MANAGEMENT BY

OBJECTIVES
MBO
 A technique
Provides
• Reduce an opportunity
the that encourages
amount for theparticipative
of internal corporation decision
to
politics operating
making
connect
within a through
large
organizational
those MOB
the objectives
shared goal
corporation.
at the next
levels
higher
of people
andlevel
setting
atat
each
all level to
performance assessment
based on the achievement of stated objectives.
 MBO PROCESS INVOLVES

1
ESTABLISHING AND
COMMUNICATING
Organizational Objectives 3 DEVELOPING AN
ACTION PLAN
of activities needed to

2 4
achieve the objectives
SETTING INDIVIDUAL PERIODICALLY
OBJECTIVES REVIEWING
(through superior-subordinate PERFORMANCE
interaction) that help implement as it relates to the objectives
organizational ones. and including the results in the
annual performance appraisal
 TOTAL QUALITY MANAGEMENT (TQM)

• An
TQM operational
analysis
is committedphilosophy
of the successes committed
to quality/excellence toof
and failures customer
andTQM
to
satisfaction
concluded andinthe
being the best
that continuous improvement
all functions.
key ingredient is top
management
Because TQM aims to reduce costs and improve quality,
it can be used as a program to implement an overall low-
cost or a differentiation business strategy. (Improvement
program to improve company performance)
 4. Lower cost
2.
3. Quicker,
Greater
through
1. Better, less
less variable
flexibility
quality in
variable
OBJECTIVES response
adjusting
improvement
quality of
in
to
processes to
customers’
and
the product
elimination
customer of
shifting
and service
non-value-
requirements
needs
adding work
 TQM
According to TQM, faulty Emphasizes
processes, not poorly
motivated employees, are the prevention, not
cause of defects in quality. correction

The program involves a significant change in

corporate culture, requiring strong leadership
from top management, employee training,
empowerment of lower-level employees (giving
people more control over their work), and
teamwork in order to succeed in a company.
 TQM’S ESSENTIAL INGREDIENTS
An intense focus on customer
satisfaction
Everyone (not just people in the sales
and marketing departments)
understands that their jobs exist only
because of customer needs. Thus all
jobs must be approached in terms of
how they will affect customer
satisfaction
 TQM’S ESSENTIAL INGREDIENTS
Internal as well as external
customers
An employee in the shipping
department may be the internal
customer of another employee who
completes the assembly of a product,
just as a person who buys the product is
a customer of the entire company. An
employee must be just as concerned
with pleasing the internal customer as in
satisfying the external customer
 TQM’S ESSENTIAL INGREDIENTS
Accurate measurement of every
critical variable in a company’s
operations
This means that employees have to be
trained in what to measure, how to
measure, and how to interpret the
data. A rule of TQM is that you only
improve what you measure.
 TQM’S ESSENTIAL INGREDIENTS
Continuous improvement of
products and services
Everyone realizes that operations
need to be continuously
monitored to find ways to improve
products and services.
 TQM’S ESSENTIAL INGREDIENTS
New work relationships
based on trust and teamwork

Important is the idea of empowerment—

giving employees wide latitude in how
they go about achieving the company’s
goals. Research indicates that the keys to
TQM success lie in executive commitment,
an open organizational culture, and
employee empowerment
INTERNATIONAL CONSIDERATIONS IN LEADING

NATIONAL CULTURE
 DIMENSIONS OF NATIONAL CULTURE

1
POWER DISTANCE
(PD) 3 INDIVIDUALISM-
COLLECTIVISM

2 4
(I-C)
UNCERTAINTY MASCULINITY-
AVOIDANCE FEMININITY
(UA)

5
(M-F)
LONG-TERM
ORIENTATION
(LT)
 DIMENSIONS OF NATIONAL CULTURE

1
POWER DISTANCE
is the extent to which a
society accepts an
Malaysia and
Mexico scored
highest, whereas
Germany and
unequal distribution of Austria scored
lowest. People in
power in organizations. those countries
scoring high on this
dimension tend to
prefer autocratic to
more participative
managers.
 DIMENSIONS OF NATIONAL CULTURE

1
POWER DISTANCE
(PD) 3 INDIVIDUALISM-
COLLECTIVISM

2 4
(I-C)
UNCERTAINTY MASCULINITY-
AVOIDANCE FEMININITY
(UA)

5
(M-F)
LONG-TERM
ORIENTATION
(LT)
 DIMENSIONS OF NATIONAL CULTURE
2
UNCERTAINTY AVOIDANCE
is the extent to which a
society feels threatened by
uncertain and ambiguous
situations.
People in those nations
scoring high on this
dimension tend to want
career stability, formal
rules, and clear-cut
measures of
performance. Greece
and Japan scored
highest on disliking
ambiguity, whereas the
United States and
Singapore scored lowest.
 DIMENSIONS OF NATIONAL CULTURE

3 INDIVIDUALISM-
COLLECTIVISM

2 4
(I-C)
UNCERTAINTY MASCULINITY-
AVOIDANCE FEMININITY
(UA)

5
(M-F)
LONG-TERM
ORIENTATION
(LT)
 DIMENSIONS OF NATIONAL CULTURE

3
INDIVIDUALISM-COLLECTIVISM
is the extent to which a
society values individual
People in nations scoring
high on individualism tend
to value individual success

freedom and through competition,

whereas people scoring
independence of action low on individualism (thus
high on collectivism) tend
compared with a tight to value group success
through collective
social framework and cooperation. The United
States and Canada
loyalty to the group. scored highest on
individualism, whereas
Mexico and Guatemala
scored lowest.
DIMENSIONS OF NATIONAL CULTURE

3 INDIVIDUALISM-
COLLECTIVISM

4
(I-C)
MASCULINITY-
FEMININITY

5
(M-F)
LONG-TERM
ORIENTATION
(LT)
 DIMENSIONS OF NATIONAL CULTURE
4
MASCULINITY-FEMININITY
is the extent to which society
is oriented toward money
and things (which Hofstede
labels masculine) or toward
people (which Hofstede
labels feminine).
People in nations scoring high on
masculinity tend to value clearly
defined sex roles where men
dominate, and to emphasize
performance and
independence, whereas people
scoring low on masculinity (and
thus high on femininity) tend to
value equality of the sexes where
power is shared, and to
emphasize the quality of life and
interdependence. Japan and
Mexico scored highest on
masculinity, whereas France and
Sweden scored lowest (thus
highest on femininity).
DIMENSIONS OF NATIONAL CULTURE

4 MASCULINITY-
FEMININITY

5
(M-F)
LONG-TERM
ORIENTATION
(LT)
 DIMENSIONS OF NATIONAL CULTURE
5
LONG-TERM ORIENTATION
is the extent to which society
is oriented toward the long
versus the short-term.
A long-term time orientation
emphasizes the importance
of hard work, education,
and persistence as well as
the importance of thrift.
Nations with a long-term
time orientation tend to
value strategic planning and
other management
techniques with a long-term
payback. Hong Kong and
Japan scored highest on
long-term orientation,
whereas Pakistan scored the
lowest.
 In countries
MBO, whichwith high levels
originated ofUnited
in the uncertainty avoidance,
States, succeeded in
such as Switzerland
Germany because the and Austria,
idea communication
of replacing should
the arbitrary be clear
authority
and explicit,
of the based
boss with the on facts. Meetings
impersonal should
authority be planned
of mutually in
agreed-
advance and have
upon objectives clear
fits the lowagendas. In contrast,
power distance thatinis low
a dimension
uncertainty-avoidance
of the German culture. Itcountries
failed in such as however,
France, GREECE orbecause
Russia, the
people are used
French are not used
to highto structured communication
power distances; they are andusedprefer
to
more open-ended
accepting orders frommeetings.
a highly personalized authority.
 Some of the difficulties experienced by U.S.
companies has aJapanese-style
in using
Thailand high level of power distance,
quality circles inThai
TQM
managers
may stem fromfeelthe
that communication
extremely should
high value go from
U.S. culture
the top
places onto the bottom As a result, 360-degree
individualism.
performance appraisals are seen as dysfunctional.
Such dimensions may help explain why some
companies operating in both countries have difficulty
adapting to the differences in customs.

Lastly, research has found that technology alliance

formation is strongest in countries that value cooperation
and avoid uncertainty.
Thank you!