1. Principles of Management 11e Kreitner
Chapter 3
The Changing Environment of Management
Instructor: IFTEKHAR AMIN CHOWDHURY

2. The Twenty-First-Century Workplace: Seven Major Changes
The Virtual Organization
The Just-in-Time Workforce
The Ascendancy of Knowledge Workers
Computerized Coaching and Electronic Monitoring
The Growth of Worker Diversity
The Aging Workforce
The Birth of the Dynamic Workforce
Instructor: IFTEKHAR AMIN CHOWDHURY

3. The Social Environment
Dimensions of the Social Environment
Demographics
Changes in the statistical profiles of population characteristics
The new social contract
Changes in the employer-employee relationship
Inequalities
Persistent barriers encountered by women, minorities, and others (part timers) in the workplace
Managing diversity
Creating organizational cultures that enable all employees to realize their potential
Instructor: IFTEKHAR AMIN CHOWDHURY

4. Demographics of the New Workforce
Myths About Older Workers
They are less productive.
They incur higher benefits costs.
They have higher absenteeism.
They have more accidents at work.
They are less willing to learn.
They are inflexible about the hours they are willing to work.
Instructor: IFTEKHAR AMIN CHOWDHURY

5. The Political-Legal Environment
The Politicization of Management
Issues management
Ongoing process of identifying, evaluating, and responding to important social and political issues
Purpose: Minimize “surprises” and make more systematic and effective responses to issues
General political responses
Defending the status quo against all comers
Adopting a “wait and see” approach
Proactively trying to identify and respond to issues
Instructor: IFTEKHAR AMIN CHOWDHURY

6. Figure 3.2: Management’s Political Response Continuum
Instructor: IFTEKHAR AMIN CHOWDHURY

7. The Political-Legal Environment
Specific Political Strategies
Campaign financing
Political action committees (PACs)
Lobbying
Garnering political support
Coalition building
Common rallying points
Indirect lobbying
Advocacy advertising
Instructor: IFTEKHAR AMIN CHOWDHURY

8. The Economic Environment
The Job Outlook in Today’s Service Economy, Where Education Counts
The job category for “general managers and operations managers” is rapidly growing and one of the most resistant to “offshoring.”
Service sector jobs in high-paying occupations that require at least a bachelor’s degree are growing twice as fast as that of all other occupations.
Instructor: IFTEKHAR AMIN CHOWDHURY

9. The Economic Environment
Coping with Business Cycles
Business cycles
Alternating periods of economic expansion and recession
The up-and-down movement of an economy’s ability to generate wealth
Worldwide convergence
Instructor: IFTEKHAR AMIN CHOWDHURY

10. The Economic Environment
Cycle-Sensitive Decisions
Timing decisions about appropriate responses to changes in the business cycle is necessary to –
Reduce the chances that a firm’s assets and resources will be underutilized or wasted in economic downturns
Take advantage of opportunities that will arise during periods of rapid economic expansion
Instructor: IFTEKHAR AMIN CHOWDHURY

11. Figure 3.3: Business Cycles Affect Managerial Decisions
Instructor: IFTEKHAR AMIN CHOWDHURY

12. The Challenge of a Global Economy
A Single Global Marketplace
Global trade is causing a shift to a single economy.
The commercial world is no longer East-West, North-South; it is now one economy, one marketplace.
Globalization Is Personal
A growing trend: Working for a foreign-owned company
Meeting world standards for quality and costs (through lower wages) is necessary to be globally competitive.
Instructor: IFTEKHAR AMIN CHOWDHURY

13. The Technological Environment
Technology
Technology includes all the tools and ideas available for extending the natural and mental reach of humankind.
Technology is facilitating the evolution of the information age.
Information has become a valuable strategic resource for gaining competitive advantage.
Instructor: IFTEKHAR AMIN CHOWDHURY

14. Table 3.1: Science Fiction Is Becoming Reality with These Seven New Technologies
Source: Adapted from G. Pascal Zachary, Om Malik, David Pescovitz, and Matthew Maier, “Seven New Technologies That Change Everything,” Business 2.0, 5 (September 2004): 82–90.
Instructor: IFTEKHAR AMIN CHOWDHURY

15. The Technological Environment
The Innovation Process
The systematic and practical application of a new idea
Steps in the Innovation Process
Conceptualization: When a new idea occurs to someone
Product technology: Creation of a working prototype
Production technology: Development of a profitable production process
Instructor: IFTEKHAR AMIN CHOWDHURY

16. Figure 3.4: The Three-Step Innovation Process
Instructor: IFTEKHAR AMIN CHOWDHURY

17. The Technological Environment
Innovation Lag
The time it takes for a new product to be translated into satisfied demand
Shortening Innovation Lag
Goal setting: Creating a sense of urgency and purpose
Empowerment: Pushing decision-making authority down to the level of the decision
Concurrent engineering: Using a team approach to product design involving specialists from all functional areas including research, production, and marketing
Instructor: IFTEKHAR AMIN CHOWDHURY

18. Promoting Innovation Through Intrapreneurship
An employee who takes personal responsibility for pushing an innovative idea through a large organization
Fostering Intrapreneurship
Focus on results and teamwork.
Reward innovation and risk taking.
Tolerate and learn from mistakes.
Remain flexible and change-oriented.
Instructor: IFTEKHAR AMIN CHOWDHURY

19. Terms to Understand Demographics New social contract Business cycle
Glass ceiling
Contingent workers
Managing diversity
Issues management
Advocacy advertising
Legal audit
Alternative dispute resolution
Business cycle
Technology
Innovation process
Product technology
Production technology
Innovation
Concurrent engineering
Intrapreneur
Instructor: IFTEKHAR AMIN CHOWDHURY