Objectives

1.

Highlight major changes shaping the twenty-first-century workplace.

2.

Understand demographics of the new work force.

3.

Explain “

managing diversity”

and why it is important today.

4.

Discuss effects on management from the political-legal environment 5.

Discuss effects on management from business cycles and globalization 1

Major Changes in the Workplace

• • • • • • • Virtual Organizations Just-in-Time Workforce Knowledge Workers e-Coaching and e-Monitoring Increased Diversity Aging Workforce Dynamic Workforce 2

Virtual teams

• • • • More communication-intensive – but lose contextual cues/voice Asynchronous (24/7) Dispersed Implications for management: characteristics of virtual team members self discipline, social needs ...

3

JIT Workforce

• • • Contingent, temporary, freelance workers Essentially outsourcing Creates a hiring pool - for “permanent” positions • • Trust & loyalty an issue?

Implications: which functions should managers outsource - or not outsource?

4

The Social Environment

• • “The organization is an arena where interests are mobilized” Dimensions of the social environment – Demographics • Changes in the statistical profiles of population characteristics.

– The new social contract • Changes in the employer-employee relationship.

– Inequalities • Persistent barriers – Managing diversity • Creating organization cultures that enable all employees to realize their potential. 5

Demographics of the New Workforce

• Needed Remedial Education – The shrinking U.S. workforce is increasingly deficient in reading, writing, science, and basic math skills.

6

Skill Level of Three Workforce Categories

Adequate Skills Inadequate Skills Excellent Skills Percent of U.S.

College Graduates Percent of U.S.

Workers Percent of U.S. H.S.

Graduates 0% Source: International Adult Literacy Survey 38% 34% 35% 25% 16% 46% 50% 41% 52% 75% 25% 14% 100%

7

Demographics

• The workforce will have more Hispanics and older persons in the future.

• Labor force growth rate is declining 8

Percent of Baby-Boom and Baby Bust Generations by Race/Ethnicity

Asian American 4% Hispanic 9% Hispanic 14% Asian American 5% Black 11% White 76% Black 15% White 66% Baby Boom b.1946-64 Source: U.S. Bureau of the Census, HRI Baby Bust b. 1965-83

9

3

Annual Growth Rate of U.S. Labor Force

2.5

2 1.5

1 0.5

0 -0.5

1955 1965 1975 1985 1995 2005 2015 2025 2035

10

Demographics of the New Workforce

• Myths About Older Workers (Dispelled) – Are not less productive.

– Do not incur higher benefits costs.

– Do not have higher absenteeism.

– Do not have more accidents at work.

– Are not less willing to learn.

– Are not inflexible about the hours they are willing to work.

11

A New Social Contract Between Employer and Employee

• New Social Contract – Employer-employee relationship will be shorter-term, market-based. • Employees are expected to manage their own careers to increase their long-term value.

• Employers are expected to provide the means necessary for continual workforce development .

12

Nagging Inequalities in the Workplace

• Under the Glass Ceiling – Women continue to experience a significant gender-wage gap and strong barriers to advancement.

– Women are demanding more equitable compensation and workplace opportunities.

13

Women in Top Management

46% of the U.S. Labor Force 48% of Managerial/Professional Specialty Positions 10% of Corporate Officers 9.5% of Board Directors 2.4% of Highest Titles 1.9% of Top Earners Two Fortune 500 CEO Source: Catalyst’s Census of Women Corporate Officers and Top Performers; HRI

14

Minorities in Top Management

Minorities 22% Minorities 2% White 78% White 98% While minorities make up almost 22 percent of the U.S. workforce...

Source: Federal Glass Ceiling Initiative; HRI ... they represent only 2 percent at Fortune 2000 firms.

15

•

Nagging Inequalities in the Workplace

(cont’d)

Part-Timer Promises and Problems – Contingent workers will comprise a increasing percentage of the workforce.

– The advantages of lower wage and benefits costs and the flexibility of a contingent workforce are offset by their negative work attitudes and increased likelihood of quitting.

• Continuing Pressure for Equal Opportunity – Women, minorities, and the physically challenged are all expected to press harder for more employment opportunities 16

Managing Diversity

• • Managing Diversity – The process of creating an organizational culture that provides

all

employees with opportunities to realize their potential – Requires testing of personal biases, learning More than EEO – The moral necessity to go beyond EEO and affirmative action – Multiple perspectives improve information and decision making - creating economic value 17

The Political-Legal Environment

• Specific Political Strategies – Campaign financing – Lobbying – Coalition building – Indirect lobbying 18

Increased Personal Legal Accountability

• • Increases in Demands for Accountability – “Cooking the books,” price fixing, and bid rigging are serious white-collar crimes likely to draw stiff penalties and a jail sentence. E.g. Sarbanes-Oxley act 2002 Political and Legal Implications for Management – Increased use of legal audits • A review of all operations to pinpoint possible legal liabilities or problems.

– Use of alternative dispute resolution (ADR) • Settling disputes with less costly methods, including arbitration and mediation.

19

The Economic Environment

• The Job Outlook in Today’s Service Economy, Where Education Counts – Service sector job growth in high paying occupations that require at least a bachelor’s degree is twice as fast as that of all other occupations.

20

Some Industries in the Service Sector

• • • • • • Banking, stockbrokerage Lodging IT Insurance News and entertainment Transportation (freight and passenger) • • • • • • • Health care Education Wholesaling and retailing Law Education Architecture Consulting 21

The Economic Environment

• Coping with Business Cycles – Business cycles • The up and down movement of an economy’s ability to generate wealth.

• Business cycles are converging worldwide (global interdependence).

22

The Business Cycle

Peak Trough Peak Trough Peak Growth trend TIME 23

20 15 10 -5 -10 5 3 0

The Business Cycle in U.S. History Annual growth Recession Zero growth Long-term average growth (3%)

1930 1940 1950 1960 YEAR 1970 1980 1990 2000 24

The Economic Environment

• Cycle-sensitive decisions – Timing decisions about appropriate responses to changes in the business cycle is necessary to • reduce the chances that a firm’s assets and resources will be underutilized or wasted in economic downturns.

• take advantage of opportunities that will arise during periods of rapid expansion of the economy.

25

The Challenge of a Global Economy

• • A Single Global Marketplace – Global trade is causing a shift to a single economy (e.g., WTO, EU, NAFTA) – The commercial world is no longer East-West, North-South.

Globalization Is Personal – Working for a foreign-owned company is a growing trend (brand ownership, FDI).

– Now a world standard for competitive quality and costs 26

The Technological Environment

• Technological innovation – is concerned with tools and ideas that provide practical solutions – generates “Creative Destruction” (Schumpeter) – creates new products and businesses • e.g., e-Business models, disintermediation, biotech 27

The Technological Environment

(cont’d)

• The Innovation Process – Concept – Product innovation – Process innovation 28

• •

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.

29

• •

Promoting Innovation Through Intrapreneurship

Intrapreneur – An employee who personally shepherds an innovative idea through a large organization.

Fostering Intrapreneurship – Focus on collaboration, innovation and risk taking – Tolerate/learn from mistakes – Requires managerial approaches to creativity individual and group dynamics, organization culture (more on this later!), 30