Management and Organisations in a Global Environment

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This is a group assignment with specific individual components.
Groups choose from the list of topics that are based on the lectures. However, in this
assignment you must do better than recycle the lecture. You are to research your topic
in more depth providing evidence of independent research. The set of topics will be
provided from which your group must choose on a ‘first-come, first-served basis’.
Note that each topic has a group component to which each group member must
contribute. However, there are also specific individual components which have been
defined.
∙ You will deliver your research topic findings in a presentation at any time during the trimester. The presentation is primarily assessed on presentation technique. Your tutor will make suggestions on improving the academic quality of your assignment.
∙ You may improve the quality of the assignment for the written report at any time up until submission date at the end of the semester. It is at this point that the academic quality of your research is assessed.

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Introduction:

The concept of management is not novel in the domain of business and it can be clearly apprehended that the development of management theories have been considerably helpful for organizations to address the requirements in the modern workplace environment. The application of management could be apprehended from the construction of monuments such as Egyptian Pyramids which indicate that management has been an integral aspect of human civilization since ancient times since it would have been a significant factor in the completion of the massive construction projects (Adekola & Sergi, 2016). The following report considers the case of Apple Inc. and the considerations for application of different management theories in order to address the organization’s expansion into emerging economies.

Management and Organisations in a Global Environment Sample

The selection of an appropriate management theory that can be applied in the context of the organization’s international business in emerging economies would help the enterprise to align with the dynamic conditions in the new economies. The specific references to the impact of increasing globalization of business activities and international expansion of large-scale enterprises led to the limitation of cultural and geographic barriers (Satterthwaite, Reid & Bass, 2013). Furthermore, the cross-border interactions between organizations and industries were also improved as a consequence of globalization.

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The formidable pace of change observed in the organization with the rapid product diversification and innovation alongside the trends in the macro environment of the electronic products industry has the potential for impinging considerable impact on the management practices followed in the enterprise (Attfield, 2015). Management theories have the capability for providing insights for organizations to ensure effective adaptability, resistance and management in global business activities.

Majority of empirical and theoretical studies based on management issues and organizational behaviour have been subject to bias on the grounds of the selection of samples for the research study from industrialized countries and firms established in these countries (Spalding, et al., 2013). Therefore the application of the findings from such research studies in the context of emerging economies could be associated with profound ambiguities especially pertaining to the feasibility of productive national business systems of industrial countries in emerging economies.

The identification of the pitfalls vested in management theories across different nations would enable the opportunities for framing novel management frameworks that could be applicable in case of non-industrialized and emerging economies. The opportunity to be perceived in this background is to leverage the market potential that can be observed in emerging economies since almost 70% of the world population is vested in emerging economies which implies that a major share of natural resources of the world has been left untapped (Axelrod & VanDeveer, 2014).

The following report would be reflecting on the significance of the development of management theories and their relevant implications for the case study of Apple in the modern business environment (Stead, 2015). The primary components which the research would aim at presenting include the understanding of the relevance of Taylorism, Weber’s bureaucratic model and empowerment management theories in the emerging economies.

The arguments on the different points of view pertaining to the application of management theories in emerging economies have been illustrated in the following sections of the report which would facilitate a comprehensive insight into the potential approaches that could help Apple Inc. to sustain its strategic business priorities in international emerging economies (Block, 2016). The discussions on the major aspects of individual management theories alongside the reflection on their feasibility in emerging economies would form the crux of this report thereby providing assistance for clarifying the ambiguities pertaining to the effectiveness of individual management theories in emerging economies.

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Taylorism:

The identification of the instances of implementing management processes in an organization in the construction of the Great Pyramids was reiterated in the form of proliferation of early management theories during the Industrial Revolution. The industrial revolution was characterized by the growth in a number of factories alongside the consistent urge for mass production among organizations which indicated the formidable requirement of an efficient management process that is capable of facilitating superior and efficient approaches for product manufacturing (Brady, Ebbage & Lunn, 2013).

The primary aims of organizations in this scenario were largely directed towards the reduction of costs and improvement of profitability as well as productivity. Therefore, the first stages of the foundation of the scientific approach for management were presented as responses for these requirements. The contributions of Frederick Taylor to the scope of management theories as a pioneer could not be undermined owing to the scientific management theory that focuses on the efficiency of assigned task completion and mobility (Stone & Deadrick, 2015). The theory of scientific approach presented by Taylor suggested that a worker can be motivated for accomplishing higher productivity and efficiency through improving the comprehensiveness in the job design.

The implications of Taylorism in the domain of business management were reflective of the drastic changes that were induced in terms of the changes in the scope and purpose of the employees. The application of scientific management approach implies that the role of managers could be modified to fulfil the precedents of manufacturing. Scientific management approaches envisage the training and development of managers to supervise a specific aspect of production thereby ensuring a comprehensive improvement in production quantity (Caton & Harvey, 2015). The scientific management approach relied profoundly on four generic principles which can be described as follows.

The first principle is vested in consideration of management as a science in order to anticipate the best possible method for performing each task. The second principle relies on the factor that workers should be selected on a scientific basis in order to suit the requirements of the job to their personal competencies. The third principle emphasizes the training and development of the worker in technical aspects of the job. Finally, the scientific management theory reflects on the crucial principle of coordination between the labour force and the management (Thomas & Peterson, 2017). The profound assumption that can be perceived in the formulation of the basic principles of the scientific management theory is identified in the fact that their effectiveness is attributed to the mandatory requirement of a completely different mental perspective from the labour force as well as the management in order to address the concerns of specific business activities.

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The rationale depicted by Taylor was also explicitly reflective of the fact that management and labour must refrain from unnecessary conflicts regarding the responsibilities for loss and focus on improving production which would subsequently lead to opportunities for improvement in profits (Cerdin & Brewster, 2014). This factor indicates that management and the workforce of an organization have shared common interests in order to accomplish an improvement in productivity.

The primary basis of management systems outlined in the scientific management theory is based on the studies pertaining to production line time. The approach deviates from the conventional standards of management which were realized in the implementation of analysis for observing the timing of employees to address specific requirements in a series of tasks. The base was identified in time study thereby emphasizing on the categorization of each task into individual components that enable the design of flexible methods that can address the performance requirements of individual components (Weiss, 2014). Therefore the conclusions pertaining to the levels of productivity that can be accessed by workers with the utilization of accessible materials and equipment can be inferred explicitly from the scientific management theory.

The theory also emphasizes on the remuneration aspect of business management through focusing on the requirement for employers to pay higher remunerations to employees on the basis of their productivity that can be estimated at a higher rate than others. The estimation of the rate is also another scientifically demanding process in the context of Taylorism which is aligned for the benefits of employees as well as the organization (Chiva, Ghauri & Alegre, 2014). One of the significant characteristics of the scientific management approach identified from Taylorism is observed in the differential rate system which indicates that employees can be motivated to perform better than their previously estimated performance levels in order to obtain improvement in remuneration. The primary advantages of Taylorism could be obtained in the management of modern product assembly lines which are able to facilitate the reduction of time required for completion of the production process.

The efficiency techniques incorporated in the scientific management theory are also reflective of providing assistance in tasks pertaining to non-industrial organizations such as training of surgeons and fast food service. However, the scientific theory of management alternatively cited as Taylorism is also subject to substantial limitations and criticisms. One of the profound criticisms raised against Taylorism is identified in the concerns of workers regarding the exhaustion of work available in the market through rapid completion of production targets in higher volumes (Weiss & Wilkinson, 2014). The exertion of efforts of employees would lead to successful completion of the jobs prior to the established time that may lead to an increase in layoffs.

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The criticisms of Taylorism could also be identified in the control conditions implemented for employees to perform faster in the assigned tasks. Furthermore, the emphasis on productivity and profitability by the scientific approach to management would also be reflective of the measures implemented by organizational management for the exploitation of customers as well as employees at certain instances. Critics commented on the application of the approach for providing power to management alongside reducing workers to mere automation in the organizational framework (De Búrca, Keohane & Sabel, 2014). These outcomes of scientific management theory were also responsible for the increasing number of employees becoming involved in unions. The increasing admission of workers in unions led to the creation of an atmosphere of mistrust and suspicion in the context of the relationship between management and the labour workforce. However, the theory cannot be considered as completely detrimental to the management of an organization since the theory was functional in establishing the interrelationship between financial gain and output as well as productivity.

The theory indicates the opportunities for productive workers to accomplish better remuneration opportunities in a scientific approach to management. The objectives of Taylorism were also aligned with the realization of health and safety of workers in the workplace in order to validate the protection of employees from injuries at the workplace (Del Giudice & Maggioni, 2014). The reflections of Taylorism could be observed in contemporary management approaches such as financial incentives, total quality management, pay related performance, assembly lines and bonuses which validates their application in existing economic and macro environment backgrounds.

Weber’s Bureaucracy:

The development of the bureaucratic management approach was derived as a sub-theory from the scientific approach to management. The scientific approach to management was leveraged by Henri Fayol to present his management theory pertaining to the administrative approach in management. The principles of the administrative approach were based on the rationale that five basic functions are essential for conducting the daily activities of an individual (Del Giudice, Carayannis & Maggioni, 2017). The functions include references to planning, organization, commanding, coordination and control.

The application of the individual stages in accordance with the appropriate management principles could lead to the development of efficient managerial skills. The bureaucratic approach can also be considered as an extension of the scientific theory of management that was formulated by a German sociologist, Max Weber (De Vries, Rook & Engellau, 2016). The major rationale for the formulation of the bureaucratic management approach is vested in the requirement for a goal-oriented organization to ensure appropriate and moderated control over the business activities in its jurisdiction.

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The assumptions of Weber for designing the bureaucratic approach can be identified profoundly in the clear definition of regulations in the enterprise, precise demarcation of the lines of authority, strictly outlined hierarchy, rationally described objectives and processes and explicit identification of the division of labour as characteristics of an ideal enterprise (Doh & Quigley, 2014). The approach of a bureaucratic management is vested inherently in the design of a hierarchical organizational structure that signifies prominent indications for precise allocation of responsibilities and authority.

The emphasis of the approach on technical competence and the implementation of performance evaluations on the grounds of merit could also be accounted as formidable characteristics of a bureaucratic approach to management. The bureaucratic structure was explicitly reflective of the utilization of the privilege assigned by the management to leaders for legal control over employees (Doh, Luthans & Slocum, 2016). The obligations of workers to follow the directions of managers would be solely dependent on the superiority of the position of the manager over employees.

The management approach followed by Weber reflects on the consideration of every organization as a bureaucratic arrangement that has certain goals that can be accomplished only through personal contribution or individuality of employees. The practices encompassed in the Bureaucratic model of management allowed substantial opportunities for organizations to realize the management of their business activities effectively (Gjerde, et al., 2016). The advantages of the approach are however maligned with the concerns raised in the context of the reduction of employee and manager competence for creativity as well as their abilities to adapt to change.

The perception of bureaucracies as impersonal organizations that prefer financial benefits and impersonal gains over the needs of human capital could also lead to ambiguities for leveraging the positive aspects of the bureaucratic theory as intended by Max Weber. The aim of Weber for the introduction of the bureaucratic approach to management could be ascertained in the improvement of the performance of organizations through inducing productivity and predictability in the operations (Harrison & John, 2013). However, the increasing concerns of management practitioners and researchers for addressing the implications of flexibility and innovation could be assumed as formidable questions for the performance of bureaucratic management approach in the existing business environment.

The precedents of bureaucratic management could be assumed as productive and efficient on paper albeit failing to address business goals in a dynamic and competitive environment. Examples of organizations such as General Electric which has clipped off the need of a formal hierarchy in the organizational structure could be assumed as profound indicators of the insufficiency of bureaucratic management approach to address the contemporary market demands of innovation and flexibility (Heizer, 2016).

Management and Organisations in a Global Environment Sample

The organizations which have chosen to refrain from the use of a bureaucratic model are depicted to exclude the use of an organizational chart completely. On the other hand, the organizational structure is replaced by a dynamic and consistently changing assortment of projects, collaborations and a team that are useful for promotion of employee creativity (Herman & Pin, 2016). This factor could enable an organization to foster the competences of employees for addressing unprecedented scenarios observed in the business environment.

The validity of the application of bureaucracy in emerging countries can be reviewed with formidable references to an interpretation of the ecology of administration. The different systems of administration observed in Third World countries which are accountable for a major share of emerging markets in the existing business environment were largely based on colonial relationships of the markets prior to independence (Jaeger, Kim & Butt, 2016). The implications of bureaucracies in developing countries are reflective of the resistance to change due to the concerns for survival.

The observation of sources of resistance and support systems that impact the outcomes of bureaucratic management and the relevant implications for the administration of development and change in the concerned emerging market could be accounted as feasible determinants of the effectiveness of Weber’s management theory (Junior, Best & Cotter, 2014). The identification of the levels of bureaucracy in a country refers to recognizing the influence of regulatory and structural environment on the performance of the business in the specific markets.

The indicators of bureaucracy in an emerging economy could be observed explicitly in the factors such as a number of days required for initiation of a business, ease of starting up and conducting business and the number of procedures that are involved in the process for starting a business. The implications of bureaucratic approach in management are also reflective of the influence of client-bureaucrat relationships on client-patron systems involves the concerns of the client placing the interests of patrons above the needs of the organization (Kirton & Trebilcock, 2017). It is also imperative to consider the fact that bureaucratic management approach was derived from colonial settings which were effective in European jurisdictions.

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However, the application of the management approaches was reflective of negative outcomes in the context of emerging economies since the emphasis of the bureaucratic approaches was largely directed towards the objectives for sustaining internal security within the colonies and control over masses (Kuratko, Hornsby & Covin, 2014). Therefore these management settings could not be able to provide the necessary opportunities for mobilization in emerging economies that could promote national development.

The other profound setback that can be observed in the context of the application of bureaucratic management approach in emerging markets is observed in the form of limitations on opportunities to leverage the low-cost labour accessible in a majority of emerging economies. The emphasis of bureaucracy on a selection of competent manpower for business activities could lead to under-employment concerns that can be validated by the lack of application of accessible technical manpower to the maximum potential (Latham, 2014).

Human relations model:

The Human relations model was introduced in the early stage of the 1920s by a Harvard professor, Elton Mayo with the prominent emphasis on interpersonal relationships and human interaction in the workplace environment (Laudon & Laudon, 2016). The experiments conducted by Mayo in the Hawthorne plant of the Western Electric Company have served as the benchmarks for the development of human relations approach to management and the subsequent theories that have emerged after that and are known as the Hawthorn Studies.

The experiments were conducted for observation of working conditions and social factors that were responsible for the promotion of inhibition of employee productivity. The different working conditions that were administered as control environments in the Hawthorne comprised of references to the variation in lighting levels of rooms in which employees worked, stipulated working hours, environmental changes in the workplace, availability of meals, changes in the number of rest breaks for employees and the variations in temperature of the room (Lewis, et al., 2017).

The outcomes of the experiments were observed in the form of improved productivity that was apparently due to employees’ perception of the changes in working condition as the consideration of management for them. The experiments also reflected on the existence of a complex chain of attitudes and the demarcation of experiment groups into test and control categories led to the motivation of individual group to perform better than the other group which was also termed as the Hawthorne Effect (Linkov, et al., 2014). The Hawthorne effect is observed from the behaviour of the control group which improved its productivity without any supervisor attention or treatment.

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The individual changes were termed as the benefits provided by the employer since the employees were valued by the management thereby leading to comprehensive improvement in the statistics of productivity. The experiments also reflected on the implications for the formation of social bonds among the individuals in groups involved in the experiment alongside their perceptions indicating that they are partners in a selected group and freedom to select workplace alternatives flexibly (Luthans, Youssef-Morgan & Avolio, 2015). The return of employees to normal working conditions after the experiments did not have any influence on the productivity of employees that was sustained at high levels. Therefore the Hawthorne studies reflected on the significance of addressing the social needs of workers in order to ensure productive management at a workplace.

The Hawthorne studies caused a similar disruption in the domain of business management as scientific management approach since the former laid the platform for establishing the human relations approach and reformed the role of management in a professional context. The prominent factors which can be assumed as characteristic indicators of the human relations approach to management include references to teamwork, the significance of group dynamics and promising opportunities for social interaction. The Hawthorne studies also formed the basis for conclusions pertaining to the interplay between productivity and informal work groups of employees (Mackey, Contreras & Liang, 2014). The human relations management approach suggests that engagement in informal work groups through the development of social associations in the workplace can induce group pressure.

The implicative outcomes of group pressure are considered superior to that of management demands in terms of productivity. Therefore the evolution of managerial roles and responsibilities could be associated with the requirements for formidable emphasis on identification and addressing the concerns pertaining to wellbeing and needs of employees. It is also imperative to notice that human relations approach expands the scope of management at workplace beyond the remuneration and pay-based relations between management and labour and emphasizes on the concept of a social man.

A “social man” has a certain set of social needs, a requirement of rewarding on-the-job relationships and responds to pressures induced in informal work groups rather than addressing management controls (Mangan & Lalwani, 2016). The human relations approach to management integrates the social needs of an employee with the rational needs of the employee in order to facilitate effective management.

The application of human relations model in emerging markets could be apprehended from a critical reflection on the distinct secondary research literature that is reflective of the future of empowerment in the domain of business management and the implications of staffing in emerging markets. The anticipation of globalization as a strategic norm in the earlier phases of the 1990s indicated it as a strategic necessity in the modern business environment (Morschett, Schramm-Klein & Zentes, 2015). The strategic performance of the human relations model applied in case of modern organizations could be dependent on a number of factors which refer to the global orientation of an enterprise’s HR contexts, levels of economic development, control variables, the performance of subsidiaries and cultural distance between the home and host countries.

The strategic orientation of an enterprise’s HR practices in emerging markets is subject to the approach taken by the top management in the firm and should be primarily based on the geographic orientation that would facilitate opportunities for acquiring and integrating information regarding the local market in the management infrastructure. However, it is imperative for an organization to consider the limitations of cultural novelty and disparities in the levels of economic development (Najam, Runnalls & Halle, 2016). Emerging markets present formidable limitations in terms of business infrastructure and standardized procedures needed for conducting business transactions thereby implying the requirement for a higher level of contextualization in the business strategies of an organization.

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The levels of economic development are also illustrated by the references to geographic areas and the categories of export products. Cultural distance is a crucial aspect that must be addressed by organizations that are searching for novel opportunities in business in emerging economies and is also reflective of the significance it can hold in the application of a human relations approach to management in emerging markets (Pawlowski & Bick, 2015). The prominent references to the perception of emerging markets as a single entity by multinational organizations require the implementation of a collective workforce strategy could be assumed as appropriate validation for adopting human relations model as the preferred management approach in emerging markets.

The human relations model would be able to address the pitfalls observed in bureaucratic and scientific management approaches such as limitations on creativity and lack of social interaction in the context of business management in emerging markets (Rothwell, et al., 2015). The impact of the human relations model could also be observed in the prospects for addressing distinct concerns related to the potential growth drivers such as anticipation of emerging markets, recognition of the value of diversity, reforms in the definition and nature of trust and introduction of HR frameworks that facilitate value for a business.

Conclusion:

The report emphasized on the three distinct management theories i.e. scientific management theory i.e. Taylorism, Weber’s Bureaucracy model and human relations approach in order to perceive their applicability in emerging markets. The report explicitly described each theory in detail with references to the rationale behind their formation and the probable outcomes that could be derived by an organization through the adoption of individual theory in emerging markets.

The concerns of Apple Inc. for expansion into emerging economies have to be dependent on a human relations model that has to be focused on the application of quality concepts and addressing local market demands. The use of human relations management would enable the organization to align its human resources with the uneven topology of the market environment thereby implying the long-term prospects for sustaining the business in an emerging market.

The aspects of leadership and management could be brought into effective control of the instruments for feedback from employees regarding the effectiveness of management approaches. The use of dimensions from the scientific and bureaucratic management approaches could also be implemented in unison with the human relations approach in the case of Apple Inc. to address requirements of business management in emerging markets. The use of a hierarchical arrangement of team structures for accomplishing crucial tasks within a limited duration of time and the provision of incentives for productive behaviour can be considered as examples of the same. 

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