1. Organizations & Managerial Challenges in the Twenty-First Century
Chapter 2 Nelson & Quick
Organizations & Managerial Challenges in the Twenty-First Century

2. Remaining Competitive: Four Major Challenges to Managers
Globalizing the firm’s operations
Managing a diverse workforce
Keeping up with technological change and implementing technology in the workplace
Managing ethical behavior 2

3. Changing Business Perspectives
International implies an individual’s
or organization’s nationality is held
strongly in consciousness
Globalization implies the world is
free from national boundaries and
that it is really a borderless world
Move to 3

4. Changing Business Perspectives
In multinational organizations,
the organization is recognized as
doing business with other countries
Move to
In transnational organizations,
the global viewpoint supersedes
national issues. 4

5. Changes in the Global Marketplace
Collapse of Eastern Europe
Union of East and West Berlin
Perestroika
Expansion of business with China
Guanxi – The Chinese practice of building
networks for social exchange
Tricon Global Restaurants is one of the world’s largest restaurant systems operating KFC, Taco Bell, and Pizza Hut franchises in more than 100 countries and territories. Visit the site to learn more about the values and corporate philosophy that make Tricon Global successful in the global marketplace.
Creation of the European Union
Establishment of the North American Free Trade Agreement 5

6. Understanding Cultural Differences
Individualism Collectivism
High power distance Low power distance
High uncertainty Low uncertainty
avoidance avoidance
Masculinity Femininity
Long-term orientation Short-term orientation
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. 6

7. Where the U.S. Stands Individualism Collectivism
High power distance Low power distance
High uncertainty Low uncertainty
avoidance avoidance
Masculinity Femininity
Long-term orientation Short-term orientation
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. 6

8. Developing Cross-Cultural Sensitivity
Cultural sensitivity training
Cross-cultural task forces/teams
Global view of human resource functions
Planning
Recruitment and Selection
Compensation
Training and Development 8

9. Diversity
All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation

10. Diversity Statistics for the Workplace
Cultural
2020 Workforce: 68% white non-Hispanic
14% Hispanic
11% African-American
6% Asian
Workingwoman.com redefines the way business is conducted by enabling businesswomen to succeed in their careers with the aid of Internet-based tools, applications, knowledge, and industry networking capabilities. What specific services does workingwoman.com provide to help women overcome the glass ceiling phenomenon in organizations?
Gender
2020 Workforce: 50% male
50% female

11. Women and Obstacles at Work
Today, women make up over 46% of the workforce, earn 41% of all doctorates, 57% of master’s degrees, and 56% of undergraduate degrees
BUT
Today, women hold less than 12% of Fortune 500 corporate officer positions, earn 77% 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

12. 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 54 million disabled live in the
U.S.; their unemployment rate exceeds 50%.

13. Diversity Benefits Attract & Retain Talent Result in Better Problem
Solving
Diversity
Benefits
Enhance
Organizational
Flexibility
Enhance
Marketing
Efforts
Promote
Creativity &
Innovation

14. Diversity Problems Resistance to Change Slower Decision- Making
Possibility of
Conflicts
Lack of
Cohesiveness
Perfect Commerce, Inc., is revolutionizing procurement transactions between buyers and suppliers with its advanced e-sourcing solutions. The company’s Web-based products eradicate the inefficiencies of traditional sourcing for complex goods, services, and contracts. What challenges might managers face when incorporating such advanced technologies into organizations?
Communication
Problems

15. Technological Innovation
Technology
The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals
Examples
Internet – integrates computer, cable, telecommunications technologies
Expert System - computer-based application using a representation of human expertise in a specialized field of knowledge to solve problems
Robotics - use of robots in organizations

16. Alternative Work Arrangements
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
But, they
Have distractions
Lack socialization opportunities
Lack interaction with supervisors
Identify less with the organization

17. Additional Alternative Work Arrangements
Hoteling - employees have mobile file cabinets/lockers for personal storage; work spaces are reserved, not assigned
Satellite Offices - large facilities broken into smaller workplaces near employees’ homes
Virtual Office- people work anytime, anywhere, with anyone.

18. Technological Change Requires Managers to
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
Develop technical competence to gain workers’ respect

19. 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
Encouraging reinvention (creative application of new technology)

20. 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

21. Employee Rights Issues
Computerized monitoring
Drug testing
Free speech
Downsizing
Layoffs
Due process
AIDS in the workplace

22. 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?

23. Organizational Justice
Distributive Justice-
fairness of the outcomes
that individuals receive
in an organization
Ex. Companies
in Danger
CEO
Salaries
vs.
Procedural Justice-
fairness by which the
outcomes are allocated
in an organization
Ex. Competence
and Skill
Race and
Gender
vs.

24. Individual & Organizational Responsibility
Whistle-Blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers
Public Hero
“Vile Wretch”
Social Responsibility - the obligation of an organization to behave ethically

25. 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?

26. Four Challenges to Organizations in the New Millennium
Globalization
Diversity
Technology
Ethics