Ch.1: Introducing Management
Challenges of working in the new economy
How does intellectual capital, ethics, diversity, globalization, technology and the
changing nature of careers influence working in the new economy?
Define intellectual capital, workforce diversity and globalization.
How prejudice, discrimination, and the glass ceiling effect hurt people at work.
The New Economy
is global and driven by innovation and technology
as the society changes, one must learn to adapt by continuously learning in order to
say ahead of times
has high expectations for organizations and their members
organizations are expected to excel on performance criteria that include concerns
for ethical/social responsibilities, innovativeness, employee development,
profitability an investment value
Intellectual Capacity/Talent of a Workforce
is the ultimate foundation of organizational performance in the new economy
an organization performs better when the full potential of talent from many people,
sometimes thousands of them, are combined
to be successful, one must be a source of intellectual capital for employers,
therefore, one should strive to become a knowledge worker
Intellectual Capacity (I.C) = Competency x Commitment
willing to reach the heights of to learn continuously from
personal competency & experience
acting unethically in today's economy can have dire consequen(eg. Jeffrey Skilling,
CEO of Ehron acted illegally. His actions caused the organizations collapse which affected its
company, employees, shareholders and customers.)
most organizations implement their corporate social responsibility that meet the
standards/expectations of ethical leadership at all levels such as showing the respect
for ethical issues such as sustainable development, protection of the natural
environment/consumers through safety and fair practices and the protection of
human rights in all aspects of society Diversity
diversity issues affect the employability of people with different ethnic backgrounds
(eg. employers are more likely to respond to people who have white sounding first names)
should be viewed upon as an asset in today's diverse/multicultural workforce
because if tapped, creates opportunities for performance gains.
the problem today is that many employers address this issue with the goal of
making money, rather than truly valuing and managing diversity
Globalization (improvements in technology especially in communication and
offers both opportunities and challenges in today's economy (eg. John Thornton
who brought in workers from Ireland to replace his workers who went on a strike)
-causing corporate leaders to worry about nation competitiveness
-causing employees to worry about being replaced by workers in other
countries who are willing and able to perform their jobs through
outsourcing and at a lower cost to employers
-causing graduates to worry about lower-priced competition for the same
jobs from graduates in other parts of the world
-loss of rights by individual governments and people
-the ability to create all kinds of new products/services by partnering with
people you can reach through cyberspace
-being able to market your products/services to a worldwide market
-less restrictive travel
-more aid to third world countries by the redistribution of wealth
Technological advances (eg. email, instant/text messaging, blmake it easier for
people to communicate through electronic media
Physical distances don't matter anymore (people can hold meetings, share info/files,
make plans, solve problems without having to meet face to face, & work from home) aids employers employ potential candidates (eg. learning more about them by checking
their on-line profiles on social networking sites)
there is an increased demand for knowledge workers with the skills to fully use
Walmart is a good example of making use of technological advances. They utilized
information technology information by using bar codes in 1983 to serve customers
and sell many products and in 2005, they used RFIDs(radio frequency identification
tag) which helped keep track of inventory faster since RFIDs did not need to be
scanned when shipments arrived
Careers(core,contract, part-time workers):
globalization, emerging technologies and the demand for talent make very personal
the importance of initiative and self-renewal when it comes to careers
we should be prepared to prosper in any of the shamrock's 3 leaves because it is
very likely that we will be changing jobs/employers in the future therefore, we must
become a portfolio worker who's skills are portable always of value by maintaining
and upgrading them all the time.
a good work environment is what keeps people motivated
freedom, autonomy, respect is a must
Intellectual Capital - The collective brainpower or shared knowledge of a workforce.
Workforce Diversity - Describes differences among workers in gender, race, age, ethnicity,
sexual orientation and able-bodiedness.
Globalization - The worldwide interdependence of resource flows, product markets, and
Prejudice, Discrimination & the Glass-ceiling Effect
Prejudice - The display of negative, irrational attitudes towards members of diverse
Discrimination - Actively denies minority members the full benefits of
Glass-ceiling Effect - An invisible barrier limiting career advancement of woemn
All of these issues:
-make people seem inferior
-raises anger and bitterness
-encourages emotional barriers
-loss of motivation
-reduced individual rights
-limited access to services
-mental illness caused by stress Organizations in the New Workplace
How do organizations operate as open systems?
Explain productivity as measure of organizational performance.
Distinguish between performance effectiveness and performance efficiency.
List several ways in which organizations are changing today.
Organizations as open systems
interacts with the external environment in a continual process of transforming
resource inputs to product outputs in the form of goods and/or services
The environment The organization The environment
supplies creates consumes
people Transformation Product
money work activities Finished goods
materials turn resources and services
technology into outputs
the external environment is both the supplier and source of customers
consumer feedback from the environment indicates how well the organization is
without loyal customers, a business can't survive
Productivity and Organizational Performance in Organizations
is the process of value creation because, if operations add value to the original cost
of resource inputs:
1) the business organization can earn a p(sell a product for more than
the cost of making it)
2) a non-profit organization can add wealth to the s(provide a public
service that is worth more than its cost like fire protection in a community) you can measure how well an organization is performing through its productivity,
-measures the quantity and quality of outputs relative to the cost of inputs
-involves the two common performance measures of effectiveness and
high level of output = more effective
low input = less efficient (eg.
in reducing costs)
Performance Effectiveness & Performance Efficiency
Performance Effectiveness-An output measure of a task or a goal accomplishment.
(eg. if you're working as a software engineer for a computer game developer, this will mean that you
meet a daily production target in terms of quantity/quality which adds to productivity, helping the
company as a whole to maintain its production schedule and meet customer demands for timely
delivery and high quality gaming products)
Performance Efficiency-An input measure of resource cost associated with goal
accomplishment. (eg. back to the gaming example, the most efficient software production is
accomplished at a minimum cost in materials and labor. if you are inefficient, such as producing less
lines and making a lot of mistakes, productivity is reduced)
dimensions of organizational performance:
Effefficientt not Efficient
HIGH goals achieved, goals achieved,
wasted no wasted
resources resources, high
effective, nor Efficient but not
LOW goals not no wasted
achieved, resources, goals Changing Nature of
resources not achieved
-is a continuing theme in society
-are undergoing dramatic changes today -organizational trends and transitions include:
renewed belief in human capital (knowledge and skills to be used in productive
activities subsequently contributing to economic growth)
demise of 'command and control'
emphasis on teamwork
dominance of technology
embrace of networking
new workforce expectations (less tolerance for hierarchy, more informality and more
attention to performance merit than to status and seniority)
concern for work-life balance
focus on speed
Key elements in the general and specific environments of organizations.
Sustainable business and sustainable innovation.
How businesses can create value for four key stakeholders.
Competitive advantages and examples on how a business can achieve it.
Analyzing the uncertainty of an organization's external environment.
Systems resource, internal process, goal and strategic constituencies approaches to
Composed of economic, legal-political, technological, socio-cultural and natural
eg. sample general environment conditions faced by firms like Starbucks
unemployement rate Socio-Cultural
Legal-Political disposable income Environment
laws and regulations demographics
business forms education system
political trends health/nutrition
green values IT
infrastructure broadband internet
access economic conditions:
conditions that affect the amount of wealth available to consumers which affect product
markets and spending patterns such as inflation, income levels, gross domestic product,
unemployment and job outlook
conditions that are represented by existing and proposed laws and regulations, government
policies and the philosophy and objectives of political parties that can affect the regulation
and performance of their businesses
changes in technology affect how a company will do business. A business may have to
dramatically change their operating strategy as a result of changes in the technological
a set of beliefs, customs, practices, behavior and social values on matters such as ethics,
human rights, gender roles and lifestyles that exists within a population.
-includes environmental trends in education as well as demographic patterns (these factors,
social/demographic trends help businesses anticipate shifting values that will affect customer tastes
-international companies often include an examination of the socio-cultural environment
prior to entering their target markets.
-conditions that are represented by the public concern for environmentally friendly
produced products that preserve and respect the environment
consists of the actual organizations, groups and persons with whom an organization
interacts directly, conducts business and that have a direct impact on the
organization's ability to achieve its goals.
members of the specific environment are described as stakeholders, who