©Prentice Hall, 2001 Chapter 2 1

Managing In Managing In Today’s WorldToday’s World

©Prentice Hall, 2001 Chapter 2 2

Learning OutcomesLearning Outcomes

• Examine the three waves in modern social

history and their effect on organizations

• View management from a global perspective

• Learn how technology is changing the

manager’s job

• Define social responsibility and ethics

©Prentice Hall, 2001 Chapter 2 3

Learning OutcomesLearning Outcomes

• Define the entrepreneurial spirit

• Describe the management implications of a

diversified workforce

• Discuss quality and continuous improvement

• Learn why many companies have downsized

©Prentice Hall, 2001 Chapter 2 4

Corporate Stars: 1960 Versus 2000

21st Century1960s Industry

•Airlines•Automobiles•Broadcasting•Cameras•Computers•Film•Retailing•Information access•Mail delivery•Newspapers•Securities•Steel

•Pan Am•General Motors•CBS•Bell & Howell•IBM•Eastman Kodak•Sears•Public library•U.S. Post Office•New York Times•Merrill Lynch•U.S. Steel

•Southwest•Daimler-Chrysler•CNN•Minolta•Dell Computer•Fuji•Wal-Mart•America Online•Federal Express•USA Today•Charles Schwab•Nucor Steel

©Prentice Hall, 2001 Chapter 2 5

Three Waves Three Waves of Social Changeof Social Change

The Age of AgricultureThe Age of Agriculture

The Age of InformationThe Age of Information

The Age of IndustrializationThe Age of Industrialization

©Prentice Hall, 2001 Chapter 2 6

The GlobalThe GlobalMarketplaceMarketplaceThe GlobalThe Global

MarketplaceMarketplaceTransnationalTransnationalCorporationsCorporationsTransnationalTransnationalCorporationsCorporations

The GlobalThe GlobalVillageVillage

The GlobalThe GlobalVillageVillage

MultinationalMultinationalCorporationsCorporationsMultinationalMultinationalCorporationsCorporations

Border lessBorder lessOrganizationsOrganizations

Border lessBorder lessOrganizationsOrganizations

©Prentice Hall, 2001 Chapter 2 7

Stages of Going GlobalStages of Going Global

Export toExport toForeignForeign

CountriesCountries

HireHireForeignForeign

Agents orAgents orBrokersBrokers

ContractContractForeignForeign

ManagersManagers

Licensing-Licensing-FranchisingFranchising

JointJointVenturesVentures

ForeignForeignSubsidiarySubsidiary

Stage IStage I Stage IIStage II Stage IIIStage III

©Prentice Hall, 2001 Chapter 2 8

EthnocentrismEthnocentrismEthnocentrismEthnocentrismParochialismParochialismParochialismParochialism

Globalization and theGlobalization and thePractice of ManagementPractice of Management

Globalization and theGlobalization and thePractice of ManagementPractice of Management

©Prentice Hall, 2001 Chapter 2 9

PowerPowerDistanceDistanceIndividualismIndividualism

UncertaintyUncertaintyAvoidanceAvoidance

Quantity VersusQuantity VersusQuality of LifeQuality of Life

Hofstede’s Dimensions Hofstede’s Dimensions

of National Cultureof National Culture

©Prentice Hall, 2001 Chapter 2 10

Technology and the Technology and the Organization Organization

• Production process

• Customer service

• Information access

• Employee job skills

• Level playing field

©Prentice Hall, 2001 Chapter 2 11

Technology and the Technology and the Manager’s JobManager’s Job

FormulatingFormulatingPlansPlans

MonitoringMonitoringActivitiesActivities

Making Making DecisionsDecisions

DefiningDefiningJobsJobs

©Prentice Hall, 2001 Chapter 2 12

Arguments forArguments forSocial ResponsibilitySocial Responsibility

Arguments forArguments forSocial ResponsibilitySocial Responsibility

Public expectations

Long-run profits

Ethical obligations

Public relations image

Better environment

Public expectations

Long-run profits

Ethical obligations

Public relations image

Better environment

©Prentice Hall, 2001 Chapter 2 13

Arguments forArguments forSocial ResponsibilitySocial Responsibility

Arguments forArguments forSocial ResponsibilitySocial Responsibility

Fewer government regulations

Balance of responsibility and power

Stockholder interests

Possession of resources

Prevention versus cures

Fewer government regulations

Balance of responsibility and power

Stockholder interests

Possession of resources

Prevention versus cures

©Prentice Hall, 2001 Chapter 2 14

Arguments Against Social Arguments Against Social ResponsibilityResponsibility

• Violation of profit maximization

• Dilution of purpose

• Costs outweigh benefits

• Too much power

• Lack of skills

• Lack of accountability

• Lack of broad public support

©Prentice Hall, 2001 Chapter 2 15

SocialSocialInvolvementInvolvementin Businessin Business

SocialSocialResponsibilityResponsibility

SocialSocialObligationObligation

SocialSocialResponsivenessResponsiveness

©Prentice Hall, 2001 Chapter 2 16

Rights ViewRights View Utilitarian Utilitarian ViewView

Theory ofTheory ofJustice ViewJustice View

The Question of EthicsThe Question of Ethics

©Prentice Hall, 2001 Chapter 2 17

Key Management Key Management IssuesIssues

EntrepreneurialEntrepreneurial

SpiritSpiritSensitivitySensitivity

to Differencesto Differences

©Prentice Hall, 2001 Chapter 2 18

Total Quality Total Quality ManagementManagement

• Continuous improvement

• Employee empowerment

• Accurate measurement

• Customer focus

• Overall quality

©Prentice Hall, 2001 Chapter 2 19

QuantumQuantumChangesChanges

OutsourcingOutsourcingRightsizingRightsizing

Work-ProcessWork-ProcessEngineeringEngineering

©Prentice Hall, 2001 Chapter 2 20

The ContingentThe ContingentWorkforceWorkforce

The ContingentThe ContingentWorkforceWorkforce

Part-TimePart-TimeWorkersWorkers

Part-TimePart-TimeWorkersWorkers

Contract Contract WorkersWorkersContract Contract WorkersWorkers

TemporaryTemporaryEmployeesEmployeesTemporaryTemporaryEmployeesEmployees