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3Chapter

Integrative Managerial Issues

Learning Objectives

• Explain globalization and its impact on organizations.

• Discuss how society’s expectations are influencing managers and organizations.

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Learning Objectives (cont.)

• Discuss the factors that lead to ethical and unethical behavior in organizations.

• Describe how the workforce is changing and its impact on the way organizations are managed.

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Globalization and Its Impact

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What Does It Mean to Be “Global”?

Global organizations:

• Exchange goods and services with consumers;

• Employ managerial and technical employees; or

• Use financial sources and resources

from other countries.

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Types of Global Organizations

• Global village – A world without boundaries where goods and services are produced and marketed worldwide

• Multinational corporation (MNC) business – Any type of international company that maintains operations in multiple countries

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Types of Global Organizations (cont.)

• Multidomestic corporation – An MNC that decentralizes management and other decisions to the local country where it’s doing business

• Global corporation – An MNC that centralizes management and other decisions in the home country

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Types of Global Organizations (cont.)

• Transnational (borderless) organization – A structural arrangement for global organizations that eliminates artificial geographical barriers

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How Do Organizations Go Global?

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Managing in a Global Organization

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Managing in a Global Organization (cont.)Analyzing cultural differences according to Geert Hofstede’s framework:

1. Power distance2. Individualism vs. collectivism3. Quantity of life vs. quality of life4. Uncertainty avoidance5. Long-term vs. short-term orientation

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Managing in a Global Organization (cont.)

The Global Leadership and Organizational Behavior Effectiveness research program (GLOBE) studies cross-cultural leadership behaviors.

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GLOBE’s 9 Dimensions of Cultural Difference1. Assertiveness2. Future orientation3. Gender differentiation4. Uncertainty avoidance5. Power distance6. Individualism/collectivism7. In-group collectivism8. Performance orientation9. Humane orientation

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Society’s Expectations

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Social Responsibility

Social responsibility refers to a company’s intention to do the right things and act in ways that are good for society.

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Should Organizations Be Socially Involved?

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The Importance of Sustainability

Sustainability is a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.

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Ethical Behavior

Ethics is a set of rules or principles that defines right and wrong conduct.

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Different Views of Ethics

• Utilitarian view of ethics• Rights view of ethics• Theory of justice view of ethics

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Factors Determining Ethical Behavior

• Morality• Values• Personality• Experience• Organization’s culture• Issue being faced

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Encouraging Ethical Behavior

• Establishing a code of ethics

• Providing ethical leadership

• Offering ethics training

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Ethical Leadership

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• Critics say that people establish individual value systems when young and can’t learn later in life.

• Proponents state that ethical problem solving increases :– Ethical behaviors– Level of moral development– Awareness of ethical issues

Ethics Training

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The Changing Workforce

Diversity is visible in age, gender, race, physical attributes, styles of dress, and personality type.

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Workplace Diversity

Workforce diversity is defined as the ways in which people in an organization are both different from and similar to one another.

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Types of Diversity

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Types of Diversity (cont.)

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Adapting to a Changing Workforce

• Work-life balance programs

• Contingent workforce

• Generational differences

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