Chapter Three The Manager’s Changing Work Environment & Responsibilities

B3-1 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Stakeholders  Stakeholders: the people whose interests are affected by an organization’s activities.

B3-2 Panel 3.1 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. The Organization’s Environment The 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

B3-3 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Internal Stakeholders  Internal Stakeholders: consist of employees, owners, and the board of directors, if any.

B3-4 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. External Stakeholders  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

B3-5 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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.

B3-6 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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.

B3-7 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.

B3-8 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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.

B3-9 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Four Approaches to Social Responsibility 1)Obstructionist Approach 2)Defensive Approach 3)Accommodative Approach 4)Proactive Approach

B3-10 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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.

B3-11 Panel 3.2 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. The Diversity Wheel Personality Functional Level/ Classification Geographic Location Age Work Location Seniority Division/ Dept./ Unit/ Group Work Content/ Field Union Affiliation Mgmt. Status Marital Status Parental Status Appearance Educational Background Work Experience Race Income Personal Habits Religion Recreational Habits Ethnicity Physical Ability Sexual Orientation Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33

B3-12 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. Internal dimensions Gender Ethnicity Race Physical abilities Age Sexual orientation

B3-13 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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. External Dimensions Personal habits Educational background Religion Income Marital status Geographic location Work experience Recreational habits Appearance

B3-14 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Organizational Dimensions of Diversity  Organizational Dimensions: include management status, union affiliation, work location, seniority, work content, and division of department.

B3-15 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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

B3-16 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

B3-17 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. 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.

B3-18 McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. How Do Entrepreneurs and Managers Differ?  Characteristics of both—high need for achievement  Also characteristics of both--belief in personal control of destiny  Characteristics of both, but especially entrepreneurs—high energy level and action orientation  Characteristics of both, but especially of entrepreneurs—high tolerance for ambiguity  More characteristic of entrepreneurs than managers—self-confidence and tolerance for risk

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Key Terms Used in This Chapter  Accommodative approach  Americans with Disabilities Act  Code of ethics  Competitors  Defensive approach  Demographic forces  Distributor  Diversity  Economic forces  Ethnocentrism  Entrepreneur  Entrepreneurship  Ethical behavior  Ethical dilemma  Ethics  External dimensions of diversity  External stakeholders  General environment  Glass ceiling  Government regulators  Individual approach  Internal dimensions of diversity  Internal locus of control  Internal stakeholders  International forces  Intrapreneur  Justice approach

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Key Terms Used in This Chapter (Cont.)  Moral-rights approach  Obstructionist approach  Owners  Personality  Philanthropy  Political-legal forces  Proactive approach  Sociocultural forces  Social responsibility  Special interest groups  Stakeholders  Strategic allies  Supplier  Task environment  Technological forces  Underemployed  Utilitarian approach  Value system  Values  Whistleblower