Chapter Three The Manager’s Changing Work Environment & Responsibilities Stakeholders Stakeholders: the people whose interests are affected by an organization’s activities. Internal Stakeholders: consist of employees, owners, and the board of directors, if any. External Stakeholders: people or groups in the organization’s external environment that are affected by it. The environment consists of: The task environment The general environment The Ethical Responsibilities Required of You as a Manager Ethical Dilemma: a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal. Ethics: are the standards of right and wrong that influence behavior. Ethical Behavior: is behavior that is accepted as “right” as opposed to “wrong” according to those standards. Four Approaches to Deciding an Ethical Dilemma The utilitarian approach: is guided by what will result in the greatest good for the greatest number of people. The individual approach: is guided by what will result in the individual’s best long-term interests which ultimately are in everyone’s best interest. The moral-rights approach: is guided by respect for the fundamental rights of human beings. The justice approach: is guided by respect for impartial standards of fairness and equity.

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. The Organization’s Environment The General Environment Economic Forces International Forces Technological Forces Political-legal Forces Socio-cultural Forces Demographic Forces Internal Stakeholders Employees Owners Board of Directors The Task Environment Customers Media Interest Groups Governments Lenders Unions Allies Distributors Suppliers Competitors External Stakeholders

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. How Organizations Can Promote Ethics 1)Support by top managers of a strong ethical climate. 2)Ethics codes & training programs. 3)Rewarding ethical behavior: protecting whistleblowers. Social Responsibility Social responsibility: is a manager’s duty to take actions that will benefit the interests of society as well as the organization.  Philanthropy: donating money to worthwhile recipients. Four Approaches to Social Responsibility 1)Obstructionist Approach 2)Defensive Approach 3)Accommodative Approach 4)Proactive Approach Thinking about Diversity  Diversity: represents all the ways people are unlike or alike—the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socioeconomic background.

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. The Diversity Wheel Personality Functional Level/ Classification Geographic Location Age Work Location Seniority Division/ Dept./ Unit/ Group Work Content/ Field Union Affiliation Mgmt. Status Marital Status Parental Status Appearance Educational Background Work Experience Race Income Personal Habits Religion Recreational Habits Ethnicity Physical Ability Sexual Orientation Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Internal Dimensions of Diversity  Internal Dimensions: those human differences that exert a powerful, sustained effect throughout every stage of our lives. (Gender- ethnicity – race physical abilities – Age – sexual orientation) External Dimensions of Diversity  External Dimensions: includes an element of choice: they consist of personal characteristics that people acquire, discard, or modify throughout their lives. (personal habits – educational background- religion-income-marital status-geographic location- work experience-recreational habits-appeareance) Organizational Dimensions of diversity  Organizational Dimensions include management status, union affiliation, work location, seniority, work content, and division of department. Trends in Workforce Diversity  Age: More Older People in the Workforce  Gender: More Women Working  Race & Ethnicity: More people of color in the workforce  Sexual Orientation: Gays & lesbians become more visible  People with Differing physical & Mental abilities  Educational Levels: Mismatches between education & workforce needs

McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved. Barriers to Workforce Diversity 1) Stereotypes & Prejudices 2) Fear of Reverse Discrimination 3) Resistance to Diversity Program Priorities 1) Unsupportive social atmosphere 2) Lack of support for family demands 3) Lack of support for career-building steps Entrepreneurship  Entrepreneur: is someone who sees a new opportunity for a product or service and launches a business to try to realize it.  Intrapreneur: is someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization’s sources to try to realize it.