This document introduces key concepts in organizational behavior and management challenges in the 21st century. It discusses how globalization, information technology, mergers and acquisitions, workplace diversity, and other trends are impacting organizations. It emphasizes that managing human resources effectively is critical for business success. Organizational behavior involves understanding, predicting, and managing human behavior within organizations to improve performance.

1. Block 1Introduction to Management and Organizational Behavior

2. Learning Objectives and Exam Type QuestionsWhat are the challenges faced by organizations and their managers in the 21st century?What do you understand by Organizational Behavior? Why an understanding of behavior in organizations is critical for members in all types of workplaces?

3. Challenges21st Century organizationsInformation TechnologyGlobalizationMergers and AcquisitionsWorkplace diversityOrganizational structureWork-life balanceThe rate of changeIncreased competitionIncreased ethical and social responsibility

4. ChallengesManaging human resourcesSam Walton ‘People are the key!’ The technology can be purchased and copied, it levels the playing field. The people, on the other hand cannot be copied. Although human bodies may be cloned in the future, their ideas, personalities, motivation, and organization cultural values cannot be copied.Bill Gates, the ultimate “techie” observed: “The inventory, the value of my company, walks out the door every evening.”

5. Workplace changesPeople will rent their skillsPeople will have coping mechanism against rightsizing, downsizing, upsizing etcSpeed and efficiency of people will be considered instead of work hoursInternet will transform the workplacePeople will work for profits and WL balanceCustomized benefit programsPeople will feel empoweredBoundaries between school and workplace will blurTech savvy and those who aren’t Paradigm: a new way of thinking

6. People Vs ProfitsIntel, Microsoft, Motorola, W.L. Gore & Associates, Southwest Airlines, HP, Lincoln Electric and Starbucks pursue people first strategiesCompetitive edgeMotivated workforce: Domino’s exampleDifference between success and failurePeople first organizations: value diversity, family friendly, invest in employee T & D, empower employeesSouthwest Airlines

7. People Vs ProfitsPolitically correctEmployees take a back seat when it comes to profitsLabor cost minimization strategyMost organizations place profits over peopleCost cutting measures to stay competitiveRe-engineer, BPO, temps, employee leasing, part timeStaff cuts as a first response to problemsLean and mean organizationsNo permanent employments, variable costIn consistent with global strategies

8. GlobalizationBorderless worldExpansion of business from the country of origin to other countries of the worldStrategy to meet needs of customers worldwideHighest value at the lowest costChallenge to domestic organizationsAir travelIT advancesMajor reasons compelling businesses to become global include access to skilled workforce, lower costs, economies of scale, direct access to new and growing markets, and the ability to customize products to local tastes and stylesThere are scores of examples of companies doing business globally. Few examples of multi-national corporations (MNCs) are as follow:

9. GlobalizationMcDonald’s opened its first non-US restaurant in Canada in 1967. By 2002, their total sales outside US represented 58 % of their operating income. MacDonald’s has restaurants in over 115 countries and its international expansion is still on the go. McDonald’s organizational capability is also global. For selling Big Macs in Saudi Arabia the organization procures beef patties from Spain, the special sauce from the United States, lettuce from Holland, cheese from New Zealand, pickles from the United States, onions and sesame seeds from Mexico, the bun from Saudi wheat, sugar and oil from Brazil, and the packaging from Germany.Coca-Cola is another example of global business. Coke has operations in more than 200 countries and 70 % of its operating income comes from overseas corporation. It is estimated that 80 % of Coke employees are non-US personnel.

10. GlobalizationHonda with its Japanese origin manufactures cars in the US and those cars are driven by the Americans. Similarly most Mercedes and BMW cars driven in the United States are now assembled in the United States. Nokia, the cell phone giant from Finland, employees over 1,000 foreign workers in Finland and over 60 per cent of its 53,000 employees are non-Finns working all over the world. Philips, the electronic multinational, employs 83 percent of its workforce outside of its headquarters in Netherlands. The Roche Group, the Swiss pharmaceutical giant, has 88 percent of its workforce outside of Switzerland.IBM, Exxon, and Microsoft are examples of few other multi-national companies which derive more than half of their revenues from overseas business.

11. Information TechnologyGreat impactIndustrial Revolution (1780s – 1840s)Railroads that connected places (1840s – 1890s)Electric power that energized the world (1890s – 1930s) And then planes and automobiles that reduced travel time (1930s – 1980s). The latest break through which has a faster and much more pervasive impact is that of Information Technology.“Get wired or get whacked’IT tools for efficiency and effectiveness (optimal combination of people, software, and equipment, increasing productivity)Banks automationFedEx etc

12. Information TechnologyTools (E-business, knowledge management and human capital and intelligence have the biggest impact on the world of business)E-business can be defined as business via internet. B2B, Cisco, Microsoft, Dell, Yahoo, Google, Wal-Mart are few examples of successful organizations involved in intensive use of technology. Wal-Mart has an automated inventory control system. In case inventory level of a particular product goes below a certain point, an e-mail is automatically sent to the supplier. The suppliers are also networked with the client organizations and can make preparations in advance to meet the orders. Via Internet, business to consumer (B2C) sales are on the increase. Amazon books is an example. Customers can visit the company’s website and select a new or an old book with different price options and book the order online. A customer can order a grocery item or even an automobile online and have it delivered at his doorstep.

13. Information Technology IntranetsKnowledge ManagementTangible AssetsIntangible AssetsIn the coming years, organizations which would respond to their external environments and improve their internal tasks and work procedures have better chances of survival and growth. And their survival and growth would be largely dependent on the adoption of latest information technology tools.

14. Mergers & AcquistionsStrategies Increase in market share and profitabilityTremendous impact on employees in newly merged organizationsConflicted culturesChances of failure high

15. Workplace DiversityDifferences among people in a groupSource of competitive advantageAge, gender, ethnicity and educationAge: benefit from young and experienced employeesGender: employment of women on the rise. 50 %. 4 %. Policies and practices to eliminate gender bias and discriminationEthnicity refers to race or culture. Education: In large organizations highly educated work force is increasing in the same proportion as unqualified. A major challenge for management is to deal with highly educated workforce in a shrinking promotion and de-layered environment vis-à-vis bringing low qualification employees up to speed in knowledge based organizations. All companies will have to educated and train their employees.

16. Organizational StructureCompetitionEfficiency and effectivenessIntense focus on customer and value additionLeaner and meanerFlatterLearning organizationTeam cultureEmpowered employeesNetwork organizations

17. Work-Life BalanceDifferent timesTurning down promotionsPersonal time and family a priorityIBM: telecommuters, home officesFlexi timingsDay care facilitiesOld parents care centerVacations & sabbaticalsEmployee loyalty

18. Rate of changeThe bear storyPace of change: No 1 challengeStability a thing of the pastLittle time for planning changeFlexibility and immediate response to the environmentGlobalization and IT revolutionSuccessful organizations

19. Increased CompetitionRay Kroc “if they were drowning, I would put a hose pipe in their mouth”Competition intense due to globalization and IT advancementPrice warsQuality warsMaintaining uniquenessSustained competitive advantage

20. Ethical and Social ResponsbilityConsumers have more awarenessWhat organizations are doingNeed to behave ethicallyDemonstrate appropriate behaviorResponsibility towards employeesResponsibility towards share holdersResponsibility towards society at largeGiving back to the community

21. Organizational BehaviorUnderstanding, predicting and managing human behaviorHow behavior of individuals affects the performance of the organizationIndividual perceptionSources of motivationJob satisfactionGroup behaviorDiversity in workplaceConflict managementLeadershipPolitics and powerOrganizational changeNegotiations