This document discusses five key forces changing the business environment: globalization, diversity, technology, ethics and corporate governance, and new employment relationships. It provides details on each force, including how globalization is increasing international trade and competition. It describes how a diverse workforce can benefit organizations if diversity is valued. It also outlines how the economy is shifting to services due to technology advances and how information technology is rapidly changing. The document discusses the relationship between law and ethics and principles of strong corporate governance. Finally, it briefly mentions changing employment relationships as another dynamic force for organizations.

1. DYNAMIC
ENVIRONMENT
RACHEL L. MARTIN
MAED EDAD Student
Zamboanga City State Polytechnic College

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25. The environment of
business is changing in an
unprecedented rate.
To truly understand the
behavior of people in
organizational settings, it is
a necessary to understand
the changing environment
of business.
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26. This chapter is intended to introduce
and examine five of the central
environmental forces for changed
faced by today’s organizations:
globalization, diversity, technology,
ethics and corporate governance,
and new employment relationships.
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27. GLOBALIZATION
AND BUSINESS

28. Globalization
￮ "Globalization, both as an ideology and process, has
become the dominant political, economical and cultural
force in the 21st century." Quote from "Globalism: The New
Market Ideology" by Manfred D. Steger
￮ Merriam-Webster defines globalization as “the act or
process of globalizing: the development of an increasingly
integrated global economy marked especially by free
trade, free flow of capital, and the tapping of cheaper
foreign labor market.”
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29. THE GROWTH OF INTERNATIONAL
BUSINESS
￮ In 2008, the volume of international trade in dollars was more than
fifty times greater than the amount in 1960.
2.
International
expansion of
businesses
to increase
their market
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3.
More firms are
moving into
international
markets to control
costs, esp. to
reduce labor costs.
4.
Many
organizations
have become
international
in response to
competition.
￮ 1. Advanced
Communication
and transportation

30. CROSS-CULTURAL DIFFERENCES
AND SIMILARITIES
￮ One major review of the literature on international management reached
five basic conclusions.
￮ 1. behavior in organizational settings vary across cultures.
￮ 2. culture itself is one major cause of this variation.
3. Although the causes and consequences of behavior within organizational
settings remain diverse across cultures,
￮ 4. the same individual behaves differently in different cultural settings.
￮ 5. cultural diversity can be an important source of enhancing organizational
effectiveness.
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31. Specific Cultural Issues
￮ Geert Hofstede Research
 Studied workers and managers in different countries and found
that specific attitudes and behaviors differed significantly
because of the values and beliefs of those countries.
 Hofstede Categories
 Individualism
 Collectivism
 Power Distance
 Uncertainty avoidance
 Masculinity
 Long-term and short-term orientation
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32. DIVERSITY AND BUSINESS
￮ Workforce Diversity
the important similarities and differences among the employees of
organizations.
￮ Streotypes
generalizations about a person or a group of persons based on certain
characteristics or traits
￮ Prejudices
judgments about others that reinforce beliefs about superiority and
inferiority.
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33. DIMENSIONS OF DIVERSITY
￮ Primary Dimensions
factors that are either inborn or exert extraordinary influence on early
socialization. This includes age, race and ethnicity, gender, physical and mental
abilities, and sexual orientation.
￮ Secondary Dimensions
Factors that matter to us as individuals and that to some extent define
us to others. They may be less permanent than primary dimensions and can be
changed. This include educational background, geographical location, income,
marital status, military experience, parental status, religious belie]efs and work
experiences.
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34. THE VALUE OF DIVERSITY
ASSIMILATION
The process through which members of
a minority group are forced to learn the ways
of the majority group.
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35. Blocking minority
involvement in
communication and
decision-making can result
in tensions among workers,
increased costs due to
increasing absenteeism,
increased harassment
suits, and lower morale
among workers.

36. Valuing Diversity
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Means putting an end to the assumption that everyone who is not a
member of the dominant group must assimilate.
Valuing diversity is not merely giving lip service to an ideal, putting
up with a necessary evil, promoting a level of tolerance for those
who are different, it is an opportunity to develop and utilize all of
human resources available to the organization for the benefit of the
workers as well as the organizations.
One of the most important benefits of diversity id the richness of
ideas and perspectives that it makes available to the organization.
Overall, the organization wins when it truly values diversity.

37. TECHNOLOGY AND BUSINESS
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Technology refers to the methods used to create
products, including both physical goods and
intangible services. Three specific areas of
technology worth noting here are the 1) the shift
toward a service-based economy,2) the growing
use of technology for competitive advantage, and
3) mushrooming change in information
technology.

38. MANUFACTURING AND SERVICE
TECHNOLOGIES
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Manufacturing is a form of business that
combines and transforms resources into tangible
outcomes that are then sold to others. Example:
The Goodyear and Rubber Company is a
manufacturer because it combines rubber and
chemical compounds and uses blending
equipment and molding machines to create tires.

39. MANUFACTURING AND SERVICE
TECHNOLOGIES
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Service organization is one that transforms
resources into an intangible output and creates
time or place utility for its customers.

40. MANUFACTURING AND SERVICE
TECHNOLOGIES
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angible Assets Intangible Asset
1. They have a physical
existence.
1. They don’t have a
physical existence.
2. Tangible assets are
depreciated.
2. Intangible assets are
amortized.
3. Are generally much
easier to liquidate due to
their physical presence.
3. Are not that easy to
liquidate and sell in the
market.
4. The cost can be easily
determined or evaluated.
4. The cost is much
harder to determine for
Intangible assets.
5. Examples: vehicle,
plant & machinery, etc.
5. Examples: Software,
logo, patent, etc.
Source: AccountingCapital.com

41. ETHICS AND CORPORATE
GOVERNANCE
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Ethics
Branch of philosophy that focuses on
morality and the way in which moral
principles are applied to everyday life.

42. The Relationship Between Law and
Ethics
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• The Law is an expression of the
ethical beliefs of our society
• Law and ethics are not the same thing.
• The law cannot codify all ethical
requirements.

43. CORPORATE GOVERNANCE
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Is the application of best management
practices, compliance of law in true letter
and spirit and adherence to ethical
standards for effective management and
distribution of wealth and discharge of
social responsibility for sustainable
development of all stakeholders.

44. Why CORPORATE GOVERNANCE?
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• Better access to external finance
• Lower costs of capital
• Improved company performance
• Reduced risk of corporation crisis and
scandals

45. PRINCIPLES OF CORPORATE GOVERNANCE
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• Sustainable development of all stakeholders
• Effective management and distribution of
wealth
• Discharge of social responsibility
• Application of best management practices
• Compliance of Law in letter and spirit
• Adherence to ethical standards

46. FOUR PILLARS OF CORPORATE
GOVERNANCE
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• 1. Transparency
• 2. Accountability
• 3. Fairness
• 4. Responsibility

47. 8 Elements of Good Governance
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• 1. Rule of Law
• 2. Transparency
• 3. Responsiveness
• 4. Consensus Oriented
• 5. Equity& Inclusiveness
• 6. Effectiveness and Efficiency
• 7. Accountability
• 8. Participation

48. 8 Elements of Good Governance
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• 1. Rule of Law
• 2. Transparency
• 3. Responsiveness
• 4. Consensus Oriented
• 5. Equity& Inclusiveness
• 6. Effectiveness and Efficiency
• 7. Accountability
• 8. participation

49. THE NEWEMPLOYMENT RELATIONSHIP
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• 1. Rule of Law
• 2. Transparency
• 3. Responsiveness
• 4. Consensus Oriented
• 5. Equity& Inclusiveness
• 6. Effectiveness and Efficiency
• 7. Accountability
• 8. participation

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Thanks!
Any questions?
You can find me at
￮ rachellsola@gmail.com

57. References:
 https://www.novica.com/our-story/
 https://www.bartleby.com/essay/The
-Impact-of-Globalization-on-
Leadership-and-F3J2LKFYTC
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