BUSN 201 Full Lecture Notes for Final Exam PDF

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Warning: TT: undefined function: 32 Warning: TT: undefined function: 32BUSN 201 Final Exam ReviewManagement and Organizational BehaviourManagement has a responsibility over: Embracing the TBL (sustainability) Optimizing/balancing stakeholder value (responsibility) Creating moral excellence (ethics) ...

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BUSN 201 Final Exam Review Management and Organizational Behaviour Management has a responsibility over: • • •

Embracing the TBL (sustainability) Optimizing/balancing stakeholder value (responsibility) Creating moral excellence (ethics)

3 Components of Management: Inputs

Process

Outputs

Resources

Effectiveness

Performance

Goals

Efficiency

• •

Effectiveness – degree to which process contributes to managerial goals Efficiency – ratio between inputs over outputs

Evolution of Management Thought: 1. Must serve higher purpose to achieve noble, socially significant goals 2. Fully embed ideas of community and citizenship 3. Reconstruct management’s philosophical foundations… it is not enough to be merely efficient. Be more interdisciplinary (draw from biology, political science, theology, etc.) Management Process: • •

• •

Planning – making decisions about future goals and activities Organizing – building the structure, systems, and culture needed to implement a strategy o Mechanistic vs. Organic Leading – influencing others to attain goals through various forms of power (legitimate, coercive, reward, expert) Controlling – assessing and steering activities based on performance measurement

Management Skills/Levels:

Organizational and Management Theory: •

Organizational Theory – the design and evolution of social structures within modern organizations

Process of Creating a Responsible Organization:

Assumptions and Policies: 1. Traditional Model – more control needed 2. Human Relations Model – creates environment for meaningful work 3. Human Resources Model – win-win situations between employee and company, most democratic structure

Human Resource Management Defining Human Resource Management: •

•

The impact of HR decisions on internal outcomes related to efficiency and economic growth o Staffing, employment, and recruitment o Training and development o Benefits Responsible HRM integrates the impact of outcomes on people, society, and the environment

The Normative Perspective: •

•

Hard HRM – job analysis, recruitment, compensation and benefits, performance evaluations, contract negotiations, labour legislations o Employee serves organization Soft HRM – organizational development, conflict management, leadership development, organizational culture, relationship building, trust building o Employee and organization share goals

Human Resources Risk Management (HR-RM): • • •

Employees need to be engaged in order to conduct business responsibly Responsible business helps employees feel more engaged Example - employees reducing their paper usage helps the business be eco-friendly, while being eco-friendly helps employees feel more motivated to reduce paper use/saves on costs that can lead to improved employee benefits

Human Resource Management Process

Responsible HR Practices: • • • •

Going green Advancing diversity Employee well-being Human rights

Responsible HR Skills: •

Communication o With stakeholders, employees

Responsible Workplace Practices: •

• •

RESPECT – important things you want from the organization you work for o Recognition o Excitement o Security o Pay o Education o Conditions at work (social/physical) o Truth Companies that executed on the principles of RESPECT had higher customer satisfaction ratings, higher financial metrics, and tracked a percentage point above the S&P 500

Finance Accounting vs. Finance • • •

Accounting – art of recording and reporting financial transactions Finance – science of planning the distribution of business ’ assets Both deal with the administration of a business’ assets

Responsible Financial Management Process

•

Short-run profit maximization can lead to unsustainable/disastrous results

Rapid Return on Investment (RROI):

Criticized Paradigms of Financial Management: • • • • • •

Profit Growth Short-run Money Shareholder Internality

Break-Even Point (BEP): • •

Total Cost (TC) = Total Revenue (TR) No net loss/net gain

Total Cost (TC): • • •

Variable Costs (VC) o Increases as sales increase Fixed Costs (FC) o Always the same, regardless of sales volume TC = FC + (VC × units sold)

Total Revenue (TR): • • •

Price per unit (P) Volume of sales (# units sold) TR = P × units sold

Start-up Funding: • • • • •

FFF – friends, family, fools Angel Investors Business competitions – economic prizes, networking Business incubators/accelerators – Social Innovation Institute, Start-up Edmonton, TEC Edmonton, etc. Venture Capitalists (VCs)

Financing Responsible Business:

Socially Responsible Investing: • • •

Involves screening activities (social, environmental, ethical questions) in the selection of financial products Positive vs. negative screening DJSI and other indices represent significant capital investments upon entering index

Alternative Financing/Ownership Models: • • • • • •

Impact Investing – balancing economic with social/environmental returns Crowdfunding – external funding from a large audience Cooperatives – owned and run by its members Cross-Financing – one area pays for another (ex. a non-profit running a social enterprise) Goodwill Financing – leveraging goodwill image to generate revenue (ex. CRM, subsidies for sustainability activities) Debt Financing – includes traditional as well as microfinance

Accounting Accounting is the Language of Business: • •

It communicates information to business decision-makers It’s important to understand accounting to know what information means, where it comes from and how to use it to make better decisions

Decisions! Decisions! •

•

You need to make business decisions in your lifetime o Buy/lease a car o Finance the purchase of a home o RRSP’s o Investments Understanding the basics of accounting can help

Types of Accounting: • • • •

Financial Accounting (external) o Financial statements Management Accounting (internal) o Bookkeeping, forecasting Government Accounting o Federal budget Tax Accounting o Income tax returns

What is a Balance Sheet? • • •

Assets – resources you control today that will benefit you in the future Liabilities – obligations you cannot avoid from past transactions Equity – residual value of assets after subtracting liabilities

What is an Income Statement? • • •

Revenues – income earned from normal business activities Expenses – money spent/costs incurred to generate revenue Revenue - Expenses = Net Income

What is a Cash Flow Statement? • •

Reports the cash generated and spent during a specific period of time (ex. month, quarter, or year) Acts as a bridge between the income statement and balance sheet by showing how money moved in and out of the business

•

It has 3 main sections o Operating activities o Investing activities o Financing activities

Basics of Accounting: •

Data used must be relevant, reliable, and comparable

Ethics of Accounting: •

Obligation to the public, profession, and organization

Sustainability Reporting: • •

Business organizations are under pressure to report other types of information to the public A sustainability report provides information about environmental, social, and governance performance

Main Drivers for Sustainability Accounting: •

Distinctive key factors include… o Focus on ethical, social, and environmental data o Not just shareholders, but wide range of stakeholders o Voluntary, not yet regulated by law

Communicating ESG (Environmental, Social, Governance): • • •

Description of nonfinancial data (environme nt, social, governance) Materiality Shared importance of a specific issue to both company and stakeholders o Evidence of interest o Evidence of economic impact o Forward-looking adjustment (emerging issues)

Operations and Supply Chain Defining Operations Management: • • •

Concerned with design and management of products, processes, services, systems, and supply chains Acquisition, development, and use of resources needed to deliver services, information, and goods Examples… o Strategic – determining facility location/size o Tactical – facility layout, equipment selection o Operational – materials handling/transportation

Responsible Operations Process: • • •

Activities that help transform inputs to outputs Analyzes effectiveness and efficiency Management System… o Handles topics across all processes of the company o Consists of an entire set of organizational documents o Involves continual improvement mechanisms (internal and external audits)

Defining Supply Chain: • •

Series of interconnected, value-creating (production), and value-depleting (consumption) activities from the first raw mater ial to the final consumer Responsible Supply Chain – optimizes TBL, stakeholder value, and ethical performance throughout supply chain

Supply Chain in the 21st Century: • • • •

Global (extreme outsourcing) Only as strong as the weakest link Witnessing different competition (between businesses, supply chains) o From competition to coordination Faced with different challenges o Powerful/well-informed customers (data overflow) o Shrinking time o Disruptive technology (AI, autonomous vehicles, blockchain tech, etc.)

• • •

Shifting from demand-side focus to supply-side focus (SCRM, supply chain risk management) Constantly changing (dynamic vs. static) Think globally, act locally

Supply Chain and SMEs (Small-Medium Enterprises): • • • •

Ensure that responsible business is understood internally and that it is translated to principles and values for day-to-day management Find a “champion” and identify the low-hanging fruit activity Make responsible business activity highly relevant to employee’s jobs and business success Identify how this is a win-win, creating social value as well as economic value

International Business Defining International Business: • •

Global, international, multinational, foreign business activities Anything but domestic

What is Globalization and “Glocalization”: • •

Globalization – refers to the widening set of interdependent relationships among people from different parts of the world Glocalization – is a mixture of the words “global” and “local” and describes global activities with a strong adaptation to local circumstances

Drivers and Challenges of Globalization: 1. 2. 3. 4. 5. 6. 7.

Global media Global communication technology and access to internet Global transportation Emergence of global standards The rise of BRICS (Brazil, Russia, India, China, South America) Anti-globalization movements and global NGOs ( non-governmental organizations) Global challenges and opportunities

Global Trade: Pros Potential to reduce economic inequalities and create a truly inclusive global economic system

Cons Has been widely criticized for many of the ailments of the global economic system

Why Do Companies Go International? Markets Similar customer needs Global customers

Transferable marketing

Costs Volume reduces costs Country-specific differences (ex. manufacturing and designing in different countries) Favourable logistics

Ways to Go International:

Global Business Activity Areas: •

•

•

Global Sourcing o Process of procuring inputs used throughout supply chain internationally o Outsourcing – 3rd party company provides a needed service/process o Offshoring – activities that were done domestically are now carried out abroad o BoP (Bottom of Pyramid) Sourcing – sourcing activities involving small/medium enterprise at the base of the pyramid Foreign Subsidiaries and Global Alliances o International Subsidiaries – business units located in foreign countries o Foreign Direct Investment (FDI) – a measure of foreign ownership consisting of financial investments and tangible or intangible assets transferred abroad Global Trade o Responsible Trade – practices that mitigate the potential negative impacts of trade and harness the potential of trade to do good o Sustainable Trade – refers to trade as a tool to further sustainable development; socially, environmentally, and economically o Ethical Trade – aims to assure the avoidance of ethical issues in global supply chains o Fair Trade – trading partnership based on dialogue, transparency, and respect that seeks greater equity in international trade

Stages of Global Business Responsibility:

International Responsibility Initiatives:...