Chapter 2Nelson & Quick

Organizations &Managerial Challenges in the

Twenty-First Century

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

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

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 andthat it is really a borderless world

Moveto

In multinational organizations, the organization is recognized as

doing business with other countries

Changing Business Perspectives

Moveto

In transnational organizations, the global viewpoint supersedes

national issues.

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

Creation of the European Union Establishment of the North American Free Trade

Agreement

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 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.

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 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.

Where the U.S. Stands

Developing Cross-Cultural Sensitivity

Cultural sensitivity trainingCross-cultural task forces/teams

Diversity

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

Diversity Statistics for the Workplace

Cultural 2020 Workforce: 68% white non-Hispanic 14% Hispanic

11% African American 6% Asian

Gender 2020 Workforce: 50% male 50% female

Women and Obstacles at Work

Today, women make up over 54% of the workforce, earn 32% of all doctorates, 52% of master’s degrees, and 50% of undergraduate degrees

BUT

Today, women hold less than 13% 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

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 theU.S.; their unemployment rate exceeds 50%.

DiversityBenefitsEnhance

OrganizationalFlexibility

Result inBetter

ProblemSolving

Attract &RetainTalent

PromoteCreativity &Innovation

EnhanceMarketing

Efforts

DiversityProblemsPossibility of

Conflicts

SlowerDecision-Making

Resistanceto Change

CommunicationProblems

Lack of Cohesiveness

Technological Innovation

Technology

The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals

ExamplesInternet – 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

Alternative Work Arrangements

Telecommuting - transmitting work from a home computer to the office using a modem. Employees

Gain flexibilitySave the commute to workEnjoy the comforts of home

But, theyHave distractionsLack socialization opportunitiesLack interaction with supervisorsIdentify less with the organization

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.

Help Employees Adjust to Technological Change by

Involving them in decision making regarding technological change

Providing effective training Encouraging reinvention (creative application of

new technology)

Ethical Theories Consequential Theory An ethical theory that

emphasizes theconsequences or results

of behaviorRule-Based Theory An ethical theory that

emphasizes thecharacter of the act

itself rather than its effectsCharacter Theory An ethical theory that

emphasizes the character,personal virtues, and

integrity of the individual

Employee Rights Issues

Computerized monitoring

Drug testing

Free speech

Downsizing

Layoffs

Due process

AIDS in the workplace

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 orPotential Romance?

Organizational Justice

Distributive Justice - fairness of the outcomes that individuals receive in an organization

Ex. Companies in Danger

CEOSalaries

vs.

Ex. Competenceand Skill

Race andGender

vs.

Procedural Justice -fairness by which the outcomes are allocated in an organization

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

Rotary Four-Way Testof 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?

Four Challenges to Organizations in the New Millennium

Globalization

Diversity

Technology

Ethics