Chapter 2 - The University of Texas at Arlington

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 bring 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.

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1 Learning Outcome

Describe the factors that affect organizations competing in the global economy.

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Four Challenges

Globalization

Diversity

Ethics

Technology

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Remaining Competitive

• Globalizing the firm’s operations

• Managing a diverse workforce

• Keeping up with technological change and implementing technology in the workplace

• Managing ethical behavior

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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)

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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)

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Beyond the Book:

China and Globalization

• Suntech Power, China’s largest solar panel manufacturer, opening a plant in

Arizona.

• Will build panels from parts manufactured in China and Texas.

• Important factor – shipping costs.

• Suntech has goal of reaching 20% US market share by end of 2010.

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GLOBAL MARKETPLACE

• Opening of Chinese market

• Creation of the European Union

• Establishment of NAFTA

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Understanding Cultural Differences

HOFSTEDE’S DIMENSIONS

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Where the U.S. Stands

ON HOFSTEDE’S DIMENSIONS

INDIVIDUALISM Collectivism

High power distance Low power distance

High uncertainty avoidance

MASCULINITY

Long-term orientation

LOW UNCERTAINTY AVOIDANCE

Femininity

SHORT-TERMM ORIENTATION

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2 Learning Outcome

Explain how cultural differences form the basis of work-related attitudes.

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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

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3 Learning Outcome

Describe the challenges and positive influences diversity brings to today’s business environment.

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Diversity

all forms of individual differences, including culture, gender, age, ability, personality, religious affiliation, economic class, social status, military attachment and sexual orientation

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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

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Beyond the Book:

Diversity in College Football

• According to The Institute for Diversity and

Ethics in Sport at the University of South

Florida, key leadership positions at Football

Bowl Subdivision schools remain predominantly white and male.

• 100% of athletic conference commissioners.

• 93.3% of university presidents

• 86.7% of athletic directors

• 92.5% of head football coaches

• 82.9% of faculty

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& OBSTACLES AT WORK

• Comprise over 60% 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

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Age

Diversity Statistics Affecting the Workplace

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%.

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Beyond the Book:

Diversifying Dell

• Reverse mentoring scheme at Dell.

• Women in middle-management mentor senior-level men.

• Based on recognition that some aspects of leadership do not come as naturally to men as they do to women.

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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

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4 Learning Outcome

Discuss the role of ethics, character, and personal integrity in the organization.

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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

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5 Learning Outcome

Explain five issues that pose ethical dilemmas for managers.

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Employee Rights Issues

Technology and privacy

HIV/AIDS

Confidentiality

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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

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Organizational Justice

Distributive Justice – fairness of the outcomes that individuals receive in an organization

Procedural Justice – fairness by which the outcomes are allocated in an organization

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Individual and Organizational

Responsibility

Whistle-Blower – an employee who informs authorities of the wrongdoing of his or her company or coworkers

– Public Hero or Vile Wretch?

Social Responsibility – the obligation of an organization to behave ethically

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The Four Way Test

1. Is it the TRUTH ?

2. Is it FAIR to all concerned?

3. Will it build GOODWILL and better friendships?

4. Will it be BENEFICIAL to all concerned?

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6 Learning Outcome

Describe the effects of technological advances on today’s workforce.

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Technological Innovation

Technology

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.

Internet

Examples

Expert System

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Robotics

Beyond the Book:

Addicted to the Internet

• Technology can be addicting.

• Key warning sign – being preoccupied with online activities, adversely affecting relationships

• Types – pornography, gambling, auctions sites, games.

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Alternative Work

Arrangements

Telecommuting

Satellite offices

Virtual offices

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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

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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

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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)

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Lost in Translation

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?

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.

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