The Changing Environment of Management: (Lecture Outline and Line Art Presentation)

Chapter 3
(Lecture Outline and

Line Art Presentation)
The Changing
Environment of
Management
Chapter Objectives
1. Identify and briefly highlight seven major changes shaping
the twenty-first-century workplace.
2. Summarize the demographics of the new work force.
3. Define the term managing diversity and explain why it is
particularly important today.
4. Discuss how the changing political-legal environment is
affecting the practice of management.
5. Discuss why business cycles and the global economy are
vital economic considerations for modern managers.
6. Describe the three-step innovation process and define the
term intrapreneur.
Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 3–2
The Twenty-First-Century Workplace:
Seven Major Changes
• The Virtual Organization

• The Just-in-Time Workforce
• The Ascendancy of Knowledge Workers
• Computerized Coaching and Electronic
Monitoring
• The Growth of Worker Diversity
• The Aging Workforce
• The Birth of the Dynamic Workforce
The Social Environment
• Dimensions of the Social Environment
• Demographics
• Changes in the statistical profiles of population
characteristics.
• The new social contract
• Changes in the employer-employee relationship.
• Inequalities
• Persistent barriers encountered by women, minorities, and
others in the workplace .
• Managing diversity
• Creating organization cultures that enable all employees to
realize their potential.
Demographics of the New
Workforce
• Needed Remedial Education
• The shrinking U.S. workforce is increasingly deficit in
reading, writing, science, and basic math skills.
• The workforce will have more Hispanics and older
persons in the future.
Demographics of the New
Workforce
• Myths About Older Workers (Dispelled)
• Are not less productive.
• Do not incur higher benefits costs.
• Do not have higher absenteeism.
• Do not have more accidents at work.
• Are not less willing to learn.
• Are not inflexible about the hours they are willing to
work.
Figure 3.1
The Changing U.S. Workforce
Figure 3.1
The Changing U.S. Workforce (cont’d)
Figure 3.1
Figure 3.1
A New Social Contract Between
Employer and Employee
• New Social Contract

• Assumption that employer-employee relationship will
be a shorter-term one based on convenience and
mutual benefit, rather than for life.
• Employees are expected to manage their own
careers to increase their long-term value.
• Employers are expected to provide the means
necessary for continual workforce development .
Nagging Inequalities in the
Workplace
• Under the Glass Ceiling
• Women continue to experience a significant gender-
wage gap and strong barriers to advancement.
• Women are demanding more equitable compensation
and workplace opportunities.
• Continuing Pressure for Equal Opportunity
• Women, minorities, and the physically challenged are
all expected to press harder for more employment
opportunities.
Nagging Inequalities in the
Workplace (cont’d)
• Part-Timer Promises and Problems
• Contingent workers will comprise a increasing
percentage of the workforce.
• The advantages of lower wage and benefits costs and
the flexibility of a contingent workforce are offset by
their negative work attitudes and increased likelihood
of quitting.
Managing Diversity
• Managing Diversity
• The process of creating an organizational culture that
provides all employees, including women and
minorities, with assistance and opportunities to help
them realize their full potential.
• More than EEO
• The moral necessity and commitment in going
beyond EEO and affirmative action to create flexible
organizations that encompass and value diversity.
The Political-Legal Environment
• The Politicization of Management
• Issues management
• Ongoing process of identifying, evaluating, and responding
to important social and political issues.
• Purposes: minimize “surprises” and make more systematic
and effective responses to issues.
• General political responses
• Defending the status quo against all comers.
• Adopting a “wait and see” approach.
• Proactively trying to identify and respond to issues.
Figure 3.2
Management’s Political Response Continuum
The Political-Legal Environment (cont’d)
• Specific Political Strategies

• Campaign financing
• Lobbying
• Coalition building
• Indirect lobbying
Increased Personal Legal
Accountability
• Increases in Demands for Accountability
• “Cooking the books,” price fixing, and bid rigging are serious
white-collar crimes likely to draw stiff penalties and a jail
sentence.
• Political and Legal Implications for Management
• Increased use of legal audits
• A review of all operations to pinpoint possible legal liabilities
or problems.
• Use of alternative dispute resolution (ADR)
• Settling disputes with less costly methods, including
arbitration and mediation.
The Economic Environment
• The Job Outlook in Today’s Service Economy,

Where Education Counts
• Service sector job growth in high paying occupations
that require at least a bachelor’s degree is twice as
fast as that of all other occupations.
• Coping with Business Cycles

• Business cycles
• The up and down movement of an economy’s
ability to generate wealth.
• Business cycles are converging worldwide.
• Cycle-sensitive decisions
• Timing decisions about appropriate responses to
changes in the business cycle is necessary to
• reduce the chances that a firm’s assets and
resources will be underutilized or wasted in
economic downturns.
• take advantage of opportunities that will arise
during periods of rapid expansion of the economy.
Figure 3.3
Business Cycles Affect Managerial Decisions
The Challenge of a
Global Economy
• A Single Global Marketplace
• Global trade is causing a shift to a single economy.
• The commercial world is no longer East-West, North-
South.
• Globalization Is Personal
• Working for a foreign-owned company is a growing
trend.
• Meeting world standards for quality and costs
(through lower wages) is necessary to be globally
competitive.
The Technological Environment
• Technology
• All the tools and ideas available for extending the
natural and mental reach of humankind.
• Technology is facilitating the evolution of the
information age.
• Information has become a valuable strategic resource
for gaining competitive advantage.
The Technological Environment (cont’d)
• The Innovation Process

• The systematic and practical application of a new
idea.
• Steps in the Innovation Process
• Conceptualization: when a new idea occurs to
someone.
• Product technology: creation of a working prototype.
• Production technology: development of a profitable
production process.
Figure 3.4
The Three-Step Innovation Process
The Technological Environment (cont’d)
• Innovation Lag
• The time it takes for a new product to be translated
into satisfied demand.
• Shortening Innovation Lag
• Goal setting: creating a sense of urgency and
purpose.
• Empowerment: pushing decision-making authority
down to the level of the decision.
• Concurrent engineering: using a team approach to
product design involving specialists from all functional
areas including research, production, and marketing.
Promoting Innovation Through
Intrapreneurship
• Intrapreneur
• An employee who takes personal responsibility for
pushing an innovative idea through a large
organization.
• Fostering Intrapreneurship
• Focus on results on teamwork.
• Reward innovation and risk taking.
• Tolerate and learn mistakes.
• Remain flexible and change-oriented.

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Chapter 3

(Lecture Outline and

• The Virtual Organization

• New Social Contract

• Specific Political Strategies

• The Job Outlook in Today’s Service Economy,

• Coping with Business Cycles

• The Innovation Process

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