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Learning Outcomes 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 brings 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. © 2013 Cengage Learning Four Challenges Globalization Diversity Ethics Technology © 2013 Cengage Learning 1 Learning Outcome Describe the factors that affect organizations competing in the global economy. © 2013 Cengage Learning 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) © 2013 Cengage Learning Changing Business Perspectives From Multinational Organizations (in which the organization was recognized as doing business with other countries) To Transnational Organizations (in which the global viewpoint supersedes national issues) © 2013 Cengage Learning CHANGES IN THE GLOBAL MARKETPLACE • Opening of Chinese market • Creation of the European Union • Establishment of NAFTA © 2013 Cengage Learning Understanding Cultural Differences HOFSTEDE’S DIMENSIONS © 2013 Cengage Learning 2 Learning Outcome Explain how cultural differences form the basis of work-related attitudes. © 2013 Cengage Learning Where the U.S. Stands ON HOFSTEDE’S DIMENSIONS INDIVIDUALISM Collectivism High power distance High uncertainty avoidance Low power distance LOW UNCERTAINTY AVOIDANCE MASCULINITY Long-term orientation Femininity SHORT-TERMM ORIENTATION © 2013 Cengage Learning 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 © 2013 Cengage Learning 3 Learning Outcome Describe the challenges and positive influences diversity brings to today’s business environment. © 2013 Cengage Learning Diversity all forms of individual differences, including culture, gender, age, ability, personality, religion, personality, social status, and sexual orientation © 2013 Cengage Learning 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 © 2013 Cengage Learning WOMEN & OBSTACLES AT WORK • • • • Comprise over 46% 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 © 2013 Cengage Learning Diversity Statistics Affecting the Workplace 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%. © 2013 Cengage Learning Diversity’s Benefits & Problems 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 © 2013 Cengage Learning 4 Learning Outcome Discuss the role of ethics, character, and personal integrity in the organization. © 2013 Cengage Learning 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 of the individual and the intent of the actor instead of the character of the act itself or its consequences © 2013 Cengage Learning 5 Learning Outcome Explain five issues that pose ethical dilemmas for managers. © 2013 Cengage Learning Employee Rights Issues Technology and privacy HIV/AIDS Confidentiality © 2013 Cengage Learning 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 © 2013 Cengage Learning Organizational Justice Distributive Justice – fairness of the outcomes that individuals receive in an organization Procedural Justice – fairness of the process by which the outcomes are allocated in an organization © 2013 Cengage Learning Individual and Organizational Responsibility Whistle-Blower – an employee who informs authorities of wrongdoing by his or her company or coworkers – Public Hero or Vile Wretch? Social Responsibility – the obligation of an organization to behave ethically in its social environment © 2013 Cengage Learning The Four Way Test © 2013 Cengage Learning 6 Learning Outcome Describe the effects of technological advances on today’s workforce. © 2013 Cengage Learning Technological Innovation Technology The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals. Internet Examples Expert System © 2013 Cengage Learning Robotics Alternative Work Arrangements Telecommuting Satellite offices Virtual offices © 2013 Cengage Learning 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 © 2013 Cengage Learning 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 © 2013 Cengage Learning 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) © 2013 Cengage Learning 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? Lost in Translation 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. © 2013 Cengage Learning 1. What practices at Theo Chocolate illustrate the concept of social responsibility? Theo Chocolate 2. What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives? 3. What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice? © 2013 Cengage Learning