1. Chapter 2 Challenges for Managers
Describe the factors that affect organizations competing in the global economy.
Explain how cultural differences form the basis of work-related attitudes.
Describe the challenges and positive influences diversity brings to today’s business environment.
Discuss the role of ethics, character, and personal integrity in the organization.
Explain five issues that pose ethical dilemmas for managers.
Describe the effects of technological advances on today’s workforce.
Learning Outcomes
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2. Four Challenges Globalization Diversity Ethics Technology
Managerial Implications: Beating the Challenges
Organizational success depends on managers’ ability to address the challenges of globalization, workforce diversity, ethics, and technological innovation. Successful organizations and managers view these four challenges as opportunities rather than as threats. Failure to address these challenges can mean costly losses, damage to reputations, and ultimately an organization’s demise.
These four challenges are important because the way managers handle them shapes employee behavior. Developing global mindsets among employees expands their worldview and puts competition on a larger scale. Knowing that diversity is valued causes employees to think twice about engaging in discriminatory behaviors. Valuing technological change encourages employees to experiment with new technologies and develop innovative ways to perform their jobs. Sending a message that unethical behavior is not tolerated lets employees know that doing the right thing pays off.
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3. 1
Learning Outcome
Describe the factors that affect organizations competing in the global economy.
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4. Changing Business Perspectives
From International (which
implies an individual’s or
organization’s held nationality
is strongly in consciousness)
To Globalization (which
implies the world is free
from national boundaries and
that it is really a borderless world)
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5. Changing Business Perspectives
From Multinational Organizations
(in which the organization was
recognized as doing business
with other countries)
To Transnational Organizations
(in which the global viewpoint
supersedes national issues)
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6. GLOBAL MARKETPLACE CHANGES IN THE Opening of Chinese market
Creation of the European Union
Establishment of NAFTA
CHANGES IN THE
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7. Understanding Cultural Differences
HOFSTEDE’S DIMENSIONS
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8. 2
Learning Outcome
Explain how cultural differences form the basis of work-related attitudes.
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9. ON HOFSTEDE’S DIMENSIONS
Where the U.S. Stands
ON HOFSTEDE’S DIMENSIONS
INDIVIDUALISM
High power distance
High uncertainty avoidance
MASCULINITY
Long-term orientation
Collectivism
Low power distance
LOW UNCERTAINTY AVOIDANCE
Femininity
SHORT-TERMM ORIENTATION
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10. 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
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11. 3
Learning Outcome
Describe the challenges and positive influences diversity brings to today’s business environment.
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12. Diversity all forms of individual differences,
including culture, gender, age,
ability, personality, religion,
personality, social
status, and sexual orientation
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13. Diversity Statistics for the Workplace
Ethnic
2020 Workforce: 68% white non-Hispanic
14% Hispanic
11% African-American
5% Asian
Gender
2020 Workforce: 50% male
50% female
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14. BUT & OBSTACLES AT WORK WOMEN Comprise over 46% of the workforce
Earn 49% of all doctorates
Earn 60% of master’s degrees
Earn 58% of undergraduate degrees
BUT
Little increase in number of women CEOs.
Earn 81% of what male counterparts do.
Encounter the glass ceiling in the workplace
WOMEN
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15. Diversity Statistics Affecting the Workplace
Age
By 2030, 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%.
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16. Diversity’s Benefits & Problems
Attracts and retains the best talent
Improves marketing efforts
Promotes creativity and innovation
Results in better problem solving
Enhances organizational flexibility
Resistance to change
Lack of cohesiveness
Communication problems
Interpersonal conflicts
Slower decision making
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17. 4
Learning Outcome
Discuss the role of ethics, character, and personal integrity in the organization.
© 2013 Cengage Learning

18. Ethical Theories [Consequential Theory] [Rule-Based 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 of the individual and the intent of the actor instead of the character of the act itself or its consequences
© 2013 Cengage Learning

19. 5
Learning Outcome
Explain five issues that pose ethical dilemmas for managers.
© 2013 Cengage Learning

20. Employee Rights Issues
Technology and privacy HIV/AIDS Confidentiality
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21. 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
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22. Organizational Justice
Distributive Justice –
fairness of the outcomes
that individuals receive
in an organization
Procedural Justice –
fairness of the process by which the outcomes are allocated in an organization
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23. Individual and Organizational Responsibility
Whistle-Blower – an employee who informs authorities of wrongdoing by his or her company or coworkers
Public Hero or Vile Wretch?
Social Responsibility – the obligation of an organization to behave ethically in its social environment
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24. The Four Way Test
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25. 6
Learning Outcome
Describe the effects of technological advances on today’s workforce.
© 2013 Cengage Learning

26. 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 Expert System Robotics
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27. Alternative Work Arrangements
Telecommuting
Satellite offices
Virtual offices
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28. Alternative Work Arrangements
[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
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29. 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
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30. 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)
© 2013 Cengage Learning

31. While watching this sequence, pretend you have arrived in Tokyo, and you are experiencing what you are seeing. Do you understand everything you see?
Is Charlotte bewildered by her experiences? Is she experiencing some culture shock?
What aspects of Japanese culture appear in this sequence? What do you see as important values of Japanese culture? Review the Chapter 2 section, "Cultural Differences," to gain some insights about these questions.
Lost in Translation
Jet lag conspires with culture shock to force the meeting of Charlotte
(Scarlett Johansson) and Bob Harris (Bill Murray). Neither can sleep
after their Tokyo arrival. They meet in their luxury hotel’s bar, forging
an enduring relationship as they experience Tokyo’s wonders, strangeness,
and complexity. This sequence is an edited composite taken from
different parts of the film. It shows selected aspects of Tokyo and
Kyoto, Japan. Charlotte has her first experience with the complex and
busy Tokyo train system. She later takes the train to Kyoto, Japan’s first
capital city.
Ask your students:
1. While watching this sequence, pretend you have arrived in Tokyo,
and you are experiencing what you are seeing. Do you understand
everything you see?
2. Is Charlotte bewildered by her experiences? Is she experiencing
some culture shock?
3. What aspects of Japanese culture appear in this sequence? What do
you see as important values of Japanese culture? Review the earlier
section, “Understanding Cultural Differences,” to gain some insights
about these questions.
© 2013 Cengage Learning

32. What practices at Theo Chocolate illustrate the concept of social responsibility?
What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives?
What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice?
Theo Chocolate
Unlike leading candy manufacturers that deliver sweets in high volume, Theo produces award winning organic chocolate in small batches. The company boasts a bean-to-bar production method that uses cocoa beans grown without pesticides, and without harm to farmers or the environment. At Theo Chocolate, the terms organic and fair trade are no mere marketing buzzwords. Organic means that the cocoa beans are grown naturally and harvested in ways that preserve habitats and the balance of the ecosystem; fair trade is a business approach that ensures equity between buyers, as well as fair treatment of workers.
Ask your students:
What practices at Theo Chocolate illustrate the concept of social responsibility?
What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives?
What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice?
© 2013 Cengage Learning 32