Management a practical introduction 3rd kinicky chapter 03

Chapter 3: The Manager’s Changing Work Environment & Ethical ResponsibilitiesDoing The Right Thing Inside Stakeholders Outside Stakeholders Ethical Responsibilities of Managers Socia

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

Doing The Right Thing

Inside Stakeholders

Outside Stakeholders

Ethical Responsibilities of Managers

Social Responsibilities of Managers

The New Diversified Workforce

3.1 The Community Of Stakeholders

Inside The Organization

WHAT ARE INTERNAL STAKEHOLDERS?

Stakeholders are people whose interests are affected by an organization’s activities

Internal stakeholders include

• employees,

• owners, and the

• board of directors

3.1 The Community Of Stakeholders

Inside The Organization

Figure 3.1: The Organization’s Environment

3.1 The Community Of Stakeholders

Inside The Organization

Today, forward-looking companies recognize that

employees can be the most important resource in the

organization, and that conflict between management and employees can be detrimental to everyone’s stake in the firm

Owners include all those who can claim an organization

as their legal property

The goal of owners is to make a profit

 A company’s board of directors is elected by

stockholders to ensure the company is being run properly

The board of directors is responsible for helping to set strategic goals and approve major decisions and salaries for top management

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not an internal

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not an internal

3.2 The Community Of Stakeholders

Outside The Organization

WHAT ARE EXTERNAL STAKEHOLDERS?

External stakeholders are those people or groups in the organization’s external

environment that are affected by it

The external environment consists of the

• task environment and the

• general environment

3.2 The Community Of Stakeholders

Outside The Organization

The task environment includes customers,

competitors, suppliers, distributors, strategic

allies, employee organizations, local communities, financial institutions, government regulators,

special-interest groups, and mass media

Customers are those who pay to use an

organization’s goods or services

Competitors are people or organizations that

compete for customers or resources

A supplier is a person or organization that

provides supplies (raw materials, services,

equipment, labor, or energy) to other organizations

3.2 The Community Of Stakeholders

Outside The Organization

Task Environment, cont.

 A Distributor is a person or organization that helps

another organization sell its goods and services to

customers

 Strategic allies describes the relationship between

two organizations that join forces to achieve

advantages neither can perform as well alone

 Labor unions are usually associated with hourly

employees and professional associations usually

represent salaried workers

 Local communities rely on companies for jobs, for tax

revenues, for financial support, and so on

3.2 The Community Of Stakeholders

Outside The Organization

Task Environment, cont.

Start-ups often rely on credit cards to tide them over, and established companies rely on financial institutions like commercial banks, investment

banks, and insurance companies

Government regulators are stakeholders

because they are affected by organizations

Special interest groups are groups whose

members try to influence specific issues

Mass media is a powerful disseminator of both positive and negative news about companies

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not part of the task

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not part of the task

3.2 The Community Of Stakeholders

Outside The Organization

The general environment or macroenvironment includes six forces: economic, technological, sociocultural,

demographic, political-legal, and international

Economic forces consist of the general economic

conditions and trends (unemployment, inflation, interest rates, economic growth) that can affect a firm’s

performance

Technological forces are new developments in methods for transforming resources into goods or services

Sociocultural forces are influences and trends in a

country’s, a society’s, or a culture’s human relationships and values that may affect an organization

3.2 The Community Of Stakeholders

Outside The Organization

The General Environment, cont.

Demographic forces are influences on an

organization arising from changes in the

characteristics of a population, such as age,

gender, or ethnic origin

Political-legal forces are changes in the way politics shape laws and laws shape the

opportunities for, and threats to, an organization

International forces are changes in the

economic, political, legal, and technological

global system that can affect an organization

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

How economic integration in Europe creates

opportunities and threats for American

companies is an example of which type of force?

A) economic

B) political-legal

C) international

D) sociocultural

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

How economic integration in Europe creates

opportunities and threats for American

companies is an example of which type of force?

A) economic

B) political-legal

C) international

D) sociocultural

3.3 The Ethical Responsibilities

Of You As A Manager

WHAT DO SUCCESSFUL MANAGERS NEED

TO KNOW ABOUT ETHICS?

Managers need to understand ethics, values, the four

approaches to ethical dilemmas, and how to promote ethics

Ethics are the standards of right or wrong that influence behavior, while ethical behavior is behavior that is accepted

as “right” according to those standards

An ethical dilemma is a situation in which you have to

decide whether to pursue a course of action that may

benefit you or your organization but that is unethical or

even illegal

3.3 The Ethical Responsibilities

Of You As A Manager

WHAT DO SUCCESSFUL MANAGERS

NEED TO KNOW ABOUT ETHICS?

 Values are the relatively permanent

and deeply held underlying beliefs and attitudes that help determine a person’s behavior

 Ethical dilemmas can take place when

a firm’s value system is challenged

3.3 The Ethical Responsibilities

Of You As A Manager

WHAT ARE THE FOUR APPROACHES TO DECIDING ETHICAL DILEMMAS?

1 According to the utilitarian approach, ethical behavior is

guided by what will result in the greatest good for the greatest number of people

2 Under the individual approach, ethical behavior is guided

by what will result in the individual’s best long-term interests, which ultimately is in everyone’s self-interest

3 According to the moral-rights approach, ethical behavior is guided by respect for the fundamental rights of human beings

4 Ethical behavior under the justice approach is guided by respect for impartial standards of fairness and equity

3.3 The Ethical Responsibilities

Of You As A Manager

The recent frenzy of white-collar crime at

companies like Enron and World.com has raised public and corporate awareness of corporate

ethics

In 2002, the Sarbanes-Oxley Act was passed to establish requirements for proper financial

record keeping for public companies and

penalties for non-compliance

Laurence Kohlberg has suggested that

personal morals can be developed at three levels: preconventional (follows the rules), conventional (follows expectations of others), and

postconventional (guided by internal values)

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

The relatively permanent and deeply held

underlying beliefs and attitudes that help

determine a person’s behavior are called

A) values

B) norms

C) attitudes

D) ethics

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

The relatively permanent and deeply held

underlying beliefs and attitudes that help

determine a person’s behavior are called

A) values

B) norms

C) attitudes

D) ethics

3.3 The Ethical Responsibilities

Of You As A Manager

HOW CAN ORGANIZATIONS PROMOTE ETHICS?

Firms can promote ethics in three ways:

1 Top management needs to support a strong ethical

climate

2 Companies can adopt a code of ethics – a formal

written set of ethical standards guiding an organization’s actions

3 Companies can promote ethical behavior by rewarding whistleblowers - employees who report organizational

misconduct to the public

3.4 The Social Responsibilities Required

as well as the organization

So, while ethical responsibility focuses on being

a good individual citizen, social responsibility

focuses on being a good organizational citizen

In the past, social responsibility was an

afterthought for companies, but today, many firms believe it is critical to success

3.4 The Social Responsibilities Required

Of You As A Manager

IS SOCIAL RESPONSIBILITY WORTHWHILE?

Milton Friedman argues that firms need to focus on

making a profit, not on social responsibility

Friedman claims that firms that focus on social

responsibility get distracted from their real purpose

However, Paul Samuelson suggests that firms need to

be concerned for the welfare of society as well as

corporate profits

Samuelson claims that since firms create problems like pollution, they should help solve them

3.4 The Social Responsibilities Required

Of You As A Manager

HOW DO MANAGERS APPROACH SOCIAL

RESPONSIBILITY?

1 Obstructionist managers put economic gain first and

resist social responsibility as being outside the

3.4 The Social Responsibilities Required

Of You As A Manager

CAN FIRMS BE SOCIALLY RESPONSIBLE AND

Jeb Emerson argues that firms do not have to

make a tradeoff between making a profit or being socially responsible, they can do both

3.4 The Social Responsibilities Required

Sustainability is defined as economic

development that meets the needs of the present without compromising the ability of future

generations to meet their own needs

Philanthropy involves making charitable

contributions to benefit humankind

3.4 The Social Responsibilities Required

Of You As A Manager

HOW DOES BEING GOOD PAY OFF?

Customers prefer to buy products from

companies that are ethically and socially

responsible even if the products cost more

Managers consider a company’s social and

ethical track record when considering joining and staying with companies

3.4 The Social Responsibilities Required

Profitability is enhanced by a reputation for honesty

and good citizenship

Doing Good vs Doing Well

3.5 The New Diversified Workforce

WHAT DIVERSITY TRENDS SHOULD MANAGERS

There are four layers of diversity: personality,

internal dimensions, external dimensions, and

organizational dimensions

3.5 The New Diversified Workforce

Figure 3.2: The Diversity Wheel

3.5 The New Diversified Workforce

Personality is at the center of the diversity wheel because it is the stable physical and mental

characteristics responsible for a person’s identity

3.5 The New Diversified Workforce

Figure 3.2: The Diversity Wheel

3.5 The New Diversified Workforce

Internal dimensions of diversity are those

human differences that exert a powerful,

sustained effect throughout every stage of our lives

3.5 The New Diversified Workforce

Figure 3.2: The Diversity Wheel

3.5 The New Diversified Workforce

The personal characteristics that people

acquire, discard, or modify throughout their lives are the external dimensions of diversity

3.5 The New Diversified Workforce

Figure 3.2: The Diversity Wheel

3.5 The New Diversified Workforce

A person’s management status, union

affiliation, work location, seniority, work content, and divisions or department are all organizational dimensions of diversity

3.5 The New Diversified Workforce

Figure 3.2: The Diversity Wheel

3.5 The New Diversified Workforce

HOW WILL THE U.S WORKFORCE CHANGE IN

THE 21 ST CENTURY?

There will be more older people in the workforce

as the median age of the American worker goes up

Today, women hold half of all management and professional jobs, and more women will enter the workforce

However, the ability of women to rise to the top will continue to be limited by a glass ceiling

By 2020, people of color will make up 37 percent

of the U.S workforce

3.5 The New Diversified Workforce

Reducing discrimination against gays and

lesbians in the workplace will be another

challenge for managers

As a result of the Americans with Disabilities

Act organizations will need to ensure that there is

no discrimination against people with disabilities

About a quarter of the workforce may be

underemployed (working in jobs that require less education than they have), while at the same

time, high-school dropouts and others may not

have the literacy skills needed for many jobs

3.5 The New Diversified Workforce

WHAT ARE THE BARRIERS TO DIVERSITY?

Managers may reflect their resistance to making an

organization more diverse in six ways:

1 Ethnocentric managers believe that their native country, culture, language, abilities, or behavior is superior to those

of others, and so feel that diversity hiring means a sacrifice

in competency and quality

2 Managers may fear reverse discrimination - the efforts to achieve greater diversity will result in just the opposite – more minorities being promoted over more qualified whites

3.5 The New Diversified Workforce

3 Managers may resist special programs to teach tolerance for diversity because they believe the programs take time away from their “real work”

4 Minorities may face an unsupportive social atmosphere and be excluded from office camaraderie and social events

5 Firms that are not supportive of family demands and fail

to offer options like flextime create a challenging

environment especially for women

6 Minorities may not be assigned to work that gets them promoted to senior positions or get the informal mentoring that helps them with the networking needed to get ahead

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not an internal

Chapter 3: The Manager’s Changing Work Environment & Ethical Responsibilities

CLASSROOM PERFORMANCE SYSTEM

Which of the following is not an internal