Organizations & Managerial Challenges in the Twenty-First Century Chapter 2 Nelson & Quick Organizations & Managerial Challenges in the Twenty-First Century

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 2

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 and that it is really a borderless world Move to 3

Changing Business Perspectives In multinational organizations, the organization is recognized as doing business with other countries Move to In transnational organizations, the global viewpoint supersedes national issues. 4

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 Tricon Global Restaurants is one of the world’s largest restaurant systems operating KFC, Taco Bell, and Pizza Hut franchises in more than 100 countries and territories. Visit the site to learn more about the values and corporate philosophy that make Tricon Global successful in the global marketplace. Creation of the European Union Establishment of the North American Free Trade Agreement 5

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. Cultural Constraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproduced by permission of the publisher via Copyright Clearance Center, Inc. 6

Where the U.S. Stands 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. Cultural Constraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproduced by permission of the publisher via Copyright Clearance Center, Inc. 6

Developing Cross-Cultural Sensitivity Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource functions Planning Recruitment and Selection Compensation Training and Development 8

Diversity All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation

Diversity Statistics for the Workplace Cultural 2020 Workforce: 68% white non-Hispanic 14% Hispanic 11% African-American 6% Asian Workingwoman.com redefines the way business is conducted by enabling businesswomen to succeed in their careers with the aid of Internet-based tools, applications, knowledge, and industry networking capabilities. What specific services does workingwoman.com provide to help women overcome the glass ceiling phenomenon in organizations? Gender 2020 Workforce: 50% male 50% female

Women and Obstacles at Work Today, women make up over 46% of the workforce, earn 41% of all doctorates, 57% of master’s degrees, and 56% of undergraduate degrees BUT Today, women hold less than 12% 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

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 the U.S.; their unemployment rate exceeds 50%.

Diversity Benefits Attract & Retain Talent Result in Better Problem Solving Diversity Benefits Enhance Organizational Flexibility Enhance Marketing Efforts Promote Creativity & Innovation

Diversity Problems Resistance to Change Slower Decision- Making Possibility of Conflicts Lack of Cohesiveness Perfect Commerce, Inc., is revolutionizing procurement transactions between buyers and suppliers with its advanced e-sourcing solutions. The company’s Web-based products eradicate the inefficiencies of traditional sourcing for complex goods, services, and contracts. What challenges might managers face when incorporating such advanced technologies into organizations? Communication Problems

Technological Innovation Technology The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals Examples Internet – 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

Alternative Work Arrangements Telecommuting - transmitting work from a home computer to the office using a modem. Employees Gain flexibility Save the commute to work Enjoy the comforts of home But, they Have distractions Lack socialization opportunities Lack interaction with supervisors Identify less with the organization

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.

Technological Change Requires Managers to Focus on helping workers manage the stress of their work Take advantage of the wealth of information available to motivate, coach, and counsel--not to control Develop technical competence to gain workers’ respect

Help Employees Adjust by Involving them in decision making regarding technological change Selecting technology that increases workers’ skill requirements Providing effective training Establishing support groups Encouraging reinvention (creative application of new technology)

Ethical Theories Consequential Theory An ethical theory that emphasizes the consequences or results of behavior Rule-Based Theory An ethical theory that emphasizes the character of the act itself rather than its effects Character Theory An ethical theory that emphasizes the character, personal virtues, and integrity of the individual

Employee Rights Issues Computerized monitoring Drug testing Free speech Downsizing Layoffs Due process AIDS in the workplace

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 or Potential Romance?

Organizational Justice Distributive Justice- fairness of the outcomes that individuals receive in an organization Ex. Companies in Danger CEO Salaries vs. Procedural Justice- fairness by which the outcomes are allocated in an organization Ex. Competence and Skill Race and Gender vs.

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

Rotary Four-Way Test of 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?

Four Challenges to Organizations in the New Millennium Globalization Diversity Technology Ethics