Chapter 2 Challenges for Managers 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 bring to today’s business environment. 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. Learning Outcomes © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. Four Challenges LO1 Globalization Diversity Ethics Technology Managerial Implications: Beating the Challenges Organizational success depends on managers’ ability to address the challenges of globalization, workforce diversity, ethics, and technological innovation. Successful organizations and managers view these four challenges as opportunities rather than as threats. Failure to address these challenges can mean costly losses, damage to reputations, and ultimately an organization’s demise. These four challenges are important because the way managers handle them shapes employee behavior. Developing global mindsets among employees expands their worldview and puts competition on a larger scale. Knowing that diversity is valued causes employees to think twice about engaging in discriminatory behaviors. Valuing technological change encourages employees to experiment with new technologies and develop innovative ways to perform their jobs. Sending a message that unethical behavior is not tolerated lets employees know that doing the right thing pays off. © 2011 Cengage Learning. All rights reserved.

Changing Business Perspectives LO1 From To International Organization Transnational Organizations Multinational Organizations © 2011 Cengage Learning. All rights reserved. 3

Understanding Cultural Differences LO1 HOFSTEDE’S DIMENSIONS © 2011 Cengage Learning. All rights reserved. 6

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 © 2011 Cengage Learning. All rights reserved. 8

Diversity Statistics for the Workplace LO3 Ethnic 2020 Workforce: 68% white non-Hispanic 14% Hispanic 11% African-American 5% Asian Gender 2020 Workforce: 50% male 50% female Age By 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%. © 2011 Cengage Learning. All rights reserved.

Diversity’s Benefits & Problems LO3 BENEFITS PROBLEMS Attracts and retains the best 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 Slower decision making © 2011 Cengage Learning. All rights reserved.

© 2011 Cengage Learning. All rights reserved. LO4 Ethical Theories [Rule-Based Theory] an ethical theory that emphasizes the character of the act itself rather than its effects [Consequential Theory] an ethical theory that emphasizes the consequences or results of behavior [Character Theory] an ethical theory that emphasizes the character, personal virtues, and integrity of the individual © 2011 Cengage Learning. All rights reserved.

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

© 2011 Cengage Learning. All rights reserved. The Four Way Test LO5 Is it the TRUTH? Is it FAIR to all concerned? Will it build GOODWILL and better friendships? Will it be BENEFICIAL to all concerned? © 2011 Cengage Learning. All rights reserved.

Technological Innovation 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. Examples Internet Expert System Robotics © 2011 Cengage Learning. All rights reserved.

Alternative Work Arrangements LO6 [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 © 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 © 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) © 2011 Cengage Learning. All rights reserved.