Friday, 14 March 2014

Revision -- management models

We can seen that from my previous posts , I did not writs any information about management model . In my view , that is a important factor which could affect a organization . The main variables will be identify in a situation that is the target of models, and models also aim to identify the relationships between them :the more accurately they do so , the more useful they are .Due to the situation is unique . So there are many types of management models .


In my opinion , the theory of  management model could be grouped as four parts -- classical management theory , human relations theory , non-human relations theory and system theory . Moreover , in this post , I will focus on the classical management theory .
Classical Management Theory 
The definition of classical management theory is that management takes place within a structured organizational setting with prescribed roles . It is directed towards the achievement of aims and objectives through influencing the efforts of others .
Henri Fayol was the first person to actually give a definition of management which is generally familiar today namely 'forecast and plan , to organize , to command , to  co-ordinate and to control '. In addition , Fayol also gave much of the basic terminology and concepts , which would be elaborated upon by future researchers , such as division of labour , scalar chain , unity of command and centralization .


Moreover , Max Weber suggest that the bureaucracy is the best way to run a organization . Bureaucracy could be defined as a system in which people are expected to follow precisely defined rules and products rather than use personal judgment . In terms the characteristics of bureaucracy management , initially , the behavious  of employees would be defined and controlled . The employees need follow these ensure uniform produces and operations . For example , the top manager to ordinate middle managers , and the employees will be controlled by the middle managers. Secondly , that is impersonality , because rules will lead to impersonality . In a organization which running by bureaucracy management , employees need to follow many rules . That mean's they will lack their own mind and decision . Furthermore , employees will lack of ability of creatively . New products is difficult to produce and provide. That is not good for a company's development , because attracting customers will be difficult . In addition , bureaucracy management also is hierarchical structure . There is a clearly structure . Each lower position is under the control of high position . For the positive side , that has a clearly structure . Therefore , each manager has different responsibility for different task and employees . Moreover , that is more easy to control the whole organization . For the negative side , that is not good for lower employees' development . Also , the top manager only can gain the comment and idea from the middle managers . However the lower manager and employees do not have an opportunity to communication with top managers .


Nowadays , many international company and organization pay attention on the culture of businesses and companies , such as Google , Apple and Microsoft . Also , companies more focus on the lowest employees . For example the company will provide opportunities to communicate with top manager , and invite one of lowest employees join their summit . Therefore , an increasing number of company use other management model , such as human relation .
To sum it , this is a management model that is bureaucracy which I want introduce to yours .



Globalization

What is globalization
Globalization refers to the increasing integration of internationally dispersed economic activities .The stands of globalization has three parts - Economic (that has a increasing trade across state boundaries), Cultural (westernization and homogenization ) and Political ( which is mean removal of borders, e.g. EU) .

In recent years , due to the developing of globalization , the world has become a smaller market . However , it also has some disadvantage . And then , this post will focus on the negative and positive effect of globalization .

In terms of the advantage of globalization , firstly , customer could gain more choice of products . Also, customer has a opportunity to buy a lower price product . In addition , the quality of products will increase , because the competition of companies . A company want to attract customers . Therefore , the company need provide high quality and low price product that also should be unique . Moreover , providing jobs and helping the developing country , such as India and Vietnam . Another advantages is that improving the standardization of products . The same products can be seen in the many places , such as Starbucks and McDonalds . Furthermore , the most important advantage is the integration of markets . That mean's markets are interlinked , such as European Union .

As regards the disadvantage of globalization , that will lead an increasing unemployment rate in developing countries ,such as moving call centers to India . In addition , there is a widening of gap between rich and poor countries . For example , the luxury bag is made by the citizen in the developing country , but the company which sale these bags just need pay the salaries to works in developing countries . However , the bags company could gain the large degree of profit . Further more , income generated in host country is not always spent in the same country . For example , the money earned from supplying cheap call centers in India will not be spent in India , but maybe in the UK or the US .
Thus , it could be conclusion as that the globalization bring some advantages . However , it also has negative effects .

International Business

International business also can be understand as the international trading .  There are some ways to conduct a business internationally .


Initially , outsourcing is a method to conduct businesses internationally . Outsourcing could be defined as that the practice of contracting out defined functions or activities to companies in other countries that can do work more cost-effectively . For example , Apple has outsourcing with Foxconn which is in Taiwan . Also , the accessories of iPhone is produced in many countries , such as Japan , China and Vietnam . The advantage of this way is that the cost of labour could decreased , because the wage of developing countries is lower than that of developed countries . Also , the work who is in the developing country do not have maximum working time . However , it also has some disadvantage. In my own opinion , the main negative effect is the cost of delivery.
The second way also is a common way that is exporting and importing . That is a type of dealing with overseas customers and suppliers is by transporting physical products ( raw materials or finish goods). Many international organization is developed by this way . For example , Starbucks has a lot of branch in the world . That is a way to make the business internationally . Further , that way also could built a good image of a business in the world through their product .

In addition , the third way is foreign direct investment . That mean's Investment from one country into another (normally by companies rather than governments) that involves establishing operations or acquiring tangible assets, including stakes in other businesses. The foreign direct investment has three types--horizontal , vertical and conglomerate .
-- Horizontal: where the company carries out the same activities abroad as at home (for example, Toyota assembling cars in both Japan and the UK).
--Vertical: when different stages of activities are added abroad. Forward vertical FDI is where the FDI takes the firm nearer to the market (for example, Toyota acquiring a car distributorship in America) and Backward Vertical FDI is where international integration moves back towards raw materials (for example, Toyota acquiring a tyre manufacturer or a rubber plantation). 
--Conglomerate: where an unrelated business is added abroad. This is the most unusual form of FDI as it involves attempting to overcome two barriers simultaneously - entering a foreign country and a new industry.  This leads to the analytical solution that internationalization and diversification are often alternative strategies, not complements.
There are other ways to conduct a business internationally , such as licensing , joint ventures , and wholly owned subsidiary .