Chapter Three The Changing Environment of Management
<ul><li>Summarize the demographics of the new American workforce. </li></ul><ul><li>Explain how the social contract betwee...
<ul><li>Discuss how the changing political-legal environment is affecting the practice of management. </li></ul><ul><li>Di...
<ul><li>The Virtual Organization </li></ul><ul><li>The Just-in-Time Workforce </li></ul><ul><li>The Ascendancy of Knowledg...
The Social Environment <ul><li>Dimensions of the Social Environment </li></ul><ul><ul><li>Demographics </li></ul></ul><ul>...
Demographics of the New Workforce <ul><li>It is getting larger, increasingly female, more racially and ethnically diverse,...
Demographics of the New Workforce (cont’d) <ul><li>Myths About Older Workers  </li></ul><ul><ul><li>They are less producti...
Figure 3.1: The Changing U.S. Workforce, 2002-2012
Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
A New Social Contract Between Employer and Employee <ul><li>New Social Contract </li></ul><ul><ul><li>The assumption that ...
Nagging Inequalities in the Workplace <ul><li>Under the Glass Ceiling </li></ul><ul><ul><li>Women continue to experience a...
Nagging Inequalities in the Workplace (cont’d) <ul><li>Part-Timer Promises and Problems </li></ul><ul><ul><li>Contingent w...
Managing Diversity <ul><li>Managing Diversity </li></ul><ul><ul><li>The process of creating an organizational culture that...
The Political-Legal Environment <ul><li>The Politicization of Management </li></ul><ul><ul><li>Issues management </li></ul...
Figure 3.2: Management’s Political Response Continuum
The Political-Legal Environment (cont’d) <ul><li>Specific Political Strategies </li></ul><ul><ul><li>Campaign financing </...
Increased Personal Legal Accountability <ul><li>Increases in Demands for Accountability </li></ul><ul><ul><li>Sarbanes-Oxl...
The Economic Environment <ul><li>The Job Outlook in Today’s Service Economy, Where Education Counts </li></ul><ul><ul><li>...
The Economic Environment <ul><li>Coping with Business Cycles </li></ul><ul><ul><li>Business cycles </li></ul></ul><ul><ul>...
The Economic Environment <ul><li>Cycle-Sensitive Decisions </li></ul><ul><ul><li>Timing decisions about appropriate respon...
Figure 3.3: Business Cycles Affect Managerial Decisions
The Challenge of a  Global Economy <ul><li>A Single Global Marketplace </li></ul><ul><ul><li>Global trade is causing a shi...
The Technological Environment <ul><li>Technology </li></ul><ul><ul><li>Technology includes all the tools and ideas availab...
Table 3.1: Science Fiction Is Becoming Reality with These Seven New Technologies
The Technological Environment (cont’d) <ul><li>The Innovation Process </li></ul><ul><ul><li>The systematic and practical a...
Figure 3.4: The Three-Step Innovation Process
The Technological Environment (cont’d) <ul><li>Innovation Lag </li></ul><ul><ul><li>The time it takes for a new product to...
Promoting Innovation Through Intrapreneurship <ul><li>Intrapreneur </li></ul><ul><ul><li>An employee who takes personal re...
Summary <ul><li>The U.S. workforce will continue to become larger, older, more diverse, and more female. </li></ul><ul><li...
Summary (cont’d) <ul><li>Managers are becoming increasingly politicized and more likely to be held personally responsible ...
Terms to Understand <ul><li>Demographics </li></ul><ul><li>New social contract </li></ul><ul><li>Glass ceiling </li></ul><...
Skills and Tools <ul><li>How Business Leaders Can Help Women Break the Glass Ceiling </li></ul><ul><ul><li>Provide feedbac...
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Ppt ch03

  1. 1. Chapter Three The Changing Environment of Management
  2. 2. <ul><li>Summarize the demographics of the new American workforce. </li></ul><ul><li>Explain how the social contract between employer and employee has change over the years. </li></ul><ul><li>Define the term managing diversity, and explain why it is particularly important today. </li></ul>Chapter Objectives
  3. 3. <ul><li>Discuss how the changing political-legal environment is affecting the practice of management. </li></ul><ul><li>Discuss why business cycles and the global economy are vital economic considerations for modern managers. </li></ul><ul><li>Describe the three-step innovation process, and define the term intrapreneur. </li></ul>Chapter Objectives (cont’d)
  4. 4. <ul><li>The Virtual Organization </li></ul><ul><li>The Just-in-Time Workforce </li></ul><ul><li>The Ascendancy of Knowledge Workers </li></ul><ul><li>Computerized Coaching and Electronic Monitoring </li></ul><ul><li>The Growth of Worker Diversity </li></ul><ul><li>The Aging Workforce </li></ul><ul><li>The Birth of the Dynamic Workforce </li></ul>The Twenty-First-Century Workplace: Seven Major Changes
  5. 5. The Social Environment <ul><li>Dimensions of the Social Environment </li></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><ul><li>Changes in the statistical profiles of population characteristics </li></ul></ul></ul><ul><ul><li>The new social contract </li></ul></ul><ul><ul><ul><li>Changes in the employer-employee relationship </li></ul></ul></ul><ul><ul><li>Inequalities </li></ul></ul><ul><ul><ul><li>Persistent barriers encountered by women, minorities, and others in the workplace </li></ul></ul></ul><ul><ul><li>Managing diversity </li></ul></ul><ul><ul><ul><li>Creating organizational cultures that enable all employees to realize their potential </li></ul></ul></ul>
  6. 6. Demographics of the New Workforce <ul><li>It is getting larger, increasingly female, more racially and ethnically diverse, and older. </li></ul><ul><ul><li>Need for Remedial Education </li></ul></ul><ul><ul><ul><li>Labor force quality: The U.S. labor force is deficient in reading, writing, science, and basic math skills. </li></ul></ul></ul><ul><ul><li>Diversity </li></ul></ul><ul><ul><ul><li>The workforce will have more Hispanics and older persons in the future. </li></ul></ul></ul>
  7. 7. Demographics of the New Workforce (cont’d) <ul><li>Myths About Older Workers </li></ul><ul><ul><li>They are less productive. </li></ul></ul><ul><ul><li>They incur higher benefits costs. </li></ul></ul><ul><ul><li>They have higher absenteeism. </li></ul></ul><ul><ul><li>They have more accidents at work. </li></ul></ul><ul><ul><li>They are less willing to learn. </li></ul></ul><ul><ul><li>They are inflexible about the hours they are willing to work. </li></ul></ul>
  8. 8. Figure 3.1: The Changing U.S. Workforce, 2002-2012
  9. 9. Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
  10. 10. Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
  11. 11. Figure 3.1: The Changing U.S. Workforce, 2002-2012 (cont’d)
  12. 12. A New Social Contract Between Employer and Employee <ul><li>New Social Contract </li></ul><ul><ul><li>The assumption that the employer-employee relationship will be a shorter-term one based on convenience and mutual benefit, rather than for life </li></ul></ul><ul><ul><ul><li>Employees are expected to manage their own careers to increase their long-term value. </li></ul></ul></ul><ul><ul><ul><li>Employers are expected to provide the means necessary for continual workforce development. </li></ul></ul></ul>
  13. 13. Nagging Inequalities in the Workplace <ul><li>Under the Glass Ceiling </li></ul><ul><ul><li>Women continue to experience a significant gender-wage gap and strong barriers to advancement. </li></ul></ul><ul><ul><li>Women are demanding more equitable compensation and workplace opportunities. </li></ul></ul><ul><li>Continuing Pressure for Equal Opportunity </li></ul><ul><ul><li>Women, minorities, and the physically challenged are all expected to press harder for more employment opportunities. </li></ul></ul>
  14. 14. Nagging Inequalities in the Workplace (cont’d) <ul><li>Part-Timer Promises and Problems </li></ul><ul><ul><li>Contingent workers will comprise an increasing percentage of the workforce. </li></ul></ul><ul><ul><li>The advantages of lower wage and benefits costs and the flexibility of a contingent workforce are offset by their negative work attitudes and increased likelihood of quitting. </li></ul></ul>
  15. 15. Managing Diversity <ul><li>Managing Diversity </li></ul><ul><ul><li>The process of creating an organizational culture that provides all employees, including women and minorities, with assistance and opportunities to help them realize their full potential </li></ul></ul><ul><li>More Than EEO </li></ul><ul><ul><li>The moral necessity and commitment in going beyond EEO and affirmative action to create flexible organizations that encompass and value diversity </li></ul></ul>
  16. 16. The Political-Legal Environment <ul><li>The Politicization of Management </li></ul><ul><ul><li>Issues management </li></ul></ul><ul><ul><ul><li>Ongoing process of identifying, evaluating, and responding to important social and political issues </li></ul></ul></ul><ul><ul><ul><li>Purpose: Minimize “surprises” and make more systematic and effective responses to issues </li></ul></ul></ul><ul><ul><li>General political responses </li></ul></ul><ul><ul><ul><li>Defending the status quo against all comers </li></ul></ul></ul><ul><ul><ul><li>Adopting a “wait and see” approach </li></ul></ul></ul><ul><ul><ul><li>Proactively trying to identify and respond to issues </li></ul></ul></ul>
  17. 17. Figure 3.2: Management’s Political Response Continuum
  18. 18. The Political-Legal Environment (cont’d) <ul><li>Specific Political Strategies </li></ul><ul><ul><li>Campaign financing </li></ul></ul><ul><ul><ul><li>Political action committees (PACs) </li></ul></ul></ul><ul><ul><li>Lobbying </li></ul></ul><ul><ul><ul><li>Garnering political support </li></ul></ul></ul><ul><ul><li>Coalition building </li></ul></ul><ul><ul><ul><li>Common rallying points </li></ul></ul></ul><ul><ul><li>Indirect lobbying </li></ul></ul><ul><ul><ul><li>Advocacy advertising </li></ul></ul></ul>
  19. 19. Increased Personal Legal Accountability <ul><li>Increases in Demands for Accountability </li></ul><ul><ul><li>Sarbanes-Oxley Act (2002) </li></ul></ul><ul><ul><ul><li>“Cooking the books,” price fixing, and bid rigging are serious white-collar crimes likely to draw stiff penalties and jail sentences. </li></ul></ul></ul><ul><li>Political and Legal Implications for Management </li></ul><ul><ul><li>Increased use of legal audits </li></ul></ul><ul><ul><ul><li>A review of all operations to pinpoint possible legal liabilities or problems </li></ul></ul></ul><ul><ul><li>Use of alternative dispute resolution (ADR) </li></ul></ul><ul><ul><ul><li>Settling disputes with less costly methods, including arbitration and mediation </li></ul></ul></ul>
  20. 20. The Economic Environment <ul><li>The Job Outlook in Today’s Service Economy, Where Education Counts </li></ul><ul><ul><li>The job category for “general managers and operations managers” is rapidly growing and one of the most resistant to “offshoring.” </li></ul></ul><ul><ul><li>Service sector jobs in high-paying occupations that require at least a bachelor’s degree are growing twice as fast as that of all other occupations. </li></ul></ul>
  21. 21. The Economic Environment <ul><li>Coping with Business Cycles </li></ul><ul><ul><li>Business cycles </li></ul></ul><ul><ul><ul><li>Alternating periods of economic expansion and recession </li></ul></ul></ul><ul><ul><ul><li>The up-and-down movement of an economy’s ability to generate wealth </li></ul></ul></ul><ul><ul><ul><li>Worldwide convergence </li></ul></ul></ul>
  22. 22. The Economic Environment <ul><li>Cycle-Sensitive Decisions </li></ul><ul><ul><li>Timing decisions about appropriate responses to changes in the business cycle is necessary to </li></ul></ul><ul><ul><ul><li>Reduce the chances that a firm’s assets and resources will be underutilized or wasted in economic downturns </li></ul></ul></ul><ul><ul><ul><li>Take advantage of opportunities that will arise during periods of rapid economic expansion </li></ul></ul></ul>
  23. 23. Figure 3.3: Business Cycles Affect Managerial Decisions
  24. 24. The Challenge of a Global Economy <ul><li>A Single Global Marketplace </li></ul><ul><ul><li>Global trade is causing a shift to a single economy. </li></ul></ul><ul><ul><li>The commercial world is no longer East-West, North-South; it is now one economy, one marketplace. </li></ul></ul><ul><li>Globalization Is Personal </li></ul><ul><ul><li>A growing trend: Working for a foreign-owned company </li></ul></ul><ul><ul><li>Meeting world standards for quality and costs (through lower wages) is necessary to be globally competitive. </li></ul></ul>
  25. 25. The Technological Environment <ul><li>Technology </li></ul><ul><ul><li>Technology includes all the tools and ideas available for extending the natural and mental reach of humankind. </li></ul></ul><ul><ul><li>Technology is facilitating the evolution of the information age. </li></ul></ul><ul><ul><li>Information has become a valuable strategic resource for gaining competitive advantage. </li></ul></ul>
  26. 26. Table 3.1: Science Fiction Is Becoming Reality with These Seven New Technologies
  27. 27. The Technological Environment (cont’d) <ul><li>The Innovation Process </li></ul><ul><ul><li>The systematic and practical application of a new idea </li></ul></ul><ul><li>Steps in the Innovation Process </li></ul><ul><ul><li>Conceptualization: When a new idea occurs to someone </li></ul></ul><ul><ul><li>Product technology: Creation of a working prototype </li></ul></ul><ul><ul><li>Production technology: Development of a profitable production process </li></ul></ul>
  28. 28. Figure 3.4: The Three-Step Innovation Process
  29. 29. The Technological Environment (cont’d) <ul><li>Innovation Lag </li></ul><ul><ul><li>The time it takes for a new product to be translated into satisfied demand </li></ul></ul><ul><li>Shortening Innovation Lag </li></ul><ul><ul><li>Goal setting: Creating a sense of urgency and purpose </li></ul></ul><ul><ul><li>Empowerment: Pushing decision-making authority down to the level of the decision </li></ul></ul><ul><ul><li>Concurrent engineering: Using a team approach to product design involving specialists from all functional areas including research, production, and marketing </li></ul></ul>
  30. 30. Promoting Innovation Through Intrapreneurship <ul><li>Intrapreneur </li></ul><ul><ul><li>An employee who takes personal responsibility for pushing an innovative idea through a large organization </li></ul></ul><ul><li>Fostering Intrapreneurship </li></ul><ul><ul><li>Focus on results and teamwork. </li></ul></ul><ul><ul><li>Reward innovation and risk taking. </li></ul></ul><ul><ul><li>Tolerate and learn from mistakes. </li></ul></ul><ul><ul><li>Remain flexible and change-oriented. </li></ul></ul>
  31. 31. Summary <ul><li>The U.S. workforce will continue to become larger, older, more diverse, and more female. </li></ul><ul><li>The traditional social contract has been replaced by a shorter-term relationship of convenience between employee and employer. </li></ul><ul><li>Persistent opportunity and income equalities are powerful stimuli for workplace changes that will tap every employee’s full potential. </li></ul>
  32. 32. Summary (cont’d) <ul><li>Managers are becoming increasingly politicized and more likely to be held personally responsible for their decisions and actions. </li></ul><ul><li>Business cycles and the emerging global economy affect the decisions managers make. </li></ul><ul><li>Intrapreneurship can flourish in an organizational climate that values individuals who champion ideas and innovations. </li></ul>
  33. 33. Terms to Understand <ul><li>Demographics </li></ul><ul><li>New social contract </li></ul><ul><li>Glass ceiling </li></ul><ul><li>Contingent workers </li></ul><ul><li>Managing diversity </li></ul><ul><li>Issues management </li></ul><ul><li>Advocacy advertising </li></ul><ul><li>Legal audit </li></ul><ul><li>Alternative dispute resolution </li></ul><ul><li>Business cycle </li></ul><ul><li>Technology </li></ul><ul><li>Innovation process </li></ul><ul><li>Product technology </li></ul><ul><li>Production technology </li></ul><ul><li>Innovation </li></ul><ul><li>Concurrent engineering </li></ul><ul><li>Intrapreneur </li></ul>
  34. 34. Skills and Tools <ul><li>How Business Leaders Can Help Women Break the Glass Ceiling </li></ul><ul><ul><li>Provide feedback on job performance </li></ul></ul><ul><ul><li>Accept women </li></ul></ul><ul><ul><li>Ensure equal opportunities </li></ul></ul><ul><ul><li>Provide career counseling </li></ul></ul><ul><ul><li>Identify potential </li></ul></ul><ul><ul><li>Encourage assertiveness </li></ul></ul><ul><ul><li>Accelerate development </li></ul></ul><ul><ul><li>Offer mentoring opportunities </li></ul></ul><ul><ul><li>Encourage networking </li></ul></ul><ul><ul><li>Increase women’s participation </li></ul></ul>

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