1.

Identify the Challenges and Opportunities for OB

The major challenges and opportunities are:

I. Responding to Economic Pressures

II. Responding to Globalization
III. Managing Workforce Diversity

Some other challenges and opportunities include:

IV. Improving Customer Service

V. Improving People Skills
VI. Stimulating Innovation and Change
VII. Coping with “Temporariness”
VIII. Working in Networked Organizations
IX. Helping Employees Balance Work-Life Conflicts
X. Creating a Positive Work Environment
XI. Improving Ethical Behavior

I. Responding to Economic Pressure

When there are economic pressures:

• Managers are forced to make decisions based on resource constraints.

• These situations may include laying off employees, motivating employees
when there are limited resources, and
• Encouraging employees when they are stressed about their futures.

II. Responding to Globalization

• Now organizations exist in an environment with no national borders.

• As a result, the job of manager has changed.
• Managers should have a broader perspective(viewpoint, perception)
when making decisions about:
• Increased foreign assignments
• Working with people from different cultures
• Overseeing movement of jobs to countries with low-cost labor

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III. Managing Workforce Diversity

• Now organizations exist in an environment with no national borders.

• As a result, the workforce is becoming heterogeneous (diverse).
• Managers need to embrace diversity and find ways to manage it
effectively in order to create productivity and profitability in the
organizations.

IV. Improving Customer Service

• Today the majority of employees in developed countries work in service

jobs.
• Employee attitudes and behavior are associated with customer satisfaction.
• OB helps to identify the characteristics and situations that can be managed
to make employees and managers more sensitive to customer satisfaction.

V. Improving People Skills

• Organizations are comprised of people.

• Organizations cannot achieve desired outcomes without people.
• People skills are essential to managerial effectiveness.
• OB provides the concepts and theories to predict employee behavior in
given situations to create a more effective organization that accomplishing
desired goals.

VI. Stimulating Innovation and Change

• Successful organizations must foster innovation and master the art of

change due to volatile economy and business environment.
• Employees can be major stumbling (hesitant) block for innovation and
change.
• Managers must stimulate employees’ creativity and tolerance for change.

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VII. Coping with “Temporariness”

• The volatile operational environments lead to a sense of “temporariness” in

today’s organization
• Managers and Leaders must learn to cope with temporariness by adopting
and practicing flexibility, impulsiveness and unpredictability to meet
environmental challenges.

VIII. Working in Networked Organizations

• Networked organizations are increasing (multiplying or proliferating); are

spread over geographically, time etc. and connecting the peoples, places,
and processes by technology.
• Manager’s job is different in networked organizations.
• Challenges of motivating and leading employees “online” require different
techniques.

IX. Helping Employees Balance Work-Life Conflicts

• Employees are working longer hours per week therefore the lifestyles of
families have changed that creating conflict between work and lifestyle.
• Managers and leaders of organizations must shoulder the responsibility to
help employees to balance work and life roles and to ensure that they
remain effective and viable members of the team.

X. Creating a Positive Work Environment

• Creating a positive work environment is basis for employee satisfaction,

increased productivity, and longevity of skilled personnel
• This field of study focuses on employees’ strengths versus their limitations.

XI. Improving Ethical Behavior

• Ethical dilemmas are situations in which an individual is required to define

right and wrong conduct.
• Organizations are distributing codes of ethics to guide employees.
• Managers need to create an ethically healthy climate.

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