hague.
Liberia today is at peace and is attempting to construct a legitimate diamond mining industry. The UN has lifted sanctions and Liberia is now a member of the Kimberley Process
Sierra Leone
In July 1999, following over eight years of civil conflict, negotiations between the Government of Sierra Leone and the Revolutionary United Front led to the signing of the Lome Peace Agreement under which the parties agreed to the cessation of hostilities, disarmament of all combatants and the formation of a government of national unity. The United Nations and the Economic Community of West African States (ECOWAS) helped facilitate the negotiations. In resolution 1270 of 22 October 1999, the Security Council established the United Nations Mission in Sierra Leone (UNAMSIL) to help create the conditions in which the parties could implement the Agreement.


http://geology.com/articles/blood-diamonds.shtml

http://www.amnestyusa.org/business-and-human-rights/conflict-diamonds/page.do?id=1051176

http://www.un.org/peace/africa/Diamond.html


1. What is Ubuntu? How was it applied to support the merging process of the two companies? (3 examples).

The Ubuntu is a philosophical thought system which embodies the beliefs, values, and behaviors of a large majority of the South African population. Ubuntu can be defined as humaneness, a pervasive spirit of caring and community, harmony and hospitality, respect and responsiveness that individuals and groups display for one another. 3 examples of how ubuntu supports the merging process are:


1. Holding periodically company-sponsored events and ceremonies, in order to break the psychological impasse created by supervisors that discourage conversation and other forms of socializing in the work place. Ubuntu have an extremely rich repertoire of rituals and attending forms of music and singing, dance, and the eloquent verbal expressions of praise singers.

2. Time, in the ubuntu context, is reflected as a unifying and integrating construct that emphasizes interdependence, shared heritage, regularity, and congruity. Furthermore, time is not experienced only in the present; it also heals past experiences and allows for reflection.

3. In the ubuntu context, the emphasis is on social well-being rather than on technical rationality. The objective is to optimize efficiency rather than to maximize it, and that allows higher priority for peaceful and harmonious relationships. In this context, an optimized solution is one that leads to the most favored outcome by a much wider group of stakeholders in the long run. In the short run, this will yield lower efficiencies than the maximized solution.'' Attempts to maximize efficiency often incur the cost of fractured relationships, and social disruption can have unintended consequences.

Mangaliso, Mzamo. 2003. Building competitive advantage from Ubuntu. In Thomas, David Clinton, editor, Readings and cases in International Management: A cross-cultural perspective.

SOUTH ASIA


South Asia, also known as Southern Asia, is the southern region of the Asian continent, which comprises Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. Some definitions may also include Afghanistan, Burma, Tibet, and the British Indian Ocean Territories. South Asia contains one fifth of the world's population, making it both the most populous and most densely populated geographical region in the world.



In this Blog entry I’m going to focus on India, due to the fact that is one of the fastest growing economies in the world and how it can be one of the most important economies.
India is the seventh largest nation by area in the world, the second-most populous country with over 1.18 billion people, the most populous democracy in the world and also counts with an strategic position (north-central region of Indian Ocean) to foster and stimulate the transoceanic commerce. It is also located in a zone of multiples resources, and it has qualified labor force to exploit them.

This country also counts with demographic factors that can be helpful. Being the world's second largest population, and due to its high birth rate India has a young population compared to most aging nations. It has approximately 60% of its population below the age of 30. This in the future can be an advantage cause, while some of the powerful nations will witness a decrease in workforce in coming decades, India will expect to have an increase [1].
Another factor that is really important is the booming of the economy. It “is currently the world's 4th largest in terms of real GDP (PPP) after the USA, the People's Republic of China and Japan, and the second fastest growing major economy in the world, averaging at an annual growth rate of above 8%” [2]. It is also becoming one of the world's leading producers of computer software and with Research & Development centers it is experiencing a steady revolution in science and technology.
They are also in the process of developing modern mass rapid transit systems to replace its existing system which is seen as inadequate, in order to modernize the existing infrastructure.
About the political aspect, India is the world's largest democratic republic; this has help to improve its relations with other democratic nations and significantly improved its ties with the majority of the nations in the developed world.
Image Source: - prabaharan.sulekha.com/.../default/india.jpg
Besides the political and economical factors, India has also cultural aspects that can help them as well to accomplish their target of becoming one of the most important economies. The fact of having a combination within their society, of multiple ethnicities, languages, cultures, religions, ideologies and world view, living together as a melting pot, has produced much cultural influence, and has the potential to re-enforce the massive influence on world culture through modern trends such as entertainment.
It is true that India has a long way to go in order to correct and modernize their country if they want to be the most important economy in the world. But they have in favor the fact that they already realized of this matter and they have begin to correct the deficiencies. Besides, they have the resources and the capacity, to achieve it.

India Flag Image Source: www1.istockphoto.com



Case study analysis: “HR Challenges at Computer Age Management Services (P) Ltd.”

1. What do you think are the reasons behind the fast-growth outsourcing industry in India?

Globalization of economies supplemented by technological advances has led to the evolution of the outsourcing industry in India. After the flourishing of information technology (IT) in the late 1990s and 2000s, outsourcing has spread to Indian States. US companies started outsourcing information technology activities to low cost locations in India. Some of the companies also started their offshore facilities in India. The internet business boom is the main drive for this success.
Other important aspects to take into account are India and it skilled human resources, its infrastructure and its climatic conditions. But the main reason of the fast growth in India is because outsourcing is cheaper than outsourcing to other locations in the world.

Vijaya, T.G., D`Netto, Brian and España, Juan. 2007. “HR Challenges at Computer Age Management Services (P) Ltd.” The Management Case Study Journal 7 (2): 41-51.
http://business.gov.in/outsourcing/evolution.php

miércoles, 17 de marzo de 2010

BLOG RECOMMENDATION

The Blog that I would like to recommend belongs to Carlos Torres Muskus (http://oyc2010.blogspot.com/). It seem to me that he made a great effort doing this assigment.
Besides, he made an excellent explanation of all the class topics, he had an appropiate use of the references, he also made recommendations for further readings on the topic, and is well organized.

I really think everyone should chek it out!

martes, 9 de marzo de 2010

CHINA



China, also known as Peoples Republic of China, is a country located in East Asia. With a population of 1.3 billion people, is the most occupied country in the world, and now days is the second world power with a GDP growing at great speed (8.7%, 2009). Its high growth rates, low labor costs, low manufacturer prices, high quality labor force, and huge emerging market, have attracted the world's highest levels of foreign direct investment. Since China joined the World Trade Organization in December 2001, it has also become one of the most open economies in the developing world.
Under the globalization conditions, one must say that everyone around the world has it eyes on China, but there is an important factor to take into account: their national and organizational culture. “The Chinese social system is classified as a relation based system, which focuses on the special relations between individuals and is based on reciprocity in order to achieve harmony” [1]. The accomplishment of this goal is done mostly through a Guanxi relation and it can be defined as ““a friendship with unlimited exchange of favours”, [2] and in order to make it work the businessman or woman must complete his or her obligations, try to be loyal to friends, do favours and maintain a reputation for fairness.
There is also a social rule that governs the social and business interaction in China. This is known as renquing, and means that the person emotionally responds to all the situations that occurs in his daily life, also means a resource that a person can give to another in the course of social exchange, it can mean as well, a set of norms that a person must follow in order to get along well with other people of the Chinese society. As all of these allow the preservation of social harmony, an all together they provide a mechanism to prevent interpersonal conflicts.
In the internationalization aspect the Guanxi is also take into account. When doing business usually, there will be co-operation withintimate guanxi. If they want to make a linkage, it is
necessary to find the right person first. The cooperative inter-business relationship is primarily based upon the personal trust between the two major bosses. Furthermore, it is essential to be aware of the Chinese guanxi network connections to understand the ins and outs of a deal. Guanxi also implies reciprocity; its impact on business negotiation is that it requires assistance or favors to be yielded whenever and wherever it is requested by a connection.

So if anyone decides to enter to this country, might consider studying all their cultural aspects first, including the Guanxi, because as we saw it is of big importance for them. Besides handling organizational relationship in China context is a necessary skill for foreign investors to acquire in order to handle interpersonal problems in the Chinese way.


Sources:

[1] - Chen, I Chun Lisa and Easterby-Smith Mark. 2008. “Is Guanxi still working, while Chinese MNCs go global? The case of Taiwanese MNCs in the UK”. Human Systems Management 27: 131-142.Pg 132.
[2] ibidem

EAST ASIA



-China
-Hong Kong
-Japan
-Macau
-Mongolia
-North Korea
-South Korea
-Taiwan (China)

East Asia is a sub region of Asia that covers about 12, 28% of the Asian continent. The region is one of the world's most populated places with 22% of all the people in the world living there. Major religion in the region includes Buddhism, Confucianism, Taoism, and more recently Christianity.
The countries belonging to this region are: China (Taiwan), Hong Kong, Japan, Macau, Mongolia, North Korea, and South Korea, and due to their proximity, they have some cultural similarities. In this case we are going to make an emphasis in South Korea especially in the Chaebols and their relationship with the government base on the presentation of our classmates, Johan Mejia and Carlos Torres.
South Korea is a semi presidentila republic, a developed country with a high standar of living. It has the fourth largest economy in Asia and the 15th largest in the world, helping place S.K as one of the Asian Tigers. Its economy was small and predominantly agricultural well into the mid-20th century. However, the policies of President Park Chung Hee spurred rapid industrialization by promoting large businesses. Government industrial policy set the direction of new investment, and the chaebol were to be guaranteed loans from the banking sector. In this way, the chaebol played a key role in developing new industries, markets, and export production [1].
The Government-chaebol cooperation was essential to the subsequent economic growth and astounding successes that began in the early 1960s. Driven by the urgent need to turn the economy away from consumer goods and light industries toward heavy, chemical, and import-substitution industries, political leaders and government planners relied on the ideas and cooperation of the chaebol leaders. The government provided the blueprints for industrial expansion; the chaebol realized the plans. However, the chaebol-led industrialization accelerated the monopolistic and oligopolistic concentration of capital and economically profitable activities in the hands of a limited number of conglomerates.
The chaebol continued their explosive growth in export markets in the 1980s. But it was not until the Asian Financial Crisis in 1997 that the weaknesses of the system were widely understood, 11 out of 30 chaebols collapsed.

During the recostruction period, bankrupted conglomerates were left under government supervision and the "too-big-to-fail" myth disappeared. Rules for transparent and responsible management have been established and reinforced through the appointment of outside directors, the introduction of audit committees and the obligatory publication of combined financial statements. The purpose of corporate reform is to enhance the productivity and growth potential of the Korean economy by establishing an efficient and fair market.

What is isomorphism? Do you think organizations change management styles to adapt to the environment? Which environment is stronger: national environment or international environment?


Because organizations are conforming to a common institutional environment, the result is something referred to as organizational isomorphism. Organizational isomorphism is a term for the similarity among organizations in a population and although it leads to stability and legitimacy, organizations may learn ways to behave that might become outdated and no longer lead to organizational effectiveness. Having this clear, I must say that I don’t think that organizations must change their styles to adapt to the environment, on the contrary I think they should adjust their styles to the culture they are entering. For example, even though Taiwanese organizations regard harmony as an important factor in their UK subsidiary, the British would not respond appropriately due to the traditional individualism in British working practices. According to this, I consider that although both national and international environment are important, the international is stronger than the national and that’s why they have to adjust style in order to be accepted.


Resources:

[1] http://en.wikipedia.org/wiki/South_korea

http://en.wikipedia.org/wiki/File:East_Asia_(orthographic_projection).svg

http://en.wikipedia.org/wiki/Chaebol
http://www.korea.net/korea/kor_loca.asp?code=R05

road.uww.edu/.../Building%20Effective%20Organizations/Chapter%2011new.ppt

EXPATRIATE ASSIGNMENTS AND OVERSEAS EXPERIENCES


Expatriates Assignment is when a suitable individual is assigned on a temporary basis, and subsequently returns to another position in the same company in the original country (Inkson et al, 2003). There are several types of Expatriates Assignments. The Long-term expatriate assignments that is when the international manager and his/her family move to the host country for over a year, the Short-term expatriate that is an assignment with a specified duration, usually less than one year. In this case, the family may accompany the expatriate, the International commuter is when an employee commutes from the home country to a workplace in another country, usually on a weekly or bi-weekly basis, while the family remains at home and the Frequent flyer that is when an employee undertakes frequent international business trips but does not relocate.
There are different reasons for the failure of assignments which include various family issues, managers’ inability to adjust, the level of managers’ personal and emotional maturity, and the inability to cope with greater overseas responsibility (Tung, 1981). All this will carry some implications to the firm like costs, time, risk, transfer of the know how among others.
Some of the reasons of incurring in EA because Professional Development, Knowledge Transfer, Fulfillment of Scarce Skills, Control and Co-ordination.
On the other hand, overseas experience is a personal initiative in order to get a geographical exploration, to live a cultural experience, and to have a work-career development. The OE gives to individuals the opportunity to find their own learning from their experience.

http://www.allbusiness.com/government/employment-regulations-foreign-employees/277795-1.html
http://i.ehow.com/images/a04/gt/i4/ask-boss-expat-assignment-200X200.jpg

MIGRANT WORKERS


The term migrant worker refers, according to the United Nations Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, to a person who is engaged or has been engaged in a remunerated activity in a State of which he or she is not a national.
People choose to become migrants for a number of reasons. The obvious incentive is money and work, but also, they might leave their country because of political or economic instability at home.
Many experts have come to recognize the importance of migrant workers as contributors to host countries rather than as redundancy of domestic labor force. Migrant workers contribute to appeasing the labor shortage in some sectors in which employers failed to find human resources in the domestic labor market, largely attributed to relatively poor working conditions and lower wage.
But although, labor migrants work under underpaid conditions, these people often have to deal with different issues like discrimination, xenophobia, racism and intolerance; because nationals think they are taking their jobs. But there are different National Human Rights Institutions that are working to defend their interests, ensuring efficient domestic legal protection of all migrant.
Lastly, National Human Rights Institutions should include refugees and asylum seekers among the groups requiring special attention as well.
¿Do you think the Points System in Canada is meant to protect the country’s sovereignity?, or ¿is it just a deliberated form of discrimination? ¿why?

I consider that the Points Systems is not intended to discriminate anyone; on the contrary, it tries to look for what is the best for their country and this way protect their sovereignty. I also believe, that Canada is one of the fewer countries that gives benefits to people that want to go an live there, but there has to be some kind of regulation, a way to protect their citizens, their culture, and the best way is to have some kind of standard, in this case the point system. Besides, these regulations included the elimination of discrimination based on nationality or race from all classes of immigrants, giving everyone the change to postulate and become a permanent resident in Canada.

MANAGING DIVERSITY


Managing diversity is about ensuring that all employees have the opportunity to maximize their potential and enhance their self-development and their contribution to the organization. It recognizes that people from different backgrounds can bring new ideas and perceptions, which can make the work be done more efficient and make products and services better.

It is also believed that companies employing a diverse workforce would be in a better position to understand the demographics of the customers they serve much better making them better able to thrive in the marketplace than companies that hire only a limited group of employee demographics. Also, a company that supports diversity of workforce is better able to address employee satisfaction and retention issues.

Managing diversity successfully will help organizations to look after creativity and innovation and thereby to use hidden capacity for growth and improved competitiveness in resource acquisition, cost, marketing, problem solving, among others.

As a result the company would find potential benefits like higher creativity in decision-making, better understanding and serving of customers, more satisfied workforce, higher stock prices, lower litigation expenses, higher company performance. As well the organizations would have to face with three challenges that are the similarity attraction phenomenon, fault lines and stereotypes.
QUESTIONS:

1. ¿Is diversity management at IBM a source of competitive advantage? ¿why?

Yes, diversity management brings competitive advantage to IBM, mostly because new voices and perspectives can get into their strategy, helping managers understand and concentrate on the needs of different kinds of customers. It also motivates their managers to come up with creative decision alternatives.

2. ¿Do you think the IBM case reflects a strong organizational commitment to diversity? Why?

In the IMB case I do think that it reflects a strong organizational commitment to diversity. This company has implemented a diversity strategy (eight diversity task forces in which included different kinds of groups conformed by Asians, Blacks, People with Disabilities, White Men, Women, Gays/Lesbians/Bisexuals/Transgender Individuals, Hispanics, and Native Americans. IBM's strategy had the purpose of gathering data on personnel trends as well as labor and customer markets for their respective groups. Interpreting that information led each group to a list of issues called "vital few". The task force members then used the vital few to shape their thinking about possible business and development opportunities.
Sources:
www.leaderbrighton-hove.org/index.php%3Fpage%3Dstreamed-video+definition+diversity&cd=6&hl=es&ct=clnk&gl=co

EXPLORING DIVERSITY


People are not alike. Everyone is different. Therefore, diversity consists of visible and invisible factors, which include personal characteristics such as background, physical attributes, culture, political view, education, work/life experience, skills, personality and work-style in addition to the characteristics that are protected under discrimination legislation in terms of race, disability, gender, religion and belief, sexual orientation and age.
In order to understand diversity people must be aware of three different competencies:
1. Knowledge: the awareness and understanding needed to live and work in a diverse world.
a. Cultural self: the ability to understand one’s ethnic identity and how it influences identity development
b. Diverse ethnic groups: knowledge of diverse ethnic groups and their cultures
c. Social/political/economical/historical frameworks: awareness how
social, political, economic, historical issues impact race and ethnic relations
and the global world

2. Personal Attributes: it’s the behavior needed by those who live and work in a diverse world.
a. Flexibility: the ability to respond and adapt to new and changing situations
b. Respect: an appreciation for those who are different from one’s self
c. Empathy: the ability to understand another person’s culture by listening to and understanding their perspective

3. Skills: are the behaviors and performance tasks needed to live and work in a diverse world.
a. Cross cultural communication: verbal and nonverbal communication skills in
interaction with those who are culturally different from one’s self
b. Team work: the ability to work in culturally diverse groups toward a common goal
c. Listening: the ability to attend to what others are saying
d. Conflict resolution: the ability to resolve cultural conflicts that occur between individuals and groups
e. Leadership development: the ability to provide multicultural leadership
This is important to understand because managing these differences will create a productive environment in which everybody feels valued, their talents are fully utilized and organizational goals are met.
http://www.post-gazette.com/images4/20081012dm_Diversity_200.jpg
http://74.125.113.132/search?q=cache:Nj3t7_sfilMJ:www.leaderbrighton-hove.org/index.php%3Fpage%3Dstreamed-video+definition+diversity&cd=6&hl=es&ct=clnk&gl=

¿Do you think the entry and integration of new members to the European Union are processes that promote diversity? or, on the contrary, ¿strive to homogenize the European Society?

I do think that the entry and integration process of new members promote diversity. This diversity brings richness to their cultures, economies and societies, due to their great variety of languages, beliefs, values, among others. An although this in some cases could promote discrimination on the grounds of racial or ethnic origin, age, disability, sexual orientation, religion or belief in the workplace, the European Union have implemented laws that provide protection for all members of society. There is also a new camping promoted by the members of the EU called “For Diversity. Against discrimination” which is trying to promote the benefits of DIVERSITY!

http://ec.europa.eu/employment_social/fdad/cms/stopdiscrimination/news_events/news/news011.html?langid=en

NATIONAL AND ORGANIZATIONAL CULTURE

According to Geert Hofstede culture is the
collective programming of the mind which
distinguishes the member of one human group from another.. Culture in this sense, includes systems of values: and values are among the building blocks of culture. He also says that the culture you have to learn it, you have to mold your behavior to the particular constraints of your culture group and to recognize the meanings of messages communicated to other member of the group. The cultural values that are define as assumptions that members of a culture group make about how they should behave, are passed on first by parents and family, then by other
members and institutions of the culture group.
Culture is always likely to be an influence on how the organization makes decisions, communicates, and structures its roles and relationships, but a culture is unlikely to be the only significant factor. Other possible influences might include internal factors such as the organizational strategy and external factors including the market, competition, economic conditions and so on.
On the decision making process of an organization is not practical that the manager base the decisions entirely on the needs of the individual, instead he needs to base it according to a group with a share identity. This is how a organizational culture is created, and its definition is the whole collection of assumptions , practices and norms that people in the organization adopt over time. This way is easier for both, manager and employees work together in order to accomplish what is best for the company.

Essay

I do think that every single organization, profitable and non-profitable, has its own corporate culture, even though many of them don’t even know clearly which one is.
It is really important to implement it because is the path that every single person must follow, is how they must work and relate with each other, in order to accomplish their tasks and objectives inside the company. Besides the most important asset of any organization is its people, and nothing affects the day to day lives of your people more than the culture in which they work. And although many researchers about organizations might said that it can’t be modified I do think is possible. Everything is susceptible to change; the one thing that we have to know is that every change needs time for people to assimilate it.
To finish I must say that there have been many cases about mergers, acquisitions, among others, that have been successful and even though the organizational change has not been easy they have manage to resolve it. But there is also the opposite side, like for example the case of Chrysler where two kinds of national cultures (U.S & Germany) where bring together and each of them has it own definition about what is organization. As a result they found out that they don’t harmonize and they had to sell it.

Mead, Richard. 2004. International Management: Cross-Cultural Dimensions London: Blackwell Publishing. Chapter 1.
Millman, Gregory J. . 2007. "Corporate Culture: more myth than reality? ." The Free Library 23:44-47. Millman, Gregory J. (2007, July 1).

ETHNOGRAPHIC RESEARCH

Ethnography is a social science research method that has its roots in the anthropology and sociology field. It involves participating, observing and describing how people from particular cultural group respond to the situations they find themselves in. the focal point in ethnography may include intensive language, culture learning, intensive study of a single field, and a blend of historical, observational, and interview methods. There are three kinds of data collection that are usually used in ethnographic research which are: Interviews, observations and documents and this in turn produces quotations, descriptions and excerpts of documents that will result in a narrative description.

In this research the steps to follow are: choose a population to be object of study, ask them to accept you as member of their group, observe for an specific period of time, become again an outsider, analyze the facts, theories, concepts, recompiled during that period in order to make a conclusion, and at the end formulate recommendations.
There is an important thing to take into account when doing ethnographic research, and is the Ethics. Since this research takes place among real human being, there are a series of ethical concerns to be aware of before beginning. First of all, be clear to the members of the community, of the goals of the research study and gain the informed consent of their consultant before getting started. Also learn whether the group would prefer to be named in the report or given a pseudonym and offer the result of the research to the informants if they want to read it. And the most important of all, make sure that the research does not harm or exploit those among the research it’s done.
GENZUKA,MICHAEL. A SYNTHESIS OF ETHNOGRAPHIC RESEARCH. University of Southern California. Center for Multilingual, Multicultural Research

HOW ETHNOGRAPHIC RESEAR CAN BE USED FOR INTERNATIONAL BUSINESS?

One example of this is Intel. Ethnography at Intel initially focused on new markets. The company had provided products only for the workplace, but in 1995 managers wondered whether users at home would become a distinct market. Ethnographic research showed so much potential that Intel set up a business unit to concentrate on processors and platforms for home use.
Intel can analyze the latest buying patterns and customer surveys for useful data. But people often can’t articulate what they’re looking for in products or services. By understanding how people live, researchers discover otherwise elusive trends that inform the company’s future strategies.
Another example is the smartphones business, whith etnographic research, companies can contrast the technology perspectives of teenagers, who have used cell phones since they were in elementary school, with those of older generations, who came to them only after becoming proficient with PCs. The anthropologists job, is to understand the perspective of one tribe, consumers, and communicate it to another, the people at Intel. Our experiences in both worlds make this translation possible. Ethnography has proved so valuable at Intel that the company now employs two dozen anthropologists and other trained ethnographers, probably the biggest such corporate staff in the world.
http://hbr.org/2009/03/ethnographic-research-a-key-to-strategy/ar/1


http://www.youtube.com/watch?v=dX6yobTXB2A