Download Section 2.3

Chapter 2: The Management Environment
Section 2.3 – What Will The Workforce of 2010 Look Like?
Key Terms
 Workforce diversity
 Downsizing
 Rightsizing
 Outsourcing
 Contingent workforce
 Core employees
 Empowerment
 Kaizen
 Work process engineering
 Coach
Summary
Until very recently, organizations took a “melting-pot” approach to differences in
organizations. It was assumed that people who were different would somehow
automatically want to assimilate. But today’s managers have found that employees do not
set aside their cultural values and lifestyle preferences when they come to work.
Projecting into the future is often an educated guess at best. Trying to predict the exact
composition of our workforce diversity is no exception, even though we do know it will
be heterogeneous: made up of males and females, whites and people of color, gays and
straights. Hispanics, Asians, Native Americans, the disabled, and the elderly. Another
group that has a significant impact on the workforce is the aging baby boom population.
How Does Diversity Affect Organizations? The diversity that exists in the workforce
requires managers to be more sensitive to the differences that each group brings to the
work setting.
The typical employee in the 1960s or 1970s showed up at the workplace Monday through
Friday and did his or her job in eight-or nine-hour chunks of time. The workplace and
hours were clearly specified. A number of forces have contributed to blurring the lines
between employee work and personal lives. First, the creation of global organizations,
second, communication technology and third, organizations are asking employees to put
in longer hours. It’s not unusual for employees to work more than 45 hours a week, and
some work much more than 50. Finally, fewer families have only a single breadwinner.
There was a time in corporate America when organizations followed a relatively simple
rule: In good times you hire employees; in bad times, you fire them. Since the late 1980s
that “rule” no longer holds true.
This downsizing phenomenon is not just in the United States. Jobs are being eliminated
in almost all industrialized nations. A better term for this organizational action might be
rightsizing. Rightsizing involves linking staffing levels to organizational goals.
Rightsizing promotes greater use of outside firms for providing necessary products and
services—called outsourcing—in an effort to remain flexible and responsive to the everchanging work environment.
Thousands of organizations in the global village have decided they could save money and
increase their flexibility by converting many jobs into temporary or part-time positions—
giving rise to what is commonly referred to as the contingent workforce. What issues do
contingent workers create for managers? Each contingent worker may need to be treated
differently in terms of practices and policies. Managers must also make sure that
contingent workers do not perceive themselves as second-class workers.
Cyclical labor trends are difficult to predict. The world economy in the late 1990s, for
instance, was generally quite robust and labor markets were tight. Then, in 2001, most
developed countries suffered an economic recession. Layoffs were widespread, and the
supply of skilled workers became must more plentiful. In contrast, demographic trends
are much more predictable. Barring some unforeseeable economic or political calamity,
there will be a labor shortage for at least another 10 to 15 years. The U.S. labor shortage
is a function of two factors—birthrates and labor participation rates. In addition, this
shortage will not be relegated to one or two industries.
Management can take several actions if it wants to make its culture more customerresponsive: 1) selection, 2) training, 3) organizing, 4) empowerment, 5) leadership, 6)
evaluation, and 7) rewards.
There is a quality revolution that continues to take place in both the private and public
sections. The generic term that has evolved to describe this revolution is quality
management or continuous improvement. Quality management is a departure from the
earlier management theories that were based on the belief that low costs were the only
road to increase productivity. Although continuous improvement methods are useful
innovations in many of our organizations, they generally focus on incremental change.
The problem with a focus on continuous improvements is that it may provide a false
sense of security. Unfortunately, ongoing incremental change may allow managers to
avoid facing up to the possibility that what the organization may really need is radical or
quantum change, referred to as work process engineering. Continuous change may also
make managers feel as if they are taking progressive action while, at the same time,
avoiding having to implement quantum changes that will threaten organizational
members.
Section Outline
I.
What will the Workforce 2010 Look Like?
A. What does the workforce look like today?
B. How does diversity affect organizations?
II.
III.
IV.
C. How can organizations help employees balance work/life concepts?
Is Labor in Short Supply?
A. Why do organizations lay off workers?
B. Is a labor shortage pending in the United States?
How do organizations make the customer king?
A. Can organizations improve customer service?
B. How have organizations shown an increased concern with quality?
C. When must managers think in terms of quantum changes rather than
continuous improvement?
Concluding remarks