1. © 2011 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 challenges and positive influences diversity bring to 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. © 2011 Cengage Learning. All rights reserved. Learning Outcome Describe the factors that affect organizations competing in the global economy. 1

3. © 2011 Cengage Learning. All rights reserved. Four Challenges Globalization Diversity Ethics Technology

4. © 2011 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. © 2011 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. © 2011 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. © 2011 Cengage Learning. All rights reserved. Beyond the Book: China and Globalization Suntech Power, China’s largest solar panel manufacturer, opening a plant in Arizona. Will build panels from parts manufactured in China and Texas. Important factor – shipping costs. Suntech has goal of reaching 20% US market share by end of 2010.

8. © 2011 Cengage Learning. All rights reserved. GLOBAL MARKETPLACE Opening of Chinese market Creation of the European Union Establishment of NAFTA CHANGES IN THE

9. Understanding Cultural Differences HOFSTEDE’S DIMENSIONS © 2011 Cengage Learning. All rights reserved.

10. 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 © 2011 Cengage Learning. All rights reserved.

11. Learning Outcome Explain how cultural differences form the basis of work-related attitudes. 2

12. © 2011 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. © 2011 Cengage Learning. All rights reserved. Learning Outcome Describe the challenges and positive influences diversity brings to today’s business environment. 3

14. © 2011 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. © 2011 Cengage Learning. All rights reserved. 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

16. © 2011 Cengage Learning. All rights reserved. According to The Institute for Diversity and Ethics in Sport at the University of South Florida, key leadership positions at Football Bowl Subdivision schools remain predominantly white and male. 100% of athletic conference commissioners. 93.3% of university presidents 86.7% of athletic directors 92.5% of head football coaches 82.9% of faculty Beyond the Book: Diversity in College Football

17. © 2011 Cengage Learning. All rights reserved. & OBSTACLES AT WORK Comprise over 60% 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

18. © 2011 Cengage Learning. All rights reserved. Diversity Statistics Affecting the Workplace AgeBy 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%.

19. © 2011 Cengage Learning. All rights reserved. Reverse mentoring scheme at Dell. Women in middle-management mentor senior-level men. Based on recognition that some aspects of leadership do not come as naturally to men as they do to women. Beyond the Book: Diversifying Dell

20. Diversity’s Benefits & Problems BENEFITSPROBLEMS Resistance to change Lack of cohesiveness Communication problems Interpersonal conflicts Slower decision making Attracts and retains the best talent Improves marketing efforts Promotes creativity and innovation Results in better problem solving Enhances organizational flexibility © 2011 Cengage Learning. All rights reserved.

21. Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization. 4

22. [ 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 © 2011 Cengage Learning. All rights reserved.

23. Learning Outcome Explain five issues that pose ethical dilemmas for managers. 5

24. © 2011 Cengage Learning. All rights reserved. Employee Rights Issues Technology and privacy HIV/AIDS Confidentiality

25. © 2011 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

26. © 2011 Cengage Learning. All rights reserved. Organizational Justice Distributive Justice – fairness of the outcomes that individuals receive in an organization Procedural Justice – fairness by which the outcomes are allocated in an organization

27. © 2011 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 or Vile Wretch? Social Responsibility – the obligation of an organization to behave ethically

28. The Four Way Test © 2011 Cengage Learning. All rights reserved. 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?

29. © 2011 Cengage Learning. All rights reserved. Learning Outcome Describe the effects of technological advances on today’s workforce. 6

30. © 2011 Cengage Learning. All rights reserved. Technological Innovation Examples Internet Expert System Robotics Technology The intellectual and mechanical processes used by an organization. The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals.

31. © 2011 Cengage Learning. All rights reserved. Technology can be addicting. Key warning sign – being preoccupied with online activities, adversely affecting relationships Types – pornography, gambling, auctions sites, games. Beyond the Book: Addicted to the Internet

32. © 2011 Cengage Learning. All rights reserved. Alternative Work Arrangements Telecommuting Satellite offices Virtual offices

33. © 2011 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

34. © 2011 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. © 2011 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)

36. © 2011 Cengage Learning. All rights reserved. Lost in Translation 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 Chapter 2 section, "Cultural Differences," to gain some insights about these questions.