Principles of Management 11e Kreitner Chapter 3 The Changing Environment of Management Instructor: IFTEKHAR AMIN CHOWDHURY

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 Instructor: IFTEKHAR AMIN CHOWDHURY

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 (part timers) in the workplace Managing diversity Creating organizational cultures that enable all employees to realize their potential Instructor: IFTEKHAR AMIN CHOWDHURY

Demographics of the New Workforce Myths About Older Workers They are less productive. They incur higher benefits costs. They have higher absenteeism. They have more accidents at work. They are less willing to learn. They are inflexible about the hours they are willing to work. Instructor: IFTEKHAR AMIN CHOWDHURY

The Political-Legal Environment The Politicization of Management Issues management Ongoing process of identifying, evaluating, and responding to important social and political issues Purpose: 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 Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 3.2: Management’s Political Response Continuum Instructor: IFTEKHAR AMIN CHOWDHURY

The Political-Legal Environment Specific Political Strategies Campaign financing Political action committees (PACs) Lobbying Garnering political support Coalition building Common rallying points Indirect lobbying Advocacy advertising Instructor: IFTEKHAR AMIN CHOWDHURY

The Economic Environment The Job Outlook in Today’s Service Economy, Where Education Counts The job category for “general managers and operations managers” is rapidly growing and one of the most resistant to “offshoring.” Service sector jobs in high-paying occupations that require at least a bachelor’s degree are growing twice as fast as that of all other occupations. Instructor: IFTEKHAR AMIN CHOWDHURY

The Economic Environment Coping with Business Cycles Business cycles Alternating periods of economic expansion and recession The up-and-down movement of an economy’s ability to generate wealth Worldwide convergence Instructor: IFTEKHAR AMIN CHOWDHURY

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 economic expansion Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 3.3: Business Cycles Affect Managerial Decisions Instructor: IFTEKHAR AMIN CHOWDHURY

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; it is now one economy, one marketplace. Globalization Is Personal A growing trend: Working for a foreign-owned company Meeting world standards for quality and costs (through lower wages) is necessary to be globally competitive. Instructor: IFTEKHAR AMIN CHOWDHURY

The Technological Environment Technology Technology includes 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. Instructor: IFTEKHAR AMIN CHOWDHURY

Table 3.1: Science Fiction Is Becoming Reality with These Seven New Technologies Source: Adapted from G. Pascal Zachary, Om Malik, David Pescovitz, and Matthew Maier, “Seven New Technologies That Change Everything,” Business 2.0, 5 (September 2004): 82–90. Instructor: IFTEKHAR AMIN CHOWDHURY

The Technological Environment 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 Instructor: IFTEKHAR AMIN CHOWDHURY

Figure 3.4: The Three-Step Innovation Process Instructor: IFTEKHAR AMIN CHOWDHURY

The Technological Environment 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 Instructor: IFTEKHAR AMIN CHOWDHURY

Promoting Innovation Through Intrapreneurship An employee who takes personal responsibility for pushing an innovative idea through a large organization Fostering Intrapreneurship Focus on results and teamwork. Reward innovation and risk taking. Tolerate and learn from mistakes. Remain flexible and change-oriented. Instructor: IFTEKHAR AMIN CHOWDHURY

Terms to Understand Demographics New social contract Business cycle Glass ceiling Contingent workers Managing diversity Issues management Advocacy advertising Legal audit Alternative dispute resolution Business cycle Technology Innovation process Product technology Production technology Innovation Concurrent engineering Intrapreneur Instructor: IFTEKHAR AMIN CHOWDHURY