Chapter 2 Challenges for Managers Describe the factors that affect organizations competing in the global economy. Explain how cultural differences form the basis of work-related attitudes. Describe the challenges and positive influences diversity brings to today’s business environment. Discuss the role of ethics, character, and personal integrity in the organization. Explain five issues that pose ethical dilemmas for managers. Describe the effects of technological advances on today’s workforce. Learning Outcomes © 2013 Cengage Learning

Four Challenges Globalization Diversity Ethics Technology Managerial Implications: Beating the Challenges Organizational success depends on managers’ ability to address the challenges of globalization, workforce diversity, ethics, and technological innovation. Successful organizations and managers view these four challenges as opportunities rather than as threats. Failure to address these challenges can mean costly losses, damage to reputations, and ultimately an organization’s demise. These four challenges are important because the way managers handle them shapes employee behavior. Developing global mindsets among employees expands their worldview and puts competition on a larger scale. Knowing that diversity is valued causes employees to think twice about engaging in discriminatory behaviors. Valuing technological change encourages employees to experiment with new technologies and develop innovative ways to perform their jobs. Sending a message that unethical behavior is not tolerated lets employees know that doing the right thing pays off. © 2013 Cengage Learning

1 Learning Outcome Describe the factors that affect organizations competing in the global economy. © 2013 Cengage Learning

Changing Business Perspectives From International (which implies an individual’s or organization’s held nationality is strongly in consciousness) To Globalization (which implies the world is free from national boundaries and that it is really a borderless world) © 2013 Cengage Learning 3

Changing Business Perspectives From Multinational Organizations (in which the organization was recognized as doing business with other countries) To Transnational Organizations (in which the global viewpoint supersedes national issues) © 2013 Cengage Learning 4

GLOBAL MARKETPLACE CHANGES IN THE Opening of Chinese market Creation of the European Union Establishment of NAFTA CHANGES IN THE © 2013 Cengage Learning 5

Understanding Cultural Differences HOFSTEDE’S DIMENSIONS © 2013 Cengage Learning 6

2 Learning Outcome Explain how cultural differences form the basis of work-related attitudes. © 2013 Cengage Learning

ON HOFSTEDE’S DIMENSIONS Where the U.S. Stands ON HOFSTEDE’S DIMENSIONS INDIVIDUALISM High power distance High uncertainty avoidance MASCULINITY Long-term orientation Collectivism Low power distance LOW UNCERTAINTY AVOIDANCE Femininity SHORT-TERMM ORIENTATION © 2013 Cengage Learning 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 © 2013 Cengage Learning 8

3 Learning Outcome Describe the challenges and positive influences diversity brings to today’s business environment. © 2013 Cengage Learning

Diversity all forms of individual differences, including culture, gender, age, ability, personality, religion, personality, social status, and sexual orientation © 2013 Cengage Learning

Diversity Statistics for the Workplace Ethnic 2020 Workforce: 68% white non-Hispanic 14% Hispanic 11% African-American 5% Asian Gender 2020 Workforce: 50% male 50% female © 2013 Cengage Learning

BUT & OBSTACLES AT WORK WOMEN Comprise over 46% of the workforce Earn 49% of all doctorates Earn 60% of master’s degrees Earn 58% of undergraduate degrees BUT Little increase in number of women CEOs. Earn 81% of what male counterparts do. Encounter the glass ceiling in the workplace WOMEN © 2013 Cengage Learning

Diversity Statistics Affecting the Workplace Age By 2030, people over 65 will comprise 20% of the population. Ability An estimated 50 million disabled live in the U.S.; their unemployment rate exceeds 50%. © 2013 Cengage Learning

Diversity’s Benefits & Problems Attracts and retains the best talent Improves marketing efforts Promotes creativity and innovation Results in better problem solving Enhances organizational flexibility Resistance to change Lack of cohesiveness Communication problems Interpersonal conflicts Slower decision making © 2013 Cengage Learning

4 Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization. © 2013 Cengage Learning

Ethical Theories [Consequential Theory] [Rule-Based 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 of the individual and the intent of the actor instead of the character of the act itself or its consequences © 2013 Cengage Learning

5 Learning Outcome Explain five issues that pose ethical dilemmas for managers. © 2013 Cengage Learning

Employee Rights Issues Technology and privacy HIV/AIDS Confidentiality © 2013 Cengage Learning

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 © 2013 Cengage Learning

Organizational Justice Distributive Justice – fairness of the outcomes that individuals receive in an organization Procedural Justice – fairness of the process by which the outcomes are allocated in an organization © 2013 Cengage Learning

Individual and Organizational Responsibility Whistle-Blower – an employee who informs authorities of wrongdoing by his or her company or coworkers Public Hero or Vile Wretch? Social Responsibility – the obligation of an organization to behave ethically in its social environment © 2013 Cengage Learning

The Four Way Test © 2013 Cengage Learning

6 Learning Outcome Describe the effects of technological advances on today’s workforce. © 2013 Cengage Learning

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 Expert System Robotics © 2013 Cengage Learning

Alternative Work Arrangements Telecommuting Satellite offices Virtual offices © 2013 Cengage Learning

Alternative Work Arrangements [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 © 2013 Cengage Learning

Technological Change Requires Managers To: Develop technical competence to gain workers’ respect 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 © 2013 Cengage Learning

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) © 2013 Cengage Learning

While watching this sequence, pretend you have arrived in Tokyo, and you are experiencing what you are seeing. Do you understand everything you see? Is Charlotte bewildered by her experiences? Is she experiencing some culture shock? What aspects of Japanese culture appear in this sequence? What do you see as important values of Japanese culture? Review the Chapter 2 section, "Cultural Differences," to gain some insights about these questions. Lost in Translation Jet lag conspires with culture shock to force the meeting of Charlotte (Scarlett Johansson) and Bob Harris (Bill Murray). Neither can sleep after their Tokyo arrival. They meet in their luxury hotel’s bar, forging an enduring relationship as they experience Tokyo’s wonders, strangeness, and complexity. This sequence is an edited composite taken from different parts of the film. It shows selected aspects of Tokyo and Kyoto, Japan. Charlotte has her first experience with the complex and busy Tokyo train system. She later takes the train to Kyoto, Japan’s first capital city. Ask your students: 1. While watching this sequence, pretend you have arrived in Tokyo, and you are experiencing what you are seeing. Do you understand everything you see? 2. Is Charlotte bewildered by her experiences? Is she experiencing some culture shock? 3. What aspects of Japanese culture appear in this sequence? What do you see as important values of Japanese culture? Review the earlier section, “Understanding Cultural Differences,” to gain some insights about these questions. © 2013 Cengage Learning

What practices at Theo Chocolate illustrate the concept of social responsibility? What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives? What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice? Theo Chocolate Unlike leading candy manufacturers that deliver sweets in high volume, Theo produces award winning organic chocolate in small batches. The company boasts a bean-to-bar production method that uses cocoa beans grown without pesticides, and without harm to farmers or the environment. At Theo Chocolate, the terms organic and fair trade are no mere marketing buzzwords. Organic means that the cocoa beans are grown naturally and harvested in ways that preserve habitats and the balance of the ecosystem; fair trade is a business approach that ensures equity between buyers, as well as fair treatment of workers. Ask your students: What practices at Theo Chocolate illustrate the concept of social responsibility? What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives? What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice? © 2013 Cengage Learning 32