Introduction to Management
Total value = tangible assets + intangible assets Tangible assets – physical, visible things
companies own. E.g. cash, land, trucks, warehouses Intangible assets – organisational culture,
motivation, quality of leadership, created by managers
Working the in New Economy
- Today’s economy is a networked economy, where the new economy is a global economy
- National economics are becoming increasingly interdependent
- Organisations are expected to continuously excel on performance criteria
- No guarantee of long-term employment for individuals
- globalisation has come about due to the rapid growth of technology such as mobile phones,
the internet allowing for the growth of communication routes allowing people and countries
to exchange information and goods at a quicker rate.
- more products are available for more people, however an exchange of services, culture,
language and knowledge is influenced.
- businesses and individuals often suffer and benefit depending on the geographic location for
example, in first world countries it often leads to a higher unemployment rate due to work
moving to overseas usually third world countries which is of significant benefit as it provides
locals with employment and a source of income however they still remain poor due to a lack
of health and social insurance.
- disadvantage of globalisation is ecological problems such as climate change which are often
instigated by the increasing use of planes, lorries and ships in order to transport goods from
one location to another causing more Carbon dioxide to be released into the atmosphere
which is the main contributor to global warming.
- Worldwide interdependence of resource flows, product markets and business competition,
- Challenges – Nationalism, Brexit, Nationalist leaders
- Computers – allow organisations of all types and sizes, to increase speed of transactions and
- Virtual space – people in remote locations can hold meetings, access databases and share
information without having to meet face to face
- Computer literacy – must be masters and continuously developed as a foundation for
- Workforce Diversity – gender, race, age, culture, sexual orientation and religion
- Legal context of HRM is very strict in prohibiting demographic characteristics to be used in
hiring and promotion decision-making processes
- Through valuing diversity, organisations can tap a rich talent pool and help people work to
their full potential
- one of the contributing factors to the increasing diversity within the Australian workforce is
the arrival of refugees into Australia.