1. The Business Enterprise: Open vs Closed Systems Open –freely exchanges with environment (import/export) –interdependent with environment Closed –no import/export activity –self-contained

2. The Organization’s Environment

3. Organization as Open System

4. Management The Business Enterprise

5. Management The Business Enterprise

6. Management The Business Enterprise Group Discussion: What are the implications of the statement—”Management is Not Practiced in a Vacuum” Hint: Use the evolution of management to date to explain your answer

7. Management The Business Enterprise

8. The Changing Environment of Management Social Environment –Life Styles –Shifting Demographics Economic Environment  What does this cause? –Global Economy (Interconnected World) –Business Cycles (unpredictability of) Social Contract between Employee & Employer –Downward Pressure on Loyalty  Why? Technological Environment –Increasing Communication –Increasing Connectivity Across Vast Distances—Physical boundaries no longer impede  What results?

9. What Manager’s Want from Employees. WHY THESE? How do they relate to “what’s happening” ?

10. More Challenges Socio-Political Environment –individual’s rights vs organization’s rights EEOC diversity privacy –society vs organization consumer protection environmental issues (see Kyoto Treaty) –government business (see Kyoto) influencing each other, laws & lobbying

11. “Political” Response Continuum Reactive Neutral Proactive --defend --wait & -- improve status quo see to avoid intervention & legislation

12. Issues Management Identify, Assess & Respond to Socio- Political Issues ==> No Surprises, be aware Know the Boundaries, Understand the Dynamics in Society Be Proactive, not Re-active

13. Issue: Global Warming & KYOTO Treaty What stance has EXXON taken on this issue? Is it a reasonable approach? Why? –Have they acted in accordance with the dynamics? –Are they proactive or reactive? What (other) factors/issues confound or complicate the position one takes? To what extent can their management approach explain why they’ve taken the position they have? What do you think is the primary cause of/reason for their position? What are the consequences of –Not supporting Kyoto? –Supporting Kyoto?

14. Technological Environment Changes What Business You Are In Changes the Way Business is Conducted Changes Competitive Advantage

15. Managing in the face of changing Technology ConceptProductProduction A Matter of Technology Development Duration of An Organization's Innovation Process Intrapreneurship: Degree of Creative Activity within an Organization

16. Forecast Challenges in 21st Century More Frequent Change Increased Intensity of Competition via Globalization Virtual Organization Part-time/Contingent Workers Knowledge Workers Worker Diversity Aging Workforce Merging of Personal & Business Life Increased Politicization of Management

17. Group Discussions: How will these conditions affect management practice? What will managers have to learn to do? What management theory best fits each change? Why?  More Frequent Change  Increased Intensity of Competition via Globalization  Virtual Organization  Part-time/Contingent Workers  Knowledge Workers  Worker Diversity  Aging Workforce  Merging of Personal & Business Life  Increased Politicization of Management