© 2009 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1 Describe the factors that affect organizations competing in the global economy. 2 Explain how cultural differences form the basis of work-related attitudes. 3 Describe the diverse groups that make up today’s business environment. 4 Discuss the role of ethics, character, and personal integrity in the organization. 5 Explain five issues that pose ethical dilemmas for managers. 6 Describe the effects of technological advances on today’s workforce. Learning Outcomes

© 2009 Cengage Learning. All rights reserved. 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)

© 2009 Cengage 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)

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 HOFSTEDE’S DIMENSIONS

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 ON HOFSTEDE’S DIMENSIONS

© 2009 Cengage 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

© 2009 Cengage Learning. All rights reserved. & OBSTACLES AT WORK Comprise over 60% of the workforce Earn 32% of all doctorates Earn 52% of master’s degrees Earn 50% of undergraduate degrees BUT Hold less than 15.7% of Fortune 500 corporate officer positions Earn 78% of what their male counterparts do encounter the glass ceiling in the workplace a transparent barrier that keeps women from rising above a certain level in organizations WOMEN

Diversity’s Benefits & Problems BENEFITSPROBLEMS Attracts & retains the best human 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 Slowed decision making

© 2009 Cengage Learning. All rights reserved. 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?

© 2009 Cengage Learning. All rights reserved. Organizational Justice Distributive Justice – fairness of the outcomes that individuals receive in an organization Ex. Companies in Danger CEO Salaries vs. Ex. Competence and Skill Race and Gender vs. Procedural Justice – fairness by which the outcomes are allocated in an organization