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Chapter 2 Challenges for Managers
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Learning Outcomes 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
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Learning Outcomes 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
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Four Challenges Globalization Diversity Ethics Technology
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Learning Outcome Describe the factors that affect organizations competing in the global economy
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Changing Business Perspectives
International activity - Conducting business across national borders Globalization - Suggests that the world is free from national boundaries and is borderless Multinational organizations - Organizations that did business in several countries Transnational organization: Organization in which the global viewpoint supersedes national issues
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Global Market Place Opening of Chinese market
Guanxi: Practice of building networks for social exchange Creation of the European Union Establishment of NAFTA
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Understanding Cultural Differences
Organizations must appreciate the differences among cultures Microcultural differences are key to understand the global work environment Changing careers Expatriate manager: Manager who works in a country other than her or his home country International executives - Executives whose jobs have international scope
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Figure 2.1 - Hofstede’s Dimensions of Cultural Differences
SOURCE: Reprinted with permission of Academy of Management, P.O. Box 3020, Briarcliff Manor, NY Cultural Constraints in Management Theories. G. Hofstede, Academy of Management Executive 7 (1993). Reproduced by permission of the publisher via Copyright Clearance Center, Inc.
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Learning Outcome Explain how cultural differences form the basis of work-related attitudes
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Cultural Differences and Work-Related Attitudes
Individualism Cultural orientation in which people belong to loose social frameworks and their primary concern is for themselves and their families Collectivism Cultural orientation in which individuals belong to tightly knit social frameworks and depend strongly on extended families or clans
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Cultural Differences and Work-Related Attitudes
Power distance Degree to which a culture accepts unequal distribution of power Uncertainty avoidance Degree to which a culture tolerates ambiguity and uncertainty
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Cultural Differences and Work-Related Attitudes
Masculinity versus femininity Masculinity: Cultural orientation in which assertiveness and materialism are valued Femininity: Cultural orientation in which relationships and concern for others are valued Time orientation: Identifies, whether a culture’s values are oriented toward the future or toward the past and present
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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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Learning Outcome Describe the challenges and positive influences diversity brings to today’s business environment
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Diversity All forms of individual differences, including: Culture
Gender and age Ability Religion Personality Social status Sexual orientation
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Ethnic Diversity Challenge Risk
Harness the wealth of differences provided by cultural diversity Risk Prejudices and stereotypes may prevent managers and employees from developing synergies to benefit the organization
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Gender Diversity Women’s share of authority and compensation is not increasing commensurately with their: Education Participation in the workforce Glass ceiling: Transparent barrier that keeps women from rising above a certain level in organizations
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Age Diversity Has a positive impact on profitability
Aging workforce is increasing intergenerational contact at work Cooperating generations Silent generation Baby boomers Baby bust generation Millennial
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Ability Diversity Individuals with disabilities are an underutilized human resource Disabilities Act of 1992 Employers are required to make reasonable accommodations to permit workers with disabilities to perform jobs
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Valuing Diversity Managers must combat prejudice and discrimination to manage diversity Ways in which diversity helps People work best when they are valued and when diversity is taken into account When people feel valued, they build relationships and work as a team Managing diversity helps companies become more competitive
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Table 2.2 - The Benefits and Problems of Diversity
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Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization
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Ethical Theories Consequential theory
Emphasizes the consequences or results of behavior Rule-based theory Emphasizes the character of the act rather than its effects Character theory Emphasizes the character, personal virtues, and intent of the individual
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Explain five issues that pose ethical dilemmas for managers
Learning Outcome Explain five issues that pose ethical dilemmas for managers
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Technology and privacy
Employee Rights Issue Technology and privacy HIV/AIDS Confidentiality
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Sexual Harassment = Unwanted Sexual Attention
Unwelcome verbal or physical sexual attention Affects an employee’s job conditions Creates a hostile working environment Gender harassment - Crude comments or behaviors that convey hostility toward a particular gender Unwanted sexual attention - Unwanted touching or repeated pressure for dates Sexual coercion - Demands for sexual favors through job-related threats or promises
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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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Individual and Organizational Responsibility
Whistle-blower: Employee who informs authorities of the wrongdoings of her or his company or coworkers Social responsibility: Organizational obligation to behave ethically in social environment Protecting the environment Promoting worker safety Supporting social issues Investing in the community
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Codes of Ethics Avenues for ethics Corporate culture
Individual codes of ethics Professional oaths Organizational credos
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Figure 2.2 - The Four Way Test
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Describe the effects of technological advances on today’s workforce
Learning Outcome Describe the effects of technological advances on today’s workforce
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Technological Innovation
Technology: Intellectual and mechanical processes that transform inputs into products or services that meet organizational goals Internet Online retailing and surveillance Expert system: Computer-based application that uses a representation of human expertise in a specialized field of knowledge to solve problems Robotics: Use of robots in organizations
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Alternative Work Arrangements
Telecommuting: Electronically transmitting work from a home computer to the office Advantages - Cost reduction and increased efficiency Satellite offices - Network of smaller workplaces located near employees’ homes Virtual offices - People work anytime, anywhere, and with anyone
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Alternative Work Arrangements
Advantages for Employees Disadvantages for Employees Gain flexibility Save the commute to work Enjoy the comforts of home Have distractions Lack socialization opportunities Lack interaction with supervisors Identify less with the organization
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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
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Help Employees Adjust by:
Involving them in decision making regarding technological change Selecting technology that increases workers’ skill requirements Providing effective training Encouraging reinvention Reinvention: Creative application of new technology
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Lost in Translation 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. 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.
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Theo Chocolate 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? 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?
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