1-3 Cap3 Environment and Management

8/6/2019 1-3 Cap3 Environment and Management

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Chapter 3 Environment andManagement

The changing economy

Globalization

Emphasis on technology

Social responsibility and managerial ethicsHow do organizations make the customer king?


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Three Waves of Social DevelopmentAgriculture (up to the 1890s) During the agricultural wave, individuals were their own

bosses and were responsible for performing a variety oftasks.

Industrialization (about 1900 to the 1960s) People left their fields and moved into formal organizations.

Mass production, specialized jobs, and authorityrelationships became the mode of operation. It gave rise to anew group of workersthe blue-collar industrial workers.

Information technology (beginning in the 1970s) The information age has significantly reduced low-skilled,

blue-collar jobs in manufacturing, but it has createdabundant opportunities for educated and skilled technicalspecialists, professionals, and other knowledge workers.


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Chapter 3 Todays Environment

Managers Facing


Globalization


Social responsibility and managerial ethicsHow do organizations make the customer king?


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Globalization

Forms of globalization (Internationalization)

Stages of going global

Understanding different cultures


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Forms of Internationalization

Multinational Corporations (MNCs)

Multinational corporations maintain significant operations intwo or more countries simultaneously but are based in one home

country .Transnational Corporations (TNCs)

Transnational corporations maintain significant operations inmore than one country simultaneously and decentralizes

decision making in each operation to the local country.Borderless Organization

Borderless organization is a management structure in whichinternal arrangements that impose artificial geographic barriers

are broken down.


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Stages of Going GlobalStage

Passive ResponseStage

Initial Overt Entry

StageEstablished International

Operations

Exporting

to foreign

countries

Hiring foreign

Representation or

Contracting with

Foreign manufactures

Licensing/

franchising

Jointventures

Foreign

subsidiary


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Four Dimensions of National Culture

Individualism versus collectivism

Power distance

Uncertainty avoidance

Quantity versus quality of life


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Managers Facing


Globalization


Social responsibility and managerial ethics

How do organizations make the customer king?


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Emphasis on Technology

Technology and technological advances

Technology includes any equipment, tools, or operating

methods that are designed to make more efficient.

Technological advances involve the integration oftechnology into a process for changing inputs into outputs.

E-commerce

E-commerce involves any computer transaction that

occurs when data are processed and transmitted over the

Internet. It includes three models:B to B, B to C, C to C.

Technology altering ways of jobs


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Technology Altering Ways of JobsIT has enhanced a managers ability to more effectively and

efficiently perform the four primary activities associated with a

managers job.

With the wide application of IT, work sites tend to be

decentralized.

Managers are meeting two of biggest challenges :

Effectively communicating with individuals in remote

locations

Ensuring objectives attainment


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Managers Facing


Globalization





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Several Concepts Related to Social

Responsibility

Social responsibility

Social responsibility is a business firms obligation, beyond that required by thelaw and economic, to pursue long-term goals that are good for society.

Social obligation

Social obligation is the obligation of a business to meet its economic and legal

responsibilities and no more. It is the foundation of a businesss social

involvement.

Social responsivenessSocial responsiveness refers to the capacity of a firm to adapt to changing

societal conditions.


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Social obligation

Social responsibility Social responsiveness


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Managerial ethics

Ethics

Definition:Ethics commonly refers to a set of rules orprinciples that define right and wrong conduct.

Three views of Ethics

Utilitarian view of ethics ( )

Rights view of ethics

Theory of justice view of ethics

Code of ethics

Code of ethics is a formal document that states anorganizationsprimary values and ethical rules it

expects managers and operative employees to follow.


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Example:

1916


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T 1908 1916 58% 5

P68


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Managers Facing


Globalization





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Several Critical ActivitiesContinuous improvements in quality

Work process engineering

Downsizing (layoff)

Flexible and rapid response system

The importance of empowerment


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Continuous Improvements in

QualityTQM

Original idea

Deming emphasized the use ofstatistics to analyze variability inproduction processes to create uniform quality andpredictable

quantity of output.

TQM (total quality management)

TQMis aphilosophy of managementthat is driven by customerneeds and expectations and that is committed to continuous

improvement.


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Components of Total Quality

Management

Intense focus on the customer

Concern for continuous improvement

Improvement in the quality of everything the

organization does

Accurate measurement

Empowerment of employees


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Work process engineering(BPR)Radical or quantum change in an organization

BPR 3C


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Downsizing

Downsizing refers to an activity in organizations

designed to create a more efficient operation throughextensive layoffs. It is not blind. Downsizing must link

staffing levels to organizational goals, which is called

rightsizing.


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Understanding

Reasons of layoff

Advantages and disadvantagesMethods


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Contingent workforce:workers who areavailable for hire on an as-needed basis,

includingpart-time employees, temporaryemployees and contract workers.

Core employees:the small group of full-timeemployees of an organization who provide some

essential job tasks for the organization.

Flexible staff arrangement


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Why the organizational emphasis

on contingent employees?

Having a large number of permanent full-time

employees limits managements ability to react.

Organizations that rely heavily on contingent

workers will have greaterflexibility becauseworkers can be easily added or taken off as

needed.


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Thinking Problem

What issues do contingent workerscreate

for managers?


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The Importance of Empowering

Empowering is the redesigning of jobs in

order to increase the decision-making

discretion of work.


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Reasons:

The need forquick decisions by those people

who are most knowledgeable about the issues.The large layoffs in the middle-management

ranks have left many managers with considerably

more people to supervise than they had in the past.


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Study &Practices

What stages enterprises experience in theprocess of globalization?

Understand Hofstedes cultural dimension

Why social responsibility and ethics isimportant for an organization?

Understand TQM

Why the organizational emphasis oncontingent employees?

Why empowering is important in this time?

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