chapter 2 mangement environment
TRANSCRIPT
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PowerPoint Presentation by Charlie CookThe University of West Alabama
Copyright 2005 Prentice Hall, Inc.All rights reserved.
Chapter 2The Management Environment
2
PART I: Introduction
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The Changing Economy
AgricultureUntil the late nineteenth century, all economies were
agrarian.
Industrialization
From the late 1800s until the 1960s, most developedcountries moved from agrarian societies to industrialsocieties.
Information Information technology is transforming society from
its manufacturing focus to one of service.
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A Global Marketplace
Global villageThe concept of a boundaryless world; the production
and marketing of goods and services worldwide.
Borderless organization
A management structure in which internalarrangements that impose artificial geographicbarriers are broken down
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Global Competition
Multinational corporations (MNCs) Companies that maintain significant operations in two or more
countries simultaneously but are based in one home country.
Transnational corporation (TNC)
A company that maintains significant operations in more thanone country simultaneously and decentralizes decision making ineach operation to the local country.
Strategic alliances
A domestic firm and a foreign firm share the cost of developingproducts or building production facilities in a foreign country.
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Globalizations Effect On Managers
ParochialismA narrow focus in which one sees things solely
through ones own view and from ones ownperspective
Hofstedes framework for assessing cultures:
Power distance
Individualism versus collectivism
Quantity of life versus quality of life
Uncertainty avoidance
Long-term versus short-term orientation
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Global Leadership and Organizational
Behavior Effectiveness (GLOBE)
An ongoing cross-cultural
investigation of leadership
and national culture
Confirms and extendsHofstedes earlier work onnational cultural dimensionsand leadership.
Also found that the strength
of cultural dimensionsappear to be changing.
Cultural Dimensions
Assertiveness
Future orientation
Gender differentiation
Uncertainty avoidance
Power distance
Individualism/Collectivism
In-group collectivism Performance orientation
Humane orientation
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Emphasis on Technology
TechnologyAny equipment, tools, or operating methods that are
designed to make work more efficient
Information Technology (IT)
Benefits of IT
Cost savings (e.g., inventory control)
Freedom from fixed locations for operations
Challenges Increased worker skill requirements
A leveling of the competitive playing field that increases
competition
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In What Ways Does Technology Alter
A Managers Job?
Effectiveness and efficiency
Managers have access to more complete andaccurate information than before, enabling them to
function as better managers.
Place
Telecommuting:the linking of a workers computerand modem with those of co-workers andmanagement at an office.
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Internet Business Terms
E-commerceAny computer transaction that occurs when data are
processed and transmitted over the Internet
E-organization
The applications of e-business concepts offered tostakeholders.
E-business
The full breadth of activities included in a successfulInternet-based enterprise
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Societys Expectations of Business
Social obligationThe obligation of a business to meet its economic and
legal responsibilities and no more.
Social responsivenessThe ability of a firm to adapt to changing societal
conditions.
Social responsibility
A firms obligation, beyond that required by the lawand economics, to pursue long-term goals that arebeneficial to society.
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Ethics and Business
Ethics
A set of rules or principles that defines right andwrong conduct. (Utilitarian view; Rights view; Theoryof justice view)
Code of ethics
A formal document that states an organizations
primary values and the ethical rules it expectsmanagers and operatives to follow
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Diversity and the Workforce of 2010
Increasing workforce diversity
More variation in the background of organizational membersin terms of gender, race, age, sexual orientation, andethnicity
Characteristics of the future workforce
More heterogeneous/diverse
Increasingly older
More multicultural
Diversity will require more managerial sensitivity to
individual differences.
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Flexible Workforces
Core employees
The small group of full-time employees of anorganization who provide some essential job tasks forthe organization
Contingent workforce
Part-time, temporary, and contract workers who are
available for hire on an as-needed basis
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Labor Supply and Demand Adjustments
Downsizing
An activity in an organization designed to create amore efficient operation through extensive layoffs
Rightsizing
Linking staffing levels to organizational goals
OutsourcingAn organizations use of outside firms for providing
necessary products and services
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Is There a Pending Labor Shortage in
the United States?
2010 U.S. Labor Shortage
Fewer available workers
Retiring baby boomers
Immigration restrictions
Implication for managers
More sophisticated recruitment and retention strategies
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What Is Entrepreneurship?
Entrepreneurship
The process of initiating a business venture,organizing the necessary resources, and assumingthe risks and rewards
Steps in the entrepreneurial process
Exploring the entrepreneurial context.
Identifying opportunities and competitive advantagesStarting the venture.
Managing the venture
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What Do Entrepreneurs Do?
No two entrepreneurs are exactly alikeThey are creating something new, something different.
Theyre searching for change, responding to it, andexploiting it.
Intrapreneur
A persons within an organization who demonstratesentrepreneurial characteristicshas confidence in his or herabilities, is willing to seize opportunities for change, andexpects surprises and capitalizes on them.
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Making a Companys Culture
More Customer-responsive
Actions that create employees with the competence, ability,
and willingness to solve customer problems as they arise:
Selection: hiring the right personalities and attitudes
Training: developing the customer-focus employees
Organizing: creating customer-friendly controls
Empowerment: independence in relating to customers
Leadership: commitment to the customer-focus vision
Evaluation: performance measured by behaviors
Rewards: contingent on outstanding customer service
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Increased Concern for Quality
Continuous improvementOrganizational commitment to constantly improving the
quality of a product or service
Joseph Juran
W. Edwards Deming
Kaizen: the Japanese term for an organization committedto continuous improvement
Work process engineering
Radical or quantum change in an organization