Part 5.1 the Changing Environment of Management

7/27/2019 Part 5.1 the Changing Environment of Management

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The Changing Environment of

Management

Prepared by:

Prof. Emilia. S. Bio

Source:

Principles of Managementby Krietner, 11th Edition


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The Changing Workplace

Young people from age 18-25 (better known asGeneration Y) comprise most of companiesworkforces.

This growing trend tends to create a brewing conflict

of work ethics with the older higher-ups of themanagement.

Demands for Gen Y greatly exceeds supply; hence,they are in a strong position to dictate terms to their

prospective employers.

The best way to predict the future is to create it.-Alan Kaye


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The Changing Workplace

Companies successfully integrating members of thenew generation in to their operations do more thanmerely cope with change; they thrive on it.

Accordingly, present and future managers need to beaware ofhowthings are changing in the worldaround them.

To aid in further understanding these, we must study

the demographics of the new workforce.



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The Social Environment

Demographics are statistical profiles of populationcharateristics.

These are a valuable tool for managers; those with

foresight who study demographics can makeappropriate adjustments in their strategic, humanresource, and marketing plans.



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The Changing Workforce



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The Changing Workforce

In summary, the U.S. workforce demonstrates thefollowing trends:

It is getting larger.

The workforce will be expected to grow more than the national

population. The resulting labor shortage will continue to bemagnet for legal and illegal immigration.

It is becoming increasingly female.

It is becoming more racially and ethnically diverse.

It is becoming older. This applies to the Gen Y people that are continuing to stabilize

the median age to 39 years old.

Knowledge is entry ticket to todays computerized service

economy. -Modern adage


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Myths about Older Workers



Myth: Older workers are less productive than theaverage worker.

Fact: Research shows that productivity does not

decline with age. Older employees perform aswell as younger workers in most jobs.Moreover, older workers meet theproductivity expectations.


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Myth: The costs of employee benefits outweigh anypossible gain from hiring older workers.

Fact: The costs of health insurance increase with

age, but most other fringe benefits do not,because they are tied to length of service andlevel of salary.


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Myth: Older workers are prone to frequent absencesbecause of age-related infirmities and above-average rates of sickness.

Fact: Data show that workers age 65 and over haveattendance record equal to or better thanmost other age groups of workers. Olderpeople who are notworking may havedropped out of the workforce because of theirhealth. Older workers who stay in the laborforce may well represent a self-selectedhealthier group of older people.


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Myth: Older workers have an unacceptably highrates of accidents at work.

Fact: Data show that older workers account for only

9.7 percent of all workplace injuries, whereasthey make up 13.6 percent of the labor force.


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A New Social Contract Between

Employer and Employee

There was a time when someone would come to the front

door of AT&T and see and invisible sign that said, AT&T: a job

for life Thats over. Now its a shared kind of thing. Come to

us. Well invest in you, and you invest in us. Together, well

face the market, and the degree to which we succeed will

determine how things work out.

-Harold Burlingame, AT&T Senior VP of HR

Until the 1970s: Be loyal to the company and thecompany will take care of you until retirement.

Today: The employer-employee relationship will be a

shorter-term one based on convenience and mutualbenefit, rather than for life.


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Under The Glass Ceiling

According to a recent study, lifetime earnings forwomen in the U.S. equal, on average, 44 percent ofthe lifetime earnings for their male counterparts.

As such, the gender pay gap can be summed up intwo words: large andpersistent.

In addition to suffering a wage gap, women (andother minorities) bump up against the so-called glass

ceiling when climbing the managerial ladder.

glass ceiling: the transparent but strong barrier keeping women

and minorities from moving up the management barrier


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Part-timer Promises and Problems

An increasing percentage of the U.S. (and thePhilippines) labor force is now made up ofcontingentworkers.

This just-in-time or flexible workforce includes adiverse array of part-timers, temporary workers, on-call employees, and independent contractors.

Their common denominator is that they do not have

a long-term implicit contract with their ultimateemployers, the purchasers of the labor they provide.

contingent workers: part-timers and other employees who do not

have a long-term implicit contract with their ultimate employers


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Part-timer Promises and Problems

Employees are relying more on part-timers for twobasic reasons:

First, they are paid in lower rates and often do not receivethe full range of employer-paid benefits, part-timers are

much less costly to employ than full-time employees.

Second, as a flexible workforce, they can be let go whentimes are bad, without the usual repercussions of a geneallayoff.

contingent workers: part-timers and other employees who do not

have a long-term implicit contract with their ultimate employers


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The Politicization of Management

Prepared or not and willing or not, todays managersoften find themselves embroiled in issues withclearly political overtones.

As in the case of Google:

The online search giant is taking a novel approach to the

problem by asking U.S. trade officials to treat Internet

restrictions as international trade barriers, similar to other

hurdles to global commerce, such as tariffs.Google sees the dramatic increase in government Net

censorship, paritcularly in Asia and the Middle East, as a

potential threat to its advertising-driven business model, and

wants government officials to consider the issue in economic,

rather than just polictical terms.


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The Economic Environment


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The Current Job Outlook in Todays

Service Economy As in other important aspects of life, you have no

guarantee of landing your dream job. However, asyou move on through college and into the laborforce, you will probably end up with a job in the

service sector.

Education is essential in getting a high paying job.

-U.S. Bureau of Labor Statistics

Occupations that require a bachelors degree are projected to

grow the fastest, nearly twice as fast as the average for all

occupations. All of the 20 occupations with the highest

earnings require at least a bachelors degree Education isessential in getting a high paying job.


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Coping with Business Cycles:

Cycle-senstitive Decisions The business cycle is the up-and-down movement of

an economys ability to generate wealth; it haspredictable structure but variable timing.

Timing is everything.

-Popular business adage

Important decisions depend on the ebb and flow ofthe business cycle. These decisions include orderinginventory, borrowing funds, increasing staff, andspending capital for land, equipment, and energy.


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The Business Cycle

Timing is everything.

-Popular business adage

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Part 5.1 the Changing Environment of Management