Chapter Three The Manager’s Changing Work Environment & Responsibilities

StakeholdersStakeholders: the people whose interests are affected by an organization’s activities. Internal Stakeholders: consist of employees, owners, and the board of directors, if any.

External Stakeholders: people or groups in the organization’s external environment that are affected by it.The environment consists of:

•The task environment•The general environment

The Ethical Responsibilities Required of You as a Manager•Ethical Dilemma: a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal.•Ethics: are the standards of right and wrong that influence behavior.•Ethical Behavior: is behavior that is accepted as “right” as opposed to “wrong” according to those standards.

Four Approaches to Deciding an Ethical Dilemma•The utilitarian approach: is guided by what will result in the greatest good for the greatest number of people.•The individual approach: is guided by what will result in the individual’s best long-term interests which ultimately are in everyone’s best interest.•The moral-rights approach: is guided by respect for the fundamental rights of human beings.•The justice approach: is guided by respect for impartial standards of fairness and equity.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

The Organization’s EnvironmentThe General Environment

Economic Forces

International Forces

Technological Forces

Political-legal Forces

Socio-cultural Forces

Demographic Forces

Internal Stakeholders

Employees

Owners

Board of Directors

The Task Environment

Customers

Media

Interest Groups

Governments

Lenders

Unions

Allies

Distributors

Suppliers

Competitors

External Stakeholders

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

How Organizations Can Promote Ethics

1) Support by top managers of a strong ethical climate.

2) Ethics codes & training programs.

3) Rewarding ethical behavior: protecting whistleblowers.

Social Responsibility

Social responsibility: is a manager’s duty to take actions that will benefit the interests of

society as well as the organization.

Philanthropy: donating money to worthwhile recipients.

Four Approaches to Social Responsibility1) Obstructionist Approach 2) Defensive Approach 3) Accommodative Approach4) Proactive Approach

Thinking about Diversity

Diversity: represents all the ways people are unlike or alike—the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socioeconomic background.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

The Diversity Wheel

Personality

Functional Level/ Classification

Geographic Location

Age

WorkLocation Seniority

Division/Dept./Unit/

Group

WorkContent/

Field

UnionAffiliation

Mgmt.Status

MaritalStatus

ParentalStatus

Appearance

EducationalBackground

WorkExperience

Race

Income

PersonalHabits

Religion

RecreationalHabits

Ethnicity

PhysicalAbility

SexualOrientation

Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Internal Dimensions of Diversity Internal Dimensions: those human differences that exert a powerful, sustained effect throughout

every stage of our lives. (Gender- ethnicity – race physical abilities – Age – sexual orientation)

External Dimensions of Diversity External Dimensions: includes an element of choice: they consist of personal characteristics that

people acquire, discard, or modify throughout their lives.(personal habits – educational background- religion-income-marital status-geographic location- work experience-recreational habits-appeareance)

Organizational Dimensions of diversity Organizational Dimensions include management status, union affiliation, work location, seniority,

work content, and division of department.

Trends in Workforce Diversity

Age: More Older People in the Workforce

Gender: More Women Working

Race & Ethnicity: More people of color in the workforce

Sexual Orientation: Gays & lesbians become more visible

People with Differing physical & Mental abilities

Educational Levels: Mismatches between education & workforce needs

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Barriers to Workforce Diversity

1) Stereotypes & Prejudices

2) Fear of Reverse Discrimination

3) Resistance to Diversity Program

Priorities

1) Unsupportive social atmosphere

2) Lack of support for family demands

3) Lack of support for career-building steps

Entrepreneurship Entrepreneur: is someone who sees a new opportunity for a product or service and launches a

business to try to realize it. Intrapreneur: is someone who works inside an existing organization who sees an opportunity for

a product or service and mobilizes the organization’s sources to try to realize it.