Chapter 1: Introducing Management
Study Question #1: What are the challenges of working in the new economy?
Working Today (Pages 5-9)
-Herman Miller an innovative manufacturer of designer furniture
- herman Miller seems to fit the notion of a high-involvement organization
-people are their talents- what they know, what they learn, and what they do with it- are the ultimate foundations
of organizational performance
Intellectual capital is the collective brainpower or shared knowledge of a workforce
Intellectual capital = competency * Commitment
Knowledge worker is someone whose mind is a critical asset to employers
Workplace diversity describes differences among workers in gender, race, age, ethnicity, religion, sexual
orientation, and able-bodiedness.
-Statistics Canada predicts that by 2031 three in 10 Canadians (Between 29 and 32 percent) will be members of
visible minority groups (South Asians and Chinese compose that largest portion of the visible minority, while
Arabs and West Asians are predicted to be the fast-growing minority groups in Canada between 2006 and 2031.
Prejudice is the display of negative, irrational attitudes toward members of diverse populations.
Discrimination actively denies minority members the full benefits of organizational membership.
The glass ceiling effect is an invisible barrier limiting career advancement of women and minorities.
Globalization is the worldwide interdependence of resource flows, product markets, and business competition.
-Globalization is described as a process in which improvements in technology (especially in communications
and transportation) combine with the deregulation of markets and open borders to bring about vastly expanded
flows of people, money, goods, services, and information.
-Technology is an indispensable part of everyday business-whether one is checking inventory, making a sales
transaction, ordering supplies, or analyzing customer preferences.
-The new technologies have also added great flexibility to work arrangements, allowing people telecommute,
work from home, and maintain mobile offices while working in non-traditional ways and free from the
constraints of the normal 9-5 schedules.
Ethics set moral standards of what is good and right in ones behaviour.
-negative ethics example former CEO of Enron Corporation Jeffrey
-positive ethics examples the former CEO of Dial Corporation, Herb Baum
-British scholar Charles Handy (page 9)
-skills should be maintained and upgraded all the time
A portfolio worker has up-to-date skills that allow for job and career mobility Organizations in the new workplace (Pages 10-13)
What is an Organization?
Organization is a collection of people working together to achieve a common purpose.
-All organizations share a broad purpose
-providing goods or services of value to customers and clients
-A clear sense of purpose tied to quality products and services and customer satisfaction is an important
source of organizational strength and performance advantage
Organizations as systems
-Organizations are open systems that interact with their environments in the continual process of obtaining
resource inputs and then transforming them into outputs in the form of finished goods and services for their
Open Systems transforms resource inputs from the environment into product outputs
Figure 1.1 Organizations as open systems
The environment supplies The organization creates The environment consumes
Resource inputs Product outputs
Information Work activities turn
resources into inputs
-If an organization is to perform well, its recourses must be well utilized and its customers must be well served.
-If operations add value to the original cost of resource inputs, then
1) a business organization can earn a profit-that is, sell a product for more than the cost of making it-or
2) a non-profit organization can add wealth to society-that is, provide a public service that is worth more
than its cost
Productivity is the quantity and quality of work performance, with resource utilization considered.
-productivity involves two common performance measures
Performance effectiveness is an output measure of task or goal accomplishment.
Performance efficiency is an input measure of resource cost associated with goal accomplishment.Figure 1.2 Productivity and the dimensions of organizational performance.
Effective but not efficient Effective and efficient
High Goals achieved Resources wasted
Resources wasted High productivity
Neither effective nor efficient Efficient but not effective
Goals not achieved No wasted Resources
Resources wasted Goals not achieved
Changing nature of organizations (Page 13)
-The following are the changes in organizations
-Renewed belief in human capital: work settings that rally the knowledge, experience, and commitment
of all members.
-Demise of command-and-control: do as I say bosses are proving too slow, conservative, and costly
to do well in todays competitive environment