I. GLOBAL COMPETENCY II.
ENVIRONMENTAL FACTORS INFLUENCING MANAGEMENT THOUGHTS
PART I
GLOBAL COMPETENCY
WHAT IS GLOBAL COMPETENCY?
Competencies
are the knowledge, behavioral skills, and personal attributes required for excellent performance in a role, function, or specific business. Competency development is especially important for leadership development. competencies are what we speak of when the role, function, or business is outside of the company's home culture, or when it involves sustained contact with people from one or more unfamiliar cultures.
Global
THE 21ST- CENTURY CONTEXT
We are linked to others on every continent:
Socially through media & telecommunications. Economically through trade. Environmentally through sharing 1 planet. Politically through international relations.
ESSENTIAL DIMENSIONS OF GLOBAL COMPETENCE:
Take Actions Investigate the World Recognize Perspectives Communicate Ideas
GLOBAL COMPETENCY DEVELOPMENT:
It is the carefully crafted process of data-gathering about your firm's own managers and employees as they go about their daily work.
GLOBAL COMPETENCY MODEL
A global competency model is a system of tailored competencies and their applications for the purpose of aligning the performance of employees, worldwide, with the goals of their organization.
ASPECTS OF GLOBAL COMPETENCY MODEL
Individual
Perceptive: How individual can develop themselves by focusing themselves on the development of competencies. Perceptive: How the system works, so that it is one integrated process, and so that everyone speaks and understand one language.
Organizational
BENEFITS OF GLOBAL COMPETENCY MODELS
make explicit the clusters of knowledge, behavioral skills, and personal attributes that lead to high performance in specific jobs and roles They embody the core values of a business, aiding in the communication of these values throughout the organization and helping to shape and align a business culture and to maintain its identity worldwide.
They
BENEFITS OF GLOBAL COMPETENCY MODELS
Contd
competency models help employees understand the apparent contradictions of the New Economy, such as the need for strong technical skills and strong relationship skills. Global competency models are behavior-based performance standards against which people and units can be aligned and measured.
Global
GLOBALLY COMPETENT MANAGERS:
Understand the importance of international trade to their home state's economy. Understand the multicultural nature. Possess foreign language skills. Initiative Enthusiasm Inquisitiveness Interest in continuous learning
GLOBALLY COMPETENT MANAGERS:
Contd
Courage Self-reliance Self-confidence Self-control Self-knowledge Positive outlook toward adversity
Creativity Comfort with uncertainty
SOME BIG GUNS..
Infosys
Limited : Infosys is ranked 28th globally in the list of IT services providing firms, It has offices in 33 countries and development centers in India, China, Australia, UK, Canada, Brazil and Japan. Birla Group: Established its plants in Australia, Canada, Laos etc.
Aditya
OTHER EXAMPLES:
TATA
Group : The company has executed overseas projects in the Middle East, Africa and South East Asia etc. State Bank of India : the bank had 151 overseas offices spread over 32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. And many more
PART II: ENVIRONMENTAL FACTORS INFLUENCING MANAGEMENT THOUGHTS
WHAT IS BUSINESS ENVIRONMENT?
A Business environment encompasses all those factors that affects a company's present as well as future operations. When an organizations leaders plans for the future it must take into account these principle environmental factors. Significance: A companys ability to compete is affected by how well the leaders have learned to identify, demonstrate and estimate the impact of these factors on the corporate strategy.
BUSINESS ENVIRONMENT CLASSIFICATION
MICROENVIRONMENT OR INTERNAL ENVIRONMENT
Includes the factors close to the company. Basic business components like suppliers, customers, the company itself, competitors, etc, forms the basis of this environment. Has an direct effect on the main internal functions of the business and possibly the objectives of the business and its strategies.
MICROENVIRONMENT OR INTERNAL ENVIRONMENT
FACTORS:
1. The company 2. Creditors 3. Suppliers 4. Customers 5. Competitors
It is the activities, behavior and relationship among the employees that an organization hires to represent their interests. A strategic Human Resources partner can be a key asset in developing a plan to address future employee needs.
MICROENVIRONMENT or INTERNAL ENVIRONMENT
FACTORS:
1. The company 2. Creditors 3. Suppliers 4. Customers 5. Competitors
When businesses buy goods and services on credit the business that holds the note or paper is referred to as a creditor. A firm s power and prestige in domestic markets may be significantly enhanced with the right credit resources.
MICROENVIRONMENT or INTERNAL ENVIRONMENT
FACTORS:
1. The company 2. Creditors 3. Suppliers 4. Customers 5. Competitors
Supplier is an organization that could be procuring parts, services or other tangible goods to create or enhance a product or service for sale. Suppliers play a key role in business transactions; poor production or planning could devastate the sale of a business.
MICROENVIRONMENT or INTERNAL ENVIRONMENT
FACTORS:
1. The company 2. Creditors 3. Suppliers 4. Customers 5. Competitors
Customers are an essential part of any business, without the customer there would be no need for the business. Companies that learned to change with their customers will benefit from expanding consumer confidence and increased buying.
MICROENVIRONMENT or INTERNAL ENVIRONMENT
FACTORS:
1. The company 2. Creditors 3. Suppliers 4. Customers 5. Competitors
Every business has external peers that perform similar functions within their professional discipline. These peers are considered competitors. They are rival producers of goods or services. Success lies in understanding your competitor s weakness and then exploiting it.
MACROENVIRONMENT OR EXTERNAL ENVIRONMENT
Involves larger societal forces. A business operates, acts and reacts to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors. Has an indirect effect on the main internal functions of the business and possibly the objectives of the business and its strategies.
MACROENVIRONMENT or EXTERNAL ENVIRONMENT
FACTORS:
1. Technological 2. Economic 3. Political 4. Natural 5. Ethical
Technology factors are the scientific advances, which influence the competitive position of the enterprise. New technology can change the demand for a product, render current manufacturing processes obsolete, produce new products and a host of other possibilities. Maintaining awareness of new technologies decreases the probability of becoming obsolete and promotes innovation.
MACROENVIRONMENT or EXTERNAL ENVIRONMENT
FACTORS:
1. Technological 2. Economic 3. Political 4. Natural 5. Ethical
The economy has a significant impact on the viability of a corporate strategy. A small example of how one localized disaster can affect the price of a commodity is, if north India has a heavy rainfall in the harvesting season and all the wheat crops are destroyed, the price of the same will increase.
MACROENVIRONMENT or EXTERNAL ENVIRONMENT
FACTORS:
1. Technological 2. Economic 3. Political 4. Natural 5. Ethical
The current political climate can influence the types of legislation that can influence corporate spending or tariffs on goods and services. They can be restrictive or beneficial. such as constraints placed on enterprise through fair-trade laws, antitrust laws, tax laws, minimum wage legislation or pollution laws
MACROENVIRONMENT or EXTERNAL ENVIRONMENT
FACTORS:
1. Technological 2. Economic 3. Political 4. Natural 5. Ethical
Involves the natural resources that are needed as inputs for an organization setup as well as for its operation, or that are affected by marketing activities. Trends that are commonly seen are like Shortages of raw materials, increased pollution, and Increased government intervention.
MACROENVIRONMENT or EXTERNAL ENVIRONMENT
FACTORS:
1. Technological 2. Economic 3. Political 4. Natural 5. Ethical
It concerns with what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.
SOME KNOWN EXAMPLES
VEDANTA MINING CONTROVERSY
An agreement between the Orissa Mining Corporation (OMC) and Vedanta Alumina Ltd. on October 5, 1997 for bauxite mining in Niyamgiri hill near Lanjigarh in Kalahandi district led to a controversy that finally left the company with the option to either challenge the decision of high court in Orissa of stalling the expansion bid & withdrawing the terms of reference (ToR) granted to the company, in the Supreme Court or, to furnish a fresh proposal to obtain environmental clearance as suggested by the Union Ministry of Environment and Forest (MoEF) in July, 2011.
TATA NANO SINGUR CONTROVERSY
Due to continuous political clashes, land controversy (acquire land acquisition, compensation offered and misunderstandings) & Great agitation and great aggression in singur in West Bengal, the Tata Motors was made to shift its the nano production unit from West Bengal to Gujarat.
I once mentioned that if somebody puts a gun to my head, you either pull the trigger or take the gun away because I will not move my head. I think Ms. Mamta Banerjee has pulled the trigger, Ratan Tata FRONT LINE ,Volume 25 Issue 22 :: Oct. 25-Nov. 07, 2008.
REFERENCES
www.tutor2u.net Environmental Factors Affecting Firms Ability to Compete: A Retail Perspective by James Neblett www.wikipedia.org www.livemint.com www.vedantaaluminium.com www.thehindu.com
