ORGANIZATIONS 2001 AND MANAGERIAL CHALLENGES Chapter 2

8/9/2019 ORGANIZATIONS 2001 AND MANAGERIAL CHALLENGES Chapter 2

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2 ORGANIZATIONS 2001 AND MANAGERIALCHALLENGES

CHAPTER SCAN

This chapter focuses on the changes and accompanying challenges those changes will bring aboutin the coming decade. Specifically highlighted are global competition, workforce diversity,technological change, and ethical behavior. Global challenges necessitate that future employersand employees consider cultural differences and appreciation of the culture as vital for companysurvival. One of the ways this can be measured is by Hofstede's dimensions of culturaldifferences. ultural diversity within the !nited States encompasses all forms of differencesamong individuals, including age, gender, race, and ability. Technological changes reshape "obsand the workforce, as seen through the advances in five technologies# information storage andprocessing, communications, advanced materials, biotechnologies, and superconductivity. $thicalissues compound the comple% challenges of management, and fre&uently involve whitecollarcrime, computer use, employee rights, se%ual harassment, romantic involvement at work,organi(ational "ustice, whistleblowing, and social responsibility.

LEARNING OBJECTIVES

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hapter +# Organi(ations +) and -anagerial hallenges

fter reading this chapter, you should be able to do the following#

). /escribe the dimensions of cultural differences in societies that affect workrelated attitudes.+. $%plain the social and demographic changes that are producing diversity in organi(ations.0. /escribe actions managers can take to help their employees value diversity.1. !nderstand the alternative work arrangements produced by technological advances.2. $%plain the ways managers can help employees ad"ust to technological change.3. /iscuss the assumptions of conse&uential, rulebased, and character ethical theories.*. $%plain si% issues that pose ethical dilemmas for managers.

KEY TERMS

hapter + introduces the following key terms#

transnational organi(ation guanxiindividualism collectivismpower distance uncertainty avoidancemasculinity femininitytime orientation e%patriate manager

diversity glass ceilingtechnology e%pert systemrobotics telecommutingreinvention conse&uential theoryrulebased theory character theorydistributive "ustice procedural "usticewhistleblower social responsibility

THE CHAPTER SUMMARIZED

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9ecent surveys verify that !.S. firms are encountering unprecedented global competition. hiefe%ecutives indicate that their primary challenges are globali(ing the firm's operations, making sure

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they consider the human side of the organi(ation, keeping up with technology, and managingethical behavior. Successful management of these challenges is essential for survival, and the!nited States faces tough competition from countries such as anada, Germany, 49O5-$5T

The concepts of globali(ation have helped to define the terms organi(ations use to determine thelevel of activity in the global marketplace.

Globalizationimplies that the world is free from national boundaries, whereas internationalcarries with it a connotation of nationality. Transnational organizationsmust assume globalviewpoints over national issues.

. hanges in the Global -arketplace

5umerous global, social, and political changes have led organi(ations to change the way

they conduct business and encourage members to think globally. few of these changesare the unification of $ast and ?est Germany, the $uropean !nion, the political changes in9ussia and opening of business ventures in 9ussia and hina, and 5:T.

=. !nderstanding ultural /ifferences

4n order to compete globally, and because cultural differences affect workrelatedattitudes, organi(ations must understand culturally diverse individuals. Hofstede@sresearch focused on the differences among cultures in workrelated settings and found fivedimensions of cultural differences that formed the basis for workrelated attitudes.

). 4ndividualism vs. ollectivism

Individalistcultures have primary concern for themselves and their families.Coll!"tivistcultures belong to tightly knit social frameworks and depend one%tended families.

+. 8ower /istance

#o$!r distan"!is the degree to which a culture accepts une&ual distribution ofpower. High power distance cultures are more accepting of une&ual powerdistributionsA low power distance cultures are less accepting.

0. !ncertainty voidance

%n"!rtaint& avoidan"!is the degree to which a culture tolerates ambiguity anduncertainty. ultures with high uncertainty avoidance place importance on securityand tend to avoid conflict.

1. -asculinity vs. :emininity

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4n cultures that are characteri(ed by 'as"linit&, assertiveness and materialism arevalued. ultures that are characteri(ed by (!'ininit& emphasi(e relationships andconcern for others.

2. Time Orientation

The ti'! ori!ntationvalue determines the longterm or shortterm orientation ofa culture. 7ongterm orientation is toward the future, whereas shorttermorientation is toward the past and present.

3. !.S. ulture

The !nited States scored the most individualistically of all the countries measured.The !.S. ranked weak on power distance, and is a masculine culture with a shortterm orientation.

. /eveloping rossultural Sensitivity

There is an increase in organi(ational cooperation for training employees for culturalsensitivity. rosscultural task forces or teams are increasing. $mployees are more oftenbeing trained to be e%patriates. 4ntegrity, insightfulness, risk taking, the courage to take astand, and the ability to bring out the best in people are key competencies for !)*atriat!'anag!rs.

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Div!rsit&encompasses all forms of differences among individuals, including culture, gender, age,

ability, religious affiliation, economic class, social status, military attachment, and se%ualorientation.

. ultural /iversity

ultural diversity indicates the diversity apparent in the workplace. The change in thepopulation will increase the diversity and distribution of participants from Hispanic andfricanmerican origins. The challenge for managers is to capitali(e on the wealth ofdifferences provided by cultural diversity.

=. Gender /iversity

?omen make up almost 13 percent of the labor force, and by the year ++, a balance ofgenders is e%pected in the workforce. ?omen continue to receive less compensation forwork, and the transparent barrier referred to as the glass "!ilingcontinues to keep womenfrom rising above a certain level in organi(ations.

. ge /iversity

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The number of middleaged mericans will continue to rise, resulting in an older workforce. This will place emphasis on intergenerational work situations. This will also havean impact on benefits and policies relating to a more diverse workforce.

/. bility /iversity

The number of disabled individuals in the workforce is e%pected to increase dramaticallybecause of the passing of the mericans with /isabilities ct in )BB+. This law stipulatesthat employers should make reasonable accommodations to assist disabled individuals tobecome contributing employees.

$. /ifferences are ssets

-anaging diversity is one way in which organi(ations can become more competitive. sthe workforce becomes more diverse in the ne%t decade, it will be imperative thatcompanies appreciate diversity.

:. /iversity@s =enefits and 8roblems

/iversity management can help organi(ations attract and retain human resources, enhancemarketing efforts, promote creativity and innovation, improve problem solving, andenhance organi(ational fle%ibility.

There are five problems associated with diversity# resistance to change, lack ofcohesiveness, communication problems, conflicts and decision making.

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T!"+nolog&consists of the intellectual and mechanical processes used by an organi(ation totransform inputs into products or services that meet organi(ational goals. The difficulty ofsuccessfully integrating technology into the workplace at an everincreasing pace has beenconsidered a ma"or factor that has limited economic growth in the !nited States. The 4nternet isan e%ample of a technology advance that has dramatically impacted the way organi(ations dobusiness.

The development of !)*!rt s&st!'sin the workplace has benefited ine%perienced workers with a

training tool for gaining knowledge and checking their assumptions against the knowledge basedsystem.

Ro,oti"srepresents another advance in technology that has changed the way companies operate.However, robots re&uire a large investment that does not pay off in the short term.

4t is important to note that half of all new technologies sometimes fail to meet e%pectations, andas a result, some firms have chosen to deengineer.

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. lternative ?ork rrangements

dvances in technology have made possible a variety of alternative work arrangements.One of these alternative work arrangements involves transmitting work from a homecomputer to the office using a modem, and is known as t!l!"o''ting- Telecommutinghelps employees gain fle%ibility and avoid traffic while working from the comfort of home./isadvantages of this approach include distractions, isolation, and reduced identificationwith the organi(ation. Satellite offices and virtual offices offer two additional alternativework arrangements.

=. The hanging 5ature of -anagerial ?ork

-anagers will need to adapt and make effective use of new technologies. The need tohelp workers manage stress, and motivate, coach, and counsel workers will addcomple%ity to managers@ roles.

. Helping $mployees d"ust to Technological hange

R!inv!ntion is the term for creatively applying new technology. -anagers have theresponsibility of helping employees learn about and utili(e new technologies througheffective training.

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There is plenty of evidence that ethical problems are still a ma"or concern in corporations.-anagers have the responsibility of initiating programs to improve the ethical climate.

Cons!.!ntial t+!ori!s of ethics emphasi(e the conse&uences or results of behavior. 4n contrast,rl!/,as!d theories of ethics emphasi(e the character of the act itself rather than itseffects. The third type of ethical theory, "+ara"t!r t+!or&, emphasi(es the character of theindividual and the intent of the actor.

. $mployee 9ights

$mployee rights encompass many current issues, such as drug testing, free speech, dueprocess, smoking policies, 4/SDH4> disclosure, and even &uestions regarding activitiesaway from the organi(ation.

=. Se%ual Harassment

Se%ual harassment includes verbal or physical unwelcome se%ual attention that affects "obconditions or creates a hostile work environment.

. 9omantic 4nvolvements

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s the number of women in the workplace increases, the resulting interaction betweenmen and women means that organi(ations must address a number of issues related to theoccurrence of romantic relationships at work.

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CHAPTER SUMMARY

To ensure that their organi(ations meet the competition, managers must tackle four important

challenges# globali(ation, workforce diversity, technological change, and ethical behavior atwork.

The five cultural differences that affect workrelated attitudes are individualism versus

collectivism, power distance, uncertainty avoidance, masculinity versus femininity, and timeorientation.

/iversity encompasses gender, culture, personality, se%ual orientation, religion, ability, social

status, and a host of other differences.

-anagers must take a proactive approach to managing diversity so that differences are valued

and capitali(ed upon.

lternative work arrangements, facilitated by technology, are changing the way work is

performed.

Through supportive relationships and training, managers can help employees ad"ust to

technological change.

Three types of ethical theories include conse&uential theories, rulebased theories, andcharacter theories.

$thical dilemmas emerge for people at work in the areas of employee rights, se%ual

harassment, romantic involvements, organi(ational "ustice, whistleblowing, and socialresponsibility.

REVIEW QUESTIONS: SUGGESTED ANSWERS

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1. What are Hofstede's five dimensions of cultural differences that affect work attitudes? Usingthese dimensions describe the United !tates.

The dimensions are polari(ed concepts of the following# E)F individualismDcollectivism, E+F highpower distanceDlow power distance, E0F high uncertainty avoidanceDlow uncertainty avoidance, E1FmasculinityDfemininity, and E2F longterm orientationDshortterm orientation.

The !nited States is e%tremely individualistic, tolerant of uncertainty, weak on power distance,masculine, and short term in regard to time orientation.

". What are the #rimar$ sources of diversit$ in the U.!. workforce?

The !.S. workforce is characteri(ed by diversity of all types# culture, gender, age, personality,

se%ual orientation, religion, ability, and social status.

%. What are the #otential benefits and #roblems of diversit$?

/iversity management may serve as a vehicle for attracting and retaining human resources,enhancing marketing efforts, promoting creativity and innovation, improving problem solving, andenhancing fle%ibility. 8otential problems of diversity include resistance to change on the part ofcurrent employees, group cohesiveness may take longer to develop, and diversity may lead tocommunication problems, conflict, and a slower decisionmaking process.

&. What is the realit$ of the glass ceiling? What would it take to change this realit$?

The reality of the glass ceiling is that women are not promoted to top management positions atthe same rates as men and often are not paid e&uitably. $fforts to change this reality shouldinclude training managers to be aware of biases and stereotypes, and other proactive stances

toward the management of diversity.

. Wh$ do em#lo$ees fear technological innovations and how can managers hel# em#lo$eesad(ust?

$mployees may view technological innovations as decreasing their &uality of work life andincreasing pressure. They may fear that technological innovations will displace them from their"obs. -anagers can help employees ad"ust by providing information on how technologicalinnovations will affect employees and by allowing employees to have input into decision makingregarding workplace technology.

). What are some of the ethical challenges encountered in organizations?

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$mployee theft, environmental issues, issues of comparable worth of employees across "obcategories, conflicts of interest at work, and se%ual harassment are "ust some of the ethicalchallenges encountered in organi(ations.

*. +escribe the difference between distributive and #rocedural (ustice.

/istributive "ustice addresses the perceived fairness of outcomes, while procedural "usticeaddresses the perceived fairness of procedures used to determine outcomes.

DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS

1. How can managers be encouraged to develo# global thinking? How can managers dis#elstereot$#es about other cultures?

ll managers can enhance their perspectives by participating in crosscultural sensitivityworkshops offered by organi(ations. nother way is to volunteer for crosscultural task forces.Students have opportunities to meet and learn about other cultures on campus by attending thefestivals and celebrations that are typically held each academic year for student groups.

". !ome #eo#le have argued that in designing ex#ert s$stems human (udgment is made obsolete.What do $ou think?

$%pert systems are built on the "udgment of e%perts in a field, to help train and sharpen thedecision making of less e%perienced problem solvers. The best e%pert system is only as good asthe human e%pert who provided the decision rules for the program.

%. Wh$ do some com#anies encourage alternative work arrangements?

lternative work arrangements may allow companies to reduce overhead costs by reducing theamount of office space needed. lternative work arrangements may also serve as a tool to attracta diverse group of employees and to better allow employees to meet personal needs whilemaintaining a "ob.

&. What effects will the globalization of business have on a com#an$'s culture? How can anorganization with a strong ,made in -merica, identit$ com#ete in the global market#lace?

Globali(ation will help in understanding needs of current constituents, as well as future clients.

=y learning about various cultures, organi(ational members are able to understandthat other companies' missions and ob"ectives are not vastly different from their own, and that theyneed not surrender their company loyalty to interact and negotiate with others.

. Wh$ is diversit$ such an im#ortant issue? s the workforce more diverse toda$ than in the#ast?

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The population is much more diverse than it has ever been. ?hether the business is service orproductoriented, the constituents and clients of the company must be understood in order tosatisfy their needs. 5ew ideas come from analy(ing old problems differently. /iverse workforces assist in seeing traditional problems in a new frame of reference. Today@s workforce isdefinitely more diverse than past workforces.

). How does a manager strike a balance between encouraging em#lo$ees to celebrate their owncultures and forming a single unified culture within the organization?

This is a difficult balance. ny organi(ation that is referenced for a strong culture can becountered with an e%ample of rigidity in their practices and views. The key seems to beseparating the personalities from the missions and ob"ectives of the organi(ation.

*. +o $ou agree with Hofstede's findings about U.!. culture? /ther cultures? /n what do $oubase $our agreement or disagreement?

This answer will vary by work e%perience and by cultural identity of the students. Often students

will perpetuate stereotypes in their answers of other countries, yet rationali(e the weaknesses oftheir own society. 4t is interesting to ask students from other cultures what their stereotypes wereabout the !.S. before arriving, and if those perceptions have been reinforced since being here.

One item worth mentioning to students is that Hofstede's study, although monumental, wascompleted almost +2 years ago. The study is currently being updated with cooperation fromparticipating countries.

0. !elect one of the four challenges globalization diversit$ technolog$ ethics2 and write a brief#osition #a#er arguing for its im#ortance to managers.

$ncourage students to use specific answers in support of their position. This e%ercise cangenerate interesting discussion in class as students present potentially different perspectives onwhy an issue is important to managers.

3. 4ind someone whose home countr$ is different from $our own. 5his might be a classmate aninternational student or a 6ative -merican at $our universit$. nterview the #erson about his orher culture using Hofstede7s dimensions. -lso ask what $ou might need to know about doingbusiness in the #erson7s countr$ e.g. customs eti8uette2. 9e #re#ared to share this informationin class.

This provides an e%cellent opportunity for students to learn about another culture. /uring classdiscussion, have students share anything that surprised them in the information that they gathered./iscuss why they were surprised by this information.

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ETHICS QUESTIONS: SUGGESTED ANSWERS

1. !u##ose $our com#an$ has the o##ortunit$ to install a marvelous new technolog$ but it willmean that ": #ercent of the (obs in the com#an$ will be lost. -s a manager would $ou ado#t thenew technolog$? How would $ou make the decision?

This dilemma has happened in many instances in the workplace. -ost of the research literatureemphasi(es that keeping the employees well informed of the actions is a key difference betweenlawsuit filings and displeased employees. $%amples are evident of companies and countries thathave not employed technology because of the potential for lost positions. 4ronically, the hesitancyto employ technology often results in the same outcome lost positions. Great =ritain had thelabor union refute the printing advancements, and the Swiss were too slow to compete with thechanges in watch technology from


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The situation can be avoided altogether by doing research before leaving home. There are anumber of books available that specifically address differences in culture and eti&uette whenconducting business abroad. 5onetheless, it is hard to prepare for everything. This would make agreat group e%ercise where students discuss how they would handle the situation.

CHALLENGES

2.1 PLANNING FOR A GLOBAL CAREER

4f you have time in class, give students the opportunity to share what they have learned about thevarious countries they have investigated. This is a great opportunity to broaden students@perspectives. This challenge could also be assigned to groups rather than individuals.

2.2 HOW MUCH DO YOU KNOW ABOUT SEXUAL HARASSMENT

This challenge provides an opportunity to discuss many of the misconceptions that e%ist aboutse%ual harassment in the workplace. s this challenge is discussed, the instructor might alsoprovide students with information about any educational and counseling resources available on

campus with regard to se%ual harassment.

EXPERIENTIAL EXERCISES

2.1 INTERNATIONAL ORIENTATIONS

The e%ercise immediately following the case is a difficult one. The students are asked to rate apotential e%patriate and his spouse with very little information about the couple. The key to thise%ercise is to assess the reasons why they made the choices they did. re they "ustified, given theinformation provided ?hat followup &uestions could the student ask to make more confidentratings There are many behavioral details the students may attend to in order to make theirratings. The details, however, do not provide the full picture about the couple. Here are somepoints the students may list#

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Int!rnational Ori!ntation S"al!

The 4nternational Orientation Scale is an inde% of behaviors that are related to one@s acceptanceof, and interest in, other cultures. :rom the criterionrelated validity study conducted, it wasfound that 4nternational Orientation is related to how well individuals ad"ust to living abroad, and

how much they will interact with host nationals. The 4nternational Orientation Scale has also beenfound to be related to tolerance of ambiguity, interpersonal orientation, optimism, personal needfor structure, and openness to challenges. The 4OS was not related to selfmonitoring or timeurgency.

There are two ma"or limitations of the scale that should be addressed in class discussion. :irst,there are no established norms for the scale. :or this reason, one can not say, Ihe or she fallsabove or below normalJ on the scale. s yet, the scale is only intended to guide one@s thinkingabout international orientation and to generate awareness for selfassessment.

The second ma"or limitation of the scale is that the items were generated with an merican

population. 7ikewise the reliability and validity evidence was established on an mericanpopulation. The behaviors of /imensions Two, Three, and :our were generated from e%periencesthat mericans may either have or choose to have in their lives. s one can imagine, it would beinappropriate to assess Eor even worse, interpretF nonmericans who have had little or noopportunity to have the types of e%periences on the 4OS.

The items of /imension One Ei.e., 4nternational ttitudesF are reverse scored. The rest of thescores can be added and used for personal reflection. s mentioned in the previous paragraph,there are no established norms, such that the scores cannot indicate some specific deficit or talentthe student has. The scores can be used as a means to think about one@s own internationalorientation Ee.g., one@s answers to the selfassessment discussion &uestions.F

K$%periential $%ercise +.) is by 8aula -. aligiuri, /epartment of 8sychology, 8ennsylvania State!niversity. !sed with permission. 4n /orothy -arcic and Sheila 8uffer,>anagementnternational ?est 8ublishing, )BB1.

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2.2 ETHICAL DILEMMAS

This is a simple, beginning overview of ethical issues. s students become more familiar withethical issues, these could be revisited for elaboration. This e%ercise serves as an initialicebreaker, beginning orientation for group work, and an introduction to ethical issues. fterdiscussing the &uestions provided, the five themes of the book could be discussed in terms ofethical issues related to these new challenges. sk students to provide e%amples of ethical issuesrelated to# technology, &uality, workforce diversity, and globali(ation. Cou may want to helpbegin the conversation with the following issues# security and privacy with technology, promotionof a lesser &ualified minority to meet re&uirements, providing entertainment for potential clientsfrom another country, and altering the information for the -alcolm =aldrige ward.

ALTERNATIVE EXPERIENTIAL EXERCISE

NUTTY BUDDY: AN EXERCISE IN INDIVIDUAL DIFFERENCES

This e%ercise re&uires a bag of peanutsintheshell. Students do not need an additional handoutto complete this e%ercise. This e%ercise may be used as a teambuilder, or an icebreaker for thebeginning of the semester. The time necessary for the e%ercise and debriefing is about twentyminutes and is ideal for group si(es of )+2, although it easily accommodates larger groups as

well.

E)F The instructor rummages through a bag of peanutsintheshell, choosing peanuts mostsimilar in shape and si(e. 8eanuts having clearly evident defining characteristics, such as splitshell, an attached stem, discoloration, three nuts rather than two, etc., should bediscarded. The selection process should yield appro%imately onefourth more peanuts thannumber of participants. The &ualifying peanuts are place in a large bowl that is then passed toeach participant, who is asked to choose a peanut and to wait for additional instructions.

E+F $ach person has one minute to get to know his or her peanut. Students cannot mark on theirpeanut, open it, or alter it in any way. They may sniff it, talk to it, lick it, fondle it, argue with it,

confess to it in short, whatever will aid them in getting to know it better.

E0F The peanuts are returned to the bowl along with those e%tra peanuts that had not beenselected. The peanuts are then emptied onto a table or in the middle of the floor and participantsare instructed to Lfind your peanut.L

E1F 4f anyone cannot locate his or her peanut, he or she is invited to check everyone else's peanutand to negotiate ownership. E short intervention by the instructor on the vagaries of LpeanutnappingL may be appropriate here.F

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4nstructor's 5otes

This e%ercise is an adaptation from the old Gestaltlearning e%ercise, Lknow your lemon,L to helpparticipants become more aware of nonverbal cues in perception. This e%ercise illustrates issuesof individual differences and diversity in organi(ational life, as well as stereotypes and pre"udice.

The following e%cerpt is a typical debriefingDapplication se&uence of &uestions and discussionitems. The purpose is to move students in a logical manner to a clearer, gutlevelunderstanding and appreciation of differences among people and between themselves and others.

E)F sk students to analy(e their peanuts carefully. How are they able to recogni(e it ?hatdistinguishes it How confident are you that this peanut is$ourpeanut

ma(ingly, typically B M N of participants are absolutely confident.

E+F 5e%t, ask students to compare their peanut with a neighbor's peanut. How are they similar

How are they different 4s one peanut more identifiable than anotherfter all, kids have been comparing their peanuts for decades, maybe centuries. This&uestion allows for a short discussion on surface traits versus substantive traits, andobservable traits versus implied traits also works well here. Some people possesscharacteristics that make them more salient as employees, leaders, influencers, etc.

E0F Have students introduce their peanut to the other person and the other person's peanut shouldbe introduced to them. Get to know their peanut, get them to know your peanut.

?hen 8eter tells you about 8aul, you often learn more about 8eter than you do 8aul.Sometimes it is easier for people to talk through another person than to be direct

themselves. This characteristic has been used successfully in puppet therapy with childrenand in psychodrama with adults, in order to help clients more honestly e%press themselves.

E1F sk students if anyone wants to trade peanuts, because they like someone else's peanut butter,or better.

EThis is known in :reudian psychology as peanutsenvy.F 8oint out how attached we canget to something that is ours in such a short time. ?hat might that tendency say about usas people Themes of possessiveness, intolerance, and even attribution work well here.

E2F sk students to relay what their peanut would say about them if it could talk. E4t might saythat they are tough nuts to crack, but what else might it sayF

/epending on the previous discussion, the facilitator may or may not want to encouragesuch selfdisclosure.

8art of the debriefing hinges upon comments by the students. 4n fact, the instructor should beprepared to followup virtually any comment or sidecomment with discussion. -ostparticipants report that the e%perience is fun, energi(ing, lighthearted, and even charming. briefwarning before proceeding with debriefing# this e%ercise lends itself to words that are highly

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conducive to short gags and doubleentendres. These flights into marginal humor provide part ofthe fun of this e%ercise and can be promoted or suppressed according to the composition of thegroup.

s can be seen from the &uestions, the discussion can unfold in a variety of directions over abroad range of issues. The richness and learning possible from this e%ercise often depends on therisktaking level of the participants and the skill of the instructor. $ven so, the e%ercise is almostgoofproof.

One interesting phenomenon often occurs, especially in e%tended workshops. 8articipants oftencarry their peanut around with them, refer back to it, make "okes including it, and trulypersonali(e it. few people eat their peanuts, much to the chagrin Eand even disgustF of others.:or most participants, the peanut becomes a L@7inus' blanket.L

Khristopher Taylor, /rganizational 9ehavior 5eaching eview @ol. 1%, E1F )B;;;B, )+0)+1.!sed with permission.

EXTRA EXPERIENTIAL EXERCISES

The following alternative e%ercises to supplement the material in the te%tbook can be obtainedfrom#

-arcic, /orothy, Selt(er, aill, 8eter. /rganizational 9ehavior= Ax#eriences andBases, 3thAd. South ?estern ollege 8ublishing ompany, +).

#!rsonalit& Ass!ss'!nt ng3s T&*olog&- p. )))3. Time# )2+ minutes8urpose# To determine personality according to


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taking care of their own interests. ollectivism is a cultural orientation in whichindividuals belong to tightly knit social structures, and group decisions arevalued and accepted.

7ow versus high power distance# 7ow power distance refers to the belief that

power differentials should be minimi(ed in society. High power distance

reflects the belief in and acceptance of une&ual distribution of power in society. 7ow versus high uncertainty avoidance# 7ow uncertainty avoidance cultures

involve a greater tolerance for ambiguity and a greater willingness to takerisks. High uncertainty avoidance cultures have less tolerance for ambiguityand are risk averse.

-asculinity versus femininity# -asculinity characteri(es a cultural orientation

in which assertiveness and materialism are valued. :emininity describes acultural orientation in which relationships and concern for others are valued.

Shortterm versus longterm time orientation# culture with a shortterm

orientation focuses on the past or present. culture with a longterm timeorientation looks to the future.

Students should be encouraged to consider the relative impact of these cultural dimensions onHarley/avidson@s global e%pansion, particularly in 7atin merica, $urope, and the sia 8acificregion. 5ational cultures in these regions are &uite different from the !nited States with respect toHofstede@s dimensions. n interesting discussion could evolve concerning which dimensionsmight be the most influential in Harley/avidson@s decision making. /evelopment and operationof the dealer network, for instance, is likely to be affected by differences in national cultures.?hile the Harley Owners Group has chapters throughout the world, their operations and activitiesmay also be influenced by differences in national cultures.

". Ban technolog$ affect Harle$C+avidson7s com#etitive #osition in the global market#lace? fso how?

-ost likely, Harley/avidson will continue to use technology to improve both its products

and its manufacturing processes. The use of information technology is likely to have

substantial impacts in at least two ways# facilitating communication with its worldwide

network of dealers and assisting in supply chain management.

%. What ethical challenges do $ou think Harle$C+avidson is likel$ to encounter as it furtherdevelo#s its #resence in the global market#lace?

-ost likely, Harley/avidson will face ethical challenges associated with competing in the

international arena. 4n the )B;s, the company faced threats of unfair competition. 4t is in a

much stronger competitive position now, but this does not mean that those who wish to

challenge the market leader will not use unfair competitive practices. H/ may also face

ethical challenges as it managesDleads employees from different cultural backgrounds. The

company may also face ethical challenges with respect to its global network of dealers

VIDEO COHESION CASE !! PART I

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PROCTER " GAMBLE #A$

1. What is Drocter E Gamble7s business #hiloso#h$ and a##roach? How does its business#hiloso#h$ and a##roach hel# them to com#ete in the market#lace?

8rocter Gamble@s business philosophy and approach can be best captured through its eightguiding principles and its Statement of 8urpose. The eight principles are#

I?e show respect for all individuals.IThe interests of the company and the individual are inseparable.I?e are strategically focused in our work.I4nnovation is the cornerstone of our success.I?e are e%ternally focused.I?e value personal mastery.I?e seek to be the best.I-utual interdependency is a way of life.J

The Statement of 8urpose is#

I?e will provide products of superior &uality and value that improve the lives ofthe world@s consumers.Is a result, consumers will reward us with leadership sales, profit and valuecreation, allowing our people, our shareholders, and the communities in which welive and work to prosper.J

:ollowing the eight guiding principles and the Statement of 8urpose helps 8rocter

Gamble to compete effectively in the global marketplace because of the emphasis they

place on#

The value of human resourcesA

The linkage between individual and organi(ational interestsA

8ersonal and organi(ational competenceA

commitment to e%cellenceA and

/edication to the key stakeholdersPcustomers, employees, shareholders, and

the communities in which 8G operates.

". What lessons about leading and managing organizations does Drocter E Gamble #rovide?

Three key lessons are provided in 8rocter Gamble EF. :irst, innovationPin products,development of technology, addressing environmental issues and animal rights issues, andmethods for managing human resourcesPis a key to longterm success. Second, successfulorgani(ations have a clear purpose that is based on clearly articulated core values. -oreover,people in the organi(ation should strive to behave consistently with both the purpose and thecore values. Success depends on more than setting clear guidelinesA success depends on

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actually following those guidelines. Third, successful organi(ations do not rest on their laurels.4nstead, they embrace change and continuous improvement.

0. Which of the organizational challengesFFglobalization diversit$ technolog$ and ethicsFFare likel$ to have the greatest im#act on Drocter E Gamble's future o#erations? Ax#lain $ouranswer.

learly, globali(ation will have a very strong impact as 8rocter Gamble continues to e%pandand enhance its worldwide presence in various types of consumer products. The eightprinciples, as well as the Statement of 8urpose, underscore 8G@s intention to be the premierconsumer products company in the markets that it serves throughout the world. Of course, itsglobal success depends upon its capacity to continue developing new products and improvinge%isting productsPboth of which rely on continuing technological innovation. Thus, globalsuccess and technological success are intertwined.

The challenges of globali(ation and technology are linked to diversity and ethics.

Globali(ation means diversityPboth in terms of customers served and employees managed.To aspire to globali(ation is to recogni(e that one of the key elements of success is dealingeffectively with diversity. Globali(ation and diversity also mean ethical challenges, for thereare differences among nations and people with respect to ethical attitudes and practices.Technological challenges can affect the challenges of diversity and ethics. ll peoplethroughout the world are not e&ually capable of absorbing or using the same technology.8roducts and their supporting technologies need to be adapted to local markets toaccommodate differing needs and preferences. Of course, these differing needs andpreferences may be rooted in some element of diversity. Technology can also be linked toethics. :or instance, ethical issues arise when product developmentsPlike those in 8G@spharmaceuticals businessare based on research using human or animal sub"ects.

nother consideration regarding the interaction among these challenges is that ethics is notEand should not beF something that is considered separately from other systems, procedures,functions, policies, and processes of the organi(ation. $thics should be an integral part of dailylife in any business organi(ation. $thics should be an important consideration in anycompany@s strategic, tactical, and operational decisionsPespecially any company that isinterested in being successful over the long term.

?hile focusing on one of the ma"or challenges might be tempting, the reality of thecontemporary business worldPparticularly for large companies like 8rocter GamblePisthat one challenge cannot be isolated from the other challenges. ll four challengesPglobali(ation, diversity, technology, and ethicsPmust be considered simultaneously. The

nature of one challenge may raise issues for one or more of the other challenges. How onechallenge is addressed can influence how other challenges are handled. -anagers and leadersmust be vigilant about all the challengesA they cannot relegate any challenge to the back seat.

R%&' P&()*

dditional role plays relevant to the material in this chapter are located in ppendi% of thisinstructor's manual.

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Documents

ORGANIZATIONS 2001 AND MANAGERIAL CHALLENGES Chapter 2