Challenges for Managers Challenges for Managers Chapter 2 Organizational Behavior Nelson & Quick 6th edition

Remaining Competitive: Four Major Challenges to Managers Remaining Competitive: Four Major Challenges to Managers Globalizing the firm’s operations Leading a diverse workforce Encouraging positive ethics, character, and personal integrity Advancing and implementing technological innovation 2

Changing Business Perspectives 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 Photos courtesy of Clips Online, © 2008 Microsoft Corporation 3

Changing Business Perspectives Changing Business Perspectives From Multinational organizations (in which the organization was recognized as doing business in several countries) To Transnational organizations, (in which the global viewpoint supersedes national issues) Photos courtesy of Clips Online, © 2008 Microsoft Corporation 4

Changes in the Global Marketplace 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 5

Understanding Cultural Differences (Hofstede) Understanding Cultural Differences (Hofstede) Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation 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. 6

Where the U.S. Stands Individualism Collectivism Individualism Where the U.S. Stands Individualism High power distance High uncertainty avoidance Masculinity Long-term orientation Individualism Collectivism Low power distance Low uncertainty avoidance Femininity Short-term orientation Low power distance Low uncertainty avoidance Masculinity Short term orientation 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. 6

Management Careers with a Global Dimension Expatriate manager - a manager who works in a country other than his or her home country International executive – an executive whose job has international scope Key competencies such managers and executives need include integrity, insightfulness, risk-taking, courage to take a stand, and ability to bring out the best in people.

Developing Cross-Cultural Sensitivity Developing Cross-Cultural Sensitivity Use of mentor/protégé relationships Cultural sensitivity training Cross-cultural task forces/teams Global view of human resource functions Planning Recruitment and Selection Compensation Training and Development 8

Diversity Diversity - All forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment, and sexual orientation Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Diversity Statistics for the Workplace Diversity Statistics for the Workplace 5% 11% 14% 68%

Women and Obstacles at Work Women make up over 60% of the workforce, earn 32% of all doctorates, 52% of master’s degrees, and 50% of undergraduate degrees BUT Women hold less than 16.4% of Fortune 500 corporate officer positions, earn 81% 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 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%.

Diversity’s Benefits & Problems BENEFITS PROBLEMS Resistance to change Lack of cohesiveness Communication problems Interpersonal conflicts Slowed decision making Attracts & retains the best human talent Improves marketing efforts Promotes creativity and innovation Results in better problem solving Enhances organizational flexibility

Ethical Theories Consequential Theory Rule-Based Theory Character Ethical Theories Consequential 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, personal virtues, and integrity of the individual 15

Employee Rights Issues Computerized monitoring Drug testing Free speech Downsizing & layoffs Due process AIDS in the workplace Photos courtesy of Clips Online, © 2008 Microsoft Corporation

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? Photos courtesy of Clips Online, © 2008 Microsoft Corporation Copyright ©2009 South-Western, a division of 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 Ex. Companies in Danger Ex. Competence and Skill vs. vs. CEO Salaries Race and Gender Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Individual & Organizational Responsibility Individual & Organizational Responsibility Whistle-Blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers Public Hero Villain Social Responsibility - the obligation of an organization to behave in ethical ways Depends on whether or not the the whistle-blowing is viewed as more offensive the wrongdoing.

Rotary Four-Way Test of What We Think, Say, or Do 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?

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

Alternative Work Arrangements Telecommuting - transmitting work from a home computer to the office using a modem Employees gain flexibility, save the commute to work, enjoy the comforts of home Employees have distractions, lack socialization opportunities, lack interaction with supervisors, and identify less with the organization

Additional Alternative Work Arrangements 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 Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Technological Change Requires Managers to 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 Recognize the importance of intellectual property

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) Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Four Challenges to Organizations in the New Millennium Four Challenges to Organizations in the New Millennium Technological Innovation Workforce Diversity Globalization Ethics Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Chapter 2: Reflect & Discuss Mr. Baseball Video Clip What to Watch for and Ask Yourself Does Jack Elliot behave as if he had cross-cultural training before arriving in Japan? Is he culturally sensitive or insensitive? What do you propose that Jack Elliot do for the rest of his time in Japan? Mr. Baseball The New York Yankees trade aging baseball player Jack Elliot (Tom Selleck) to the Chunichi Dragons, a Japanese team. This lighthearted comedy traces Elliot's bungling entry into Japanese culture and exposes his cultural misconceptions, which almost cost him everything—including his new girlfriend Hiroko Uchiyama (Aya Takanashi). Unknown to Jack, Hiroko’s father is “The Chief” (Ken Takakura), the Chunichi Dragons’ manager. After Elliot slowly begins to understand Japanese culture and Japanese baseball, his teammates finally accept him. This film shows many examples of Japanese culture, especially its love for baseball. The Mr. Baseball scene takes place after “The Chief” has removed Jack from a baseball game. It shows Jack dining with Hiroko and her grandmother (Mineko Yorozuya), grandfather (Jun Hamamura), and father. The film continues with a dispute between Tom and Hiroko. Jack also learns from “The Chief” what he must do to succeed on the team. What to Watch for and Ask Yourself Does Jack Elliot behave as if he had cross-cultural training before arriving in Japan? Is he culturally sensitive or insensitive? What do you propose that Jack Elliot do for the rest of his time in Japan? 27