1. © 2009 Cengage Learning. All rights reserved. Chapter 2 Challenges for Managers 1 Describe the factors that affect organizations competing in the global economy. 2 Explain how cultural differences form the basis of work-related attitudes. 3 Describe the diverse groups that make up today’s business environment. 4 Discuss the role of ethics, character, and personal integrity in the organization. 5 Explain five issues that pose ethical dilemmas for managers. 6 Describe the effects of technological advances on today’s workforce. Learning Outcomes

2. © 2009 Cengage Learning. All rights reserved. Learning Outcome Describe the factors that affect organizations competing in the global economy. 1

3. © 2009 Cengage Learning. All rights reserved. Four Challenges Globalization Diversity Ethics Technology

4. © 2009 Cengage Learning. All rights reserved. Remaining Competitive Globalizing the firm’s operations Managing a diverse workforce Keeping up with technological change and implementing technology in the workplace Managing ethical behavior

5. © 2009 Cengage Learning. All rights reserved. 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)

6. © 2009 Cengage Learning. All rights reserved. From Multinational Organizations (in which the organization was recognized as doing business with other countries) Changing Business Perspectives To Transnational Organizations (in which the global viewpoint supersedes national issues)

7. © 2009 Cengage Learning. All rights reserved. Beyond the Book: Globalization and Volkswagen Since the 1930s, Volkswagen has a history of profiting from globalization. In recent years, drastically increasing labor costs led to widespread job- slashing and employee negotiations. Due to successful compromises and increased production, VW estimates a $6+ billion pretax profit for 2007.

8. © 2009 Cengage Learning. All rights reserved. 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 Creation of the European Union Establishment of the North American Free Trade Agreement CHANGES IN THE

9. © 2009 Cengage Learning. All rights reserved. Learning Outcome Explain how cultural differences form the basis of work-related attitudes. 2

10. Understanding Cultural Differences Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. 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. Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation HOFSTEDE’S DIMENSIONS

11. Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. 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. Where the U.S. Stands Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation ON HOFSTEDE’S DIMENSIONS

12. © 2009 Cengage Learning. All rights reserved. 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

13. © 2009 Cengage Learning. All rights reserved. Learning Outcome Describe the diverse groups that make up today’s business environment. 3

14. © 2009 Cengage Learning. All rights reserved. Diversity All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation

15. © 2009 Cengage Learning. All rights reserved. Diversity Statistics for the Workplace Cultural 2020 Workforce: 68% white non-Hispanic 14% Hispanic 11% African-American 5% Asian Gender 2020 Workforce: 50% male 50% female

16. © 2009 Cengage Learning. All rights reserved. Affirmative-action critic Ward Connerly is campaigning in Arizona, Colorado, Missouri, Nebraska, and Oklahoma to ban racial/ethnic preferences by public institutions. Issues of illegal immigration could also influence voters. If petitions are successful, states will vote on the ban in November 2008. Beyond the Book: Anti-Affirmative Action

17. © 2009 Cengage Learning. All rights reserved. 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 50 million disabled live in the U.S.; their unemployment rate exceeds 50%.

18. © 2009 Cengage Learning. All rights reserved. & OBSTACLES AT WORK Comprise over 60% of the workforce Earn 32% of all doctorates Earn 52% of master’s degrees Earn 50% of undergraduate degrees BUT Hold less than 15.7% of Fortune 500 corporate officer positions Earn 78% of what their male counterparts do encounter the glass ceiling in the workplace a transparent barrier that keeps women from rising above a certain level in organizations WOMEN

19. © 2009 Cengage Learning. All rights reserved. ‘Diversity training’: term that encompasses a wide array of specific programs designed to train employees for receptiveness to diversity Studies correlate existing diversity-issues competence with interest and active participation in diversity-training programs Those with low diversity competence tend to remain unaware of their low competence levels Beyond the Book: Diversity Training Studies

20. Diversity’s Benefits & Problems BENEFITSPROBLEMS Attracts & retains the best human 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 Slowed decision making

21. © 2009 Cengage Learning. All rights reserved. Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization. Explain five issues that pose ethical dilemmas for managers. 4, 5

22. © 2009 Cengage Learning. All rights reserved. Employee Rights Issues Computerized monitoring Drug testing Free speech Downsizing Layoffs Due process AIDS in the workplace

23. [ Consequential Theory ] an ethical theory that emphasizes the consequences or results of behavior Ethical Theories [ 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

24. © 2009 Cengage Learning. All rights reserved. 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?

25. © 2009 Cengage Learning. All rights reserved. Organizational Justice Distributive Justice – fairness of the outcomes that individuals receive in an organization Ex. Companies in Danger CEO Salaries vs. Ex. Competence and Skill Race and Gender vs. Procedural Justice – fairness by which the outcomes are allocated in an organization

26. © 2009 Cengage Learning. All rights reserved. Individual and 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

27. 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? © 2009 Cengage Learning. All rights reserved.

28. Learning Outcome Describe the effects of technological advances on today’s workforce. 6

29. © 2009 Cengage Learning. All rights reserved. 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

30. © 2009 Cengage Learning. All rights reserved. Employees are increasingly suffering from inbox glut—receiving sometimes as many as 400 business-related emails a day Email-technology companies such as ClearContext, Seriosity, and Xobni are stepping up to the plate with new solutions Focuses include automatic email filing, context-sensitive importance flags, and improved search functions Beyond the Book: Email Emergency

31. © 2009 Cengage Learning. All rights reserved. Telecommuting electronically transmitting work from a home computer to the office

32. © 2009 Cengage Learning. All rights reserved. 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 With Alternative Arrangements –

33. © 2009 Cengage Learning. All rights reserved. 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

34. © 2009 Cengage Learning. All rights reserved. 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

35. © 2009 Cengage Learning. All rights reserved. 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)