Duties come with being Part of an Organization OBEDIENCE
OBEDIENCE Laws, Rules and Customs DUE CARE DUE CARE Participate and
Inquire LOYALTY LOYALTY Opportunities and Conflicts
Slide 3
Strictly Legal Perspective Strictly Personal Perspective Is It
Legal? If No, Stop and Take Action Is It Balanced? Compare Risks
and Benefits How Does It Make Me Feel? What is your Conscience
telling You? Are You doing the Right Thing?
Slide 4
NATIONAL or CULTURAL LAYERED ORGANIZATIONAL FUNCTION or TEAM
PERSONAL VALUES
Slide 5
Slide 6
Financial: Financial: Self-dealing or Insider Trading
Professional: Professional: Outside Commitments infringe on
Employer Resources Personal: Personal: Family/Employee Conflicts,
Nepotism, Fraternization DEFINITION: DEFINITION: Employees Personal
Interests Interfere (Conflict) with Obligations to Employer
Slide 7
7 STRUCTURE is HOW Firm does WHAT its decided to do STRATEGY
Drives STRUCTURE
Slide 8
8 FLAT Few (No?) Layers between Management and Staff;
Horizontally-shaped How do Organizations LOOK ? HIERARCHICAL
Pyramid-shaped; Strict Superior/ Subordinate relations; Authority
and Responsibility concentrated at top
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9
Slide 10
10 How to Solve the Agency Problem? Governance and Management
(Checks and Balances)
Slide 11
11 MONITORING Performance Review Reward or Punish
IMPLEMENTATION Execute Ratified Decisions RATIFICATION Choose
Initiatives to be Implemented Contrast with Textbook at p. 236-237
INITIATION Generate Proposals, Utilize Resources or Structure
Contracts GOVERNANCE MANAGEMENT
Slide 12
12 MONITORING STEP Explain Strategic, Tactical, Ethical and
Financial Successes and Failures EVALUATE EVERYTHING Operations
(Easy) Strategic Objectives (Hard) EQUALLY Reward and Punish
Slide 13
Supply Chain Management Mass Production (Batch) : Toyota
Production System (TPS) Lean Manufacturing : Toyota Production
System (TPS)
Slide 14
How to Balance Need, Availability and Cost? The Inventory
Problem
Slide 15
Slide 16
LONG-RUN TOTAL AVERAGE COST CURVE Fixed Costs Variable Costs
Maximum Capacity Cost Mix determined by Optimal Production
Quantity
Slide 17
17 A T -W ILL E MPLOYEE HIRED to Perform Assigned Work FOR Firm
May have Protections and Benefits Dischargeable without Notice I
NDEPENDENT C ONTRACTOR CONTRACTED to Furnish Services TO I
NDEPENDENT C ONTRACTOR CONTRACTED to Furnish Services TO Firm No
Protections and Benefits from Firm; Employer may have Duty
Contractual, not Employment-based
Slide 18
SEXUAL HARASSMENT UNWELCOME Advances, Requests for Favors or
Other Verbal or Physical Conduct UNWELCOME
Slide 19
STOCK OPTION STOCK OPTION Right to Buy Stock Contractually
Specified: Amount, Timing and Price STOCK GRANT STOCK GRANT Right
to Receive Stock Specified Amount that vests over Time
INCENTIVE-BASED COMPENSATION and BENEFITS Add to Text, p. 365-368
OPTION VALUE = Difference between Options Strike Price and Stocks
Market Price
Slide 20
DEFINED BENEFIT Participant receives Specific Monthly Amount
AdvantageNo Risk/Guaranteed Security Disadvantage
Difficult-to-Define Employer Costs DEFINED CONTRIBUTION Benefit
based on Participants Account (Employer/ Employee Contributions and
Investment Earnings) AdvantagePredictable Employer Costs
Disadvantage Investment Risks; Latecomers Penalty RETIREMENT PLANS
Supplement Text at p. 369
Slide 21
21 SECTION 6 ( 487-491 ) Forms of Promotional Messages for Push
versus Pull Strategies Purpose for Messages at Stages of Product
Life Cycle
Slide 22
Slide 23
STRONG DOLLARWEAK DOLLAR
Slide 24
Do Benefits outweigh Costs? BENEFITS Economic Growth Lower
Prices Job Creation COSTS Shifting Job Distribution Diminished
Sovereign Authority Multiple Tax and Regulatory Standards Is it
worth it?