© 2011 cengage learning. all rights reserved. chapter 2 challenges for managers 1.describe the...

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© 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1. Describe the factors that affect organizations competing in the global economy. 2. Explain how cultural differences form the basis of work-related attitudes. 3. Describe the challenges and positive influences diversity bring to today’s business environment. 4. Discuss the role of ethics, character, and personal integrity in the organization. 5. Explain five issues that pose ethical dilemmas for managers. 6. Describe the effects of technological advances on today’s workforce. Learning Outcomes

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Page 1: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Chapter 2Challenges for Managers

1. Describe the factors that affect organizations competing in the global economy.

2. Explain how cultural differences form the basis of work-related attitudes.

3. Describe the challenges and positive influences diversity bring to today’s business environment.

4. Discuss the role of ethics, character, and personal integrity in the organization.

5. Explain five issues that pose ethical dilemmas for managers.

6. Describe the effects of technological advances on today’s workforce.L

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Page 2: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Describe the factors that affect organizations competing in the global economy.

1

Page 3: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Four Challenges

Globalization

Diversity

Ethics

Technology

Page 4: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Remaining Competitive

• Globalizing the firm’s operations

• Managing a diverse workforce

• Keeping up with technological

change and implementing

technology in the workplace

• Managing ethical behavior

Page 5: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Changing Business Perspectives

From International (which implies an individual’s or organization’s held nationality is strongly in consciousness)

To Globalization (which implies the world is freefrom national boundaries andthat it is really a borderless world)

Page 6: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

From Multinational Organizations (in which the organization was recognized as doing business with other countries)

Changing Business Perspectives

To Transnational Organizations (in which the global viewpoint supersedes national issues)

Page 7: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Beyond the Book:China and Globalization

• Suntech Power, China’s largest solar panel manufacturer, opening a plant in Arizona.

• Will build panels from parts manufactured in China and Texas.

• Important factor – shipping costs.

• Suntech has goal of reaching 20% US market share by end of 2010.

Page 8: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

GLOBAL MARKETPLACE

• Opening of Chinese market

• Creation of the European Union

• Establishment of NAFTA

CH

AN

GES

IN

TH

E

Page 9: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

Understanding Cultural Differences

HOFSTEDE’S DIMENSIONS

© 2011 Cengage Learning. All rights reserved.

Page 10: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

Where the U.S. StandsON HOFSTEDE’S DIMENSIONS

INDIVIDUALISM

High power distance

High uncertainty avoidance

MASCULINITY

Long-term orientation

Collectivism

Low power distance

LOW UNCERTAINTY AVOIDANCE

Femininity

SHORT-TERMM ORIENTATION

© 2011 Cengage Learning. All rights reserved.

Page 11: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Explain how cultural differences form

the basis of work-related attitudes.

2

Page 12: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Developing Cross-Cultural Sensitivity

• Cultural sensitivity training• Cross-cultural task forces/teams• Global view of human resource

functions• Planning• Recruitment and Selection• Compensation• Training and Development

Page 13: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Describe the challenges and positive influences diversity brings to today’s business environment.

3

Page 14: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Diversityall forms of individual differences,

including culture, gender, age,

ability, personality, religious

affiliation, economic class, social

status, military attachment and

sexual orientation

Page 15: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Diversity Statistics for the Workplace

Ethnic 2020 Workforce: 68% white non-Hispanic 14% Hispanic

11% African-American 5% Asian

Gender 2020 Workforce: 50% male 50% female

Page 16: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

• According to The Institute for Diversity and Ethics in Sport at the University of South Florida, key leadership positions at Football Bowl Subdivision schools remain predominantly white and male.

• 100% of athletic conference commissioners. • 93.3% of university presidents• 86.7% of athletic directors• 92.5% of head football coaches• 82.9% of faculty

Beyond the Book:Diversity in College Football

Page 17: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

& OBSTACLES AT WORK• Comprise over 60% of the workforce• Earn 49% of all doctorates• Earn 60% of master’s degrees• Earn 58% of undergraduate degrees

BUT• Little increase in number of women CEOs.• Earn 81% of what male counterparts do. • Encounter the glass ceiling in the workplace

WO

MEN

Page 18: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Diversity Statistics Affecting the Workplace

Age By 2030, people over 65 will comprise 20% of the population.

Ability An estimated 50 million disabled live in the U.S.; their unemployment rate exceeds 50%.

Page 19: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

• Reverse mentoring scheme at Dell.

• Women in middle-management mentor senior-level men.

• Based on recognition that some aspects of leadership do not come as naturally to men as they do to women.

Beyond the Book:Diversifying Dell

Page 20: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

Diversity’s Benefits & Problems

BENEFITS PROBLEMS

• Resistance to change• Lack of cohesiveness• Communication problems• Interpersonal conflicts• Slower decision making

•Attracts and retains the best talent• Improves marketing efforts• Promotes creativity and innovation•Results in better problem solving•Enhances organizational flexibility

© 2011 Cengage Learning. All rights reserved.

Page 21: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Discuss the role of ethics, character, and personal integrity in the organization.

4

Page 22: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

[Consequential Theory]

an ethical theory that emphasizes the consequences or results of behavior

Ethical Theories

[Rule-Based Theory] an ethical theory that emphasizes the character of the actitself rather than its effects

[Character Theory] an ethical theory that emphasizes the character, personal virtues, and integrity of the individual

© 2011 Cengage Learning. All rights reserved.

Page 23: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Explain five issues that pose ethical dilemmas for managers.

5

Page 24: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Employee Rights Issues

Technology and privacy

HIV/AIDS

Confidentiality

Page 25: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Sexual Harassment = Unwanted Sexual Attention• Gender Harassment – crude comments;

behaviors that convey hostility toward a particular gender

• Unwanted Sexual Attention – unwanted touching, unwanted pressure for dates

• Sexual Coercion – demands for sexual favors through job-related threats or promises

Page 26: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Organizational Justice

Distributive Justice – fairness of the outcomes that individuals receive in an organization

Procedural Justice –fairness by which the outcomes are allocated in an organization

Page 27: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Individual and Organizational Responsibility

Whistle-Blower – an employee who informs authorities of the wrongdoing of his or her company or coworkers– Public Hero or Vile Wretch?

Social Responsibility – the obligation of an organization to behave ethically

Page 28: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

The Four Way Test

© 2011 Cengage Learning. All rights reserved.

1. Is it the TRUTH?

2. Is it FAIR to all concerned?

3.Will it build GOODWILL and better

friendships?

4.Will it be BENEFICIAL to all

concerned?

Page 29: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Learning Outcome

Describe the effects of technological advances on today’s workforce.

6

Page 30: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Technological Innovation

Examples Internet Expert System Robotics

Technology

The intellectual and mechanical processes used by an organization. The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals.

Page 31: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

• Technology can be addicting. • Key warning sign – being preoccupied with

online activities, adversely affecting relationships

• Types – pornography, gambling, auctions sites, games.

Beyond the Book:Addicted to the Internet

Page 32: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Alternative Work Arrangements

Telecommuting

Satellite offices

Virtual offices

Page 33: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Alternative Work Arrangements

[Employees] • Gain flexibility• Save the commute to work• Enjoy the comforts of home

[But, they ]• Have distractions• Lack socialization opportunities• Lack interaction with supervisors• Identify less with the organization

Page 34: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Technological Change Requires Managers to:

• Develop technical competence to gain workers’ respect

• Focus on helping workers manage the stress of their work

• Take advantage of the wealth of information available to motivate, coach, and counsel—not to control

Page 35: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Help Employees Adjust by

• Involving them in decision making regarding technological change

• Selecting technology that increases workers’ skill requirements

• Providing effective training• Establishing support groups• Encouraging reinvention (creative

application of new technology)

Page 36: © 2011 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1.Describe the factors that affect organizations competing in the global

© 2011 Cengage Learning. All rights reserved.

Lost in Translation

1. While watching this sequence, pretend you have arrived in Tokyo, and you are experiencing what you are seeing. Do you understand everything you see?

2. Is Charlotte bewildered by her experiences? Is she experiencing some culture shock?

3. What aspects of Japanese culture appear in this sequence? What do you see as important values of Japanese culture? Review the Chapter 2 section, "Cultural Differences," to gain some insights about these questions.