Management and Society. Chapter 3 Lesson 2 Overview What society expects from organizations and...
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Transcript of Management and Society. Chapter 3 Lesson 2 Overview What society expects from organizations and...
Management and Society
Chapter 3 Lesson 2
Overview
What society expects from organizations and managers
How entrepreneurship impacts society The workforce and labor
Chapter 3 Lesson 2
Quick Write
Do corporate managers have a duty to pursue social goals? Or should they just focus on
making money? Explain your answer.
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Chapter 3 Lesson 2
What Society Expects from Organizations and
Managers
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Chapter 3 Lesson 2
Two Views of Social Responsibility
Activist View
Belief that organizations need to be socially and ethically responsible
Minimalist View
Belief that the obligation of a business is to meet its economic and legal responsibilities, and no more
Chapter 3 Lesson 2
Activist Arguments
Public expectations Minimize regulation
Long-term profits Balance responsibility
Ethical obligation Shareholder interests
Public image Resources
Better environment Prevention over cure
Chapter 3 Lesson 2
Minimalist Arguments
Maximize profits
Dilution of purpose
Excessive costs
Excessive power
Lack of skills
Lack of accountability
Lack of public support
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Chapter 3 Lesson 2
What is Social Responsibility?
Social responsibility is a firm’s obligation to go beyond what the law requires to pursue long-term goals that benefit society
Social obligation, the obligation of a business to meet its economic and legal responsibilities, and no more
Social responsiveness, a firm’s ability to adapt to changing social conditions
Chapter 3 Lesson 2
How Managers BecomeMore Socially Responsible
Ethics is a set of rules or principles that define right and wrong conduct
A Code of Ethics is a formal statement of an organization’s core values and the ethical rules it expects managers and operatives to follow
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Chapter 3 Lesson 2
Supporting a Code of Ethics
What Managers Must Do Regularly affirm the content of
the Code of Ethics
Follow the rules of the Code themselves
Call those who break the rules to account
Chapter 3 Lesson 2
What Do You Think?
Someone in one of your classes has stolen the final exam and is selling copies for $10 apiece. It’s an important exam. If you do poorly, you could fail the course. You expect that some of your classmates have bought the stolen test. You know that if it helps them do better, your own grade is likely to suffer because of grading on the curve.
So what do you do? Buy a copy, to get the same advantage as your classmates? Refuse to deal in stolen goods and just try to do your best? Or tell the teacher what you know about the cheaters?
Chapter 3 Lesson 2
How Entrepreneurship Impacts Society
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Chapter 3 Lesson 2
What is Enterpreneurship?
Entrepreneurship is the process of starting a business venture, organizing the necessary resources, and assuming the risks and rewards
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Chapter 3 Lesson 2
Key Elements of Entrepreneurs
Pursuit of Opportunities
Innovation
Growth
Initiative
Risk-Taking
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Chapter 3 Lesson 2
The Entrepreneurial Process
Exploring the entrepreneurial context
Identifying opportunities and possible competitive advantages
Starting the venture
Managing the venture
Chapter 3 Lesson 2
Exploring the Entrepreneurial Context
Pay attention to realities of the new economy
Search for the ups and downs and growth sectors
Analyze the laws affecting business, and the changing world of work
Careful study of the world around them leads them to the next step
Chapter 3 Lesson 2
Identifying Opportunities
Where is there an unmet need?
What unsolved problems do consumers or businesses seem to have?
What problems can they afford to pay to solve?
Chapter 3 Lesson 2
Starting the Venture
Taking an idea and turning it into a reality
Involves feasibility studies, market research, a business plan, and financing
Actual launch of the enterprise
Chapter 3 Lesson 2
Managing the Venture
Managing processes
Managing people
Managing growth
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Chapter 3 Lesson 2
What Entrepreneurs Do
Create something new and different ~ searching for change, responding to it, and exploiting it
Gather information, spot opportunities, and pinpoint possible competitive advantages
Talk to bankers, venture capitalists, and relatives who may have money to invest
Develop an organizational mission and a well-thought-out business plan
Organize the business—as a partnership, a corporation, or maybe just a sole proprietorship
Chapter 3 Lesson 2
What Entrepreneurs Do
Research patents or other intellectual property Launch involves setting goals and strategies, establishing
operational methods, developing marketing plans, and setting up systems for information management, accounting, and cash flow
Managing the business Making Decisions and managing people
Develop Growth strategies Seek ways to finance growth place a value on the venture May eventually need to figure out how to exit the
business by selling it
Chapter 3 Lesson 2
Entrepreneurs Within Large Organizations
Who are Intrapreneurs?
Intrapreneurs are people who behave like entrepreneurs but within a larger organization
Some scholars refer to intrapreneurs as entrepreneurial managers
Chapter 3 Lesson 2
Entrepreneurs Within Large Organizations
Entrepreneurial Managers are:
Confident in their abilities
See opportunities for change
Expect and capitalize on changes
Take less risk than true entrepreneurs
Chapter 3 Lesson 2
The Workforce and Labor
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Chapter 3 Lesson 2
The Workforce and Labor
Workers bring a diversity of cultural values and lifestyle preferences with them to work
Managers are seeing a need to accommodate this diversity and celebrate the differences, rather than trying to fit each worker into the same mold
Chapter 3 Lesson 2
The Workforce and Labor
During the 1960s, Congress made it illegal to discriminate in employment against people because of their race or gender
As a result of this legislation, women and African-Americans entered the workforce in much greater numbers than before
Chapter 3 Lesson 2
The Workforce and Labor
In more recent years, the labor force has seen even greater diversity as Hispanic, Asian, and other immigrants have come to the United States to work
The future workforce will be a mix: males and females, white and people of color, Hispanics, Asians, Africans, Native Americans, people with disabilities, and the elderly
Chapter 3 Lesson 2
The Workforce and Labor
Workforce diversity—the variety of backgrounds of an organization’s people, such as gender, race, age, and ethnicity—is the umbrella term for all this variety
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Chapter 3 Lesson 2
How Diversity Affects Organizations
Adapted Human Resource Policies
Hiring and promotion policies
Diversity training
Programs to encourage diversity among companies’ suppliers and vendors
Chapter 3 Lesson 2
How Diversity Affects Organizations
Move away from treating everyone alike in favor of responding to individual differences
Avoid practices or actions that may offend
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Chapter 3 Lesson 2
Work/Life Balance
The advent of cell phones, BlackBerries, mobile computers, and high-speed Internet access in people’s homes have blurred the lines between work and non-work activities
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Chapter 3 Lesson 2
Work/Life Balance
Multinational and transnational companies have staffs distributed around the world, which means that more and more people work for companies that literally never sleep
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Chapter 3 Lesson 2
Work/Life Balance
Many workers also face demands for longer workweeks—45 or even 50 hours or more
Today’s married employee is typically part of a two-career couple
Demands of job, home, spouse, children, parents, and friends make employees feel under pressure
Sometimes they have to turn to their managers at work for help in getting it all to fit
Chapter 3 Lesson 2
What Do You Think?
What are the work-life balance issues you face as a JROTC student? How do you balance time spent on homework, JROTC duties, and your home and social life?
Would you say that you are well balanced or that you are you doing too much or too little school-oriented work?
Chapter 3 Lesson 2
Why Organizations Lay Off Workers
Downsizing—laying off large numbers of people in order to create a more efficient operation
Rightsizing—linking staffing levels to organizational goals
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Chapter 3 Lesson 2
Why Organizations Lay Off Workers
Outsourcing—using outside organizations, some in other countries, to provide necessary products and services
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Chapter 3 Lesson 2
Why Organizations Need Flexible and Rapid Response Systems
As companies try to thin the ranks of their regular employees, the contingent workforce—part-time, temporary, and contract workers, as contrasted with permanent full-time employees—has ballooned
Chapter 3 Lesson 2
Why Organizations Need Flexible and Rapid Response Systems
Companies want to avoid being burdened by permanent staff in case of a downturn
They want workers they can say goodbye to when the holiday rush is over or the big new product rollout is complete
They want to be able to respond to new opportunities without straining the human resources budget
Chapter 3 Lesson 2
Contingent Workers
Part-time employees, who work fewer than 40 hours per week and generally receive few or no benefits, are a good source for organizations to staff peak times
Temporary employees work during peak production periods (e.g., the Christmas holidays in stores) or may fill in for employees who are off work for an extended period of time (e.g., someone on maternity leave)
Contract workers, subcontractors, and consultants, sometimes called freelancers, are hired by organizations to work on specific projects for which they are often very skilled
Chapter 3 Lesson 2
Issues Contingent Workers
Create for ManagersThey may not feel their work is valued as
much as core employees
They may need multiple employers
More work for managers trying to motivate these employees
Chapter 3 Lesson 2
A Labor Shortage?
Demographics is the study of populations—birthrates, age distributions, and the like
Based on demographics, it is fairly easy to predict how many young people will join the labor force in a given year
Experts predict a significant labor shortage for at least the next 10 to 15 years
Chapter 3 Lesson 2
A Labor Shortage?
By 2010, nearly 6 million jobs in the United States will be vacant and similar trends are developing in Europe
Two factors are contributing to the labor shortage: birthrates and labor participation rates
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Chapter 3 Lesson 2
A Labor Shortage?
Late 1960s through the late 1980s, 76 million baby boomers—the generation born between 1946 and 1964—poured into the labor force
Their successors, Generation X—those born between 1965 and 1980—were only 30 million
Chapter 3 Lesson 2
A Labor Shortage?
Immigration workers, women entering the work force, and men working after the age of 62 have shrinking participation rates for a variety of reasons
Most industries will be scrambling for workers—healthcare, government, construction, engineering, finance, energy, and information technology
Chapter 3 Lesson 2
A Labor Shortage?
In tight labor markets during the years ahead, managers will need to offer more than good wages and benefits to attract employees and hang on to them after they’re hired
Managers will need to be smart about human behavior or they may end up with no employees to manage
Chapter 3 Lesson 2
Review
Social responsibility is a firm’s obligation to go beyond what the law requires to pursue long-term goals that benefit society
Social obligation, the obligation of a business to meet its economic and legal responsibilities, and no more, is a minimalist position toward social responsibility
Social responsiveness, a firm’s ability to adapt to changing social conditions, is an activist position toward social responsibility
Chapter 3 Lesson 2
Review
Ethics is a set of rules or principles that define right and wrong conduct
A code of ethics is a formal statement of an organization’s core values and the ethical rules it expects managers and operatives to follow
A code of ethics needs clear, strong support from management who will reaffirm the content of the code, follow its rules themselves, and call those who break the rules to account
Chapter 3 Lesson 2
Review
Entrepreneurship is the process of starting a business venture, organizing the necessary resources, and assuming the risks and rewards
Entrepreneurs are bold, innovative, and venturesome people who take risks in pursuit of opportunities, innovation, and growth
The entrepreneurial process involves exploring the context, identifying opportunities and possible competitive advantages, starting the venture, and managing the venture
Intrapreneurs are people who behave like entrepreneurs, but within a larger organization
Chapter 3 Lesson 2
Review
Workforce diversity—the variety of backgrounds of an organization’s people, such as gender, race, age, sexual orientation, and ethnicity—has grown significantly since the 1960s
Management has adapted its human resource policies to respond to all this diversity, and to encourage more of it—with hiring and promotion policies, diversity training, and programs to encourage diversity among companies’ suppliers and vendors
Chapter 3 Lesson 2
Review
The advent of cell phones, BlackBerries, mobile computers, high-speed Internet access in people’s homes, and the development of multinational and transnational companies have made work/life balance a significant issue for managers because of the blurred lines between work and non-work activities
Downsizing—laying off large numbers of people in order to create a more efficient operation, rightsizing—linking staffing levels to organizational goals, and outsourcing—using outside organizations, some in other countries, to provide necessary products and services are ways companies try to stay lean and flexible
Chapter 3 Lesson 2
Review
As companies try to thin the ranks of their regular employees, the contingent workforce—part-time, temporary, and contract workers, as contrasted with permanent full-time employees—has ballooned
Based on demographics, experts predict a labor shortage in the United States and Europe for the next 10 to 15 years
Chapter 3 Lesson 2
Summary
What society expects from organizations and managers
How entrepreneurship impacts society
The workforce and labor
Chapter 3 Lesson 2
What’s Next…
Planning Basics
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