Chapter 1: Introducing Management
1.1 Describe the current workplace environment
Diversity: reflects differences with respect to gender, age, race ethnicity, religion, sexual orientation and
▪ An Asset (Business imperative)
▪ Challenges and offers opportunities to employers
Advantages of Diversity in Teams:
➢ Cognitive Flexibility
➢ Roles and Motivation
➢ Productive Conflict
➢ Increased Creativity
Diversity Bias in a Workplace:
▪ Glass Ceiling Effect
Globalization: Is the worldwide interdependence of resource flows, product markets and business
competition that characterize the new economy.
▪ National boundaries of world business have largely disappeared.
Globalization VS. McDonald’s
McDonald’s fit into the local culture
➢ Italy: McDonald’s serves Mediterranean salads
➢ Japan: serves teriyaki burgers
➢ Israel: serves kosher McDonald’s
➢ India: serves sandwiches made with mutton and chicken instead of beef
Technology: Globalization runs through technology such as the internet, phones, video conferences, etc.
Technology is essential.
Ethics: Set moral standards of what is “good” and “right: in one’s behavior.
Careers: Challenging to find the first official job, but it is also about successful career planning.
The Shamrock Organization
➢ Independent Contractors
➢ Full-Time Core Workers
➢ Part Time Temporaries 1.2 Identify the characteristics of an organization
Open Systems Organization: Transforms resources from the environment into product outputs.
Productivity: the quantity and quality of work performance, with resource utilization considered.
Performance effectiveness: an output measure of task or goal accomplishment
Performance efficiency: an input measure of resources cost associated with goal
1.3 Describe the dynamic forces that make up the general environment and
what competitive advantage encompasses
The General Environments:
▪ Economic Environment
▪ Economic growth
▪ Unemployment rate
▪ Disposable income
▪ Socio-Culture Environment
▪ Population demographics
▪ Education systems
▪ Health/nutrition values
▪ Technological Environment
▪ IT systems/infrastructure ▪ Broadband Internet access
▪ Natural Environment
▪ “Green” values
▪ Recycling infrastructure
▪ Legal-Political Environment
▪ Laws & regulations
▪ Business forms
▪ Political trends
Specific Environment/Task Environment
Specific Environment: includes the people and groups with whom an organization interacts
Stakeholders: people that are affected by an organization’s performance and for whom it creates value
▪ Stake holder Analysis: focuses on the extent to which an organization is creating value for
each of its many stakeholders
Competitive Advantage: A core competency that clearly sets an organization apart from competitors
and gives it an advantage over them in the marketplace.
1. Cost Efficiency
Lower cost than competitors earn profits with prices that competitors have difficulty matching
2. Higher quality
Higher quality products than what competitors offer more customers
3. Better delivery
Delivering faster and consistently on time Customers will likely choose yours over competitors
4. Greater Flexibility
Finding ways to adjust and tailor products and services to fit customers need in ways others ca