assitant needed

1. Discuss the emergence of international management and

its impact on organizations.

2. Describe the nature of diversity in organizations and

identify and explain key dimensions of diversity.

3. Discuss the changing nature of technology and its impact

on business

4. Describe emerging perspectives on ethics and corporate

governance

5. Discuss the key issues in new employment relationships

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Chapter Learning Objectives After studying this chapter you should be able to:

Globalization and Business

• Globalization

–The internationalization of business activities

–The shift toward an integrated global economy

• Factors Increasing Globalization

–Advances in communication and transportation

–Growth by expansion into international markets

–Control of labor, distribution and distribution costs

–In response to increased international competition

2–3

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FIGURE 2.1

The Changing

Environment

of Business

Cross-Cultural Differences and Similarities

• Culture

–A set of shared values that help people in a group,

organization, or society understand which actions are

considered acceptable and which are deemed

unacceptable

• General Observations

–Cultural and national boundaries may not coincide

–Behavior in organizational settings varies across

cultures—culture is one major cause of this variation

–The causes and consequences of behavior within

organizational settings are diverse across cultures

2–5

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Cross-Cultural Differences

and Similarities (cont’d)

• General Observations (cont’d)

–Organizations and the way they are structured

appears to be growing increasingly similar

–The same individual behaves differently in different

cultural settings

–Cultural diversity can be an important source of

synergy in enhancing organizational effectiveness

2–6

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Specific Cultural Issues

• Geert Hofstede’s Research

–Attitudes and behaviors differ significantly because of

values and beliefs that characterize different countries

• Hofstede’s Categories

–Individualism

–Collectivism

–Power distance

–Uncertainty avoidance

–Masculinity

–Long-versus short-term values

2–7

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Hofstede’s Primary Dimensions

2–8

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Individualism The extent that people in a culture define themselves primarily

as individuals rather than as part of one or more groups or

organizations

Collectivism The tight social frameworks in which people tend to base their

identities on the group or organization to which they belong

Power Distance

The extent to which people accept as normal an unequal

distribution of power

Uncertainty

Avoidance

The extent to which people feel threatened by unknown

situations and prefer to be in clear and unambiguous situations

Masculinity The extent to which the dominant values in a society

emphasize aggressiveness and the acquisition of money and

other possessions as opposed to concern for people, and

overall quality of life

Long-Term versus

Short-Term Values

A focus on the future, working on projects that have a distant

payoff, persistence, and thrift versus an orientation toward the

past and the present including respect for traditions and social

obligations

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Table 2.1 Work-Related Differences in 10 Countries

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FIGURE 2.2 Differences Across Cultures in Managers’ Beliefs

about Answering Questions from Subordinates

Diversity and Business

• Workforce Diversity

–The important similarities and differences among the

employees of organizations

• Stereotypes

–Generalizations about a person or a group of persons

based on certain characteristics or traits

• Prejudices

–Judgments about others that reinforce superiority

or inferiority beliefs

2–11

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Pitfalls of Stereotyping and Prejudices

• Stereotypes and Prejudices

–Can create management systems that do not meet the

needs of a diverse workforce

–Can cause failures to recognized employee’s

distinctive talents

–Can become self-fulfilling prophecies

2–12

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Dimensions of Diversity

• Primary Dimensions

–Factors that are either inborn or exert extraordinary

influence on early socialization

• Age, race, ethnicity, gender, sexual orientation,

physical/mental abilities

• Secondary Dimensions

–Factors that matter to us as individuals and that to

some extent define us to others

• Educational background, geographical location, income,

marital status, military experiences, parental status, religious

beliefs, work experiences

2–13

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Who Will Be the Workforce of the Future?

• Tomorrow’s Workforce in the United States

–Fewer white males

–A larger overall workforce

–More females

–An older workforce

• Tomorrow’s Global Workforce

–More females

–Increasing diversity due to increased worker mobility

2–14

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FIGURE 2.3 Workforce Composition: 1990–2014

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FIGURE 2.4 Projected Workforce Growth by Segment from 2004 to 2014

Diversity Issues

• The Value of Diversity

–Workforce composition affects

organizational productivity

• Diversity and the Modern Organization

–Celebrate the differences

–Utilize the variety of talents, perspectives,

backgrounds of all employees

2–17

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Into the Melting Pot: Assimilation

• Assimilation

–The process through which members of a minority

group are forced to learn the ways of the majority

group

• Assimilation Effects

–Homogeneity reduces awareness of diversity issues

–Perpetuation of false stereotypes and prejudices

–Dominant groups continue to make decisions based

on their own values and beliefs

–Minority groups have little say in decision-making

2–18

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Benefits of Valuing Diversity

• Diversity’s Results

–A richness of ideas and perspectives which can lead

to new product and market development and

improvement in customer services

–Workers that are valued and therefore are more

creative, motivated, and productive

–Higher productivity, better teamwork, deeper

employee commitment to the organization and its

goals

2–19

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Technology and Business

• Technology

–Methods used to create products, including both

physical goods and intangible services

• Manufacturing Organization

–A form of business that combines or transforms

resources into tangible outcomes that are then sold

• Service Organization

–One that transforms resources into an intangible

output; it creates time and place utility for its

customers

2–20

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Technology and Competition

• Challenges for Technology Leaders

–Maintaining a leadership position: technology

is the basis of competition for some firms

–Coping with decreasing cycle times

• Advances in Information Technology

–Advantages: leaner and more flexible organizations,

increased collaboration, improved management

processes/systems

–Disadvantages: less personal communication, less

“down time”, an increased sense of communication

and decision-making urgency

2–21

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Ethics and Corporate Governance

• Ethics

–A person’s beliefs about what constitutes

right and wrong behavior

• Contemporary Ethical Issues

–Financial abuses resulting from rapid changes in

business relationships and organizational structures

–Executive compensation

–Environmental protection

–Working conditions in foreign factories

–Pricing policies

–Pressure to balance profits against costs

2–22

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Framing Ethical Issues

2–23

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How employees

treat the

organization

How the

organization treats

employees

How employees and the

organization treat other

economic agents

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FIGURE 2.5

Managerial Ethics

Ethical Issues in Corporate Governance

• Corporate Governance

–The oversight of a public corporation by its board of

directors

• Governance Issues

–Proper management of the business in the best

interests of the stakeholders

–Independence of the board from the business

• Information Technology Issues

–Individual rights to personal information privacy

–Abuse of information technology

2–25

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New Employment Relationships

• Management of Knowledge Workers

–Employees who add value in an organization

simply because of what they know

• Computer scientists, physical scientists, engineers,

product designers, video game developers

• Knowledge Worker Employment Issues

–Unique working arrangements and performance

motivation requirements

–Specifically (individually) tailored compensation

packages

2–26

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New Employment Relationships (cont’d)

• Outsourcing

–The practice of hiring other firms to do work previously

performed by the organization itself

• Advantages of Outsourcing

–Helps firms to focus on core activities

–Lowers labor costs through exportation of work

• Disadvantages of Outsourcing

–Disaffected employees: out-of-job workers are used

train the newly-hired foreign replacements

–Reduction of domestic job opportunities

2–27

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New Employment Relationships (cont’d)

• Temp and Contingency Workers

–Work for an organization on something other than a

permanent or full-time basis as independent

contractors, on-call workers, temporary employees

(usually hired through outside agencies), and contract

and leased employees.

• Tiered Workforce

–Exists when one group of an organization’s workforce

has a contractual arrangement with the organization

objectively different from another group performing the

same jobs.

2–28

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• After reading the chapter:

–Why have concerns about globalization been so late in

coming to the forefront of business thought in the U.S?

–What factors could increase the rate of globalization?

Which could decrease the rate of globalization?

Organizational Behavior in Action