Chapter 2 Challenges for Managers

Learning Outcomes 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

Learning Outcomes 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

Four Challenges Globalization Diversity Ethics Technology

Learning Outcome Describe the factors that affect organizations competing in the global economy

Changing Business Perspectives International activity - Conducting business across national borders Globalization - Suggests that the world is free from national boundaries and is borderless Multinational organizations - Organizations that did business in several countries Transnational organization: Organization in which the global viewpoint supersedes national issues

Global Market Place Opening of Chinese market Guanxi: Practice of building networks for social exchange Creation of the European Union Establishment of NAFTA

Understanding Cultural Differences Organizations must appreciate the differences among cultures Microcultural differences are key to understand the global work environment Changing careers Expatriate manager: Manager who works in a country other than her or his home country International executives - Executives whose jobs have international scope

Figure 2.1 - Hofstede’s Dimensions of Cultural Differences SOURCE: Reprinted with permission of Academy of Management, P.O. Box 3020, Briarcliff Manor, NY 10510-8020. Cultural Constraints in Management Theories. G. Hofstede, Academy of Management Executive 7 (1993). Reproduced by permission of the publisher via Copyright Clearance Center, Inc.

Learning Outcome Explain how cultural differences form the basis of work-related attitudes

Cultural Differences and Work-Related Attitudes Individualism Cultural orientation in which people belong to loose social frameworks and their primary concern is for themselves and their families Collectivism Cultural orientation in which individuals belong to tightly knit social frameworks and depend strongly on extended families or clans

Cultural Differences and Work-Related Attitudes Power distance Degree to which a culture accepts unequal distribution of power Uncertainty avoidance Degree to which a culture tolerates ambiguity and uncertainty

Cultural Differences and Work-Related Attitudes Masculinity versus femininity Masculinity: Cultural orientation in which assertiveness and materialism are valued Femininity: Cultural orientation in which relationships and concern for others are valued Time orientation: Identifies, whether a culture’s values are oriented toward the future or toward the past and present

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

Learning Outcome Describe the challenges and positive influences diversity brings to today’s business environment

Diversity All forms of individual differences, including: Culture Gender and age Ability Religion Personality Social status Sexual orientation

Ethnic Diversity Challenge Risk Harness the wealth of differences provided by cultural diversity Risk Prejudices and stereotypes may prevent managers and employees from developing synergies to benefit the organization

Gender Diversity Women’s share of authority and compensation is not increasing commensurately with their: Education Participation in the workforce Glass ceiling: Transparent barrier that keeps women from rising above a certain level in organizations

Age Diversity Has a positive impact on profitability Aging workforce is increasing intergenerational contact at work Cooperating generations Silent generation Baby boomers Baby bust generation Millennial

Ability Diversity Individuals with disabilities are an underutilized human resource Disabilities Act of 1992 Employers are required to make reasonable accommodations to permit workers with disabilities to perform jobs

Valuing Diversity Managers must combat prejudice and discrimination to manage diversity Ways in which diversity helps People work best when they are valued and when diversity is taken into account When people feel valued, they build relationships and work as a team Managing diversity helps companies become more competitive

Table 2.2 - The Benefits and Problems of Diversity

Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization

Ethical Theories Consequential theory Emphasizes the consequences or results of behavior Rule-based theory Emphasizes the character of the act rather than its effects Character theory Emphasizes the character, personal virtues, and intent of the individual

Explain five issues that pose ethical dilemmas for managers Learning Outcome Explain five issues that pose ethical dilemmas for managers

Technology and privacy Employee Rights Issue Technology and privacy HIV/AIDS Confidentiality

Sexual Harassment = Unwanted Sexual Attention Unwelcome verbal or physical sexual attention Affects an employee’s job conditions Creates a hostile working environment Gender harassment - Crude comments or behaviors that convey hostility toward a particular gender Unwanted sexual attention - Unwanted touching or repeated pressure for dates Sexual coercion - Demands for sexual favors through job-related threats or promises

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

Individual and Organizational Responsibility Whistle-blower: Employee who informs authorities of the wrongdoings of her or his company or coworkers Social responsibility: Organizational obligation to behave ethically in social environment Protecting the environment Promoting worker safety Supporting social issues Investing in the community

Codes of Ethics Avenues for ethics Corporate culture Individual codes of ethics Professional oaths Organizational credos

Figure 2.2 - The Four Way Test

Describe the effects of technological advances on today’s workforce Learning Outcome Describe the effects of technological advances on today’s workforce

Technological Innovation Technology: Intellectual and mechanical processes that transform inputs into products or services that meet organizational goals Internet Online retailing and surveillance Expert system: Computer-based application that uses a representation of human expertise in a specialized field of knowledge to solve problems Robotics: Use of robots in organizations

Alternative Work Arrangements Telecommuting: Electronically transmitting work from a home computer to the office Advantages - Cost reduction and increased efficiency Satellite offices - Network of smaller workplaces located near employees’ homes Virtual offices - People work anytime, anywhere, and with anyone

Alternative Work Arrangements Advantages for Employees Disadvantages for Employees Gain flexibility Save the commute to work Enjoy the comforts of home Have distractions Lack socialization opportunities Lack interaction with supervisors Identify less with the organization

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

Help Employees Adjust by: Involving them in decision making regarding technological change Selecting technology that increases workers’ skill requirements Providing effective training Encouraging reinvention Reinvention: Creative application of new technology

Lost in Translation 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. 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.

Theo Chocolate 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? 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?