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Chapter 2Nelson & Quick
Organizations &Managerial Challenges in the
Twenty-First Century
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
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Remaining Competitive: Four Major Challenges to Managers
Globalizing the firm’s operations
Managing a diverse workforce
Keeping up with technological change and
implementing technology in the workplace
Managing ethical behavior
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Changing Business Perspectives
International implies an individual’s or organization’s nationality is held
strongly in consciousness
Globalization implies the world is free from national boundaries andthat it is really a borderless world
Moveto
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In multinational organizations, the organization is recognized as
doing business with other countries
Changing Business Perspectives
Moveto
In transnational organizations, the global viewpoint supersedes
national issues.
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Changes in the Global Marketplace
Collapse of Eastern Europe Union of East and West Berlin Perestroika Expansion of business with China
Guanxi – The Chinese practice of building networks for social exchange
Creation of the European Union Establishment of the North American Free Trade
Agreement
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Understanding Cultural Differences
Individualism Collectivism
High power distance Low power distance
High uncertainty Low uncertainty
avoidance avoidance
Masculinity Femininity
Long-term orientation Short-term orientation
Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.
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Individualism Collectivism
High power distance Low power distance
High uncertainty Low uncertainty
avoidance avoidance
Masculinity Femininity
Long-term orientation Short-term orientation
Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.
Where the U.S. Stands
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Developing Cross-Cultural Sensitivity
Cultural sensitivity trainingCross-cultural task forces/teams
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Diversity
All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation
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Diversity Statistics for the Workplace
Cultural 2020 Workforce: 68% white non-Hispanic 14% Hispanic
11% African American 6% Asian
Gender 2020 Workforce: 50% male 50% female
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Women and Obstacles at Work
Today, women make up over 54% of the workforce, earn 32% of all doctorates, 52% of master’s degrees, and 50% of undergraduate degrees
BUT
Today, women hold less than 13% of Fortune 500 corporate officer positions, earn 77% of what their male counterparts do, and encounter the glass ceiling in the workplace
a transparent barrier that keeps women from rising above a certain level in organizations
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Diversity Statistics Affecting the Workplace
Age By 2030, there will be 70,000,000 older persons. People over 65 will comprise 20% of the population.
Ability An estimated 54 million disabled live in theU.S.; their unemployment rate exceeds 50%.
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DiversityBenefitsEnhance
OrganizationalFlexibility
Result inBetter
ProblemSolving
Attract &RetainTalent
PromoteCreativity &Innovation
EnhanceMarketing
Efforts
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DiversityProblemsPossibility of
Conflicts
SlowerDecision-Making
Resistanceto Change
CommunicationProblems
Lack of Cohesiveness
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Technological Innovation
Technology
The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals
ExamplesInternet – integrates computer,
cable, telecommunications technologies
Expert System - computer-based application using a representation of human expertise in a specialized field of knowledge to solve problems
Robotics - use of robots in organizations
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Alternative Work Arrangements
Telecommuting - transmitting work from a home computer to the office using a modem. Employees
Gain flexibilitySave the commute to workEnjoy the comforts of home
But, theyHave distractionsLack socialization opportunitiesLack interaction with supervisorsIdentify less with the organization
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Additional Alternative Work Arrangements
Hoteling - employees have mobile file cabinets/lockers for personal storage; work spaces are reserved, not assigned
Satellite Offices - large facilities broken into smaller workplaces near employees’ homes
Virtual Office- people work anytime, anywhere, with anyone.
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Help Employees Adjust to Technological Change by
Involving them in decision making regarding technological change
Providing effective training Encouraging reinvention (creative application of
new technology)
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Ethical Theories Consequential Theory An ethical theory that
emphasizes theconsequences or results
of behaviorRule-Based Theory An ethical theory that
emphasizes thecharacter of the act
itself rather than its effectsCharacter Theory An ethical theory that
emphasizes the character,personal virtues, and
integrity of the individual
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Employee Rights Issues
Computerized monitoring
Drug testing
Free speech
Downsizing
Layoffs
Due process
AIDS in the workplace
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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
Harassment orPotential Romance?
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Organizational Justice
Distributive Justice - fairness of the outcomes that individuals receive in an organization
Ex. Companies in Danger
CEOSalaries
vs.
Ex. Competenceand Skill
Race andGender
vs.
Procedural Justice -fairness by which the outcomes are allocated in an organization
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Individual & Organizational Responsibility
Whistle-Blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers Public Hero “Vile Wretch”
Social Responsibility - the obligation of an organization to behave ethically
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Rotary Four-Way Testof What We Think, Say, or Do
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?
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Four Challenges to Organizations in the New Millennium
Globalization
Diversity
Technology
Ethics