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The Management Environment
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
PowerPoint Presentation by Charlie Cook The University of West Alabama
After reading this chapter, I will be able to:
1. Describe the three waves in modern social history and their implications for organizations. 2. Explain the importance of viewing management from a global perspective.
3. Identify the ways in which technology is changing the manager’s job.
4. Describe the difference between an e-business, ecommerce, and an e-organization. 5. Define social responsibility and ethics.
Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2–2
Learning Outcomes (cont’d)
After reading this chapter, I will be able to:
6. Explain what is meant by the term entrepreneurship and identify the components of the entrepreneurial venture. 7. Describe the management implications of a diversified workforce. 8. Identify which work/life concepts are affecting employees. 9. Explain why many corporations have downsized. 10. Describe the key variables for creating a customerresponsive culture.
Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2–3
2–4 . Explain why companies focus on quality and continuous improvement. All rights reserved. Copyright © 2005 Prentice Hall.Learning Outcomes (cont’d) After reading this chapter. I will be able to: 11. Inc.
All rights reserved. 2–5 . all economies were agrarian. • Industrialization From the late 1800s until the 1960s. Inc. • Information Information technology is transforming society from its manufacturing focus to one of service.The Changing Economy • Agriculture Until the late nineteenth century. Copyright © 2005 Prentice Hall. most developed countries moved from agrarian societies to industrial societies.
The Changing Economy Old Economy New Economy • National borders limit competition • Technology reinforces rigid hierarchies and limits access to information • Job opportunities are for bluecollar industrial workers • Population is relatively homogeneous • Business is estranged from its environment • Economy is driven by large corporations • Customers get what business chooses to give them Copyright © 2005 Prentice Hall.1 2–6 . All rights reserved. Inc. • National borders no longer define an organization’s operating boundaries • Technological change makes information more accessible • Job opportunities are for knowledge workers • Population is characterized by cultural diversity • Business accepts its social responsibilities • Economy is driven by small entrepreneurial firms • Customer needs drive business Exhibit 2.
A Global Marketplace • Global village The concept of a boundaryless world. Inc. All rights reserved. 2–7 . • Borderless organization A management structure in which internal arrangements that impose artificial geographic barriers are broken down Copyright © 2005 Prentice Hall. the production and marketing of goods and services worldwide.
2–8 . Copyright © 2005 Prentice Hall. • Transnational corporation (TNC) A company that maintains significant operations in more than one country simultaneously and decentralizes decision making in each operation to the local country. Inc. All rights reserved.Global Competition • Multinational corporations (MNCs) Companies that maintain significant operations in two or more countries simultaneously but are based in one home country. • Strategic alliances A domestic firm and a foreign firm share the cost of developing products or building production facilities in a foreign country.
Inc. 2–9 . All rights reserved.Stages of Going Global Exhibit 2.3 Copyright © 2005 Prentice Hall.
All rights reserved.Globalization’s Effect On Managers • Parochialism A narrow focus in which one sees things solely through one’s own view and from one’s own perspective • Hofstede’s framework for assessing cultures: Power distance Individualism versus collectivism Quantity of life versus quality of life Uncertainty avoidance Long-term versus short-term orientation Copyright © 2005 Prentice Hall. Inc. 2–10 .
2–11 . Inc. • Cultural Dimensions Assertiveness Future orientation Gender differentiation Uncertainty avoidance Power distance Individualism/Collectivism In-group collectivism Performance orientation Humane orientation Copyright © 2005 Prentice Hall.Global Leadership and Organizational Behavior Effectiveness (GLOBE) • An ongoing cross-cultural investigation of leadership and national culture Confirms and extends Hofstede’s earlier work on national cultural dimensions and leadership. Also found that the strength of cultural dimensions appear to be changing. All rights reserved.
J. Exhibit 2.4 2–12 Copyright © 2005 Prentice Hall. All rights reserved. “Cultural Acumen for the Global Manager: Lessons from Project GLOBE. House. Inc. pp. 289–305.GLOBE Highlights Source: M. . Spring 2001.” Organizational Dynamics. Javidan and R.
4 (cont’d) 2–13 Copyright © 2005 Prentice Hall. House.” Organizational Dynamics. 289–305. All rights reserved.GLOBE Highlights Source: M. Javidan and R. Exhibit 2. pp. . Spring 2001. Inc. “Cultural Acumen for the Global Manager: Lessons from Project GLOBE. J.
g. All rights reserved. or operating methods that are designed to make work more efficient • Information Technology (IT) Benefits of IT Cost savings (e. Inc. tools. 2–14 .Emphasis on Technology • Technology Any equipment. inventory control) Freedom from fixed locations for operations Challenges Increased worker skill requirements A leveling of the the competitive playing field that increases competition Copyright © 2005 Prentice Hall..
Internet Business Terms • E-commerce Any computer transaction that occurs when data are processed and transmitted over the Internet • E-organization The applications of e-business concepts offered to stakeholders. Inc. All rights reserved. • E-business The full breadth of activities included in a successful Internet-based enterprise Copyright © 2005 Prentice Hall. 2–15 .
All rights reserved.5 Copyright © 2005 Prentice Hall.What Defines an E-Business? Exhibit 2. 2–16 . Inc.
Copyright © 2005 Prentice Hall. 2–17 . All rights reserved.In What Ways Does Technology Alter A Manager’s Job? • Effectiveness and efficiency Managers have access to more complete and accurate information than before. Inc. enabling them to function as better managers. • Place Telecommuting: the linking of a worker’s computer and modem with those of co-workers and management at an office.
• Social obligation The obligation of a business to meet its economic and legal responsibilities and no more. beyond that required by the law and economics.Society’s Expectations of Business • Social responsibility A firm’s obligation. All rights reserved. to pursue long-term goals that are beneficial to society. • Social responsiveness The ability of a firm to adapt to changing societal conditions. Inc. 2–18 . Copyright © 2005 Prentice Hall.
pp. 616: and K. J. McGuire. All rights reserved. Business and Society: Management. p. 1974). Exhibit 2. ed. Public Policy. NJ: Prentice Hall. Frederick. Davis and W. Ethics.6 2–19 Copyright © 2005 Prentice Hall. 1984). Contemporary Management: Issues and Views (Upper Saddle River.” in J. 5th ed. Inc. (New York: McGraw-Hill. Monsen Jr. “The Social Attitudes of Management.. . M. 28–41.Arguments for Social Responsibility • Public expectations • Long-run profits • Ethical obligation • Public image • Balance of responsibility and power • Stockholder interests • Possession of resources • Superiority of prevention over cures • Better environment • Discouragement of further government regulation Source: Adapted from R.
Frederick. “The Social Attitudes of Management. Public Policy. All rights reserved. . McGuire. 28–41. pp.6 (cont’d) 2–20 Copyright © 2005 Prentice Hall. J. 5th ed. 616: and K. Monsen Jr. Inc. p.Arguments against Social Responsibility • Violation of profit maximization • Dilution of purpose • Costs • Too much power • Lack of skills • Lack of accountability • Lack of broad public support Source: Adapted from R. Business and Society: Management. M. ed. 1974). Davis and W. (New York: McGraw-Hill. 1984). NJ: Prentice Hall.” in J. Contemporary Management: Issues and Views (Upper Saddle River. Ethics.. Exhibit 2.
All rights reserved.Ethics and Business • Ethics A set of rules or principles that defines right and wrong conduct • Code of ethics A formal document that states an organization’s primary values and the ethical rules it expects managers and operatives to follow Copyright © 2005 Prentice Hall. Inc. 2–21 .
All rights reserved. Exhibit 2. . Source: G. F. Moberg. Valasquez.Three Views of Ethics • Utilitarian view of ethics Making decisions solely on the basis of their outcomes or consequences. “The Ethics of Organizational Politics.” Academy of Management Journal (June 1981): 363–74. Inc. and M. Cavanaugh. J. • Rights view of ethics Respecting and protecting individual liberties and privileges • Theory of justice view of ethics Fairly and impartially imposing and enforcing rules.7 2–22 Copyright © 2005 Prentice Hall. D.
What Is Entrepreneurship? • Entrepreneurship The process of initiating a business venture. 2–23 . organizing the necessary resources. Managing the venture Copyright © 2005 Prentice Hall. and assuming the risks and rewards • Steps in the entrepreneurial process Exploring the entrepreneurial context. All rights reserved. Identifying opportunities and competitive advantages Starting the venture. Inc.
is willing to seize opportunities for change.What Do Entrepreneurs Do? • No two entrepreneurs are exactly alike They are creating something new. and exploiting it. something different. responding to it. 2–24 . Inc. • Intrapreneur A persons within an organization who demonstrates entrepreneurial characteristics—has confidence in his or her abilities. and expects surprises and capitalizes on them. They’re searching for change. Copyright © 2005 Prentice Hall. All rights reserved.
age.Diversity and the Workforce of 2010 • Increasing workforce diversity More variation in the background of organizational members in terms of gender. All rights reserved. race. and ethnicity • Characteristics of the future workforce More heterogeneous/diverse Increasingly older More multicultural • Diversity will require more managerial sensitivity to individual differences. Copyright © 2005 Prentice Hall. sexual orientation. 2–25 . Inc.
8 2–26 Copyright © 2005 Prentice Hall.Mars Incorporated Diversity Philosophy “Distinctive voices working together within a common culture” is one of the ways we have described how we do business at Mars. We believe that the success of our business can be enhanced by having a workforce made up of associates from many different backgrounds. We value the talents and contributions of our diverse workforce in reaching toward our future and in playing responsible leadership roles. Source: www.mars. All rights reserved. . much as our society and consumer base consist of a wide variety of individuals.com/other_policies/diversity. Inc.as Exhibit 2.
Inc. 2–27 . All rights reserved.Labor Supply and Demand Adjustments • Downsizing An activity in an organization designed to create a more efficient operation through extensive layoffs • Rightsizing Linking staffing levels to organizational goals • Outsourcing An organization’s use of outside firms for providing necessary products and services Copyright © 2005 Prentice Hall.
Flexible Workforces • Core employees The small group of full-time employees of an organization who provide some essential job tasks for the organization • Contingent workforce Part-time. and contract workers who are available for hire on an as-needed basis Copyright © 2005 Prentice Hall. temporary. 2–28 . All rights reserved. Inc.
Are paid when the firm receives particular deliverables. Are a labor cost that is fixed by contract Exhibit 2.9 Copyright © 2005 Prentice Hall. All rights reserved. May be involved in job sharing • Temporary employees Are generally employed during peak periods Can fill in for employees for an extended period of time Create a fixed labor cost during a specified period • Contract workers Are hired by organizations to work on specific projects. Inc. 2–29 .Contingent Workers • Part-time employees Work fewer than 40 hours a week Are a good source of staffing for peak hours.
Inc. All rights reserved.Is There a Pending Labor Shortage in the United States? • 2010 U. 2–30 .S. Labor Shortage Fewer available workers Retiring baby boomers Immigration restrictions • Implication for managers More sophisticated recruitment and retention strategies Copyright © 2005 Prentice Hall.
Making a Company’s Culture More Customer-responsive • Actions that create employees with the competence. 2–31 . ability. All rights reserved. Inc. and willingness to solve customer problems as they arise: Selection: hiring the right personalities and attitudes Training: developing the customer-focus employees Organizing: creating customer-friendly controls Empowerment: independence in relating to customers Leadership: commitment to the customer-focus vision Evaluation: performance measured by behaviors Rewards: contingent on outstanding customer service Copyright © 2005 Prentice Hall.
2–32 . All rights reserved. Inc.Shaping a CustomerResponsive Culture Exhibit 2.10 Copyright © 2005 Prentice Hall.
Increased Concern for Quality • Continuous improvement Organizational commitment to constantly improving the quality of a product or service Joseph Juran W. All rights reserved. 2–33 . Inc. Edwards Deming Kaizen: the Japanese term for an organization committed to continuous improvement • Work process engineering Radical or quantum change in an organization Copyright © 2005 Prentice Hall.
Exhibit 2. Inc. Empowerment of employees.11 Copyright © 2005 Prentice Hall. 5. Improvement in the quality of everything the organization does. Concern for continuous improvement. 2. 2–34 . 4.Components of Continuous Improvement 1. All rights reserved. Intense focus on the customer. Accurate measurement. 3.
Web Links • Visit the Robbins/DeCenzo companion Website At www. including chapter quiz and student PowerPoints. • Diversity Perspectives Log onto www. Inc. All rights reserved.prenhall.com/onekey and imagine the possible perceptions of the workers and the new division manager toward each other. 2–35 .com/robbins for this chapter’s Internet resources. Copyright © 2005 Prentice Hall.prenhall.
com/onekey and enhance your skill in ethical decision making! Copyright © 2005 Prentice Hall. 2–36 . Inc. Log onto www. All rights reserved.prenhall.Web Links (cont’d) • Enhancing Your Skill in Ethical Decision Making Now you can assume the role of a Boeing manager in a hypothetical scenario involving ethical challenges.
All rights reserved. 2–37 . Inc.Video Case Application Conducting Business Ethically and Responsibly: Patagonia Insert Video Link Here (Size to this window) Copyright © 2005 Prentice Hall.
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