8. 1 . T H E P O L I T I C A L / L E G A L
E N V I R O N M E N T
THE GROWING COMPLEXIT Y OF THE
POLITICAL AND LEGAL L ANDSCAPES IN
THE GLOBAL ENVIRONMENT IS ONE OF
THE MOST IMPORTANT TRENDS
AFFECTING GLOBAL BUSINESS.
MANAGERS WORKING FOR GLOBAL
BUSINESSES CONTEND WITH A GROWING
TIDE OF EMPLOYMENT LEGISL ATION
THAT CUTS ACROSS NATIONAL
BOUNDARIES. LEGAL AND POLITICAL
FORCES ARE UNIQUE TO EACH COUNTRY,
9. 2 . T H E E C O N O M I C E N V I R O N M E N T
A GLOBAL MANAGER MUST BE AWARE OF
ECONOMIC ISSUES WHEN DOING
BUSINESS IN OTHER COUNTRIES. FIRST,
IT ’S IMPORTANT TO UNDERSTAND A
COUNTRY’S T YPE OF ECONOMIC SYSTEM.
2.2. A Planned Economy
2.1. A Free Market
Economy
10. O T H E R F A C T O R S T O C O N S I D E R
a. CURRENCY
EXCHANGE RATES
b. Inflation rates
c. Diverse tax policies
Q: What are the other factor to consider that affects
decision making of a managers when it comes in
economic environment?
11. 3 . T H E C U LT U R A L E N V I R O N M E N T
PERTAINS TO THE NATIONAL CULTURE
OF A COUNTRY INCLUDES THE VALUES
AND AT TITUDES SHARED BY
INDIVIDUALS FROM A SPECIFIC
COUNTRY THAT SHAPE THEIR BEHAVIOR
AND THEIR BELIEFS ABOUT WHAT IS
IMPORTANT.
Q: For you which is important to a manager –
national culture or organizational culture?
14. Global Management in Today’s World
The first issue involves the challenges associated with globalization, especially in relation to the
openness that’s part of being global.
The second issue revolves around the challenges of managing a global workforce.
The Challenge of Openness
- Increased threat of terrorism by a truly global terror network.
- Economic interdependence of trading countries.
- Cultural differences
15. Challenges of Managing a Global Workforce
Cross-cultural work teams can have many benefits, but conflicts can arise due to differences in
work methods, pay levels, and language barriers.
Global companies with multicultural work teams are faced with the challenge of managing the
cultural differences in work-family relationships.
Cultural Intelligence - cultural awareness and sensitivity skills
1. Knowledge of culture as a concept
2. Mindfulness
3. Behavioral Skills
Global mind set - attributes that allow a leader to be effective in cross-cultural environments
1. Intellectual Capital
2. Psychological Capital
3. Social Capital
18. Diversity
- The practice or quality of including or involving people from a range of different social
and ethnic backgrounds and of different genders, sexual orientations, etc.
What is Workplace Diversity?
- The ways in which people in an organization are different from and similar to one
another.
Surface-level Diversity
- Easily perceived differences that may trigger certain stereotypes, but that do not
necessarily reflect the ways people think or feel.
- Demographic differences (age, race, gender, ethnicity, and so on)
Deep-level Diversity
- Differences in values, personality, and work preferences.
19. WHY IS MANAGING WORKFORCE DIVERSITY
SO IMPORTANT?
A. People Management
Better use of employee talent
Increased quality of team problem-solving efforts
Ability to attract and retain employees of diverse backgrounds
20. WHY IS MANAGING WORKFORCE DIVERSITY
SO IMPORTANT?
B. Organizational Performance
Reduced costs associated with high turnover, absenteeism, and
lawsuits
Enhanced problem-solving ability
Improved system flexibility
21. WHY IS MANAGING WORKFORCE DIVERSITY
SO IMPORTANT?
C. Strategic
Increased understanding of the marketplace, which
improves ability to better market to diverse consumers
Potential to improve sales growth and increase market
share
Potential source of competitive
advantage because of improved
innovation efforts
Viewed as moral and ethical; the
“right” thing to do
22. THE CHANGING
WORKPLACE
Global Population Trends and the Changing Global Workforce
1. Age Trends
- First, as life spans increase, some areas will have a higher proportion of older people.
- Management challenges will increase as large numbers of workers retire and businesses will
need to fill many open positions to maintain operations.
2. Gender, Gender Identity, and Sexual Orientation
- In today’s global population, there are slightly more males than females overall.
- Some countries are legalizing equal rights for the LGBTQ community, preventing discrimination
and harassment on the basis of gender identity or sexual orientation will remain an important
issue for organizations.
3. Migration and Movement
- Migration affects the ethnic (and sometimes the religious) composition of the local population,
which global businesses must bear in mind.
- Managers must also consider where jobs and workers are located.
37. WORK PLACE DIVERSITY INITIATIVES
1. The Legal Aspect of Workplace Diversity
2. Top Management Commitment to Diversity
3. Mentoring
4. Diversity Skills Training