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Topic 2 mp_integrative_managerial_issues


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Topic 2 mp_integrative_managerial_issues

  1. 1. Chapter 2 Integrative Managerial Issues Copyright ©2013 Pearson Education 3-1
  2. 2. Learning Objectives• Explain globalization and its impact on organizations.• Discuss how society’s expectations are influencing managers and organizations. Copyright ©2013 Pearson Education 3-2
  3. 3. Learning Objectives (cont.)• Discuss the factors that lead to ethical and unethical behavior in organizations.• Describe how the workforce is changing and its impact on the way organizations are managed. Copyright ©2013 Pearson Education 3-3
  4. 4. Copyright ©2013 Pearson Education 3-4
  5. 5. Globalization and Its Impact Copyright ©2013 Pearson Education 3-5
  6. 6. What Does It Mean to Be “Global”? Global organizations: • Exchange goods and services with consumers; • Employ managerial and technical employees; or • Use financial sources and resources from other countries. Copyright ©2013 Pearson Education 3-6
  7. 7. Types of Global Organizations• Global village – A world without boundaries where goods and services are produced and marketed worldwide• Multinational corporation (MNC) business – Any type of international company that maintains operations in multiple countries Copyright ©2013 Pearson Education 3-7
  8. 8. Types of Global Organizations (cont.)• Multidomestic corporation – An MNC that decentralizes management and other decisions to the local country where it’s doing business• Global corporation – An MNC that centralizes management and other decisions in the home country Copyright ©2013 Pearson Education 3-8
  9. 9. Types of Global Organizations (cont.)• Transnational (borderless) organization – A structural arrangement for global organizations that eliminates artificial geographical barriers Copyright ©2013 Pearson Education 3-9
  10. 10. How Do Organizations Go Global? Copyright ©2013 Pearson Education 3-10
  11. 11. How Do Organizations Go Global?• Global Sourcing – Purchasing materials or labor from around the world wherever it is cheapest• Exporting – Making products domestically and selling them abroad• Importing – Acquiring products made abroad and selling them domestically Copyright ©2013 Pearson Education 3-11
  12. 12. How Do Organizations Go Global?• Licensing – An agreement primarily used by manufacturing businesses in which an organization gives another the right, for a fee, to make or sell its products, using its technology or product specifications• Franchising – An agreement primarily used by service businesses in which an organization gives another organization the right, for a fee, to use importing its name and operating methods Copyright ©2013 Pearson Education 3-12
  13. 13. How Do Organizations Go Global?• Global Strategic Alliance – A partnership between an organization and a foreign company partner(s) in which resources and knowledge are shared in developing new products or building production facilities• Joint Venture – A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose Copyright ©2013 Pearson Education 3-13
  14. 14. How Do Organizations Go Global?• Foreign Subsidiary – A direct investment in a foreign country that involves setting up a separate and independent facility or office Copyright ©2013 Pearson Education 3-14
  15. 15. Managing in a Global Organization Copyright ©2013 Pearson Education 3-15
  16. 16. Managing in a Global Organization (cont.)Analyzing cultural differences according toGeert Hofstede’s framework: 1. Power distance 2. Individualism vs. collectivism 3. Quantity of life vs. quality of life 4. Uncertainty avoidance 5. Long-term vs. short-term orientation Copyright ©2013 Pearson Education 3-16
  17. 17. 1. Hofstede’s Framework• Geert Hofstede – Studied differences in culture and found that managers and employees vary on five value dimensions of national culture: 1.Power Distance – degree to which power is distributed unequally 2.Individualism vs. Collectivism - the degree to which people in a country prefer to act as individuals/as members of groups Copyright ©2013 Pearson Education 3-17
  18. 18. Hofstede’s Framework3. Achievement vs. Nurturing – value achievement, competition vs. value relationship, welfare of others4. Uncertainty Avoidance – in which people in country prefer structured over unstructured situation5. Long-term vs. Short-term Orientation – value thrift and persistence vs. past and present, emphasizes respect for tradition Copyright ©2013 Pearson Education 3-18
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  20. 20. Managing in a Global Organization (cont.)The Global Leadership and Organizational BehaviorEffectiveness research program (GLOBE) studiescross-cultural leadership behaviors. Copyright ©2013 Pearson Education 3-20
  21. 21. 2. GLOBE’s 9 Dimensions of Cultural Difference• Global Leadership and Organizational Behavior Effectiveness (GLOBE) – An ongoing cross-cultural investigation of leadership and national culture – Identified nine dimensions on which national cultures differ – Confirm that Hofstede’s dimensions are still valid, and extend his research rather than replace it Copyright ©2013 Pearson Education 3-21
  22. 22. Copyright ©2013 Pearson Education 3-22
  23. 23. Copyright ©2013 Pearson Education 3-23
  24. 24. Society’s Expectations Copyright ©2013 Pearson Education 3-24
  25. 25. Social ResponsibilitySocial responsibility refers to a company’sintention to do the right things and act inways that are good for society. Copyright ©2013 Pearson Education 3-25
  26. 26. Should Organizations Be Socially Involved? Copyright ©2013 Pearson Education 3-26
  27. 27. The Importance of SustainabilitySustainability is a company’s ability to achieveits business goals and increase long-termshareholder value by integrating economic,environmental, and social opportunities into itsbusiness strategies. Copyright ©2013 Pearson Education 3-27
  28. 28. Copyright ©2013 Pearson Education 3-28
  29. 29. The Changing WorkforceDiversity is visible inage, gender, race,physical attributes,styles of dress, andpersonality type. Copyright ©2013 Pearson Education 3-29
  30. 30. Workplace DiversityWorkforce diversity isdefined as the ways inwhich people in anorganization are bothdifferent from and similarto one another. Copyright ©2013 Pearson Education 3-30
  31. 31. Types of Diversity Copyright ©2013 Pearson Education 3-31
  32. 32. For example: diversity• Age of the population is shifting critically in the workforce. With many baby boomers still employed and active, managers must ensure that those employees do not face discrimination.• Gender diversity issues are still prevalent as women and men now each make up almost half of the workforce, especially with regards to gender pay gap, career start and progress, and misconceptions about women’s performance as compared with men’s.• Race is the biological heritage (including physical characteristics such as one’s skin color and associated traits) that people use to identify themselves. Ethnicity refers to social traits, such as one’s cultural background or allegiance, that are shared by a human population. Copyright ©2013 Pearson Education 3-32
  33. 33. Adapting to a Changing Workforce• Family-Friendly Benefits – Benefits that provide a wide range of scheduling options that allow employees more flexibility at work, accommodating their needs for work/life balance• Contingent Workforce – Part-time, temporary, and contract workers who are available for hire on an as-needed basis Copyright ©2013 Pearson Education 3-33
  34. 34. • Generational Differences Managing generational differences• what is appropriate office attire• What about technology - Gen Y content to meet virtually to solve problem, baby boomer expect important problems to be solved with in-person meeting Copyright ©2013 Pearson Education 3-34