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part 4
Chapter 13
Chapter
Contemporary Issues
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Learning Objectives
1. Define diversity and explain how it applies to
management.
2. Define global management.
3. Compare and contrast importing and
exporting.
4. Identify protectionism.
5. Explain how to manage change and the
change process.
6. Explain the process of organizational
development.
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Diversity and Management
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In the past, minority workers -- menial jobs
Today, more in higher level positions
Glass ceiling
Downsizing opening doors
What is Diversity
• Definition
• Trend – Greater diversity
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Diversity and Management
Reasons for Creating a Diverse Workforce
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Reasons
Improved decision making
Increasing globalization
Challenges
New human resource policy
Solutions
Tolerance
Potential payoff
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Global Management
• International trade
• Standard of living
Absolute Advantage
• Different countries different resources
• Definition
Comparative Advantage
• The law of comparative advantage
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Exporting and Importing
• International trade
Exports
• Why do companies export?
• How do companies identify markets?
Imports
• Imports of materials
• Imports of consumer goods
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Exporting and Importing
The Trade Balance
• Trade surplus
• Trade deficit
Foreign Exchange
• Foreign exchange rate
• Fluctuation
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Protectionism
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Tariffs
Quotas
Embargos
Free trade areas
– NAFTA
– EU
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Doing Business Globally
Forms of International Operations
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Working through a foreign intermediary
Signing a licensing agreement with a foreign country
Forming a strategic alliance
Becoming a multinational corporation
Challenges of Working in an International
Environment
• Deal with customers, suppliers, and employees from
different countries
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Doing Business Globally
Understanding Foreign Cultures
• Different cultural attitudes
Coalitions of Cooperating Countries and
Trading Blocs
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Coalition
EU
OPEC
NAFTA
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Doing Business Globally
Political Changes
• Most dramatic illustration
Human Rights and Ethics
• Close plants?
• Strike a balance
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Doing Business Globally
• Managing Change
• Change as a Global Issue
• Types of Change:
– Technological
– Environmental
– Internal
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The Change Process
• Change
Lewin’s Three-Step Model for Change
• Unfreezing
• New alternative
• Refreezing
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The Change Process
Resistance to Change
• Normal reaction
• Organizational resistance
• Reasons for resisting change:
– fear of unknown
– economics
– fear of skills loosing value
– threats to power
– additional work
– threats to interpersonal relations
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The Change Process
• Reducing resistance to change
– Four basic situations
– Ways to reduce resistance & build
commitment:
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build trust
discuss upcoming change
involve the employee
ensure change reasonableness
avoid threats, and
follow a sensible time schedule
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The Change Process
• Leading change – Kotter’s eight-step method
– Establish a sense of urgency
– Create a guiding coalition
– Develop a vision and strategy
– Communicate the change vision
– Empower broad-based action
– Generate short-term wins
– Consolidate gains and produce more change
– Anchor new approaches in the culture
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The Change Process
Organizational Development
• The human side of organization
• Ultimate goal of OD
• Diagnoses
• Review available records, survey questionnaire,
personal interviews, direct observations
• Change planning
• Intervention/Education
• Direct feedback, team building, sensitivity training
• Evaluation
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18
Managing Innovation
• Robert Tucker’s 4 Principles
• Ability to innovate is critical as rate of change
increases
The Learning Organization
• Peter Senge’s five principles
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System’s thinking
Personal mastery
Mental models
Shared vision
Team learning
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