1. Management and the Economy

2. Overview
List the three waves of civilization described by Alvin Toffler
Identify the three major categories of workers in the Information Age and provide examples of each
Outline the three stages of how an organization goes global
State the two big challenges facing a manager of telecommuters
Chapter 3 Lesson 1

3. Vocabulary Knowledge Workers Global Village Multinational Corporation
Transnational Corporation
Borderless Organization
Strategic Alliance
Parochialism
E-Commerce
E-Business
Telecommuting

4. Toffler’s Three Waves of Modern Civilization
Futurist Alvin Toffler
Studied changes in society and has predicted some of their effects.
He argues that modern civilization has come in three waves.
Agricultural Age
Industrial Age
Information Age
Chapter 3 Lesson 1

5. Toffler’s Three Waves of Modern Civilization
First Wave ~ Agriculture Age
As late as the 1890s, about 90 percent of the workforce was involved in farming and related work
Today less than 5% of the workforce is in involved in farming 5

6. Toffler’s Three Waves of Modern Civilization
Second Wave ~ Industrial Age
Workers left the fields and went to work in places of mass production producing steel, autos, rubber, and industrial equipment
By 1950 they were the largest group of workers in every developed country
Today they are less than 15% of the workforce 6

7. Toffler’s Three Waves of Modern Civilization
Third Wave ~ Information Age
Workers moved from the production floor to service, technical, and professional jobs
Chapter 3 Lesson 1 7

8. Jobs in the Information Age
Many of the new jobs of the third wave have been in low-skilled service work
Example: fast-food restaurant workers and home health aides, for example.

9. Jobs in the Information Age
Technologists
People who work both with their hands and with information.
Include computer programmers, software designers, and systems analysts are examples of knowledge workers.

10. Jobs in the Information Age
A great many other new jobs have been in professional fields or knowledge workers.
Knowledge workers are workers whose jobs involve getting and using information.
Examples of professional workers are registered nurses, accountants, teachers, lawyers, and engineers.
They currently make up about a third of the US workforce.

11. How the changing economy Affects Managers
Today’s managers must be able to respond quickly to the changing workplace and economy
Two generations ago, successful managers prized stability, predictability, and efficiency.
They thought big was beautiful. Giant companies had clout in the marketplace. They had the numbers—of people, of factories, of product lines—to get things done.
Today’s strong companies—such as Southwest Airlines, Sony, Wal-Mart, FedEx, Nestlé, and Intel
They are fast, lean, and flexible.
They strive for quality. They work in teams. They train their people in ethics.
These companies also have simpler structures. and when change happens, they’re ready.

12. The three waves of modern civilization that Alvin Toffler described were
the agricultural age, the industrial age, and the information age
the manufacturing age, the marketing age, and the consumer age
the progressive age, the prohibition age, and the development age
the manufacturing age, the distribution age, and the computer age 17 1
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13. Workers whose jobs involve getting and using information are called
service workers
professionals
technologists
knowledge workers 2 8
(LE400-U1C3L1:LQ3)

14. People who work both with their hands and with information.
service workers
professionals
technologists
knowledge workers 18
(LE400-U1C3L1:LQ3)

15. The Global Marketplace
Chapter 3 Lesson 1
Courtesy of Photos.com

16. The Global Village
The global village is the world seen without borders, with goods and services marketed and sold freely between countries
To be effective in this world without borders, managers need to be able to adapt to other people’s cultures, systems, and techniques

17. Three Stages of Globalization
I Responding to orders from international customers
II Marketing and Selling abroad
sending its own sales staff to the target country
hiring foreign agents to represent them
III Launching foreign production operations
building a factory
designing new products to meet local needs and desires in the target market
Chapter 3 Lesson 1

18. Strategic Alliances
Companies that reach the third stage of launching foreign operations are likely to form a strategic alliance – a partnership in which firms based in two different countries share the cost of developing new products or building new plants
Chapter 3 Lesson 1
Courtesy of Comstock Images

19. Multinational Corporation
A multinational corporation (MNC) is a corporation with a home base in one country but significant operations in one or more other countries
Chapter 3 Lesson 1
Courtesy of Comstock Images

20. Transnational Corporation
A transnational corporation (TNC) maintains operations in more than one country at a time and decentralizes decision making in each operation to the local country
Chapter 3 Lesson 1

21. Borderless Organization
Borderless Organizations are management structures that breaks down artificial geographic barriers
Organize by product line rather than the map
Chapter 3 Lesson 1

22. How Globalization Affects Managers
Managers must cope with suppliers, employees, and customers in different countries and different cultures
Managers must see where there are differences and figure out how to communicate or otherwise interact in spite of those differences
Managers must avoid parochialism – the narrow frame of mind typical of people who see the world from only their own perspective
Chapter 3 Lesson 1

23. How Globalization Affects Managers
Managers must learn to appreciate that people in other places have other ways of doing things
Managers must understand the cultural contexts of different countries’ management practices
Chapter 3 Lesson 1

24. The world seen as without borders, with goods and services marketed and sold freely between countries is known as the
free trade economy
consumer society
global village
new age 18
(LE400-U1C3L1:LQ5)

25. The second stage of globalization is
responding to orders from international customers.
launching foreign production operations.
create a website.
Marketing and selling abroad. 18
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26. Companies that reach the third stage of launching foreign production operations are likely to form a
bond with their new customers.
strategic alliance.
new goal for future sales.
new line of products. 15 2 1
(LE400-U1C3L1:LQ6)

27. Companies that develop a partnership in which firms based in two different countries share the cost of developing new products or building new plants are said to form a
strategic alliance
borderless organization
multinational corporation
transnational corporation 14 1 3
(LE400-U1C3L1:LQ5)

28. A corporation with a home base in one country but significant operations in one or more other countries as well is known as a
strategic alliance
borderless organization
multinational corporation
transnational corporation 17 1
(LE400-U1C3L1:LQ5)

29. A corporation that maintains operations in more than one country at a time and decentralizes decision making in each operation to the local country is known as a
strategic alliance
borderless organization
multinational corporation
transnational corporation 18
(LE400-U1C3L1:LQ5)

30. A management structure that breaks down artificial geographic barriers so that companies are organizing by product line rather than the map is called a
strategic alliance
borderless organization
multinational corporation
transnational corporation 16 2
(LE400-U1C3L1:LQ5)

31. The narrow frame of mind typical of people who see the world from only their own perspective.
Transnational corporation (TNC)
Borderless organization
Strategic alliance
Parochialism 18
(LE400-U1C3L1:VQ4)

32. Management and Information Technology
Chapter 3 Lesson 1
Courtesy of Comstock Images

33. Electronic Sales
E-commerce is any computer transaction that results in sales processed and transmitted over the Internet
It includes presenting products on websites and filling orders. Online shopping for consumer goods is what most people talk about when they think of e-commerce.
About 90 percent of e-commerce sales are actually business-to-business sales: Goodyear tires selling to Ford, for example

34. Electronic Organizational Management
E-business is a term that encompasses the full breadth of activities included in a successful information-based enterprise
Communicating business strategy with shareholders
Communication between and among employees,
Communication with customers, and suppliers
collaboration with partners on design and production
Chapter 3 Lesson 1

35. How Information Technology Alters a Manager’s Job
Technology has been good for businesses, helping them run more efficiently.
But technology has also forced managers to rethink their jobs and how they communicate with there workers
Managers can use , cell phones, fax machines, and other technology to perform the same four basic functions of a manager’s job
planning, organizing, leading, and controlling

36. How Information Technology Alters a Manager’s Job
Information Technology is also changing how managers manage.
In the early days of industrial workplaces, managers were always close to their workers. Most communication was face to face.
Today’s managers and their teams don’t need to stick so closely together.
Telecommuting is a system that allows employees to work at home on a computer linked to the office.
Courtesy of Thinkstock Images

37. Challenges with Telecommuting
Some telecommuters work from homes in the suburbs for a company with offices downtown.
Others are hundreds of miles away from headquarters—or even in a foreign country.
Communicating with employees in remote locations and ensuring they are meeting their work goals are the two big challenges facing a manager of telecommuters.
Organizations must train their managers to set standards and deadlines and then let the employees do the work at their own pace.
The focus will be on output, not means.
Chapter 3 Lesson 1

38. Any computer transaction that results in sales that are processed and transmitted over the Internet.
Technology
E-commerce
E-business
Telecommuting 17 1
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39. The full breadth of activities included in a successful Information-based enterprise.
Technology
E-commerce
E-business
Telecommuting 2 16
(LE400-U1C3L1:VQ11)

40. A system that allows employees to work at home on a computer linked to the office.
Technology
E-commerce
E-business
Telecommuting 1 17
(LE400-U1C3L1:VQ9)