Chapter 2 Organizations 2001 & Managerial Challenges Nelson & Quick

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 Move to Globalization implies the world is free from national boundaries and that it is really a borderless world 3

Changing Business Perspectives In Multinational organizations, the organization was 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 Expansion of business with China Creation of the European Union Establishment of the North American Free Trade Agreement 5

Understanding Cultural Differences June 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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 Low power distance Low uncertainty Avoidance Masculinity Short-term orientation 7

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 Gender 2020 Workforce: 50% male 50% female

Diversity Statistics Affecting the Workplace Age By 2000, median U.S. age will be 36 resulting in a job crunch among middle- aged workers and greater intergenerational contact in the workplace. Ability An estimated 43 million disabled live in the U.S.; their unemployment rate exceeds 60%

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

Diversity Problems Slower Resistance Decision- to Change Making Possibility of Conflicts Time to Achieve Cohesiveness 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 Expert system - computer based application using 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 reduces company cost increases productivity allows access to key workers anywhere helps retain employees attracted by the flexibility

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 Cultural Theory An ethical theory that emphasizes respect for different cultural values

Employee Rights Issues Computerized monitoring Drug testing Free speech Downsizing Layoffs 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 Procedural Justice fairness by which the outcomes are allocated in an organization Companies in Danger CEO salaries Competence and Skill Race and Gender

Individual & Organizational Responsibility Whistle-blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers 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