Transcript Chapter 3
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Chapter Objectives
Summarize the demographics of the new American workforce.
Explain why America’s education and workplace readiness situation is a
crisis.
Define the term managing diversity, and explain why it is particularly
important today.
Discuss how the changing political-legal environment is affecting the
practice of management.
Discuss why business cycles and the global economy are vital economic
considerations for modern managers.
Describe the three-step innovation process, and define the term
intrapreneur.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Social Environment
Dimensions of the Social Environment
Demographics
Changes in the statistical profiles of population
characteristics
Inequalities
Persistent barriers encountered by women, minorities, and
others in the workplace
Managing diversity
Creating organizational cultures that enable all employees
to realize their potential
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Demographics of the New Workforce
It is getting larger, increasingly female, more racially
and ethnically diverse, older, and more age-diverse.
America’s Education and Workplace Skills Crisis
To compete in a global labor market, U.S. workers need a
constantly improving, world-class education – but
American kids aren’t getting one
Problems start early and persist throughout the
education process
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Figure 3.1: The Changing
U.S. Workforce: 2008-2018
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Figure 3.1: The Changing
U.S. Workforce: 2008-2018 (cont)
Managing Diversity
Managing Diversity
The process of creating an organizational culture
that provides all employees, including women and
minorities, with assistance and opportunities to
help them realize their full potential
More Than EEO
The moral necessity and commitment in going
beyond EEO and affirmative action to create
flexible organizations that encompass and value
diversity
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The Political-Legal Environment
Politics is the art (or science) of public influence or
control
The Politicization of Management
Issues management
Ongoing process of identifying, evaluating, and
responding to important social and political issues
Purpose: Minimize “surprises” and make more
systematic and effective responses to issues
General political responses
Defending the status quo against all comers
Adopting a “wait and see” approach
Proactively trying to identify and respond to issues
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The Political-Legal Environment (cont’d)
Specific Political Strategies
Campaign financing
Political action committees (PACs)
Lobbying
Garnering political support
Coalition building
Common rallying points
Indirect lobbying
Advocacy advertising
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The Economic Environment
The Job Outlook in Today’s Service Economy, Where
Education Counts
Service providers are expected to generate 14.5 million
jobs between 2008 and 2018.
A solid educational foundation and networking skills
are especially important in tough economic times.
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The Economic Environment
Coping with Business Cycles
Up-and-down movement of an economy’s ability to
generate wealth
Predictive structure but variable timing
Cycle-Sensitive Decisions
Timing is everything
Stay ahead of the pack
Benefiting from Economic Forecasts
Use a consensus approach
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The Challenge of a Global Economy
A Single Global Marketplace
Global trade is causing a shift to a single economy.
The size of the global economy has expanded
dramatically.
Globalization Is Personal
A growing trend: Working for a foreign-owned
company.
Meeting world standards for quality and costs
(through lower wages) is necessary to be globally
competitive.
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The Technological Environment
Technology
Technology includes all the tools and ideas available for
extending the natural and mental reach of humankind.
Technology is facilitating the evolution of the
information age.
Information has become a valuable strategic resource
for gaining competitive advantage.
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The Technological Environment (cont’d)
The Innovation Process
The systematic and practical application of a new
idea
Steps in the Innovation Process
Conceptualization: When a new idea occurs to
someone
Product technology: Creation of a working
prototype
Production technology: Development of a
profitable production process
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The Technological Environment (cont’d)
Innovation Lag
The time it takes for a new product to be translated into
satisfied demand
Shortening Innovation Lag
Goal setting: Creating a sense of urgency and purpose
Empowerment: Pushing decision-making authority
down to the level of the decision
Concurrent engineering: Using a team approach to
product design involving specialists from all functional
areas including research, production, and marketing
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Summary
The U.S. workforce will continue to become larger, older, more diverse,
and more female.
America’s education system has major problems at all levels.
The persistence of opportunity and income inequalities (and the glass
ceiling) among women and minorities is a strong stimulus for change.
Managers are becoming increasingly politicized and more likely to be
held personally responsible for their decisions and actions.
Managers can make timely decisions during somewhat unpredictable
business cycles by taking a consensus approach to economic forecasts.
A healthy innovation process is vital to technological development. An
organizational climate that fosters intrapreneurship can help.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Terms to Understand
Demographics
Business cycle
Glass ceiling
Technology
Contingent workers
Innovation process
Managing diversity
Product technology
Issues management
Production technology
Advocacy advertising
Innovation lag
Legal audit
Concurrent engineering
Alternative dispute
Intrapreneur
resolution
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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