Chapter

Integrative Managerial Issues

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Learning Objectives
Explain globalization and its impact on organizations.
Discuss how societys expectations are influencing managers and organizations.

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Learning Objectives (cont.)

Discuss the factors that lead to ethical and unethical behavior in organizations.
Describe how the workforce is changing and its impact on the way organizations are managed.

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Globalization and Its Impact

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What Does It Mean to Be Global?

Global organizations: Exchange goods and services with consumers; Employ managerial and technical employees; or Use financial sources and resources from other countries.
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Types of Global Organizations

Global village A world without boundaries where goods and services are produced and marketed worldwide Multinational corporation (MNC) business Any type of international company that maintains operations in multiple countries

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Types of Global Organizations (cont.)

Multidomestic corporation An MNC that decentralizes management and other decisions to the local country where its doing business
Global corporation An MNC that centralizes management and other decisions in the home country
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Types of Global Organizations (cont.)

Transnational (borderless) organization A structural arrangement for global organizations that eliminates artificial geographical barriers

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How Do Organizations Go Global?

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Managing in a Global Organization

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Managing in a Global Organization

(cont.)
Analyzing cultural differences according to Geert Hofstedes framework: 1. 2. 3. 4. 5. Power distance Individualism vs. collectivism Quantity of life vs. quality of life Uncertainty avoidance Long-term vs. short-term orientation
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Managing in a Global Organization

(cont.)
The Global Leadership and Organizational Behavior Effectiveness research program (GLOBE) studies cross-cultural leadership behaviors.

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GLOBEs 9 Dimensions of Cultural Difference

1. 2. 3. 4. 5. 6. 7. 8. 9. Assertiveness Future orientation Gender differentiation Uncertainty avoidance Power distance Individualism/collectivism In-group collectivism Performance orientation Humane orientation
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Societys Expectations

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Social Responsibility
Social responsibility refers to a companys intention to do the right things and act in ways that are good for society.

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Should Organizations Be Socially Involved?

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The Importance of Sustainability

Sustainability is a companys ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.

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Ethical Behavior
Ethics is a set of rules or principles that defines right and wrong conduct.

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Different Views of Ethics

Utilitarian view of ethics Rights view of ethics Theory of justice view of ethics

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Factors Determining Ethical Behavior

Morality Values Personality Experience Organizations culture Issue being faced

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Encouraging Ethical Behavior

Establishing a code of ethics Providing ethical leadership Offering ethics training

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Ethical Leadership

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Ethics Training
Critics say that people establish individual value systems when young and cant learn later in life. Proponents state that ethical problem solving increases :
Ethical behaviors Level of moral development Awareness of ethical issues

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The Changing Workforce

Diversity is visible in age, gender, race, physical attributes, styles of dress, and personality type.

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Workplace Diversity
Workforce diversity is defined as the ways in which people in an organization are both different from and similar to one another.

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Types of Diversity

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Types of Diversity (cont.)

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Adapting to a Changing Workforce

Work-life balance programs
Contingent workforce

Generational differences

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