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139 views27 pages

Hbo CHP 2

Chap2

Uploaded by

Raraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Organizational Behavior: Managing

People and Organizations,


Ninth Edition
Gregory Moorhead, Ricky W. Griffin
Chapter 2

The Dynamic
Environment

Chapter Learning Objectives


After studying this chapter you should be able to:
Discuss the emergence of international management
and its impact on organizations.
Describe the nature of diversity in organizations and
identify and explain key dimensions of diversity.
Discuss the changing nature of technology and its
impact on business.
Describe emerging perspectives on ethics and corporate
governance.
Discuss the key issues in new employment
relationships.

22

Globalization and Business


Globalization
The internationalization of business activities
The shift toward an integrated global economy

Factors Increasing Globalization


Advances in communication and transportation
Growth by expansion into international markets
Control of labor, distribution and distribution costs
In response to increased international competition

23

Figure 2.1

Forces That Have Increased International Business

24

Cross-Cultural Differences and Similarities


Culture
A set of shared values that help people in a group,

organization, or society understand which actions are


considered acceptable and which are deemed
unacceptable

General Observations
Cultural and national boundaries may not coincide
Behavior in organizational settings varies across

culturesculture is one major cause of this variation


The causes and consequences of behavior within

organizational settings are diverse across cultures

25

Cross-Cultural Differences and Similarities


(contd)
General Observations (contd)
Organizations and the way they are structured

appears to be growing increasingly similar


The same individual behaves differently in different

cultural settings
Cultural diversity can be an important source of

synergy in enhancing organizational effectiveness

26

Specific Cultural Issues


Geert Hofstedes Research
Attitudes and behaviors differ significantly because of

values and beliefs that characterize different countries

Hofstedes Categories
Individualism
Collectivism
Power distance
Uncertainty avoidance
Masculinity
Long-versus short-term values

27

Hofstedes Primary Dimensions


Individualism

The extent that people in a culture define themselves primarily


as individuals rather than as part of one or more groups or
organizations

Collectivism

The tight social frameworks in which people tend to base their


identities on the group or organization to which they belong

Power Distance

The extent to which people accept as normal an unequal


distribution of power

Uncertainty
Avoidance

The extent to which people feel threatened by unknown


situations and prefer to be in clear and unambiguous situations

Masculinity

The extent to which the dominant values in a society


emphasize aggressiveness and the acquisition of money and
other possessions as opposed to concern for people, and
overall quality of life

Long-Term versus
Short-Term Values

A focus on the future, working on projects that have a distant


payoff, persistence, and thrift versus an orientation toward the
past and the present including respect for traditions and social
obligations
28

Table 2.1

Work-Related Differences in Ten Countries

Note: H=high; M=moderate; L=low. These are only ten of the more than sixty countries that Hofstede and others have studied.
References: Adapted from Geert Hofstede and Michael Harris Bond, The Confucius Connection: From Cultural Roots to Economic Growth, Organizational Dynamics,
Spring 1988, pp.5-21; Geert Hofstede, Motivation, Leadership, and Organization: Do American Theories Apply Abroad? Organizational Dynamics, Summer 1980, pp. 42-63.

29

Figure 2.2

Differences Across Cultures in Managers Beliefs


about Answering Questions from Subordinates

Reference: Reprinted from International


Studies of Management and Organization,
vol. XIII, no. 1-2, Spring-Summer 1983, by
permission of M.E. Sharpe, Inc. Armonk,
Ny.Y. 10504.
210

Diversity and Business


Workforce Diversity
The important similarities and differences among the

employees of organizations

Stereotypes
Generalizations about a person or a group of persons

based on certain characteristics or traits

Prejudices
Judgments about others that reinforce superiority

or inferiority beliefs

211

Pitfalls of Stereotyping and Prejudices


Stereotypes and Prejudices
Can create management systems that do not meet

the needs of a diverse workforce


Can cause failures to recognized employees

distinctive talents
Can become self-fulfilling prophecies

212

Dimensions of Diversity
Primary Dimensions
Factors that are either inborn or exert extraordinary

influence on early socialization


Age, race, ethnicity, gender, sexual orientation,
physical/mental abilities

Secondary Dimensions
Factors that matter to us as individuals and that to

some extent define us to others


Educational background, geographical location, income,
marital status, military experiences, parental status, religious
beliefs, work experiences

2010 South-Western, a part of Cengage Learning

213

Who Will Be the Workforce of the Future?


Tomorrows Workforce in the
United States
Fewer white males
A larger overall workforce
More females
An older workforce

Tomorrows Global Workforce

Stockbyte at Getty Images

More females
Increasing diversity due to

increased worker mobility


2010 South-Western, a part of Cengage Learning

214

Figure 2.3

Workforce Composition: 1990-2010

Reference: Bureau of Labor Statistics, Monthly Labor Review, November 2001.


215

Figure 2.4

Expected Percentage of Growth in Workforce: 2000-2010

Reference: Bureau of Labor Statistics, Monthly Labor Review, November 2001.


216

Diversity Issues
The Value of Diversity
Workforce composition affects organizational

productivity

Diversity and the Modern Organization


Celebrate the differences
Utilize the variety of talents, perspectives, backgrounds

of all employees

217

Into the Melting Pot: Assimilation


Assimilation
The process through which members of a minority

group are forced to learn the ways of the majority


group

Assimilation Effects
Homogeneity reduces awareness of diversity issues
Perpetuation of false stereotypes and prejudices
Dominant groups continue to make decisions based

on their own values and beliefs


Minority groups have little say in decision-making

218

Table 2.2

Attributes Reinforced by the Culture in Typical Organizations

Reference: Marilyn Loden and Judy B. Rosener, Workforce America! Managing Employee Diversity as a Vital Resource
(Homewood, Ill.: Business One irwin, 1991), pg. 43. Copyright 1991 by Business One Irwin. Used with permission.

219

Benefits of Valuing Diversity


Diversitys Results
A richness of ideas and perspectives which can lead

to new product and market development and


improvement in customer services
Workers that are valued and therefore are more

creative, motivated, and productive


Higher productivity, better teamwork, deeper

employee commitment to the organization and its


goals

220

Technology and Business


Technology
Methods used to create products, including both

physical goods and intangible services

Manufacturing Organization
A form of business that combines or transforms

resources into tangible outcomes that are then sold

Service Organization
One that transforms resources into an intangible

output; it creates time and place utility for its


customers

221

Technology and Competition


Challenges for Technology Leaders
Maintaining a leadership position: technology is the

basis of competition for some firms


Coping with decreasing cycle times

Advances in Information Technology


Advantages: leaner and more flexible organizations,

increased collaboration, improved management


processes/systems
Disadvantages: less personal communication, less

down time, an increased sense of communication


and decision-making urgency
222

Ethics and Corporate Governance


Ethics
A persons beliefs about what constitutes right and

wrong behavior

Contemporary Ethical Issues


Financial abuses resulting from rapid changes in

business relationships and organizational structures


Executive compensation
Environmental protection
Working conditions in foreign factories
Pricing policies
Pressure to balance profits against costs
223

Ethics and Business Practices


Corporate Governance
The oversight of a public corporation by its board of

directors

Governance Issues
Proper management of the business in the best

interests of the stakeholders


Independence of the board from the business

Information Technology Issues


Individual rights to personal information privacy
Abuse of information technology

224

New Employment Relationships


Management of Knowledge Workers
Employees who add value in an organization simply

because of what they know


Computer scientists, physical scientists, engineers, product
designers, video game developers

Knowledge Worker Employment Issues


Unique working arrangements and performance

motivation requirements
Specifically (individually) tailored compensation

packages

225

New Employment Relationships (contd)


Outsourcing
The practice of hiring other firms to do work previously

performed by the organization itself

Advantages of Outsourcing
Helps firms to focus on core activities
Lowers labor costs through exportation of work

Disadvantage of Outsourcing
Disaffected employees: out-of-job workers are used

train the newly-hired foreign replacements


Reduction of domestic job opportunities

226

Organizational Behavior in Action


After reading the chapter:
Why have concerns about globalization been so late

in coming to the forefront of business thought in the


United States?
What factors are likely to increase the rate of

globalization?
What factors are likely to decrease the rate of

globalization?
Should social business enterprises (SBEs) such as

Stonyfield Farm be given preferences in international


trade?
227

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