Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Challenges for Managers Chapter 2 Organizational Behavior Nelson & Quick 6th edition

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Remaining Competitive: Four Major Challenges to Managers Globalizing the firm’s operations Leading a diverse workforce Encouraging positive ethics, character, and personal integrity Advancing and implementing technological innovation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Changing Business Perspectives International From International which implies an individual’s or organization’s held nationality is strongly in consciousness Globalization To Globalization which implies the world is free from national boundaries and that it is really a borderless world Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Multinational organizations From Multinational organizations (in which the organization was recognized as doing business in several countries) Changing Business Perspectives Transnational To Transnational organizations organizations, (in which the global viewpoint supersedes national issues) Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage 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 - Guanxi - The Chinese practice of building networks for social exchange Creation of the European Union Establishment of the North American Free Trade Agreement

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Understanding Cultural Differences (Hofstede) 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 ©2009 South-Western, a division of Cengage 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 Masculinity Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation Low uncertainty avoidance Low power distance Individualism Short term orientation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Management Careers with a Global Dimension Expatriate manager -Expatriate manager - a manager who works in a country other than his or her home country International executive – an executive whose job has international scope Key competencies such managers and executives need include integrity, insightfulness, risk-taking, courage to take a stand, and ability to bring out the best in people.

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Developing Cross-Cultural Sensitivity Use of mentor/protégé relationships Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource functions Planning Recruitment and Selection Compensation Training and Development

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Diversity Diversity - Diversity - All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Diversity Statistics for the Workplace 5% 11% 14% 68%

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Women and Obstacles at Work Women make up over 60% of the workforce, earn 32% of all doctorates, 52% of master’s degrees, and 50% of undergraduate degrees BUT glass ceiling Women hold less than 16.4% of Fortune 500 corporate officer positions, earn 81% of what their male counterparts do, and encounter the glass ceiling in the workplace a transparent barrier that keeps women from rising above a certain level in organizations

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Diversity Statistics Affecting the Workplace Age By 2030, there will be 70,000,000 older persons. 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%.

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Diversity’s Benefits & Problems BENEFITS Attracts & retains the best human talent Improves marketing efforts Promotes creativity and innovation Results in better problem solving Enhances organizational flexibility PROBLEMS Resistance to change Lack of cohesiveness Communication problems Interpersonal conflicts Slowed decision making

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved 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 ©2009 South-Western, a division of Cengage Learning All rights reserved Employee Rights Issues Computerized monitoring Drug testing Free speech Downsizing & layoffs Due process AIDS in the workplace Photos courtesy of Clips Online, © 2008 Microsoft Corporation

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? Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of 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 Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Individual & Organizational Responsibility Whistle-Blower - Whistle-Blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers –Public Hero –Villain Social Responsibility - Social Responsibility - the obligation of an organization to behave in ethical ways Depends on whether or not the the whistle-blowing is viewed as more offensive the wrongdoing.

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Rotary Four-Way Test of What We Think, Say, or Do 1. Is it the TRUTH? 2. Is it FAIR to all concerned? 3. Will it build GOODWILL and better friendships? 4. Will it be BENEFICIAL to all concerned?

Copyright ©2009 South-Western, a division of Cengage 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 Robotics - Robotics - use of robots Expert System - Expert System - computer-based application using a representation of human expertise in a specialized field of knowledge to solve problems Internet- Internet- integrates computer, cable, telecommunications technologies

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Alternative Work Arrangements Telecommuting - Telecommuting - transmitting work from a home computer to the office using a modem Employees gain flexibility, save the commute to work, enjoy the comforts of home Employees have distractions, lack socialization opportunities, lack interaction with supervisors, and identify less with the organization

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Additional Alternative Work Arrangements Hoteling - Hoteling - employees have mobile file cabinets/lockers for personal storage; work spaces are reserved, not assigned Satellite Offices - Satellite Offices - large facilities broken into smaller workplaces near employees’ homes Virtual Office - Virtual Office - people work anytime, anywhere, with anyone Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage 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 Recognize the importance of intellectual property

Copyright ©2009 South-Western, a division of Cengage 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 reinventionEncouraging reinvention (creative application of new technology) Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Four Challenges to Organizations in the New Millennium Technological Innovation GlobalizationEthics Workforce Diversity Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Chapter 2: Reflect & Discuss Mr. Baseball Video Clip What to Watch for and Ask Yourself Does Jack Elliot behave as if he had cross- cultural training before arriving in Japan? Is he culturally sensitive or insensitive? What do you propose that Jack Elliot do for the rest of his time in Japan?