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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
The changing economy
Globalization
Emphasis on technology
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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Chapter 3 Todays Environment
Managers Facing
The changing economy
Globalization
Emphasis on technology
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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Chapter 3 Todays Environment
Managers Facing
The changing economy
Globalization
Emphasis on technology
Social responsibility and managerial ethics
How do organizations make the customer king?
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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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Chapter 3 Todays Environment
Managers Facing
The changing economy
Globalization
Emphasis on technology
Social responsibility and managerial ethics
How do organizations make the customer king?
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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?