managing in today’s world bsm 12. 2 the changing economy one of the biggest problems in managing...
TRANSCRIPT
MANAGING IN TODAY’S WORLD
BSM 12
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THE CHANGING ECONOMY
One of the biggest problems in managing an organization today is failing to adapt to the changing world.
Let’s look back . . . so we can understand the present!
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Social Change
Alvin Toffler is a futurist who studied the changes technology has had and predicted some of its implications on social change.
He classified each period of social history and identifies modern civilization as evolving over three “waves.”
With each new wave came a new way of doing things. Some gained and some lost from the new ways.
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The Agricultural Age
Prior to 1890s Driven by agriculture Professional managers were not needed
because most people worked for themselves
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The Industrial Age 1860s to 1960s Move from agricultural to being industrialized Changes in technology, communication, and
transportation made the Industrial Revolution possible
Advances in manufacturing processes allowed new products such as steel to be created
The growing use of steam power permitted more and more factories to operate
Created a huge demand for coal
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The Industrial Age
Telegraph and cable lines extended making it possible for businesses to communicate with suppliers and customers
Invention of the telephone in 1876 had great impact Work left the fields and moved into formal
organizations Mass production, specialized jobs, authority
relationships Rise of “blue-collar” (manual labour) industrial
workers
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Shifts
Since the 1890’s the proportion of population engaged in farming has consistently dropped
<5% of the global workforce is needed to provide our food
Since World War II there has been a shift away from manufacturing work toward service jobs
Today, services make up more than 80% of jobs in Canada and the US
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The Information Age
Start of 1970s Technological advancements were
eliminating many low-skilled, blue-collar jobs The information wave transformed society
from a manufacturing focus to one of service and knowledge
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The Information Age
Knowledge workers include professionals such as nurses, accountants, teachers, lawyers, engineers, technologists, software designers, computer programmers, etc.
Knowledge workers are people whose jobs are designed around the acquisition and application of information
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Did You Know?
2006
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Managing Change
As the waves influenced society, so too have they affected how we do business
New organizational issues stem from:
1. International markets
2. Technological improvements
3. Changes in workforce composition
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The Changing Economy
Old Economy New Economy
National borders limit competition
National borders nearly meaningless in defining operating boundaries
Technology limits access to information
Technology changes have made information accessible
Job opportunities are for blue-collar industrial workers
Job opportunities are for knowledge workers
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Old Economy New Economy
Population is relatively homogeneous
Population is characterized by cultural diversity
Business is separate from its environment
Business accepts its social responsibilities
Economy is driven by large corporations
Economy is driven by small entrepreneurial firms
Customers get what business chooses to give them
Customer needs drive business
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1. A Global Marketplace
Management in both large and small organizations is no longer strained by national borders.
The world has become a global village—no boundaries—the production and marketing of goods and services is worldwide.
To be effective, managers need to adapt to cultures, systems, and techniques that are different than their own.
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A Global Marketplace
Events in the world have an effect globally. For example:
A rise in interest rates in Japan affects managers and organizations throughout the world.
The fall of communism in Eastern Europe and the collapse of the Soviet Union created exciting opportunities for business firms.
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A Global Marketplace
Multinational corporations—corporations that maintain significant operations in two or more countries at the same time but are based in one country. Examples: Pepsico, Coca-Cola, Nike, Reebok,
Microsoft
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A Global Marketplace
Transnational corporations—corporations that maintain operations in more than one country at the same time but allows decision-making to take place at the local level. Examples: Nestle, McCain, Coca-Cola
(Multinational and transnational are sometimes used interchangeably)
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How does globalization affect managers?
Managing in a country where there is a different national culture
Recognizing that people from other countries have different ways of doing things or live differently than Canadians do
Countries have different laws
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2. Technology
Technology allows required information to be more readily available
Technology enhances production processes Technology makes it possible to better serve
customers Technology advancements are used to
provide better, more useful information
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How does technology affect managers?
Managers can do their work anywhere, anytime and get information quickly allowing them to perform their activities more effectively and efficiently
Managers and/or employees can telecommute—link remotely with organization computers
Communication and work completion are a challenge for managers
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3. Changes in Workplace Composition
In the past, management thought that employees who were “different” would want to change and become the “same”.
Today’s managers have found that employees do not set aside cultural values and lifestyle preferences when they come to work.
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3. Changes in Workplace Composition
The challenge for managers is to make organizations more accommodating to diverse groups by addressing different lifestyles, family needs, and work styles.
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How does diversity affect organizations?
As organizational diversity in terms of gender, race, age, sexual orientation, and ethnicity increases, management adapts its practices to reflect those changes--for example, workforce diversity programs at Johnson and Johnson .
To better meet the needs of the diverse workforce, some organizations are also offering family-friendly benefits.
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Assignment:
What are family-friendly benefits? Why are they important? Find several examples and list them. What affect do these benefits have for
management?