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management slides full book.pdf
1.
ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved. All rights reserved. Introduction to Introduction to Management and Management and Organizations Organizations Chapter Chapter 1 1
2.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–2 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. Who Are Managers? Who Are Managers? • Explain how managers differ from non-managerial Explain how managers differ from non-managerial employees. employees. • Describe how to classify managers in organizations. Describe how to classify managers in organizations. What Is Management? What Is Management? • Define management. Define management. • Explain why efficiency and effectiveness are important to Explain why efficiency and effectiveness are important to management. management.
3.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–3 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. What Do Managers Do? What Do Managers Do? • Describe the four functions of management. Describe the four functions of management. • Explain Mintzberg’s managerial roles. Explain Mintzberg’s managerial roles. • Describe Katz’s three essential managerial skills and how Describe Katz’s three essential managerial skills and how the importance of these skills changes depending on the importance of these skills changes depending on managerial level. managerial level. • Discuss the changes that are impacting managers’ jobs. Discuss the changes that are impacting managers’ jobs. • Explain why customer service and innovation are Explain why customer service and innovation are important to the manager’s job. important to the manager’s job.
4.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–4 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. What Is An Organization? What Is An Organization? • Describe the characteristics of an organization. Describe the characteristics of an organization. • Explain how the concept of an organization is changing. Explain how the concept of an organization is changing. Why Study Management? Why Study Management? • Explain the universality of management concept. Explain the universality of management concept. • Discuss why an understanding of management is Discuss why an understanding of management is important. important. • Describe the rewards and challenges of being a manager. Describe the rewards and challenges of being a manager.
5.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–5 Who Are Managers? Who Are Managers? • Manager Manager Someone who coordinates and oversees the work of Someone who coordinates and oversees the work of other people so that organizational goals can be other people so that organizational goals can be accomplished. accomplished.
6.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–6 Classifying Managers Classifying Managers • First-line Managers First-line Managers Individuals who manage the work of non-managerial Individuals who manage the work of non-managerial employees. employees. • Middle Managers Middle Managers Individuals who manage the work of first-line Individuals who manage the work of first-line managers. managers. • Top Managers Top Managers Individuals who are responsible for making Individuals who are responsible for making organization-wide decisions and establishing plans organization-wide decisions and establishing plans and goals that affect the entire organization. and goals that affect the entire organization.
7.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–7 Exhibit 1–1 Exhibit 1–1 Managerial Levels Managerial Levels
8.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–8 What Is Management? What Is Management? • Managerial Concerns Managerial Concerns Efficiency Efficiency “ “Doing things right” Doing things right” – Getting the most output Getting the most output for the least inputs for the least inputs Effectiveness Effectiveness “ “Doing the right things” Doing the right things” – Attaining organizational Attaining organizational goals goals
9.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–9 Exhibit 1–2 Exhibit 1–2 Effectiveness and Efficiency in Management Effectiveness and Efficiency in Management
10.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–10 What Do Managers Do? What Do Managers Do? • Functional Approach Functional Approach Planning Planning Defining goals, establishing strategies to achieve goals, Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. developing plans to integrate and coordinate activities. Organizing Organizing Arranging and structuring work to accomplish organizational Arranging and structuring work to accomplish organizational goals. goals. Leading Leading Working with and through people to accomplish goals. Working with and through people to accomplish goals. Controlling Controlling Monitoring, comparing, and correcting work. Monitoring, comparing, and correcting work.
11.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–11 Exhibit 1–3 Exhibit 1–3 Management Functions Management Functions
12.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–12 What Do Managers Do? (cont’d) What Do Managers Do? (cont’d) • Management Roles Management Roles Approach (Mintzberg) Approach (Mintzberg) Interpersonal roles Interpersonal roles Figurehead, leader, liaison Figurehead, leader, liaison Informational roles Informational roles Monitor, disseminator, Monitor, disseminator, spokesperson spokesperson Decisional roles Decisional roles Disturbance handler, resource Disturbance handler, resource allocator, negotiator allocator, negotiator
13.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–13 What Managers Actually Do (Mintzberg) What Managers Actually Do (Mintzberg) • Interaction Interaction with others with others with the organization with the organization with the external context with the external context of the organization of the organization • Reflection Reflection thoughtful thinking thoughtful thinking • Action Action practical doing practical doing
14.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–14 What Do Managers Do? (cont’d) What Do Managers Do? (cont’d) • Skills Approach Skills Approach Technical skills Technical skills Knowledge and proficiency in a specific field Knowledge and proficiency in a specific field Human skills Human skills The ability to work well with other people The ability to work well with other people Conceptual skills Conceptual skills The ability to think and conceptualize about abstract and The ability to think and conceptualize about abstract and complex situations concerning the organization complex situations concerning the organization
15.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–15 Exhibit 1–5 Exhibit 1–5 Skills Needed at Different Management Levels Skills Needed at Different Management Levels
16.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–16 Exhibit 1–6 Exhibit 1–6 Conceptual Skills Conceptual Skills • Using information to solve business problems Using information to solve business problems • Identifying of opportunities for innovation Identifying of opportunities for innovation • Recognizing problem areas and implementing Recognizing problem areas and implementing solutions solutions • Selecting critical information from masses of Selecting critical information from masses of data data • Understanding of business uses of technology Understanding of business uses of technology • Understanding of organization’s business model Understanding of organization’s business model Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
17.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–17 Exhibit 1–6 Exhibit 1–6 Communication Skills Communication Skills • Ability to transform ideas into words and actions Ability to transform ideas into words and actions • Credibility among colleagues, peers, and Credibility among colleagues, peers, and subordinates subordinates • Listening and asking questions Listening and asking questions • Presentation skills; spoken format Presentation skills; spoken format • Presentation skills; written and/or graphic Presentation skills; written and/or graphic formats formats Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
18.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–18 Exhibit 1–6 Exhibit 1–6 Effectiveness Skills Effectiveness Skills • Contributing to corporate mission/departmental Contributing to corporate mission/departmental objectives objectives • Customer focus Customer focus • Multitasking: working at multiple tasks in parallel Multitasking: working at multiple tasks in parallel • Negotiating skills Negotiating skills • Project management Project management • Reviewing operations and implementing Reviewing operations and implementing improvements improvements Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002.
19.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–19 Exhibit 1–6 Exhibit 1–6 Effectiveness Skills (cont’d) Effectiveness Skills (cont’d) Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. • Setting and maintaining performance standards Setting and maintaining performance standards internally and externally internally and externally • Setting priorities for attention and activity Setting priorities for attention and activity • Time management Time management
20.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–20 Exhibit 1–6 Exhibit 1–6 Interpersonal Skills (cont’d) Interpersonal Skills (cont’d) Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (www.ama.org), October 30, 2002. • Coaching and mentoring skills Coaching and mentoring skills • Diversity skills: working with diverse people and Diversity skills: working with diverse people and cultures cultures • Networking within the organization Networking within the organization • Networking outside the organization Networking outside the organization • Working in teams; cooperation and commitment Working in teams; cooperation and commitment
21.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–21 Exhibit 1–7 Exhibit 1–7 Management Skills and Management Function Matrix Management Skills and Management Function Matrix
22.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–22 How The Manager’s Job Is Changing How The Manager’s Job Is Changing • The Increasing Importance of Customers The Increasing Importance of Customers Customers: the reason that organizations exist Customers: the reason that organizations exist Managing customer relationships is the responsibility of all Managing customer relationships is the responsibility of all managers and employees. managers and employees. Consistent high quality customer service is essential for Consistent high quality customer service is essential for survival. survival. • Innovation Innovation Doing things differently, exploring new territory, and Doing things differently, exploring new territory, and taking risks taking risks Managers should encourage employees to be aware of and Managers should encourage employees to be aware of and act on opportunities for innovation. act on opportunities for innovation.
23.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–23 Exhibit 1–8 Exhibit 1–8 Changes Impacting Changes Impacting the Manager’s Job the Manager’s Job
24.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–24 What Is An Organization? What Is An Organization? • An Organization Defined An Organization Defined A deliberate arrangement of people to accomplish A deliberate arrangement of people to accomplish some specific purpose (that individuals independently some specific purpose (that individuals independently could not accomplish alone). could not accomplish alone). • Common Characteristics of Organizations Common Characteristics of Organizations Have a distinct purpose (goal) Have a distinct purpose (goal) Composed of people Composed of people Have a deliberate structure Have a deliberate structure
25.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–25 Exhibit 1–9 Exhibit 1–9 Characteristics of Organizations Characteristics of Organizations
26.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–26 Exhibit 1–10 Exhibit 1–10 The Changing Organization The Changing Organization
27.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–27 Why Study Management? Why Study Management? • The Value of Studying Management The Value of Studying Management The universality of management The universality of management Good management is needed in all organizations. Good management is needed in all organizations. The reality of work The reality of work Employees either manage or are managed. Employees either manage or are managed. Rewards and challenges of being a manager Rewards and challenges of being a manager Management offers challenging, exciting and creative Management offers challenging, exciting and creative opportunities for meaningful and fulfilling work. opportunities for meaningful and fulfilling work. Successful managers receive significant monetary rewards Successful managers receive significant monetary rewards for their efforts. for their efforts.
28.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–28 Exhibit 1–11 Exhibit 1–11 Universal Need for Management Universal Need for Management
29.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–29 Exhibit 1–12 Exhibit 1–12 Rewards and Challenges of Being A Manager Rewards and Challenges of Being A Manager
30.
© 2007 Prentice
Hall, Inc. All rights reserved. 1–30 Terms to Know Terms to Know • manager manager • first-line managers first-line managers • middle managers middle managers • top managers top managers • management management • efficiency efficiency • effectiveness effectiveness • planning planning • organizing organizing • leading leading • controlling controlling • management roles management roles • interpersonal roles interpersonal roles • informational roles informational roles • decisional roles decisional roles • technical skills technical skills • human skills human skills • conceptual skills conceptual skills • organization organization • universality of universality of management management
31.
ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved. All rights reserved. Management Management Yesterday and Today Yesterday and Today Chapter Chapter 2 2
32.
© 2007 Prentice
Hall, Inc. All rights reserved. 2–32 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •Historical Background of Management Historical Background of Management • Explain why studying management history is important. Explain why studying management history is important. • Describe some early evidences of management practice. Describe some early evidences of management practice. •Scientific Management Scientific Management • Describe the important contributions made by Fredrick Describe the important contributions made by Fredrick W. Taylor and Frank and Lillian Gilbreth. W. Taylor and Frank and Lillian Gilbreth. • Explain how today’s managers use scientific Explain how today’s managers use scientific management. management.
33.
© 2007 Prentice
Hall, Inc. All rights reserved. 2–33 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •General Administrative Theory General Administrative Theory • Discuss Fayol’s contributions to management theory. Discuss Fayol’s contributions to management theory. • Describe Max Weber’s contribution to management Describe Max Weber’s contribution to management theory. theory. • Explain how today’s managers use general administrative Explain how today’s managers use general administrative theory. theory. •Quantitative Approach Quantitative Approach • Explain what the quantitative approach has contributed Explain what the quantitative approach has contributed to the field of management. to the field of management. • Discuss how today’s managers use the quantitative Discuss how today’s managers use the quantitative approach. approach.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–34 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •Toward Understanding Organizational Behavior Toward Understanding Organizational Behavior • Describe the contributions of the early advocates of OB. Describe the contributions of the early advocates of OB. • Explain the contributions of the Hawthorne Studies to the Explain the contributions of the Hawthorne Studies to the field of management. field of management. • Discuss how today’s managers use the behavioral Discuss how today’s managers use the behavioral approach. approach. •The Systems Approach The Systems Approach • Describe an organization using the systems approach. Describe an organization using the systems approach. • Discuss how the systems approach helps us Discuss how the systems approach helps us management. management.
35.
© 2007 Prentice
Hall, Inc. All rights reserved. 2–35 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •The Contingency Approach The Contingency Approach • Explain how the contingency approach differs from the Explain how the contingency approach differs from the early theories of management. early theories of management. • Discuss how the contingency approach helps us Discuss how the contingency approach helps us understand management. understand management. •Current Issues and Trends Current Issues and Trends • Explain why we need to look at the current trends and Explain why we need to look at the current trends and issues facing managers. issues facing managers. • Describe the current trends and issues facing managers. Describe the current trends and issues facing managers.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–36 Historical Background of Management Historical Background of Management • Ancient Management Ancient Management Egypt (pyramids) and China (Great Wall) Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines) Venetians (floating warship assembly lines) • Adam Smith Adam Smith Published Published “The Wealth of Nations” “The Wealth of Nations” in 1776 in 1776 Advocated the division of labor (job specialization) to Advocated the division of labor (job specialization) to increase the productivity of workers increase the productivity of workers • Industrial Revolution Industrial Revolution Substituted machine power for human labor Substituted machine power for human labor Created large organizations in need of management Created large organizations in need of management
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–37 Exhibit 2–1 Exhibit 2–1 Development of Major Management Theories Development of Major Management Theories
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–38 Major Approaches to Management Major Approaches to Management • Scientific Management Scientific Management • General Administrative Theory General Administrative Theory • Quantitative Management Quantitative Management • Organizational Behavior Organizational Behavior • Systems Approach Systems Approach • Contingency Approach Contingency Approach
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–39 Scientific Management Scientific Management • Fredrick Winslow Taylor Fredrick Winslow Taylor The “father” of scientific management The “father” of scientific management Published Published Principles of Scientific Management Principles of Scientific Management (1911) (1911) The theory of scientific management The theory of scientific management – Using scientific methods to define the “one best way” for a Using scientific methods to define the “one best way” for a job to be done: job to be done: • Putting the right person on the job with the correct tools Putting the right person on the job with the correct tools and equipment. and equipment. • Having a standardized method of doing the job. Having a standardized method of doing the job. • Providing an economic incentive to the worker. Providing an economic incentive to the worker.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–40 Exhibit 2–2 Exhibit 2–2 Taylor’s Four Principles of Management Taylor’s Four Principles of Management 1. Develop a science for each element of an individual’s work, which will replace the old rule-of-thumb method. 2. Scientifically select and then train, teach, and develop the worker. 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–41 Scientific Management (cont’d) Scientific Management (cont’d) • Frank and Lillian Gilbreth Frank and Lillian Gilbreth Focused on increasing worker productivity through Focused on increasing worker productivity through the reduction of wasted motion the reduction of wasted motion Developed the microchronometer to time worker Developed the microchronometer to time worker motions and optimize work performance motions and optimize work performance • How Do Today’s Managers Use Scientific How Do Today’s Managers Use Scientific Management? Management? Use time and motion studies to increase productivity Use time and motion studies to increase productivity Hire the best qualified employees Hire the best qualified employees Design incentive systems based on output Design incentive systems based on output
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–42 General Administrative Theory General Administrative Theory • Henri Fayol Henri Fayol Believed that the practice of management was distinct Believed that the practice of management was distinct from other organizational functions from other organizational functions Developed fourteen principles of management that Developed fourteen principles of management that applied to all organizational situations applied to all organizational situations • Max Weber Max Weber Developed a theory of authority based on an ideal Developed a theory of authority based on an ideal type of organization (bureaucracy) type of organization (bureaucracy) Emphasized rationality, predictability, impersonality, technical Emphasized rationality, predictability, impersonality, technical competence, and authoritarianism competence, and authoritarianism
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–43 Exhibit 2–3 Exhibit 2–3 Fayol’s 14 Principles of Management Fayol’s 14 Principles of Management 1. 1. Division of work. Division of work. 2. 2. Authority. Authority. 3. 3. Discipline. Discipline. 4. 4. Unity of command. Unity of command. 5. 5. Unity of direction. Unity of direction. 6. 6. Subordination of Subordination of individual interests individual interests to the general to the general interest. interest. 7. 7. Remuneration. Remuneration. 8. 8. Centralization. Centralization. 9. 9. Scalar chain. Scalar chain. 10. 10. Order. Order. 11. 11. Equity. Equity. 12. 12. Stability of tenure Stability of tenure of personnel. of personnel. 13. 13. Initiative. Initiative. 14. 14. Esprit de corps. Esprit de corps.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–44 Exhibit 2–4 Exhibit 2–4 Weber’s Ideal Bureaucracy Weber’s Ideal Bureaucracy
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–45 Quantitative Approach to Management Quantitative Approach to Management • Quantitative Approach Quantitative Approach Also called Also called operations research operations research or or management management science science Evolved from mathematical and statistical methods Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality developed to solve WWII military logistics and quality control problems control problems Focuses on improving managerial decision making by Focuses on improving managerial decision making by applying: applying: Statistics, optimization models, information models, and Statistics, optimization models, information models, and computer simulations computer simulations
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–46 Understanding Organizational Behavior Understanding Organizational Behavior • Organizational Behavior (OB) Organizational Behavior (OB) The study of the actions of people at work; people are The study of the actions of people at work; people are the most important asset of an organization the most important asset of an organization • Early OB Advocates Early OB Advocates Robert Owen Robert Owen Hugo Munsterberg Hugo Munsterberg Mary Parker Follett Mary Parker Follett Chester Barnard Chester Barnard
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–47 Exhibit 2–5 Exhibit 2–5 Early Advocates of OB Early Advocates of OB
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–48 •A series of productivity experiments conducted A series of productivity experiments conducted at Western Electric from 1927 to 1932. at Western Electric from 1927 to 1932. •Experimental findings Experimental findings Productivity unexpectedly increased under imposed Productivity unexpectedly increased under imposed adverse working conditions. adverse working conditions. The effect of incentive plans was less than The effect of incentive plans was less than expected. expected. •Research conclusion Research conclusion Social norms, group standards and attitudes more Social norms, group standards and attitudes more strongly influence individual output and work behavior strongly influence individual output and work behavior than do monetary incentives. than do monetary incentives. The Hawthorne Studies The Hawthorne Studies
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–49 The Systems Approach The Systems Approach • System Defined System Defined A set of interrelated and interdependent parts A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. arranged in a manner that produces a unified whole. • Basic Types of Systems Basic Types of Systems Closed systems Closed systems Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is internal). environment (all system input and output is internal). Open systems Open systems Dynamically interact to their environments by taking in inputs Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into and transforming them into outputs that are distributed into their environments. their environments.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–50 Exhibit 2–6 Exhibit 2–6 The Organization as an Open System The Organization as an Open System
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–51 Implications of the Systems Approach Implications of the Systems Approach • Coordination of the organization’s parts is Coordination of the organization’s parts is essential for proper functioning of the entire essential for proper functioning of the entire organization. organization. • Decisions and actions taken in one area of the Decisions and actions taken in one area of the organization will have an effect in other areas of organization will have an effect in other areas of the organization. the organization. • Organizations are not self-contained and, Organizations are not self-contained and, therefore, must adapt to changes in their therefore, must adapt to changes in their external environment. external environment.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–52 The Contingency Approach The Contingency Approach • Contingency Approach Defined Contingency Approach Defined Also sometimes called the Also sometimes called the situational approach. situational approach. There is no one universally applicable set of There is no one universally applicable set of management principles (rules) by which to manage management principles (rules) by which to manage organizations. organizations. Organizations are individually different, face different Organizations are individually different, face different situations (contingency variables), and require situations (contingency variables), and require different ways of managing. different ways of managing.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–53 Exhibit 2–7 Exhibit 2–7 Popular Contingency Variables Popular Contingency Variables • Organization size • As size increases, so do the problems of coordination. • Routineness of task technology • Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies. • Environmental uncertainty • What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. • Individual differences • Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–54 Current Trends and Issues Current Trends and Issues • Globalization Globalization • Ethics Ethics • Workforce Diversity Workforce Diversity • Entrepreneurship Entrepreneurship • E-business E-business • Knowledge Management Knowledge Management • Learning Organizations Learning Organizations • Quality Management Quality Management
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–55 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Globalization Globalization Management in international organizations Management in international organizations Political and cultural challenges of operating in a Political and cultural challenges of operating in a global market global market Working with people from different cultures Working with people from different cultures Coping with anticapitalist backlash Coping with anticapitalist backlash Movement of jobs to countries with low-cost labor Movement of jobs to countries with low-cost labor • Ethics Ethics Increased emphasis on ethics education in college Increased emphasis on ethics education in college curriculums curriculums Increased creation and use of codes of ethics by Increased creation and use of codes of ethics by businesses businesses
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–56 Exhibit 2–8 Exhibit 2–8 A Process for Addressing Ethical Dilemmas A Process for Addressing Ethical Dilemmas Step 1: What is the ethical dilemma? Step 2: Who are the affected stakeholders? Step 3: What personal, organizational, and external factors are important to my decision? Step 4: What are possible alternatives? Step 5: Make a decision and act on it.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–57 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Workforce Diversity Workforce Diversity Increasing heterogeneity in the workforce Increasing heterogeneity in the workforce More gender, minority, ethnic, and other forms of diversity in More gender, minority, ethnic, and other forms of diversity in employees employees Aging workforce Aging workforce Older employees who work longer and do not retire Older employees who work longer and do not retire The increased costs of public and private benefits for older The increased costs of public and private benefits for older workers workers An increasing demand for products and services related to An increasing demand for products and services related to aging. aging.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–58 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Entrepreneurship Defined Entrepreneurship Defined The process of starting new businesses, generally in The process of starting new businesses, generally in response to opportunities. response to opportunities. • Entrepreneurship process Entrepreneurship process Pursuit of opportunities Pursuit of opportunities Innovation in products, services, or business methods Innovation in products, services, or business methods Desire for continual growth of the organization Desire for continual growth of the organization
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–59 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • E-Business (Electronic Business) E-Business (Electronic Business) The work preformed by an organization using The work preformed by an organization using electronic linkages to its key constituencies electronic linkages to its key constituencies E-commerce: the sales and marketing aspect of an e- E-commerce: the sales and marketing aspect of an e- business business • Categories of E-Businesses Categories of E-Businesses E-business enhanced organization E-business enhanced organization E-business enabled organization E-business enabled organization Total e-business organization Total e-business organization
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–60 Exhibit 2–9 Exhibit 2–9 Categories of E-Business Involvement Categories of E-Business Involvement
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–61 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Learning Organization Learning Organization An organization that has developed the capacity to An organization that has developed the capacity to continuously learn, adapt, and change. continuously learn, adapt, and change. • Knowledge Management Knowledge Management The cultivation of a learning culture where The cultivation of a learning culture where organizational members systematically gather and organizational members systematically gather and share knowledge with others in order to achieve share knowledge with others in order to achieve better performance. better performance.
62.
© 2007 Prentice
Hall, Inc. All rights reserved. 2–62 Exhibit 2–10 Exhibit 2–10 Learning Organization versus Traditional Organization Learning Organization versus Traditional Organization
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–63 Current Trends and Issues (cont’d) Current Trends and Issues (cont’d) • Quality Management Quality Management A philosophy of management driven by continual A philosophy of management driven by continual improvement in the quality of work processes and improvement in the quality of work processes and responding to customer needs and expectations responding to customer needs and expectations Inspired by the total quality management (TQM) ideas Inspired by the total quality management (TQM) ideas of Deming and Juran of Deming and Juran Quality is not directly related to cost Quality is not directly related to cost Poor quality results in lower productivity Poor quality results in lower productivity
64.
© 2007 Prentice
Hall, Inc. All rights reserved. 2–64 Exhibit 2–11 Exhibit 2–11 What is Quality Management? What is Quality Management? Intense focus on the customer. Concern for continual improvement Process-focused. Improvement in the quality of everything. Accurate measurement. Empowerment of employees.
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© 2007 Prentice
Hall, Inc. All rights reserved. 2–65 Terms to Know Terms to Know • division of labor (or job division of labor (or job specialization) specialization) • Industrial Revolution Industrial Revolution • scientific management scientific management • therbligs therbligs • general administrative theory general administrative theory • principles of management principles of management • bureaucracy bureaucracy • quantitative approach quantitative approach • organizational behavior (OB) organizational behavior (OB) • Hawthorne Studies Hawthorne Studies • system system • closed systems closed systems • open systems open systems • contingency approach contingency approach • workforce diversity workforce diversity • entrepreneurship entrepreneurship • e-business (electronic e-business (electronic business) business) • e-commerce (electronic e-commerce (electronic commerce) commerce) • intranet intranet • learning organization learning organization • knowledge management knowledge management • quality management quality management
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ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved. All rights reserved. Organizational Culture Organizational Culture and Environment: and Environment: The Constraints The Constraints Chapter Chapter 3 3
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–67 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •The Manager: Omnipotent or Symbolic The Manager: Omnipotent or Symbolic • Contrast the action of manager according to the Contrast the action of manager according to the omnipotent and symbolic views. omnipotent and symbolic views. • Explain the parameters of managerial discretion. Explain the parameters of managerial discretion. •The Organization’s Culture The Organization’s Culture • Describe the seven dimensions of organizational culture. Describe the seven dimensions of organizational culture. • Discuss the impact of a strong culture on organizations Discuss the impact of a strong culture on organizations and managers. and managers. • Explain the source of an organization’s culture. Explain the source of an organization’s culture. • Describe how culture is transmitted to employees. Describe how culture is transmitted to employees. • Describe how culture affects managers. Describe how culture affects managers.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–68 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •Current Organizational Cultural Issues Facing Current Organizational Cultural Issues Facing Managers Managers • Describe the characteristics of an ethical culture, an Describe the characteristics of an ethical culture, an innovative culture, and a customer-responsive culture. innovative culture, and a customer-responsive culture. • Discuss why workplace spirituality seems to be an Discuss why workplace spirituality seems to be an important concern. important concern. • Describe the characteristics of a spiritual organization. Describe the characteristics of a spiritual organization.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–69 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. •The Environment (cont’d) The Environment (cont’d) • Describe the components of the specific and general Describe the components of the specific and general environments. environments. • Discuss the two dimensions of environmental Discuss the two dimensions of environmental uncertainty. uncertainty. • Identify the most common organizational stakeholders. Identify the most common organizational stakeholders. • Explain the four steps in managing external stakeholder Explain the four steps in managing external stakeholder relationships. relationships.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–70 The Manager: Omnipotent or Symbolic? The Manager: Omnipotent or Symbolic? • Omnipotent View of Management Omnipotent View of Management Managers are directly responsible for an Managers are directly responsible for an organization’s success or failure. organization’s success or failure. The quality of the organization is determined by the The quality of the organization is determined by the quality of its managers. quality of its managers. Managers are held accountable Managers are held accountable for an organization’s performance for an organization’s performance yet it is difficult to attribute yet it is difficult to attribute good or poor performance good or poor performance directly to their influence directly to their influence on the organization. on the organization.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–71 The Manager: Omnipotent or Symbolic? The Manager: Omnipotent or Symbolic? • Symbolic View of Management Symbolic View of Management Much of an organization’s success or failure is due to Much of an organization’s success or failure is due to external forces outside of managers’ control. external forces outside of managers’ control. The ability of managers to affect outcomes is The ability of managers to affect outcomes is influenced and constrained by external factors. influenced and constrained by external factors. The economy, customers, governmental policies, The economy, customers, governmental policies, competitors, industry conditions, competitors, industry conditions, technology, and the actions of technology, and the actions of previous managers previous managers Managers symbolize control and Managers symbolize control and influence through their action. influence through their action.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–72 Exhibit 3–1 Exhibit 3–1 Parameters of Managerial Discretion Parameters of Managerial Discretion
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–73 The Organization’s Culture The Organization’s Culture • Organizational Culture Organizational Culture A system of shared meanings and common beliefs A system of shared meanings and common beliefs held by organizational members that determines, in a held by organizational members that determines, in a large degree, how they act towards each other. large degree, how they act towards each other. “ “The way we do things around here.” The way we do things around here.” Values, symbols, rituals, myths, and practices Values, symbols, rituals, myths, and practices Implications: Implications: Culture is a perception. Culture is a perception. Culture is shared. Culture is shared. Culture is descriptive. Culture is descriptive.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–74 Exhibit 3–2 Exhibit 3–2 Dimensions of Organizational Culture Dimensions of Organizational Culture
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–75 Exhibit 3–3 Exhibit 3–3 Contrasting Organizational Cultures Contrasting Organizational Cultures Dimension Dimension Organization A Organization A Organization B Organization B Attention to Detail Attention to Detail High High Low Low Outcome Orientation Outcome Orientation Low Low High High People Orientation People Orientation Low Low High High Team Orientation Team Orientation Low Low High High Aggressiveness Aggressiveness Low Low High High Stability Stability High High Low Low Innovation and Risk Taking Innovation and Risk Taking Low Low High High
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–76 Strong versus Weak Cultures Strong versus Weak Cultures • Strong Cultures Strong Cultures Are cultures in which key values are deeply held and Are cultures in which key values are deeply held and widely held. widely held. Have a strong influence on organizational members. Have a strong influence on organizational members. • Factors Influencing the Strength of Culture Factors Influencing the Strength of Culture Size of the organization Size of the organization Age of the organization Age of the organization Rate of employee turnover Rate of employee turnover Strength of the original culture Strength of the original culture Clarity of cultural values and beliefs Clarity of cultural values and beliefs
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–77 Benefits of a Strong Culture Benefits of a Strong Culture • Creates a stronger employee commitment to the Creates a stronger employee commitment to the organization. organization. • Aids in the recruitment and socialization of new Aids in the recruitment and socialization of new employees. employees. • Fosters higher organizational Fosters higher organizational performance by instilling and performance by instilling and promoting employee initiative. promoting employee initiative.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–78 Organizational Culture Organizational Culture • Sources of Organizational Culture Sources of Organizational Culture The organization’s founder The organization’s founder Vision and mission Vision and mission Past practices of the organization Past practices of the organization The way things have been done The way things have been done The behavior of top management The behavior of top management • Continuation of the Organizational Culture Continuation of the Organizational Culture Recruitment of like-minded employees who “fit” Recruitment of like-minded employees who “fit” Socialization Socialization of new employees to help them adapt of new employees to help them adapt to the culture to the culture
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–79 Exhibit 3–4 Exhibit 3–4 Strong versus Weak Organizational Cultures Strong versus Weak Organizational Cultures
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–80 How Employees Learn Culture How Employees Learn Culture • Stories Stories Narratives of significant events or actions of people that convey Narratives of significant events or actions of people that convey the spirit of the organization the spirit of the organization • Rituals Rituals Repetitive sequences of activities that express and reinforce the Repetitive sequences of activities that express and reinforce the values of the organization values of the organization • Material Symbols Material Symbols Physical assets distinguishing the organization Physical assets distinguishing the organization • Language Language Acronyms and jargon of terms, phrases, and word meanings Acronyms and jargon of terms, phrases, and word meanings specific to an organization specific to an organization
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–81 How Culture Affects Managers How Culture Affects Managers • Cultural Constraints on Managers Cultural Constraints on Managers Whatever managerial actions the organization Whatever managerial actions the organization recognizes as proper or improper on its behalf recognizes as proper or improper on its behalf Whatever organizational activities the organization Whatever organizational activities the organization values and encourages values and encourages The overall strength or weakness of the The overall strength or weakness of the organizational culture organizational culture Simple rule for getting ahead in an organization: Simple rule for getting ahead in an organization: Find out what the organization rewards and do those things. Find out what the organization rewards and do those things.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–82 Exhibit 3–5 Exhibit 3–5 How an Organization’s Culture Is Established How an Organization’s Culture Is Established and Maintained and Maintained
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–83 Exhibit 3–6 Exhibit 3–6 Managerial Decisions Affected by Culture Managerial Decisions Affected by Culture • Planning • The degree of risk that plans should contain • Whether plans should be developed by individuals or teams • The degree of environmental scanning in which management will engage • Organizing • How much autonomy should be designed into employees’ jobs • Whether tasks should be done by individuals or in teams • The degree to which department managers interact with each other
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–84 Exhibit 3–6 Exhibit 3–6 Managerial Decisions Affected by Culture (cont’d) Managerial Decisions Affected by Culture (cont’d) • Leading • The degree to which managers are concerned with increasing employee job satisfaction • What leadership styles are appropriate • Whether all disagreements—even constructive ones—should be eliminated • Controlling • Whether to impose external controls or to allow employees to control their own actions • What criteria should be emphasized in employee performance evaluations • What repercussions will occur from exceeding one’s budget
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–85 Organization Culture Issues Organization Culture Issues • Creating an Ethical Creating an Ethical Culture Culture High in risk tolerance High in risk tolerance Low to moderate Low to moderate aggressiveness aggressiveness Focus on means as Focus on means as well as outcomes well as outcomes • Creating an Innovative Creating an Innovative Culture Culture Challenge and Challenge and involvement involvement Freedom Freedom Trust and openness Trust and openness Idea time Idea time Playfulness/humor Playfulness/humor Conflict resolution Conflict resolution Debates Debates Risk-taking Risk-taking
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–86 Exhibit 3–7 Exhibit 3–7 Suggestions for Managers: Creating a More Ethical Culture Suggestions for Managers: Creating a More Ethical Culture • Be a visible role model. • Communicate ethical expectations. • Provide ethics training. • Visibly reward ethical acts and punish unethical ones. • Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior without fear.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–87 Organization Culture Issues (cont’d) Organization Culture Issues (cont’d) • Creating a Customer-Responsive Culture Creating a Customer-Responsive Culture Hiring the right type of employees (ones with a strong Hiring the right type of employees (ones with a strong interest in serving customers) interest in serving customers) Having few rigid rules, procedures, and regulations Having few rigid rules, procedures, and regulations Using widespread empowerment of employees Using widespread empowerment of employees Having good listening skills in relating to customers’ Having good listening skills in relating to customers’ messages messages Providing role clarity to employees to reduce Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction ambiguity and conflict and increase job satisfaction Having conscientious, caring employees willing to Having conscientious, caring employees willing to take initiative take initiative
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–88 Exhibit 3–8 Exhibit 3–8 Suggestions for Managers: Creating a More Customer- Suggestions for Managers: Creating a More Customer- Responsive Culture Responsive Culture • Hire service-contact people with the personality and attitudes consistent with customer service—friendliness, enthusiasm, attentiveness, patience, concern about others, and listening skills. • Train customer service people continuously by focusing on improving product knowledge, active listening, showing patience, and displaying emotions. • Socialize new service-contact people to the organization’s goals and values. • Design customer-service jobs so that employees have as much control as necessary to satisfy customers. • Empower service-contact employees with the discretion to make day-to-day decisions on job-related activities. • As the leader, convey a customer-focused vision and demonstrate through decisions and actions the commitment to customers.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–89 Spirituality and Organizational Culture Spirituality and Organizational Culture •Workplace Spirituality Workplace Spirituality The recognition that people have an inner life that The recognition that people have an inner life that nourishes and is nourished by meaningful work that nourishes and is nourished by meaningful work that takes place in the context of community. takes place in the context of community. •Characteristics of a Spiritual Organization Characteristics of a Spiritual Organization Strong sense of purpose Strong sense of purpose Focus on individual development Focus on individual development Trust and openness Trust and openness Employee empowerment Employee empowerment Toleration of employees’ expression Toleration of employees’ expression
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–90 Benefits of Spirituality Benefits of Spirituality • Improved employee productivity Improved employee productivity • Reduction of employee turnover Reduction of employee turnover • Stronger organizational performance Stronger organizational performance • Increased creativity Increased creativity • Increased employee satisfaction Increased employee satisfaction • Increased team performance Increased team performance • Increased organizational performance Increased organizational performance
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–91 Defining the External Environment Defining the External Environment • External Environment External Environment Those factors and forces outside the organization that Those factors and forces outside the organization that affect the organization’s performance. affect the organization’s performance. • Components of the External Environment Components of the External Environment Specific environment: Specific environment: external forces that have a external forces that have a direct and immediate impact on the organization. direct and immediate impact on the organization. General environment: General environment: broad economic, socio- broad economic, socio- cultural, political/legal, demographic, technological, cultural, political/legal, demographic, technological, and global conditions that and global conditions that may may affect the organization. affect the organization.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–92 Exhibit 3–9 Exhibit 3–9 The External Environment The External Environment
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–93 Exhibit 3–10 Exhibit 3–10 Selected U.S. Legislation Affecting Business Selected U.S. Legislation Affecting Business • Occupational Safety and Health Act of 1970 • Consumer Product Safety Act of 1972 • Equal Employment Opportunity Act of 1972 • Worker Adjustment and Retraining Notification Act of 1988 • Americans with Disabilities Act of 1990 • Civil Rights Act of 1991 • Family and Medical Leave Act of 1993 • Child Safety Protection Act of 1994 • U.S. Economic Espionage Act of 1996 • Electronic Signatures in Global and National Commerce Act of 2000 • Sarbanes-Oxley Act of 2002 • Fair and Accurate Credit Transactions Act of 2003
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–94 How the Environment Affects Managers How the Environment Affects Managers • Environmental Uncertainty Environmental Uncertainty The extent to which managers have knowledge of The extent to which managers have knowledge of and are able to predict change their organization’s and are able to predict change their organization’s external environment is affected by: external environment is affected by: Complexity of the environment: Complexity of the environment: the number of components the number of components in an organization’s external environment. in an organization’s external environment. Degree of change in environmental components: Degree of change in environmental components: how how dynamic or stable the external environment is. dynamic or stable the external environment is.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–95 Exhibit 3–11 Exhibit 3–11 Environmental Uncertainty Matrix Environmental Uncertainty Matrix
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–96 Stakeholder Relationships Stakeholder Relationships • Stakeholders Stakeholders Any constituencies in the organization’s environment Any constituencies in the organization’s environment that are affected by the organization’s decisions and that are affected by the organization’s decisions and actions actions • Why Manage Stakeholder Relationships? Why Manage Stakeholder Relationships? It can lead to improved organizational performance. It can lead to improved organizational performance. It’s the “right” thing to do given the interdependence It’s the “right” thing to do given the interdependence of the organization and its external stakeholders. of the organization and its external stakeholders.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–97 Managing Stakeholder Relationships Managing Stakeholder Relationships 1. 1. Identify the organization’s external Identify the organization’s external stakeholders. stakeholders. 2. 2. Determine the particular interests and Determine the particular interests and concerns of the external stakeholders. concerns of the external stakeholders. 3. 3. Decide how critical each external stakeholder Decide how critical each external stakeholder is to the organization. is to the organization. 4. 4. Determine how to manage each individual Determine how to manage each individual external stakeholder relationship. external stakeholder relationship.
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–98 Exhibit 3–12 Exhibit 3–12 Organizational Stakeholders Organizational Stakeholders
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© 2007 Prentice
Hall, Inc. All rights reserved. 3–99 Terms to Know Terms to Know • omnipotent view of omnipotent view of management management • symbolic view of symbolic view of management management • organizational culture organizational culture • strong cultures strong cultures • socialization socialization • workplace spirituality workplace spirituality • external environment external environment • specific environment specific environment • general environment general environment • environmental uncertainty environmental uncertainty • environmental complexity environmental complexity • stakeholders stakeholders
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ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved. All rights reserved. Managing in a Global Managing in a Global Environment Environment Chapter Chapter 4 4
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–101 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. What’s Your Global Perspective? What’s Your Global Perspective? • Define parochialism. Define parochialism. • Contrast ethnocentric, polycentric, and geocentric Contrast ethnocentric, polycentric, and geocentric attitudes towards global business. attitudes towards global business. • Explain why it’s important for managers to be sensitive to Explain why it’s important for managers to be sensitive to global differences global differences Understanding the Global Environment Understanding the Global Environment • Describe the current status of the European Union. Describe the current status of the European Union. • Discuss the North American Free Trade Agreement and Discuss the North American Free Trade Agreement and other regional trade alliances in Latin America. other regional trade alliances in Latin America. • Tell about the Association of Southeast Asian Nations. Tell about the Association of Southeast Asian Nations.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–102 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. Understanding the Global Environment Understanding the Global Environment • Explain the interdependence that globalization involves. Explain the interdependence that globalization involves. • Discuss the role of the WTO. Discuss the role of the WTO. Doing Business Globally Doing Business Globally • Contrast multinational, multidomestic, global, Contrast multinational, multidomestic, global, transnational, and born global organizations. transnational, and born global organizations. • Describe the different ways organizations can go Describe the different ways organizations can go international. international. • Define global sourcing, exporting, importing, licensing, Define global sourcing, exporting, importing, licensing, and franchising. and franchising. • Describe global strategic alliances, joint ventures, and Describe global strategic alliances, joint ventures, and foreign subsidiaries. foreign subsidiaries.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–103 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. Managing in a Global Environment (cont’d) Managing in a Global Environment (cont’d) • Explain how the global legal-political and economic Explain how the global legal-political and economic environments affect managers. environments affect managers. • Discuss Hofstede’s five dimensions for assessing Discuss Hofstede’s five dimensions for assessing cultures. cultures. • Explain the nine GLOBE dimensions for assessing Explain the nine GLOBE dimensions for assessing cultures. cultures. • Discuss the challenges of doing business globally in Discuss the challenges of doing business globally in today’s world. today’s world.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–104 The Global Marketplace The Global Marketplace • Opportunities and Challenges Opportunities and Challenges Coping with the sudden appearance of new Coping with the sudden appearance of new competitors competitors Acknowledging cultural, political, and economic Acknowledging cultural, political, and economic differences differences Dealing with increased uncertainty, fear, and anxiety Dealing with increased uncertainty, fear, and anxiety Adapting to changes in the global environment Adapting to changes in the global environment Avoiding parochialism Avoiding parochialism
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–105 What’s Your Global Perspective? What’s Your Global Perspective? • Parochialism Parochialism Is viewing the world solely through its own eyes and Is viewing the world solely through its own eyes and perspectives. perspectives. Is not recognizing that others have different ways of Is not recognizing that others have different ways of living and working. living and working. Is a significant obstacle for managers working in a Is a significant obstacle for managers working in a global business world. global business world. Is falling into the trap of ignoring others’ values and Is falling into the trap of ignoring others’ values and customs and rigidly applying an attitude of “ours is customs and rigidly applying an attitude of “ours is better than theirs” to foreign cultures. better than theirs” to foreign cultures.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–106 Exhibit 4–1 Exhibit 4–1 Key Information About Three Global Attitudes Key Information About Three Global Attitudes
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–107 Adopting a Global Perspective Adopting a Global Perspective • Ethnocentric Attitude Ethnocentric Attitude The parochialistic belief that the best work The parochialistic belief that the best work approaches and practices are those of the approaches and practices are those of the home home country. country. • Polycentric Attitude Polycentric Attitude The view that the managers in the The view that the managers in the host host country know country know the best work approaches and practices for running the best work approaches and practices for running their business. their business. • Geocentric Attitude Geocentric Attitude A A world-oriented world-oriented view that focuses on using the best view that focuses on using the best approaches and people from around the globe. approaches and people from around the globe.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–108 Regional Trading Agreements Regional Trading Agreements • The European Union (EU) The European Union (EU) A unified economic and trade entity A unified economic and trade entity Belgium, Denmark, France, Greece, Ireland, Italy, Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Germany, Austria, Finland, and Sweden Kingdom, Germany, Austria, Finland, and Sweden Economic and monetary union (Euro) Economic and monetary union (Euro) • North American Free Trade Agreement (NAFTA) North American Free Trade Agreement (NAFTA) Eliminated barriers to free trade (tariffs, import Eliminated barriers to free trade (tariffs, import licensing requirements, and customs user fees) licensing requirements, and customs user fees) United States, Canada, and Mexico United States, Canada, and Mexico
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–109 Exhibit 4–3 Exhibit 4–3 European Union Countries European Union Countries
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–110 Regional Trading Agreements (cont’d) Regional Trading Agreements (cont’d) • U.S.-Central America Free Trade Agreement U.S.-Central America Free Trade Agreement (CAFTA) (CAFTA) • Free Trade Area of the Americas Free Trade Area of the Americas • Southern Cone Common Market (Mercosur) Southern Cone Common Market (Mercosur) • Association of Southeast Asian Nations Association of Southeast Asian Nations (ASEAN) (ASEAN) Trading alliance of 10 Southeast Asian nations Trading alliance of 10 Southeast Asian nations • African Union African Union • South Asian Association for Regional South Asian Association for Regional Cooperation (SARRC) Cooperation (SARRC)
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–111 Exhibit 4–4 Exhibit 4–4 ASEAN Members ASEAN Members Source: Based on J. McClenahen and T. Clark, “ASEAN at Work,” IW. May 19, 1997, p. 42.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–112 The World Trade Organization (WTO) The World Trade Organization (WTO) • Evolved from the General Agreement on Tariffs Evolved from the General Agreement on Tariffs and Trade (GATT) in 1995. and Trade (GATT) in 1995. • Functions as the only global organization Functions as the only global organization dealing with the rules of trade among nations. dealing with the rules of trade among nations. • Has 149 member nations and 32 observer Has 149 member nations and 32 observer governments. governments. • Monitors and promotes world trade. Monitors and promotes world trade.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–113 Different Types of International Different Types of International Organizations Organizations • Multinational Corporation (MNC) Multinational Corporation (MNC) Maintains operations in multiple countries. Maintains operations in multiple countries. • Multidomestic Corporation Multidomestic Corporation Is an MNC that decentralizes management and other Is an MNC that decentralizes management and other decisions to the local country. decisions to the local country. • Global Company Global Company Is an MNC that centralizes its management and other Is an MNC that centralizes its management and other decisions in the home country. decisions in the home country.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–114 Different Types of International Different Types of International Organizations (cont’d) Organizations (cont’d) • Transnational Corporation (Borderless Transnational Corporation (Borderless Organization) Organization) Is an MNC that has eliminated structural divisions that Is an MNC that has eliminated structural divisions that impose artificial geographic barriers and is organized impose artificial geographic barriers and is organized along business lines that reflect a geocentric attitude. along business lines that reflect a geocentric attitude. • Born Globals/International New Ventures (INVs) Born Globals/International New Ventures (INVs) Commit resources upfront (material, people, Commit resources upfront (material, people, financing) to doing business in more than one financing) to doing business in more than one country. country.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–115 Exhibit 4–5 Exhibit 4–5 How Organizations Go Global How Organizations Go Global
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–116 Other Forms of Globalization Other Forms of Globalization • Strategic Alliances Strategic Alliances Partnerships between and organization and a foreign Partnerships between and organization and a foreign company in which both share resources and company in which both share resources and knowledge in developing new products or building knowledge in developing new products or building new production facilities. new production facilities. • Joint Venture Joint Venture A specific type of strategic alliance in which the A specific type of strategic alliance in which the partners agree to form a separate, independent partners agree to form a separate, independent organization for some business purpose. organization for some business purpose. • Foreign Subsidiary Foreign Subsidiary Directly investing in a foreign country by setting up a Directly investing in a foreign country by setting up a separate and independent production facility or office. separate and independent production facility or office.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–117 Managing in A Global Environment Managing in A Global Environment • The Legal Environment The Legal Environment Stability or instability of legal and political systems Stability or instability of legal and political systems Legal procedures are established and followed Legal procedures are established and followed Fair and honest elections held on a regular basis Fair and honest elections held on a regular basis Differences in the laws of various nations Differences in the laws of various nations Effects on business activities Effects on business activities Effects on delivery of products and services Effects on delivery of products and services
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–118 The Economic Environment The Economic Environment • Economic Systems Economic Systems Market economy Market economy An economy in which resources are primarily owned and An economy in which resources are primarily owned and controlled by the private sector. controlled by the private sector. Command economy Command economy An economy in which all economic decisions are planned by An economy in which all economic decisions are planned by a central government. a central government. • Monetary and Financial Factors Monetary and Financial Factors Currency exchange rates Currency exchange rates Inflation rates Inflation rates Diverse tax policies Diverse tax policies
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–119 The Cultural Environment The Cultural Environment • National Culture National Culture Is the values and attitudes shared by individuals from Is the values and attitudes shared by individuals from a specific country that shape their behavior and their a specific country that shape their behavior and their beliefs about what is important. beliefs about what is important. May have more influence on an organization than the May have more influence on an organization than the organization culture. organization culture.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–120 Exhibit 4–6 Exhibit 4–6 What Are Americans Like What Are Americans Like Americans are very informal. Americans are direct. Americans are competitive. Americans are achievers. Americans are independent and individualistic. Americans are questioners. Americans dislike silence. Americans value punctuality. Americans value cleanliness. Sources: Based on M. Ernest (ed.), Predeparture Orientation Handbook: For Foreign Students and Scholars Planning to Study in the United States (Washington, DC: U.S. Information Agency, Bureau of Cultural Affairs, 1984), pp. 103–05; A. Bennett, “American Culture Is Often a Puzzle for Foreign Managers in the U.S.,” Wall Street Journal, February 12, 1986, p. 29; “Don’t Think Our Way’s the Only Way,” The Pryor Report, February 1988, p. 9; and B.J. Wattenberg, “The Attitudes behind American Exceptionalism,” U.S. News & World Report, August 7, 1989, p. 25.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–121 Hofstede’s Framework for Assessing Cultures Hofstede’s Framework for Assessing Cultures Individualism versus Collectivism Individualism versus Collectivism Power Distance Power Distance Uncertainty Avoidance Uncertainty Avoidance Achievement versus Nurturing Achievement versus Nurturing Long-Term versus Short-Term Orientation Long-Term versus Short-Term Orientation Culture Culture
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–122 Exhibit 4–7 Exhibit 4–7 Examples of Hofstede’s Cultural Dimensions Examples of Hofstede’s Cultural Dimensions Source: Based on G. Hofstede, “Motivation, Leadership, and Organization: Do American Theories Apply Abroad?” Organizational Dynamics, Summer 1980, pp. 42–63.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–123 Exhibit 4–8 Exhibit 4–8 GLOBE Highlights GLOBE Highlights Source: M. Javidan and R. J. House, “Cultural Acumen for the Global Manager: Lessons from Project GLOBE,” Organizational Dynamics, Spring 2001, pp. 289–305. Copyright © 2001. Reprinted with permission from Elsevier.
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–124 Global Management in Today’s World Global Management in Today’s World • Challenges Challenges Openness associated with globalization Openness associated with globalization Significant cultural differences (e.g., Americanization) Significant cultural differences (e.g., Americanization) Adjusting leadership styles and management Adjusting leadership styles and management approaches approaches • Risks Risks Loss of investments in unstable countries Loss of investments in unstable countries Increased terrorism Increased terrorism Economic interdependence Economic interdependence
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© 2007 Prentice
Hall, Inc. All rights reserved. 4–125 Terms to Know Terms to Know • parochialism parochialism • ethnocentric attitude ethnocentric attitude • polycentric attitude polycentric attitude • geocentric attitude geocentric attitude • European Union (EU) European Union (EU) • Euro Euro • North American Free Trade North American Free Trade Agreement (NAFTA) Agreement (NAFTA) • Association of Southeast Asian Association of Southeast Asian Nations (ASEAN) Nations (ASEAN) • World Trade Organization (WTO) World Trade Organization (WTO) • multinational corporations (MNCs) multinational corporations (MNCs) • multidomestic corporation multidomestic corporation • global company global company • transnational or borderless transnational or borderless organization organization • born globals born globals • global sourcing global sourcing • exporting exporting • importing importing • licensing licensing • franchising franchising • strategic alliances strategic alliances • joint venture joint venture • foreign subsidiary foreign subsidiary • market economy market economy • command economy command economy • national culture national culture • GLOBE GLOBE • wikis wikis • blogs blogs
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ninth edition STEPHEN P.
ROBBINS PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook The University of West Alabama The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. © 2007 Prentice Hall, Inc. All rights reserved. All rights reserved. Social Responsibility Social Responsibility and Managerial Ethics and Managerial Ethics Chapter Chapter 5 5
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–127 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter Follow this Learning Outline as you read and study this chapter. . What is Social Responsibility? What is Social Responsibility? • Contrast the classical and socioeconomic views of social Contrast the classical and socioeconomic views of social responsibility. responsibility. • Discuss the role that stakeholders play in the four stages Discuss the role that stakeholders play in the four stages of social responsibility. of social responsibility. • Differentiate between social obligation, social Differentiate between social obligation, social responsiveness, and social responsibility. responsiveness, and social responsibility.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–128 L E A R N I N G O U T L I N E L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter Follow this Learning Outline as you read and study this chapter. . Social Responsibility and Economic Performance Social Responsibility and Economic Performance • Explain what research studies have shown about the Explain what research studies have shown about the relationship between an organization’s social involvement relationship between an organization’s social involvement and its economic performance. and its economic performance. • Define social screening. Define social screening. • Explain what conclusion can be reached regarding social Explain what conclusion can be reached regarding social responsibility and economic performance. responsibility and economic performance.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–129 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. The Greening of Management The Greening of Management • Describe how organizations can go green. Describe how organizations can go green. • Relate the approaches to being green to the concepts of Relate the approaches to being green to the concepts of social obligation, social responsiveness, and social social obligation, social responsiveness, and social responsibility. responsibility. Values-Based Management Values-Based Management • Discuss what purposes shared values serve. Discuss what purposes shared values serve. • Describe the relationship of values-based management to Describe the relationship of values-based management to ethics. ethics.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–130 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. Managerial Ethics Managerial Ethics • Discuss the factors that affect ethical and unethical Discuss the factors that affect ethical and unethical behavior. behavior. • Describe the important roles managers play in Describe the important roles managers play in encouraging ethical behavior. encouraging ethical behavior.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–131 L E A R N I N G O U T L I N E (cont’d) L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Follow this Learning Outline as you read and study this chapter. Social Responsibility and Ethics in Today’s World Social Responsibility and Ethics in Today’s World • Explain why ethical leadership is important. Explain why ethical leadership is important. • Discuss how managers and organizations can protect Discuss how managers and organizations can protect employees who raise ethical issues or concerns. employees who raise ethical issues or concerns. • Explain what role social entrepreneurs play. Explain what role social entrepreneurs play. • Describe social impact management. Describe social impact management.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–132 What Is Social Responsibility? What Is Social Responsibility? • The Classical View The Classical View Management’s only social responsibility is to Management’s only social responsibility is to maximize profits (create a financial return) by maximize profits (create a financial return) by operating the business in the best interests of the operating the business in the best interests of the stockholders (owners of the corporation). stockholders (owners of the corporation). Expending the firm’s resources on doing “social good” Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the unjustifiably increases costs that lower profits to the owners and raises prices to consumers. owners and raises prices to consumers.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–133 What Is Social Responsibility? (cont’d) What Is Social Responsibility? (cont’d) • The Socioeconomic View The Socioeconomic View Management’s social responsibility goes beyond Management’s social responsibility goes beyond making profits to include protecting and improving making profits to include protecting and improving society’s welfare. society’s welfare. Corporations are not independent entities responsible Corporations are not independent entities responsible only to stockholders. only to stockholders. Firms have a moral responsibility to larger society to Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. become involved in social, legal, and political issues. “ “To do the right thing” To do the right thing”
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–134 Exhibit 5–1 Exhibit 5–1 To Whom is Management Responsible? To Whom is Management Responsible?
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–135 Exhibit 5–2 Exhibit 5–2 Arguments For and Against Social Responsibility Arguments For and Against Social Responsibility • For For Public expectations Public expectations Long-run profits Long-run profits Ethical obligation Ethical obligation Public image Public image Better environment Better environment Discouragement of further Discouragement of further governmental regulation governmental regulation Balance of responsibility Balance of responsibility and power and power Stockholder interests Stockholder interests Possession of resources Possession of resources Superiority of prevention Superiority of prevention over cure over cure • Against Against Violation of profit Violation of profit maximization maximization Dilution of purpose Dilution of purpose Costs Costs Too much power Too much power Lack of skills Lack of skills Lack of accountability Lack of accountability
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–136 From Obligation to Responsiveness to From Obligation to Responsiveness to Responsibility Responsibility • Social Obligation Social Obligation The obligation of a business to meet its economic and The obligation of a business to meet its economic and legal responsibilities and nothing more. legal responsibilities and nothing more. • Social Responsiveness Social Responsiveness When a firm engages in social actions in response to When a firm engages in social actions in response to some popular social need. some popular social need. • Social Responsibility Social Responsibility A business’s intention, beyond its legal and economic A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that obligations, to do the right things and act in ways that are good for society. are good for society.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–137 Exhibit 5–3 Exhibit 5–3 Social Responsibility versus Social Responsiveness Social Responsibility versus Social Responsiveness Social Responsibility Social Responsiveness Major consideration Ethical Pragmatic Focus Ends Means Emphasis Obligation Responses Decision framework Long term Medium and short term Source: Adapted from S.L. Wartick and P.L. Cochran, “The Evolution of the Corporate Social Performance Model,” Academy of Management Review, October 1985, p. 766.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–138 Does Social Responsibility Pay? Does Social Responsibility Pay? • Studies appear to show a positive relationship Studies appear to show a positive relationship between social involvement and the economic between social involvement and the economic performance of firms. performance of firms. Difficulties in defining and measuring “social Difficulties in defining and measuring “social responsibility” and “economic performance raise responsibility” and “economic performance raise issues of validity and causation in the studies. issues of validity and causation in the studies. Mutual funds using social screening in investment Mutual funds using social screening in investment decisions slightly outperformed other mutual funds. decisions slightly outperformed other mutual funds. • A general conclusion is that a firm’s social A general conclusion is that a firm’s social actions do not harm its long-term performance. actions do not harm its long-term performance.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–139 Exhibit 5–4 Exhibit 5–4 Social Investing Social Investing Source: Social Investment Forum Foundation.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–140 The Greening of Management The Greening of Management • The recognition of the close link between an The recognition of the close link between an organization’s decision and activities and its organization’s decision and activities and its impact on the natural environment. impact on the natural environment. Global environmental problems facing managers: Global environmental problems facing managers: Air, water, and soil pollution from toxic wastes Air, water, and soil pollution from toxic wastes Global warming from greenhouse gas emissions Global warming from greenhouse gas emissions Natural resource depletion Natural resource depletion
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–141 How Organizations Go Green How Organizations Go Green • Legal (or Light Green) Approach Legal (or Light Green) Approach Firms simply do what is legally required by obeying laws, rules, Firms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge. and regulations willingly and without legal challenge. • Market Approach Market Approach Firms respond to the preferences of their customers for Firms respond to the preferences of their customers for environmentally friendly products. environmentally friendly products. • Stakeholder Approach Stakeholder Approach Firms work to meet the environmental demands of multiple Firms work to meet the environmental demands of multiple stakeholders stakeholders— —employees, suppliers, and the community. employees, suppliers, and the community. • Activist Approach Activist Approach Firms look for ways to respect and preserve environment and be Firms look for ways to respect and preserve environment and be actively socially responsible. actively socially responsible.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–142 Exhibit 5–5 Exhibit 5–5 Approaches to Being Green Approaches to Being Green Source: Based on R.E. Freeman. J. Pierce, and R. Dodd. Shades of Green: Business Ethics and the Environment (New York: Oxford University Press, 1995).
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–143 Evaluating the Greening of Management Evaluating the Greening of Management • Organizations become “greener” by Organizations become “greener” by Using the Sustainability Reporting Guidelines to Using the Sustainability Reporting Guidelines to document “green” actions. document “green” actions. Adopting ISO 14001 standards for environmental Adopting ISO 14001 standards for environmental management management Being named as one of the 100 Most Sustainable Being named as one of the 100 Most Sustainable Corporations in the World. Corporations in the World.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–144 Values-Based Management Values-Based Management • Values-Based Management Values-Based Management An approach to managing in which managers An approach to managing in which managers establish and uphold an organization’s shared values. establish and uphold an organization’s shared values. • The Purposes of Shared Values The Purposes of Shared Values Guiding managerial decisions Guiding managerial decisions Shaping employee behavior Shaping employee behavior Influencing the direction of marketing efforts Influencing the direction of marketing efforts Building team spirit Building team spirit • The Bottom Line on Shared Corporate Values The Bottom Line on Shared Corporate Values An organization’s values are reflected in the decisions An organization’s values are reflected in the decisions and actions of its employees. and actions of its employees.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–145 Exhibit 5–6 Exhibit 5–6 Purposes of Shared Values Purposes of Shared Values
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–146 Exhibit 5–7 Exhibit 5–7 Survey of Stated Survey of Stated Values of Values of Organizations Organizations Percentage of Core Value Respondents Customer satisfaction 77% Ethics/integrity 76% Accountability 61% Respect for others 59% Open communication 51% Profitability 49% Teamwork 47% Innovation/change 47% Continuous learning 43% Positive work environment 42% Diversity 41% Community service 38% Trust 37% Social responsibility 33% Security/safety 33% Empowerment 32% Employee job satisfaction 31% Have fun 24% Source: “AMA Corporate Values Survey,” (www.amanet.org), October 30, 2002.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–147 Managerial Ethics Managerial Ethics • Ethics Defined Ethics Defined Principles, values, and beliefs that define what is right Principles, values, and beliefs that define what is right and wrong behavior. and wrong behavior.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–148 Exhibit 5–8 Exhibit 5–8 Factors That Affect Ethical and Unethical Behavior Factors That Affect Ethical and Unethical Behavior
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–149 Factors That Affect Employee Ethics Factors That Affect Employee Ethics • Moral Development Moral Development A measure of independence from outside influences A measure of independence from outside influences Levels of Individual Moral Development Levels of Individual Moral Development – Preconventional level Preconventional level – Conventional level Conventional level – Principled level Principled level Stage of moral development interacts with: Stage of moral development interacts with: Individual characteristics Individual characteristics The organization’s structural design The organization’s structural design The organization’s culture The organization’s culture The intensity of the ethical issue The intensity of the ethical issue
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–150 Exhibit 5–9 Exhibit 5–9 Stages of Moral Development Stages of Moral Development Source: Based on L. Kohlberg, “Moral Stages and Moralization: The Cognitive- Development Approach,” in T. Lickona (ed.). Moral Development and Behavior: Theory, Research, and Social Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34–35.
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© 2007 Prentice
Hall, Inc. All rights reserved. 5–151 Factors That Affect Employee Ethics Factors That Affect Employee Ethics (cont’d) (cont’d) • Moral Development Moral Development Research Conclusions: Research Conclusions: People proceed through the stages of moral development People proceed through the stages of moral development sequentially. sequentially. There is no guarantee of continued moral development. There is no guarantee of continued moral development. Most adults are in Stage 4 (“good corporate citizen”). Most adults are in Stage 4 (“good corporate citizen”).
152.
© 2007 Prentice
Hall, Inc. All rights reserved. 5–152 Individual Characteristics Affecting Individual Characteristics Affecting Ethical Behaviors Ethical Behaviors • Values Values Basic convictions about what is right or wrong on a Basic convictions about what is right or wrong on a broad range of issues broad range of issues
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