Chapter 3 (Lecture Outline and Line Art Presentation) The Changing Environment of Management

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–2 Chapter Objectives 1.Identify and briefly highlight seven major changes shaping the twenty-first-century workplace. 2.Summarize the demographics of the new work force. 3.Define the term managing diversity and explain why it is particularly important today. 4.Discuss how the changing political-legal environment is affecting the practice of management. 5.Discuss why business cycles and the global economy are vital economic considerations for modern managers. 6.Describe the three-step innovation process and define the term intrapreneur.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–3 The Twenty-First-Century Workplace: Seven Major Changes The Virtual Organization The Just-in-Time Workforce The Ascendancy of Knowledge Workers Computerized Coaching and Electronic Monitoring The Growth of Worker Diversity The Aging Workforce The Birth of the Dynamic Workforce

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–4 The Social Environment Dimensions of the Social Environment Demographics Changes in the statistical profiles of population characteristics. The new social contract Changes in the employer-employee relationship. Inequalities Persistent barriers encountered by women, minorities, and others in the workplace. Managing diversity Creating organization cultures that enable all employees to realize their potential.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–5 Demographics of the New Workforce Needed Remedial Education The shrinking U.S. workforce is increasingly deficit in reading, writing, science, and basic math skills. The workforce will have more Hispanics and older persons in the future.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–6 Demographics of the New Workforce Myths About Older Workers (Dispelled) Are not less productive. Do not incur higher benefits costs. Do not have higher absenteeism. Do not have more accidents at work. Are not less willing to learn. Are not inflexible about the hours they are willing to work.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–7 Figure 3.1 The Changing U.S. Workforce

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–8 Figure 3.1 The Changing U.S. Workforce (cont’d)

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–9 Figure 3.1 The Changing U.S. Workforce (cont’d)

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–10 Figure 3.1 The Changing U.S. Workforce (cont’d)

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–11 A New Social Contract Between Employer and Employee New Social Contract Assumption that employer-employee relationship will be a shorter-term one based on convenience and mutual benefit, rather than for life. Employees are expected to manage their own careers to increase their long-term value. Employers are expected to provide the means necessary for continual workforce development.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–12 Nagging Inequalities in the Workplace Under the Glass Ceiling Women continue to experience a significant gender- wage gap and strong barriers to advancement. Women are demanding more equitable compensation and workplace opportunities. Continuing Pressure for Equal Opportunity Women, minorities, and the physically challenged are all expected to press harder for more employment opportunities.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–13 Nagging Inequalities in the Workplace (cont’d) Part-Timer Promises and Problems Contingent workers will comprise a increasing percentage of the workforce. The advantages of lower wage and benefits costs and the flexibility of a contingent workforce are offset by their negative work attitudes and increased likelihood of quitting.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–14 Managing Diversity The process of creating an organizational culture that provides all employees, including women and minorities, with assistance and opportunities to help them realize their full potential. More than EEO The moral necessity and commitment in going beyond EEO and affirmative action to create flexible organizations that encompass and value diversity.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–15 The Political-Legal Environment The Politicization of Management Issues management Ongoing process of identifying, evaluating, and responding to important social and political issues. Purposes: minimize “surprises” and make more systematic and effective responses to issues. General political responses Defending the status quo against all comers. Adopting a “wait and see” approach. Proactively trying to identify and respond to issues.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–16 Figure 3.2 Management’s Political Response Continuum

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–17 The Political-Legal Environment (cont’d) Specific Political Strategies Campaign financing Lobbying Coalition building Indirect lobbying

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–18 Increased Personal Legal Accountability Increases in Demands for Accountability “Cooking the books,” price fixing, and bid rigging are serious white-collar crimes likely to draw stiff penalties and a jail sentence. Political and Legal Implications for Management Increased use of legal audits A review of all operations to pinpoint possible legal liabilities or problems. Use of alternative dispute resolution (ADR) Settling disputes with less costly methods, including arbitration and mediation.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–19 The Economic Environment The Job Outlook in Today’s Service Economy, Where Education Counts Service sector job growth in high paying occupations that require at least a bachelor’s degree is twice as fast as that of all other occupations.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–20 The Economic Environment Coping with Business Cycles Business cycles The up and down movement of an economy’s ability to generate wealth. Business cycles are converging worldwide.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–21 The Economic Environment Cycle-sensitive decisions Timing decisions about appropriate responses to changes in the business cycle is necessary to reduce the chances that a firm’s assets and resources will be underutilized or wasted in economic downturns. take advantage of opportunities that will arise during periods of rapid expansion of the economy.

Figure 3.3 Business Cycles Affect Managerial Decisions

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–23 The Challenge of a Global Economy A Single Global Marketplace Global trade is causing a shift to a single economy. The commercial world is no longer East-West, North- South. Globalization Is Personal Working for a foreign-owned company is a growing trend. Meeting world standards for quality and costs (through lower wages) is necessary to be globally competitive.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–24 The Technological Environment Technology All the tools and ideas available for extending the natural and mental reach of humankind. Technology is facilitating the evolution of the information age. Information has become a valuable strategic resource for gaining competitive advantage.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–27 The Technological Environment (cont’d) The Innovation Process The systematic and practical application of a new idea. Steps in the Innovation Process Conceptualization: when a new idea occurs to someone. Product technology: creation of a working prototype. Production technology: development of a profitable production process.

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–28 Figure 3.4 The Three-Step Innovation Process

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–29 Innovation Lag The time it takes for a new product to be translated into satisfied demand. Shortening Innovation Lag Goal setting: creating a sense of urgency and purpose. Empowerment: pushing decision-making authority down to the level of the decision. Concurrent engineering: using a team approach to product design involving specialists from all functional areas including research, production, and marketing. The Technological Environment (cont’d)

Copyright © Houghton Mifflin Company. All rights reserved.Lecture Outline and Line Art Presentation, 3–30 Promoting Innovation Through Intrapreneurship Intrapreneur An employee who takes personal responsibility for pushing an innovative idea through a large organization. Fostering Intrapreneurship Focus on results on teamwork. Reward innovation and risk taking. Tolerate and learn mistakes. Remain flexible and change-oriented.