Lesson 6 Competition_ The Challenges Managers Face

Competition : The Challenges Managers Faces

The Challenges Managers Faces

1.Globalization 2.Managing diverse workforce 3.Technological change 4.Managing ethical behavior

The Challenges Managers Faces I. Managing in a Global Environment

☺ Globalization is a world that is free from national boundaries or a “borderless world.”

☺ Transnational organizations operates in a large global distances and employ multicultural people Ex. US managers need to understand the way other countries handle business.

Understanding Cultural Differences in Global Environment 1. Individualism versus Collectivism Individualism - People are responsible for their own interest, primary concerns is for themselves and their families. Individualistic managers emphasize and encourage individual achievement. Collectivism - individuals depend strongly on extended families or clans. Collectivistic managers seek to fit harmoniously within the group

Understanding Cultural Differences in Global Environment 2. Power Distance Unequal distribution of power. High Power Distance – bosses are afforded with more power, titles are used, formality is the rule. Low Power Distance – Managers are given power only if they have expertise. Managers and employees are seen as similar

Understanding Cultural Differences in Global Environment 3. Uncertainty avoidance The degree to which a culture tolerates ambiguity and uncertainty High Uncertainty Avoidance – concerned with security and tend to avoid conflict. People have need for consensus Low Uncertainty Avoidance – people are more willing to take risk and more tolerant of individual differences

Understanding Cultural Differences in Global Environment 4. Masculinity versus Femininity Masculinity - orientation in which assertiveness and materialism are valued. Men should be assertive, tough and decisive. Femininity - cultural orientation in which relationships and concern for others are valued. Women should be nurturing , modest and tender.

Understanding Cultural Differences in Global Environment 5. Time Orientation Cultures values are oriented toward future (longterm orientation). Values such are thrift, and persistence which focus on the future. Cultures value past and present ( short-term orientation). Values respect for tradition (past) and meeting social obligations (present)

II. Managing Diverse Workforce 1. Cultural Diversity Social and demographic changes that are producing diversity in organizations

2. Gender Diversity Glass Ceiling - a transparent barrier that keeps women from rising above a certain level of organizations.

II. Managing Diverse Workforce 3. Age Diversity Aging workforce

4. Ability Diversity Workforce full of individuals with different abilities and disabilities

II. Managing Diverse Workforce 5. Differences are assets Encompasses religion, social status and sexual orientation. Ex. Acceptance to gay and lesbian employees. People who worked in the organization full or stigma and distrust are not likely to perform well. Minorities are rated lower than white.

Diversity’s Benefit and Problem Benefits:

2. Diversity management can help firms attract and retain the best available human talent

3. Diversity can enhance marketing efforts 4. Diversity promotes creativity and innovation 5. Diversity results in better problem solving 6. Diversity enhances organizational flexibility

Diversity’s Benefit and Problem Problems:

2. Resistance to change 3. Lack of cohesiveness 4. Communication problem 5. Conflicts 6. Decision making

III.

Managing Technological Innovation

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

☺ Managers face the challenge of rapidly changing technology and of putting it to optimum use

III. Managing Technological Innovation 1. Alternative Work Arrangement

Telecommuting - transmitting work from a home computer to the office using a modem Hoteling - hotel work space Satellite offices - large offices are broken into network of smaller workplaces that are closely located to the employees

IV. Managing Ethical Behavior

☺Ethical decisions to be able to make “right” choices.

IV. Managing Ethical Behavior Ethical Theories 1. Consequential theories Emphasizes the consequences or results of behavior. 2. Rule-based theories Emphasizes the character of the act itself rather than its effects in arriving at universal moral rights and wrongs. Moral rights - basis for legal rights 07/03/09

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IV. Managing Ethical Behavior Ethical Theories 3. Character theories Emphasizes the character, personal virtues and integrity of the individual. Virtues – summary of ideals that defines good character. Ex. Honesty, loyalty, trustworthiness.

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Ethical Theories People need ethical theories to help think through confusing, complex, difficult moral choices and ethical decisions.

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Key Areas of Ethical and Moral Dilemmas 1. Employee Rights Managing the rights of employees at work creates many ethical dilemmas in organization. Safeguarding the employees right to privacy. Ex. Employee data from computerized information system, layoffs, Persons with AIDS (PWA) 07/03/09

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Key Areas of Ethical and Moral Dilemmas 2. Sexual Harassment An unwelcome sexual intention whether verbal or physical that affects an employee job conditions or create hostile work environment Managers should take necessary actions on sexual harassment complaints and a clear policies and guidelines should be crafted. 07/03/09

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Key Areas of Ethical and Moral Dilemmas 3. Romantic Involvements Relationships between Supervisors and staff or coworkers. Managers should realize that workplace romance can not be eliminated though there must be a clear rules and policies to avoid problems on productivity or workplace morale. 07/03/09

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Key Areas of Ethical and Moral Dilemmas 4. Organizational Justice Distributive justice - fairness of outcomes that individuals received. Ex. Salaries and benefits Procedural justice - fairness of the process by which outcomes are allocated Ex. Has the organization used the correct procedure of allocating resources? 07/03/09

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Key Areas of Ethical and Moral Dilemmas 5. Whistle-Blowing Whistle-blowers - employees who inform the authorities of wrongdoing by their companies or coworkers. Organization should communicate to the employees on proper disclosure of wrongdoings.

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