Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 2 Organizational Behavior: Foundations, Realities, & Challenges Nelson & Quick, 5 th edition Challenges for Managers

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Changing Business Perspectives From International (which implies an individual’s or organization’s nationality is strongly in consciousness) To Globalization (which implies the world is free from national boundaries and that it is really a borderless world)

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved From Multinational Organizations (in which the organization was recognized as doing business with other countries) Changing Business Perspectives To Transnational Organizations (in which the global viewpoint supersedes national issues)

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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 Creation of the European Union Establishment of the North American Free Trade Agreement

Understanding Cultural Differences Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 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. Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 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. Where the U.S. Stands Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Diversity All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation

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 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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 Telecommuting – transmitting work from a home computer to the office using a modem

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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)

Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Four Challenges to Organizations in the New Millennium Globalization Diversity Ethics Technology