Chapter 2
Nelson & Quick
Organizations &
Managerial Challenges in the
Twenty-First Century
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Remaining Competitive: Four
Major Challenges to Managers
 Globalizing the firm’s operations
 Managing a diverse workforce
 Keeping up with technological change and
implementing technology in the workplace
 Managing ethical behavior
Changing Business Perspectives
International implies an individual’s
or organization’s nationality is held
strongly in consciousness
Move
to
Globalization implies the world is
free from national boundaries and
that it is really a borderless world
Changing Business Perspectives
In multinational organizations,
the organization is recognized as
doing business with other countries
Move
to
In transnational organizations,
the global viewpoint supersedes
national issues.
Changes in the Global Marketplace




Collapse of Eastern Europe
Union of East and West Berlin
Perestroika
Expansion of business with China
Guanxi – The Chinese practice of building
networks for social exchange
 Creation of the European Union
 Establishment of the North American Free Trade
Agreement
Understanding Cultural Differences
Individualism
Collectivism
High power distance
High uncertainty
avoidance
Low power distance
Low uncertainty
avoidance
Masculinity
Femininity
Long-term orientation
Short-term orientation
Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. Cultural
Constraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproduced
by permission of the publisher via Copyright Clearance Center, Inc.
Where the U.S. Stands
Individualism
Collectivism
High power distance
High uncertainty
avoidance
Low power distance
Low uncertainty
avoidance
Masculinity
Femininity
Long-term orientation
Short-term orientation
Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. Cultural
Constraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproduced
by permission of the publisher via Copyright Clearance Center, Inc.
Developing Cross-Cultural Sensitivity
 Cultural sensitivity training
 Cross-cultural task forces/teams
Diversity
All forms of individual differences, including
culture, gender, age, ability, personality, religious
affiliation, economic class, social status, military
attachment, and sexual orientation
Diversity Statistics for the
Workplace
Cultural 2020 Workforce: 68% white non-Hispanic
14% Hispanic
11% African American
6% Asian
Gender 2020 Workforce: 50% male
50% female
Women and Obstacles at Work
Today, women make up over 54% of the workforce,
earn 32% of all doctorates, 52% of master’s
degrees, and 50% of undergraduate degrees
BUT
Today, women hold less than 13% of Fortune 500
corporate officer positions, earn 77% of what their
male counterparts do, and encounter the glass
ceiling in the workplace
a transparent barrier that keeps women from
rising above a certain level in organizations
Diversity Statistics Affecting the
Workplace
Age
By 2030, there will be 70,000,000 older
persons. People over 65 will comprise
20% of the population.
Ability An estimated 54 million disabled live in the
U.S.; their unemployment rate exceeds 50%.
Result in
Better
Problem
Solving
Enhance
Organizational
Flexibility
Attract &
Retain
Talent
Diversity
Benefits
Promote
Creativity &
Innovation
Enhance
Marketing
Efforts
Slower
DecisionMaking
Possibility of
Conflicts
Resistance
to Change
Diversity
Problems
Lack of
Cohesiveness
Communication
Problems
Technological Innovation
Technology
The intellectual and
mechanical processes
used by an
organization to
transform inputs into
products or services
that meet
organizational goals
Examples
Internet – integrates computer,
cable, telecommunications
technologies
Expert System - computer-based
application using a
representation of human
expertise in a specialized field
of knowledge to solve problems
Robotics - use of robots in
organizations
Alternative Work Arrangements
Telecommuting - transmitting work from a home
computer to the office using a modem. 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

Additional Alternative Work
Arrangements
Hoteling - employees have mobile file
cabinets/lockers for personal storage; work spaces
are reserved, not assigned
Satellite Offices - large facilities broken into
smaller workplaces near employees’ homes
Virtual Office- people work anytime, anywhere,
with anyone.
Help Employees Adjust to
Technological Change by
 Involving them in decision making regarding
technological change
 Providing effective training
 Encouraging reinvention (creative application of
new technology)
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
Employee Rights Issues
Computerized monitoring
Drug testing
Free speech
Downsizing
Layoffs
Due process
AIDS in the workplace
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
Harassment or
Potential Romance?
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
Ex. Companies
in Danger
vs.
CEO
Salaries
Ex. Competence vs. Race and
and Skill
Gender
Individual & Organizational
Responsibility
Whistle-Blower - an employee who informs
authorities of the wrongdoing of his or her
company or coworkers
 Public Hero
 “Vile Wretch”
Social Responsibility - the obligation of an
organization to behave ethically
Rotary Four-Way Test
of What We Think, Say, or Do
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?
Four Challenges to Organizations
in the New Millennium
Globalization
Diversity
Technology
Ethics