Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Challenges for Managers Chapter 2 Organizational Behavior Nelson & Quick

Copyright ©2009South-Western, a division

of Cengage Learning All rights reserved

Challenges for Managers

Chapter 2

Organizational Behavior

Nelson & Quick

6th edition



Remaining Competitive: Four Major Challenges to Managers

• Globalizing the firm’s operations

• Leading a diverse workforce

• Encouraging positive ethics,

character, and personal integrity

• Advancing and implementing

technological innovation



Changing Business Perspectives

From International which implies an individual’s or organization’s held nationality is strongly

in consciousness

To Globalization which implies the world is free from national boundaries andthat it is really a borderless world

Photos courtesy of Clips Online, © 2008 Microsoft Corporation



From Multinational organizations (in which the organization was recognized as doing business in several countries)

Changing Business Perspectives

To Transnational organizations,

(in which 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 (Hofstede)

Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.

Individualism

High power distance

High uncertainty avoidance

Masculinity

Long-term orientation

Collectivism

Low power distance

Low uncertainty avoidance

Femininity

Short-term orientation



Reprinted with permission of Academy of Management, PO Box 3020, Briar Cliff Manor, NY 10510-8020. CulturalConstraints in Management Theories (Figure), G. Hofstede, Academy of Management Executive 7, (1993). Reproducedby permission of the publisher via Copyright Clearance Center, Inc.

Where the U.S. Stands

Individualism

High power distance

High uncertainty avoidance

Masculinity

Long-term orientation

Masculinity

Collectivism

Low power distance


Femininity

Short-term orientation


Low power distance

Individualism

Short term orientation



Management Careers with a Global Dimension

• Expatriate manager - a manager who works in a country other than his or her home country

• International executive – an executive whose job has international scope

Key competencies such managers and executives need include integrity, insightfulness, risk-taking, courage to take a stand, and ability to bring out the best in people.



Developing Cross-Cultural Sensitivity

• Use of mentor/protégé relationships• Cultural sensitivity training• Cross-cultural task forces/teams• Global view of human resource functions

• Planning• Recruitment and Selection• Compensation• Training and Development



Diversity

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

5%

11%

14%

68%



Women and Obstacles at Work

Women make up over 60% of the workforce, earn 32% of all doctorates, 52% of master’s degrees, and 50% of undergraduate degrees

BUT

Women hold less than 16.4% of Fortune 500 corporate officer positions, earn 81% 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 50 million disabled live in the U.S.; their unemployment rate exceeds 50%.



Diversity’s Benefits & ProblemsBENEFITS

• Attracts & retains the best human talent

• Improves marketing efforts

• Promotes creativity and innovation

• Results in better problem solving

• Enhances organizational flexibility

PROBLEMS

• Resistance to change

• Lack of cohesiveness

• Communication problems

• Interpersonal conflicts

• Slowed decision making



Ethical Theories

ConsequentialTheory

An ethical theorythat

emphasizes theconsequences or

resultsof behavior

Rule-BasedTheory

An ethical theorythat

emphasizes thecharacter of the actItself rather than its

effects

CharacterTheory

An ethical theorythat emphasizes

the character,personal virtues,

and integrity of theindividual



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 orPotential Romance?






Organizational Justice

Distributive Justice- fairness of the outcomes that individuals receive

in an organization

Ex. Companies in Danger

CEOSalaries

vs.

Ex. Competenceand Skill

Race andGender

vs.

Procedural Justice-fairness by which the

outcomes are allocated in an organization




Individual & Organizational Responsibility

Whistle-Blower - an employee who informs authorities of the wrongdoing of his or her company or coworkers– Public Hero– Villain

Social Responsibility - the obligation of an organization to behave in ethical ways

Depends on whether or not the the whistle-blowing is viewed asmore offensive the wrongdoing.



Rotary Four-Way Testof 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?



Technological InnovationTechnology

The intellectual and mechanical processes used by an organization to transform inputs into products or services that meet organizational goals

Robotics - use of robots

Expert System - computer-based

application using a representation of

human expertise in a specialized field of knowledge to solve

problems

Internet- integrates

computer, cable, telecommunications

technologies



Alternative Work ArrangementsTelecommuting - 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

Employees have distractions, lack socialization opportunities, lack

interaction with supervisors, and 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

anyonePhotos courtesy of Clips Online, © 2008 Microsoft Corporation



Technological Change Requires Managers to

• Develop technical competence to gain workers’ respect

• Focus on helping workers manage the stress of their work

• Take advantage of the wealth of information available to motivate, coach, and counsel--not to control

• Recognize the importance of intellectual property



Help Employees Adjust by

• Involving them in decision making regarding technological change

• Selecting technology that increases workers’ skill requirements

• Providing effective training• Establishing support groups• Encouraging reinvention (creative application

of new technology)Photos courtesy of Clips Online, © 2008 Microsoft Corporation



Four Challenges to Organizations in the New Millennium

Technological Innovation

Globalization Ethics

Workforce Diversity




Chapter 2: Reflect & Discuss

Mr. Baseball Video Clip

What to Watch for and Ask Yourself• Does Jack Elliot behave as if he had cross-

cultural training before arriving in Japan?• Is he culturally sensitive or insensitive?• What do you propose that Jack Elliot do for the

rest of his time in Japan?

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Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Challenges for Managers Chapter 2 Organizational Behavior Nelson & Quick