Perspective Management - Group 10

Guided by Prof. Stephen D’Silva

JBIMS Semester 1

Integrative managerial issues:

Managing in a global environment,
Managing social responsibility & ethics,
Managing diversity,
Managing change and innovation.

1
Team members

Name Old Roll No New Roll No

Sourabh Gore 027 20 - S - 036

Deep Shukla 153 20 - S - 133

Akash Borade 010 20 - S - 012

Sutesh Tiwari 114 20 - S - 145

Saloni Mistry 062 20 - S - 074

Aditya Sawant 096 20 - S - 119

Atit Karamkar 045 20 - S - 055

Suneel Dialani 132 20 - S - 027

Pranav Patil 079 20 - S - 097

2
Managing change in a
global environment
Sourabh Gore 027, 20-S-036

3
Managing Global Challenges

Why Dunkin Donuts is failing in India?

● It has 12,600 restaurants spread over 46 countries
● Launched in India in 2012
● Exclusive franchise to Jubilant foodworks, same brand that brought Dominos to India
● Expanded too quickly in prime areas with Big stores with high operational costs
● Entered with Breakfast first strategy and targeted heavy traffic at the start of the day
● Also tried to localized its offering (Candy Orange, Litchi Lychee, Mango Tango, etc)
● Introduced spicy Sandwich & Burger line up & Downplayed its beverage line of business
● Downplayed the Donuts, even when its known for them

Business Wire ‘Failure Case Study: Dunkin’ Donuts’ ( Feb 22, 2019)
4
Managerial considerations in a Global Environment

Political & Social &

Legal Cultural
Environment Environment

Economic Technological
Environment Environment

Management by Stephen P. Robbins & Mary Coulter – Pg. 120 – 126

Strategic Management: Competitiveness and Globalization by Hitt,
Ireland and Hoskisson (Pg. 253-256)
5
Managing change in a
global environment
Deep Shukla 153, 20-S-133

6
Qualities of a Manager in a Global Environment

Educate
Assume yourself on
differences Have an
cross
until Empathetic
cultural
similarity Approach
issues and
is proven approaches

Management by Stephen P. Robbins & Mary Coulter – Pg. 107 – 111

7
Managing Business in a Global Environment

1
1 2
2

Management by Stephen P. Robbins & Mary Coulter – Pg. 84 – 85

8
Cultural Intelligence and Global Mindset
Knowledge of Culture

Cultural Intelligence

Mindfulness
Overcoming the Challenges

Behavioral Skills

Intellectual Capital

Global Mindset

Psychological Capital

Social Capital

Based on M. Javidan, M. Teagarden, and D. Bowen, “Making It Overseas,” Harvard Business Review, April 2010; and J. McGregor (ed.),
“Testing Managers’ Global IQ,” Bloomberg BusinessWeek, September 28, 2009. 9
Managing Social
Responsibility
Akash Borade 010, 20-S-12

10
Social Responsibility

● Defining management through its tasks, we can say that there are three equally important ones for an
institution to function and make its contribution

Making work
Specific Managing
productive
Purpose/ social impact
and the
Mission of and social
worker
the institution responsibilities
achieving

Management - Tasks, Responsibilities, Practices (Peter F. Drucker) • Pg 32

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Social Responsibility

● Social Responsibility can be defined as a business’s intention, beyond its legal and economic obligations, to do
the right things and act in ways that are good for society
● A socially responsible organization does what is right because it feels it has an ethical responsibility to do so

Dimensions:

Product
Employee Employee Human
Philanthropy Pricing quality &
Relations Relations Rights
safety

Management (Stephen P. Robbins & Mary Coulter) • Pg 125

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Corporate Social Initiatives

01 Cause Promotions 04 Corporate

Philanthropy

Cause-Related
02 Marketing 05 Community
Volunteering

Corporate Social Socially Responsible

03 Marketing
06 Business Practices

Corporate Social Responsibility (Philip Kotler & Nancy Lee) • Pg 22-24

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Managing Ethics

Sutesh Tiwari 114, 20-S-145

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WHAT IS ETHICS

Ethics can be defined as the principles, values and beliefs that

define right and wrong decisions and behavior.

EXAMPLES:

Is it okay to take a sick

Should I use company car
leave for my personal
for my personal use?
work?

Management – by Stephen P. Robbins, Mary A. Coulter Page no. 180 15

FACTORS DETERMINING ETHICAL AND UNETHICAL
BEHAVIOR

1. STAGE OF MORAL DEVELOPMENT

2. INDIVIDUAL CHARACTERISTICS

3. ISSUE INTENSITY

4. STRUCTURAL VARIABLE

Management – by Stephen P. Robbins, Mary A. Coulter Page no. 180-183

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STAGES OF MORAL DEVELOPMENT

Preconventional
1. Sticking to rules to avoid physical punishment.
2. Following rules only when doing so is in your immediate interest.

Conventional
3. Living up to what is expected by people close to you
4. Maintaining conventional order by fulfilling obligations to which you
have agreed

Principled
5. Valuing rights of others and upholding absolute values and rights
regardless of majority’s opinion.
6. Following self-chosen ethical principles even if they violet the law

Business Ethics: An ethical Decision making approach by Mark S. Schwartz, Page no.36-37
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INDIVIDUAL CHARACTERISTICS

VALUES EGO STRENGTH LOCUS OF CONTROL

● People what internal

● Basic convictions ● Strength of a locus of control
about what is right person’s convictions believe they control
and wrong their own destiny
● Individual high in ego
● Employees in the strength are more ● People what external
same organization likely to do what they locus of control
possess different think is right. believe what happens
value to them is due to luck

Management – by Stephen P. Robbins, Mary A. Coulter Pg 181-182 18

Managing Ethics

Saloni Mistry 062, 20-S-074

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ISSUE INTENSITY

Consensus of Immediacy of
Concentration of
Wrong Consequences
Effect

Probability of Proximity to Greatness of

Harm Victims Harm

Management – by Stephen P. Robbins, Mary A. Coulter Pg 182-183 20

STRUCTURAL VARIABLES
● Organization’s structural design can influence whether employees behave ethically

● Structures with formal rules and regulations, who continuously remind employees of
what is ethical are more likely to encourage ethical behavior.

Structural variables that influence ethical choices

Performance Rewards allocation

Goals
appraisal systems procedure

Management – by Stephen P. Robbins, Mary A. Coulter Pg 182

21
BENEFITS OF MANAGING CODE OF ETHICS

● Paying attention to ethics improves the overall social structure of the team
and its stakeholders
● Helps maintain a moral course in times of fundamental change
● Cultivates strong teamwork and a balance of the culture
● Acts as an insurance policy by ensuring that contracts, policies, and
procedures are legal. It helps avoid acts of terror and omission.
● Establishes values related to quality and overall strategic positioning of the
project within the corporation

Project Management for Business Professionals by Joan Knutson, Page 390 22

Managing Diversity

Aditya Sawant 096, 20-S-119

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Introduction - Diversity

Corporate
Definition Attributes Attributes
Distribution of Education
Age, gender, race,
differences among Specialization,
personal traits,
the members of a Education level,
attitude, values,
unit with respect to Functional
religion, skin color
common attribute. Background, Tenure,
Region

Managing Diversity in Organisation by Jr.-Prof. Dr. Barbara Beham, Ass.-Prof. Dr. Caroline Straub, Prof. Dr. Joachim Schwalbach (eds.) (Page no - 6)
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Diversity Theory
Social Categorization – Demographic characteristics

Social Identity – Self concept, Values attached to social group

Similar Attraction – Common attributes

Modern Racism – Deep seated prejudice

Social Dominance – Social system hierarchy, Racial groups

Critical Race – Categorizing people based on race

Status Construction – Status and Resources

Managing Diversity in Organisation A Global Perspective by Maria Triana (Page no – 21 to 29)

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Diversity in Multinational Companies

A diversified workforce in every function and on all levels strengthens our creativity
L’ Oréal and our understanding of consumers and it enables us to develop and market
products that are relevant

Diversity and inclusion is no longer seen as a soft issue. It’s now a core component
PwC of competitiveness—and most CEOs (77%) have, or intend to adopt a strategy that
promotes it

British To be the best managed company, British Airways wants to attract and develop the
Airways most talented people. Ensuring equality of opportunity and valuing diversity will help
British Airways to understand the needs of, and provide the best possible service to, its
customer

The Dynamics of Managing Diversity by Gill Kirton (Page no - 200)

Managing Diversity in Organisation A Global Perspective by Maria Triana (Page no – 9 and 342)
26
Managing Diversity

Atit Karamkar 045, 20-S-55

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Diversity Management

● Diversity management is defined as “planning and implementing

organizational systems and practices to manage people so that the
potential advantages of diversity are maximized while its potential
disadvantages are minimized”

● Human resource practices such as targeted recruiting, diversity

training, mentoring programs, programs to aid advancement and
promotion, and affirmative action

Managing Diversity in Organisation A Global Perspective by Maria Triana (Page no – 322 to 325)
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Advantages of Diversity management

The more people you have from various different backgrounds,

the more likely they are to think of new ways of solving
problems

Benefits of
Diversity The organization becomes more fluid in response to
environmental changes, which can also improve firm
performance and reduce cost.
management
Diversity management research has generally shown positive
effects of organizational diversity efforts on various employee
outcomes.

Managing Diversity in Organisation A Global Perspective by Maria Triana (Page no – 325 to 330)
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Conclusion

Tremendous potential, and With globalization of

Presents many
diverse teams are known to commerce, diversity
opportunities that the
produce innovative inclusion is more important
world’s largest corporations
solutions to complex than ever.
are openly embracing.
problems.

Managing Diversity in Organisation A Global Perspective by Maria Triana (Page no – 330 to 342)
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Managing Change

Suneel Dialani 132, 20-S-27

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The CASE for Change
If it weren’t for change, a manager’s job would be relatively easy. Planning would be simple because tomorrow would be no different from
today. The issue of effective organizational design would also be resolved because the environment would not be uncertain and there would
be no need to redesign the structure. Similarly, decision making would be dramatically streamlined because the outcome of each alternative
could be predicted with almost certain accuracy. But that’s not the way it is.

New
Government
Laws

Internal Factors

New Change in New Changing

Organization composition Equipment Employee
al Strategy of Workforce Attitudes Economic External Changing
3D printing and Changes Technology
Dine-in Hiring women Data Centres Leadership Factors
Restaurant workers guidance

Changing
Consumer
Needs/Wants

Part 2 • Basics of Managing in Today’s Workplace (Robbins and Coulter) Pg 210

32
Areas of Change
Modifying the approach to ensuring the organization’s success. Failure

Strategy to change strategy when circumstances dictate could undermine a

company’s success.

Structure
Changes in the external environment or in organizational strategies
often lead to changes in the organizational structure

The most visible technological changes have come from

Technology computerization. Most organizations have sophisticated

information systems.

Changing people involves changing attitudes, expectations,

People perceptions, and behaviors—something that’s not easy to

do.

Part 2 • Basics of Managing in Today’s Workplace (Robbins and Coulter) Pg 214

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Reasons for Accepting or Rejecting Change
Change would cause
personal loss
Proposed change is not
necessary 05 Major changes in organizations
invariably result in some shift in
A change is likely to be resisted if
power and status for individuals
there is no clear evidence of a
and subunits.
serious problem or opportunity that
would justify major change.
01 04 Proposed change is
inconsistent with value

When the values violated by a

Change is not cost effective proposed change are embedded in
a strong organization culture,
Performance invariably suffers
resistance will be widespread.
during the transition period as the
new ways are learned and new
procedures are debugged.
02 03 Leaders are not trusted

Mutual distrust may encourage a

leader to be secretive about the
real reasons for change or some of
the risks, thereby further increasing
suspicion and resistance.
Chapter 4 • Leading Change and Innovation (Gary Yukl) Pg 81
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Guidelines for Implementing Major Change
Communication and Identification Explaining and Empowering Monitor progress and Display

A good understanding of the vision Competent supporters in key Accurate, timely information is needed
and guidelines is very helpful for positions should be empowered to about the effect of the changes on
gaining commitment for the determine the best way to
change. Also before beginning a people, processes and performance.
implement a new strategy or
major change effort, it is useful to support a new program, rather than One way to convey a sense of progress
identify likely supporters and telling them in detail what to do. is to communicate what steps have
opponents. been initiated and completed.

Build and Implement Providing Opportunity for Early Success Demonstrate optimism

Building a broad coalition to The confidence of an individual or team People look to their leaders for
support the change is key to gather
can be increased by making sure people signs of continued commitment to
momentum. It is especially
important to get the commitment experience successful progress in the the change objectives and vision.
of people directly responsible for early phases of a new project or major Any indication that the change is
implementing the change. change. Some skeptics will only become no longer viewed as important or
supporters after they see evidence of feasible may have ripple effects
progress in initial efforts to do things a that undermine the change effort.
new way.
Chapter 4 • Leading Change and Innovation (Gary Yukl) Pg 88
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Managing Innovation

Pranav Patil 079, 20-S-097

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Creating a Culture for Change and Innovation

A culture takes a long time to form, and once Guidelines for bringing a culture of change-
established it tends to become entrenched
● Set the tone through management behavior
Factor that are important while creating a ● Support employees who adopt new values
culture for change- ● Change the reward system
● Replace unwritten norms with clearly specified
● How small the organization is? expectations
● How young the organization is? ● Shake up current subcultures
● How strong is the culture? ● Work to get consensus through employee
participation
● Have a strong vision- Continually assess and
refine the vision to promote innovation

Part 2 • Basics of Managing in Today’s Workplace (Robbins and Coulter) Pg 220

Chapter 4 • Leading Change and Innovation (Gary Yukl) Pg 88
37
Stimulating innovation

HUMAN RESOURCE
STRUCTURAL VARIABLES CULTURAL VARIABLES
VARIABLES

• Organic Structures •Acceptance of Ambiguity • High Commitment to

• Abundant Resources • Tolerance of the Impractical Training and Development
• High Interunit • Low External Controls • High Job Security
Communication • Tolerance of Risks • Creative People
• Minimal Time Pressure • Tolerance of Conflict
• Work and Nonwork Support • Focus on Ends
• Open-System Focus
• Positive Feedback

Part 2 • Basics of Managing in Today’s Workplace (Robbins and Coulter) Pg 227

38
Disruptive innovation
● Innovations in products, services or processes that radically change an industry’s rules of the
game
● Ignoring and underestimating disruptive innovation leads to failure
● Faced with disruptive innovation, it is important to adopt new technologies
● There are 3 ways that organizations use to create new capabilities-

● Hiring new people with skills

01 Creating New Capabilities Internally ●

●
Investing in research and development
Licences can be bought

● Makes financial sense

02 Creating Capabilities Through

Acquisitions
●
●
Decreases competition
Organization whose processes are a close match

● When a different cost structure is required

03 Creating Capabilities Through a Spin-

out Organization
●
●
Opportunity size is too small
New organization is given freedom

Part 2 • Basics of Managing in Today’s Workplace (Robbins and Coulter) Pg

214 The Innovator's Dilemma by Clayton M. Christensen Pg 136-139
39
Q1) Did your organization ever face any changes? What were the challenges due to
this and how did you manage these changes?

● There were a lot of changes in the company policies, few of them were
related to upgraded technology, changes in safety protocols etc.
● There was change in ownership. Earlier it was a JV between Mahindra
and GKN. Later complete ownership came to GKN.
● There was a change in positioning and pricing of products.
● The company had to give up the small-scale customers who could not
afford high pricing. Managing all
● When the organization’s culture changes, all stakeholders feel the effect. stakeholders while
going through major
changes
“Many employees opposed the changes. They were unable to understand why
these changes are required. It is important to have conversations with them
and support and motivate them in such situations”

40
Q2) GKN Sinter Metals being a multinational company, how difficult is it to
manage stakeholders which are from a different country and have different
country and have different ways of working and doing business?

● Since the company was headquartered in Europe, their ways of

working were very different. For instance, GKN Sinter believed in
having zero defects in the manufacturing process however in India
the products were not rejected if they were fit to use or functionally
working with 1-2% defect.
Reimagining and
● Mr Prafulla being a manager had a pivotal role and acted as a link Reassessing the link
between the upper management at the global level and the blue between internal
collar employees working on the shop floor. stakeholders

“I introduced awareness programmes on the shopfloor so that the blue

collar workers could understand the importance of zero defects in the
manufacturing process at the same time the upper management was
made aware that the change might take time to materialise as change is
not so easy”
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Q3) What kind of challenges did you faced while implementing any changes in
work processes and how did you deal with it?

● There was passive resistance faced by the company from the blue
collared workers as well regarding the day to day working.
● The company made it mandatory to wear a helmet and safety
goggles while working but the workers on the shop floor were not
habituated to follow such safety standards.
● However, with proper training and awareness such resistance
reduced and the employees finally accepted the new culture of the
organization.
Change is constant
“The managers in India played a pivotal role in handling this change everywhere and it
as they smoothly communicated the problems to global leadership requires time to
and made sure that corporate gives enough time to the workers to adapt to new things
accept and get habituated to the new cultural changes happening in
the company”

42
Q4) Has there been any situation where you or your colleagues had to face ethical
challenges?
● The company had guidelines about unethical behavior and what
actions one should take if such a situation occurs.
● One such instance shared was when the company wanted to
expand its plant and had an opportunity to purchase the
neighboring plot. However the owners of the plot had some
conditions which were not completely ethical, he wanted some
portion of the payment to be in cash and not part of the agreement.
● In spite of the property being a good opportunity of business, his Managing ethical
organization decided on not dealing with this individual. The Continuous
dilemmas feedback
and
transaction did not take place. mechanism
promoting to
ethical
● Ethics is an important part of an organization’s culture. If there is streamline workplace
behavior
any unethical behavior, the culture gets negatively affected. workflow

“When such situation occurs where you have a chance to develop your
business by following some unethical practices, one should always be
ethical.”

43
Q5) You have worked in multiple companies. Do you feel that culture plays
an important role in the way a company does business and why?

● A positive culture in business today is unfortunately the exception

rather than the norm, but a strong organizational culture can clearly
differentiate a business from its competitors in the mind of its
stakeholders.

● Since the company was headquartered in Europe, their ways of

working were very different. For instance, GKN Sinter believed in
having zero defects in the manufacturing process however in India
the products were not rejected if they were fit to use or functionally
A company’s culture is
working with 1-2% defect. Initially this change had a dent of the
the only truly unique
profits of the company because the rejection level had increased but identifier
later in turned out beneficial for the company.

“Culture plays a very important role in an organization and also on how an

organisation does its business. Also, a change in culture is possible only if
the leader at the top is very directional and transparent.”
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Q6) Being taken over by a European company also involved bringing in new
technologies. Did this change pose as a disruptive threat to the company from
stakeholders’ perspectives?

● Adopting new technologies did revamp the operations to a

considerable extent. But the company being an industry leader,
this change appealed to the customers and benefited the
company in the long run.

● However, challenges of increased costs and training the personnel

to work with the newer practices was an issue to be managed.
Adopting new tech
● Some of the technological changes were also in the favour of the and upskilling
blue collared workforce, hence that eased the change adoption
process on that front.

“The introduction of better high-tech equipment and technologies was not

perceived as rocket science, it was present in the industry. But we were the
industry leaders, and that is where the difference helped us adapt better”

45
Q7) How open minded are the upper management or the employees while
adopting innovation in the organization?

● Some of the technical changes that happened in the company were in

favor of the employees especially the blue collared employees as the new
equipments in the factory reduced human effort while manufacturing,
which in turn increased the safety of the employees working on the shop
floor. The change in technology however rendered some people idle but
the company re-trained such employees and shifted to other
departments like logistics or supply chain.

Being open to new

● The upper management however were not very keen on adopting the new ideas benefits the
changes especially individuals with over ten years of experience as they organization
were in their comfort zone.

● However, when they were told about the value addition and the knowledge
that they would gain, most of them came onboard with the plan.

46
Q8) Was there ever a time when the marketing division had a disagreement
with any other division on the workings or the goals of the company? If yes,
how was it managed and what was the outcome?

● As the company was a market leader it usually had more

demand than supply, this usually led to disagreement between
the sales and operations department. There exists a
continuous conflict and people just form their ways of dealing
with each other in “quid pro quo” basis

● Upper management provides conflict management tools to Continuous feedback

mechanism to
create an understanding between functions to strike a
streamline workplace
balance. workflow

“Like sometimes the employees in the operations department

worked overtime but during certain festivals they were given
flexibility in completing the manufacturing.”
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Q9 ) What role does diversity play working in a global environment ?

● Diversity brings great range of talent inside an organization

● Diversity enhances creativity inside organization with the

help of unique perspectives from everyone

● Moreover it has been observed as a feature that enhances

productivity inside an organization Managing

Diversity
“The more diverse set of talent an organization inculcates the
better set of problem solving ideas it can act upon with”

48
100
CASE STUDY
Sportal Textile Limited manufactures and supplies cloth to sports apparel brands. The
company has been the industry leader since the past decade and their clientele includes
most of the premium sports apparel brands in the world. Ruling this market for years and
having a comfortable position has made the orthodox promoters too complacent to invest
in R&D and innovation The company was performing consistently well till 2020. One of the
major reasons for the success over the years was they were providing the best quality
products (Lycra, DryFit, etc.) and competitive pricing.

Recently, FRX Textiles (8% market share in comparison to 57% for Sportal) was able to
snatch a big client with the help of an innovative material and they claim to have qualities
like ‘anti-odor’, ‘wrinkle-free’, ‘more durable’, ‘sweat resistant’, ‘lightweight’ and ‘quick dry’.
FRX has also claimed their fabric requires very less water to wash and is recyclable but,
comes at a higher cost. The claims haven’t been validated yet but the new material is being
hyped by influencers, gathering buzz in the marketplace.
51
Problem Statement
Losing this major client to FRX has caused unrest in Sportal Textiles’
management. In order to make sure that they are not losing anymore
clients to FRX, the management has to decide whether to invest and
research on this new technology.

50
Q1) Sportal Textile Ltd. wants to know whether the
new material is really a disruptive innovation or
not? What all aspects should should the company
look at before investing in R&D?

51
Q2) Sportal came to the conclusion that the new
technology could cause near term disruption. If they
plan to adopt the new technology, what are the
possible considerations that the company needs to
make?

54
Q3) After the consultants had advised Sportal
Textile Ltd. to invest in and adopt this technology,
the managers were onboard with the plan but, they
faced problems while convincing promoters and
board members. What should the managers do
next?

53
Thank you!

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