managing in a contemporary world

8/11/2019 Managing in a Contemporary World

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Part 1: Introduction

PowerPoint Presentation by Charlie Cook

Copyright 2004 Prentice Hall, Inc.All rights reserved.

Chapter 2

Managing

in a

Contemporary

World


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Copyright 2004 Prentice Hall, Inc. All rights reserved. 22

L E A R N I N G O U T C O M E S

After reading this chapter, I wil l 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 managers job.

4. Describe the difference between an e-business,

e-commerce, and an e-organization.

5. Define social responsibility and ethics.


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L E A R N I N G O U T C O M E S (contd)


6. Explain what is meant by the term

entrepreneurship and identify the components

of the entrepreneurial venture.

7. Describe the management implications of adiversified workforce.

8. Identify which work/life concepts are affecting

employees.

9. Explain why many corporations have

downsized.


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L E A R N I N G O U T C O M E S (contd)


10. Explain why companies focus on quality and

continuous improvement.

11. Describe the key variables for creating a

customer-responsive culture.


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Three Waves That Changed the World

AgricultureUntil the late nineteenth century, all economies were

agrarian.

Industrialization

From the late 1800s until the 1960s, most developed

countries moved from agrarian societies to industrial

societies.

Information Information technology is transforming society from its

manufacturing focus to one of service.


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The Changing Economy

Old Economy

National borders serve to limit

competition

Technology reinforces rigid

hierarchies and limits access to

information

Job opportunities are for blue-

collar 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

New Economy

National borders no longer define an

organizations operating boundaries

Technology opens up organizations

and 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 2.1


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A Global Marketplace

Global villageRefers to the concept of a boundaryless world; the

production and marketing of goods and services

worldwide.

Borderless organizationA management structure in which internal

arrangements that impose artificial geographic

barriers are broken down


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Global Competition

Multinational corporations (MNCs) Companies that maintain significant operations in two or

more countries simultaneously but are based in one home

country

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

Strategic alliances

A domestic and a foreign firm share the cost of developingnew products or building production facilities in a foreign

country


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Stages of Going Global

EXHIBIT 2.2


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Globalizations Effect On Managers

ParochialismA narrow focus in which one sees things solely

through ones own view and from ones own

perspective

Hofstedes framework for assessing cultures:Power distance

Individualism versus collectivism

Quantity of life versus quality of lifeUncertainty avoidance

Long-term versus short-term orientation


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Technology

Any equipment, tools, or operating methods thatare designed to make work more efficient

Information Technology (IT)

Benefits of IT

Cost savings (e.g., inventory control)

Freedom from fixed locations for operations

Challenges

Increased worker skill requirementsA leveling of the the competitive playing field that

increases competition


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Internet Business

E-commerceAny computer transaction that occurs when data are

processed and transmitted over the Internet

E-organization

The applications of e-business concepts offered to

stakeholders.

E-business

The full breadth of activities included in a successfulInternet-based enterprise


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What Defines

an E-Business?

EXHIBIT 2.3


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In What Ways Does Technology Alter A

Managers Job?

Effectiveness and efficiency

Managers have access to more complete and

accurate information than before, enabling them to

function as better managers.

Place

Telecommuting: the linking of a workers computer

and modem with those of co-workers and

management at an office


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Society and Business

Social responsibilityA firms obligation, beyond that required by the law

and economics, to pursue long-term goals that are

beneficial to society

Social obligationThe obligation of a business to meet its economic and

legal responsibilities and no more

Social responsiveness

The ability of a firm to adapt to changing societal

conditions


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Arguments for and against Social Responsibility

Arguments for:

Public expectations

Long-run profits

Ethical obligation

Public image

Better environment Discouragement of further

government regulation

Balance of responsibility and

power

Stockholder interests Possession of resources

Superiority of prevention over

cures

Arguments against:

Violation of profit maximization

Dilution of purpose

Costs

Too much power

Lack of skills Lack of accountability

Lack of broad public support

EXHIBIT 2.4

Source: Adapted from R. J. Monsen Jr., The Social Attitudes of Management,

in J. M. McGuire, ed. Contemporary Management: Issues and Views (Upper

Saddle River, NJ: Prentice Hall, 1974), p.616; and K. Davis and W. Frederick,

Business and Society: Management, Public Policy, Ethics , 5th ed. (New York:

McGraw-Hill, 1984), pp.2841.


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Ethics and Business

EthicsA set of rules or principles that defines right and

wrong conduct

Code of ethics

A formal document that states an organizations

primary values and the ethical rules it expects

managers and operatives to follow


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Three Views of Ethics

Utilitarian view of ethicsMaking decisions solely on the basis of their

outcomes or consequences.

Rights view of ethics

Respecting and protecting individual liberties and

privileges

Theory of justice view of ethics

Fairly and impartially imposing and enforcing rules.

EXHIBIT 2.5Source: Adapted from G. F. Cavanaugh, D. J. Moberg, and M. Valasquez, The Ethicsof Organizational Politics, Academy of Management Journal (June 1981): 36374.


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What Is Entrepreneurship?

EntrepreneurshipThe process of initiating a business venture,

organizing the necessary resources, and assuming

the risks and rewards

Steps in the entrepreneurial processExploring the entrepreneurial context.

Identifying opportunities and possible competitive

advantages

Starting the venture.

Managing the venture


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Diversity and the Workforce

Increasing workforce diversityMore variation in the background of organizational

members in terms of gender, race, age, sexual

orientation, and ethnicity

Characteristics of the future workforceMore heterogeneous/diverse

Increasingly older

More multicultural

Diversity will require more managerial sensitivity

to individual differences.


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Mars Incorporated Diversity Philosophy

EXHIBIT 2.6

Distinctive voices working together within a commonculture 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, much as our society andconsumer base consist of a wide variety of individuals. We

value the talents and contributions of our diverse workforce in

reaching toward our future and in playing responsible

leadership roles.

Source: www.mars.com/other_policies/diversity.as


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Labor Supply and Demand Adjustments

DownsizingAn activity in an organization designed to create a

more efficient operation through extensive layoffs

Rightsizing

Linking staffing levels to organizational goals

Outsourcing

An organizations use of outside firms for providing

necessary products and services


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Workforces

Core employeesThe small group of full-time employees of an

organization who provide some essential job tasks for

the organization

Contingent workforcePart-time, temporary, and contract workers who are

available for hire on an as-needed basis


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Contingent Workers

Part-time employees Work fewer than 40 hours a week

Are a good source of staffing for peak hours.

May be involved in job sharing

Temporary employeesAre 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.

Are paid when the firm receives particular deliverables.

Are a labor cost that is fixed by contract

EXHIBIT 2.7


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Making a Companys Culture More

Customer-responsive

Actions that create employees with the

competence, ability, 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: allowing employees independence in

relating to customers

Leadership: demonstrating commitment to the

customer-focus vision


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Shaping a Customer-

Responsive

Culture

EXHIBIT 2.8


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Increased Concerns for Quality

Continuous improvementOrganizational commitment to constantly improving

the quality of a product or service

Joseph Juran

W. Edwards Deming

Kaizen

The Japanese term for an organization committed to

continuous improvement

Work process engineering

Radical or quantum change in an organization


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Components of Continuous Improvement

1. Intense focus on the customer2. Concern for continuous improvement

3. Improvement in the quality of everything the

organization does4. Accurate measurement

5. Empowerment of employees

EXHIBIT 2.9

managing in a contemporary world

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