chapter 2 mangement environment

7/28/2019 Chapter 2 Mangement Environment

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PowerPoint Presentation by Charlie CookThe University of West Alabama

Copyright 2005 Prentice Hall, Inc.All rights reserved.

Chapter 2The Management Environment

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PART I: Introduction


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Copyright 2005 Prentice Hall, Inc. All rights reserved. 22

The Changing Economy

AgricultureUntil the late nineteenth century, all economies were

agrarian.

Industrialization

From the late 1800s until the 1960s, most developedcountries moved from agrarian societies to industrialsocieties.

Information Information technology is transforming society from

its manufacturing focus to one of service.


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A Global Marketplace

Global villageThe concept of a boundaryless world; the production

and marketing of goods and services worldwide.

Borderless organization

A management structure in which internalarrangements that impose artificial geographicbarriers are broken down


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Global Competition

Multinational corporations (MNCs) Companies that maintain significant operations in two or more

countries simultaneously but are based in one home country.

Transnational corporation (TNC)

A company that maintains significant operations in more thanone country simultaneously and decentralizes decision making ineach operation to the local country.

Strategic alliances

A domestic firm and a foreign firm share the cost of developingproducts or building production facilities in a foreign country.


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Globalizations Effect On Managers

ParochialismA narrow focus in which one sees things solely

through ones own view and from ones ownperspective

Hofstedes framework for assessing cultures:

Power distance

Individualism versus collectivism

Quantity of life versus quality of life

Uncertainty avoidance

Long-term versus short-term orientation


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Global Leadership and Organizational

Behavior Effectiveness (GLOBE)

An ongoing cross-cultural

investigation of leadership

and national culture

Confirms and extendsHofstedes earlier work onnational cultural dimensionsand leadership.

Also found that the strength

of cultural dimensionsappear to be changing.

Cultural Dimensions

Assertiveness

Future orientation

Gender differentiation

Uncertainty avoidance

Power distance

Individualism/Collectivism

In-group collectivism Performance orientation

Humane orientation


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Emphasis on Technology

TechnologyAny equipment, tools, or operating methods that are

designed to make work more efficient

Information Technology (IT)

Benefits of IT

Cost savings (e.g., inventory control)

Freedom from fixed locations for operations

Challenges Increased worker skill requirements

A leveling of the competitive playing field that increases

competition


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In What Ways Does Technology Alter

A Managers Job?

Effectiveness and efficiency

Managers have access to more complete andaccurate information than before, enabling them to

function as better managers.

Place

Telecommuting:the linking of a workers computerand modem with those of co-workers andmanagement at an office.


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Internet Business Terms

E-commerceAny computer transaction that occurs when data are

processed and transmitted over the Internet

E-organization

The applications of e-business concepts offered tostakeholders.

E-business

The full breadth of activities included in a successfulInternet-based enterprise


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Societys Expectations of Business

Social obligationThe obligation of a business to meet its economic and

legal responsibilities and no more.

Social responsivenessThe ability of a firm to adapt to changing societal

conditions.

Social responsibility

A firms obligation, beyond that required by the lawand economics, to pursue long-term goals that arebeneficial to society.


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Ethics and Business

Ethics

A set of rules or principles that defines right andwrong conduct. (Utilitarian view; Rights view; Theoryof justice view)

Code of ethics

A formal document that states an organizations

primary values and the ethical rules it expectsmanagers and operatives to follow


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Diversity and the Workforce of 2010

Increasing workforce diversity

More variation in the background of organizational membersin terms of gender, race, age, sexual orientation, andethnicity

Characteristics of the future workforce

More heterogeneous/diverse

Increasingly older

More multicultural

Diversity will require more managerial sensitivity to

individual differences.


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Flexible Workforces

Core employees

The small group of full-time employees of anorganization who provide some essential job tasks forthe organization

Contingent workforce

Part-time, temporary, and contract workers who are

available for hire on an as-needed basis


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Labor Supply and Demand Adjustments

Downsizing

An activity in an organization designed to create amore efficient operation through extensive layoffs

Rightsizing

Linking staffing levels to organizational goals

OutsourcingAn organizations use of outside firms for providing

necessary products and services


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Is There a Pending Labor Shortage in

the United States?

2010 U.S. Labor Shortage

Fewer available workers

Retiring baby boomers

Immigration restrictions

Implication for managers

More sophisticated recruitment and retention strategies


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What Is Entrepreneurship?

Entrepreneurship

The process of initiating a business venture,organizing the necessary resources, and assumingthe risks and rewards

Steps in the entrepreneurial process

Exploring the entrepreneurial context.

Identifying opportunities and competitive advantagesStarting the venture.

Managing the venture


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What Do Entrepreneurs Do?

No two entrepreneurs are exactly alikeThey are creating something new, something different.

Theyre searching for change, responding to it, andexploiting it.

Intrapreneur

A persons within an organization who demonstratesentrepreneurial characteristicshas confidence in his or herabilities, is willing to seize opportunities for change, andexpects surprises and capitalizes on them.


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Making a Companys Culture

More Customer-responsive

Actions that create employees with the competence, ability,

and willingness to solve customer problems as they arise:

Selection: hiring the right personalities and attitudes

Training: developing the customer-focus employees

Organizing: creating customer-friendly controls

Empowerment: independence in relating to customers

Leadership: commitment to the customer-focus vision

Evaluation: performance measured by behaviors

Rewards: contingent on outstanding customer service


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Increased Concern for Quality

Continuous improvementOrganizational commitment to constantly improving the

quality of a product or service

Joseph Juran

W. Edwards Deming

Kaizen: the Japanese term for an organization committedto continuous improvement

Work process engineering

Radical or quantum change in an organization

chapter 2 mangement environment

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