managing in the 21st century

Managing in the 21st Century

Mala Sarat [email protected]

mailto:[email protected]

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Learning Objectives

Analyze the forces shaping work, workplace and worker skills required in the 21st Century.Discuss the implications of these trends for the workforce, firms and management.Articulate the ways in which people differ from one another at a high level and why it is important for management.

Mala Sarat ChandraUniversity of Washington

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21st Century at Work

21St Century

Work

Shifting Demographics

Rapid Pace of Technology

Economic Globalization


Source: The 21st Century at Work, LYNN A. KAROLY, CONSTANTIJN W. A. PANIS, Rand Corporation (2004)

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SHIFTING DEMOGRAPHICS


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Civilian Labor Force in the USA1950, 2000, 2050 (Projected)


Source: Mitra Toossi, Monthly Labor Review (May, 2002)

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Educational Attainment in the US


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Women in the US Workforce


Source: http://carrington.edu/blog/carrington-college-news/women-in-the-workforce/

http://carrington.edu/blog/carrington-college-news/women-in-the-workforce/

http://carrington.edu/blog/carrington-college-news/women-in-the-workforce/

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The Gender Journey - USA


Source: 20-first's Global Gender Balance Scorecard 2013 (PDF 2 MB)

http://www.20-first.com/1689-0-global-gender-balance-scorecard-2013.html?download=global_gender_balance_scorecard_2013_1.pdf

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The Gender Journey - Europe





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The Gender Journey - Asia




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Implications for the Workforce and Workplace: Shifting Demographics

The workforce is becoming more diverse in gender, race and ethnicity.The workforce is becoming more balanced in age.Workers have more responsibilities outside of work.Many mature workers will remain in the workforce.Educational attainment will continue to rise.


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RAPID ADVANCE OF TECHNOLOGY


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Rapid Advance of Technology


Moore’s Law, Predicted and Actual Price Indices for ICT

SOURCE: BEA NIPA Tables, Table 7.8 (http://www.bea.gov/bea/dn/nipaweb/SelectTable.asp).

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Global Knowledge and Hi-Tech Industries 1998 - 2010

Value-Add Exports


Source: National Science Board, Science and Engineering Indicators, 2012

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Global Growth of the Internet


World Population Estimate

Internet Users 2000

Internet Users 2012 Growth

7,017,846,922 360,985,492 2,405,518,376 566.4%

Source: www.internetworldstats.com

http://www.internetworldstats.com/

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Factors Leading to Rapid Adoption of Technology

Computing power and capacity, data transmission speed, and network connectivity have increased dramatically, while hardware costs have fallen rapidly.Increased user-friendliness of new software has led to rapid adoption of computer systems.Levels of business investment in computer hardware during the mid- to late 1990s reaching several times the level of previous years.High bandwidth, affordable tariffs resulting in widespread adoption of the Internet.


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Innovations of the 2nd Millenium20th Century1. Electrification2. Automobile 3. Airplane 4. Water supply and distribution 5. Electronics 6. Radio and television 7. Agricultural mechanization 8. Computers 9. Telephone 10. Air conditioning/refrigeration 11. Interstate highways 12. Space flight 13. Internet 14. Imaging 15. Household appliances 16. Health technologies 17. Petrochemical technology 18. Laser and fiber optics 19. Nuclear technologies 20. High-performance materials

21st Century1. Energy conservation 2. Resource protection 3. Food and water production and distribution 4. Waste management 5. Education and learning 6. Medicine and prolonging life 7. Security and counter-terrorism 8. New technology 9. Genetics and cloning 10. Global communication 11. Traffic and population logistics 12. Knowledge sharing 13. Integrated electronic environment 14. Globalization 15. AI, interfaces and robotics 16. Weather prediction and control 17. Sustainable development 18. Entertainment 19. Space exploration 20. "Virtualization" and VR


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Focus of Innovation20th Century: Physical Capital and Physical Objects

Cheap power through electrificationCapital assets such as factories, mines, oil wells and refineriesTelephonyComputers Household appliancesThe Internet

21st Century: Intellectual Capital and Virtual Objects

Digitization of information, Big DataDecoding the human genomeOnline knowledge resources (e.g., weather prediction and control, traffic and logistics, terrorism and security)Global connectedness and rapid knowledge disseminationUser generated contentInternet of Things


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21st Century IT Innovations


“Consumerization of IT”“There’s an App for that!”

“BYOD”

“Big Data Analytics”“Sensors and machine learning”

“Live Video Streaming”

“The new Biology”

“Nanotechnology”

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Impact of Technology

Use of PCs in the workplace doubled between 1984 and 2001.80% of managers and professional workers use PCs in the workplace.Moore’s Law will continue for some time.New technologies exploit the continued miniaturization of computer chips and communications devices.Continued growth in the volume, variety and velocity of data.The IT revolution is fundamentally intertwined with economic globalization.


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Implications for the Workforce and Workplace: Technology Advancement and Adoption

Increase in productivity.Shifting the skill requirement for jobs.Changes to the wage structure.Altering how firms are organized.Changing the nature of employer-employee relationship.Provides the ability to work remotely.Changes to the delivery of workplace education and training.


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ECONOMIC GLOBALIZATION


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Value of US Goods and Services Trade


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A Review of Significant 21st Century Economic Events

Dotcom BustYuan tied to $

Securitization85% of US mortgages in Collateralized Debt Obligations

InsuranceCredit Default Swaps insure CDO owners

ComplexityCDOs could comprise CDOs

Leverage30 – 1 ratios in building CDO portfolios

IlliquidityDomino effect as defaults accelerated

DeceitDeceptive sales tactics

HubrisSub-prime crisis

Myopia, Greed, Denial9/11


Source: What Matters Now, Gary Hamel

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Global Economic Integration

Growing trade, especially in services, with more diverse countries.IT Outsourcing.Internationalization of Capital flows.Globalization of Labor and Intellectual Capital.


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Implications to the Workforce and Workplace:Global Economic Integration

Expanding Markets.Intensified Competition.Importance of innovation.Alteration in job mix, with displacements in some sectors and growth in others.Changing employment relationships.


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Implications for 21st Century Management

The business world is global and more complex.Organizational boundaries are fluid and dynamic.Leadership stretches across organizational boundaries.Enterprises are networks of organizations that must respond quickly to emergent challenges and opportunities.Rapid pace and nature of change.Impact of technology evolution and convergence.Importance of resilience, adaptability and long term relevance.


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Hostage to Heritage


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Profound Shifts in Business Models

Focused competitors (jetBlue, Virgin America) gain ground over industry Majors (AA, UA).Transition from scattershot drug discovery to disease-focused, gene-based drug design.Plug-in hybrids and all-electrical vehicle challenge combustion engine cars.Software as a product transition to software as a service.Explosive growth of e-books and diminishing role of traditional booksellers.Healthcare “fee for a service” business model moving to “integrated care” models.


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Management and Leadership Focus


Focus 20th Century 21st Century

Span Within Organizations with well defined boundaries

Across an Enterprise – a network of organizations with fuzzy boundaries

Context Generally stable and predictable, with longer planning horizons

Complex and uncertain, dynamic, real-time

Leadership Hierarchical Distributed

Orientation Functional anchor Issues anchor

Culture Largely homogeneous Highly diverse

Employment base Largely permanent, full-time Increasingly contractors, outsource, off-shore

Employee Skills and Knowledge

Functional Integrative

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Thought Provokers

Does organizational longevity have intrinsic value?Are Startups an alternative to established companies?Is institutional death inevitable?What management values does the www inspire?
