Managing In

Today’s World

©Prentice Hall, 2001 Chapter 2 1

 Learning Outcomes
• Examine the three waves in modern social
history and their effect on organizations
• View management from a global perspective
• Learn how technology is changing the
manager’s job
• Define social responsibility and ethics

©Prentice Hall, 2001 Chapter 2 2

 Learning Outcomes
• Define the entrepreneurial spirit
• Describe the management implications of a
diversified workforce
• Discuss quality and continuous improvement
• Learn why many companies have downsized

©Prentice Hall, 2001 Chapter 2 3

 Corporate Stars: 1960 Versus 2000
Industry 1960s 21st Century
•Airlines •Pan Am •Southwest
•Automobiles •General Motors •Daimler-Chrysler
•Broadcasting •CBS •CNN
•Cameras •Bell & Howell •Minolta
•Computers •IBM •Dell Computer
•Film •Eastman Kodak •Fuji
•Retailing •Sears •Wal-Mart
•Information access •Public library •America Online
•Mail delivery •U.S. Post Office •Federal Express
•Newspapers •New York Times •USA Today
•Securities •Merrill Lynch •Charles Schwab
•Steel •U.S. Steel •Nucor Steel

©Prentice Hall, 2001 Chapter 2 4

 Three Waves
of Social Change
The Age of Agriculture

The Age of Industrialization

The Age of Information

©Prentice Hall, 2001 Chapter 2 5
 Multinational
Multinational
Corporations
Corporations

The
The Global
Global The
TheGlobal
Global Transnational
Transnational
Marketplace Village
Village Corporations
Marketplace Corporations

Border
Borderless
less
Organizations
Organizations
©Prentice Hall, 2001 Chapter 2 6
 Stages of Going Global

Stage I Stage II Stage III

Hire Licensing-
Foreign Franchising
Agents or
Export to
Brokers Joint
Foreign
Ventures
Countries
Contract
Foreign Foreign
Managers Subsidiary

©Prentice Hall, 2001 Chapter 2 7

 Globalization and the
Practice of Management

Parochialism Ethnocentrism

©Prentice Hall, 2001 Chapter 2 8

 Power
Individualism
Distance

Hofstede’s Dimensions
of National Culture

Quantity Versus Uncertainty

Quality of Life Avoidance

©Prentice Hall, 2001 Chapter 2 9

Technology and the Organization

• Production process

• Customer service

• Information access

• Employee job skills

• Level playing field

©Prentice Hall, 2001 Chapter 2 10

 Technology and the
Manager’s Job

Formulating Making
Plans Decisions

Defining Monitoring
Jobs Activities
©Prentice Hall, 2001 Chapter 2 11
 Arguments
Arguments for
for
Social
Social Responsibility
Responsibility

 Public expectations
 Long-run profits
 Ethical obligations
 Public relations image
 Better environment

©Prentice Hall, 2001 Chapter 2 12

 Arguments
Arguments for
for
Social
Social Responsibility
Responsibility

 Fewer government regulations

 Balance of responsibility and power
 Stockholder interests
 Possession of resources
 Prevention versus cures

©Prentice Hall, 2001 Chapter 2 13

 Arguments Against Social
Responsibility
• Violation of profit maximization
• Dilution of purpose
• Costs outweigh benefits
• Too much power
• Lack of skills
• Lack of accountability
• Lack of broad public support
©Prentice Hall, 2001 Chapter 2 14
 Social
Responsibility

Social
Social
Involvement Obligation
in Business

Social
Responsiveness
©Prentice Hall, 2001 Chapter 2 15
 The Question of Ethics

Utilitarian
Rights View
View

Theory of
Justice View

©Prentice Hall, 2001 Chapter 2 16

 Key Management
Issues

Entrepreneurial Sensitivity
Spirit to Differences

©Prentice Hall, 2001 Chapter 2 17

 Total Quality Management

• Continuous improvement

• Employee empowerment

• Accurate measurement

• Customer focus

• Overall quality
©Prentice Hall, 2001 Chapter 2 18
 Quantum
Changes
Rightsizing Outsourcing
Work-Process
Engineering

©Prentice Hall, 2001 Chapter 2 19

 The Contingent
Workforce

Part-Time Temporary Contract

Workers Employees Workers

©Prentice Hall, 2001 Chapter 2 20