Contemporary Issues

Contemporary Issues 4 Chapter 13

Learning Objectives • Define diversity and explain how it applies to management. • Define global management. • Compare and contrast importing and exporting. • Identify protectionism. • Explain how to manage change and the change process. • Explain the process of organizational development.

Diversity and Management • In the past, minority workers -- menial jobs • Today, more in higher level positions • Glass ceiling • Downsizing opening doors What is Diversity • Definition • Trend – Greater diversity

Diversity and Management Reasons for Creating a Diverse Workforce • Reasons • Improved decision making • Increasing globalization • Challenges • New human resource policy • Solutions • Tolerance • Potential payoff

Global Management • International trade • Standard of living Absolute Advantage • Different countries different resources • Definition Comparative Advantage • The law of comparative advantage

Exporting and Importing • International trade Exports • Why do companies export? • How do companies identify markets? Imports • Imports of materials • Imports of consumer goods

Exporting and Importing The Trade Balance • Trade surplus • Trade deficit Foreign Exchange • Foreign exchange rate • Fluctuation

Protectionism • Tariffs • Quotas • Embargos • Free trade areas • NAFTA • EU

Doing Business Globally Forms of International Operations • Working through a foreign intermediary • Signing a licensing agreement with a foreign country • Forming a strategic alliance • Becoming a multinational corporation Challenges of Working in an International Environment • Deal with customers, suppliers, and employees from different countries

Doing Business Globally Understanding Foreign Cultures • Different cultural attitudes Coalitions of Cooperating Countries and Trading Blocs • Coalition • EU • OPEC • NAFTA

Doing Business Globally Political Changes • Most dramatic illustration Human Rights and Ethics • Close plants? • Strike a balance

Doing Business Globally • Managing Change • Change as a Global Issue • Types of Change: • Technological • Environmental • Internal

The Change Process • Change Lewin’s Three-Step Model for Change • Unfreezing • New alternative • Refreezing

The Change Process Resistance to Change • Normal reaction • Organizational resistance • Reasons for resisting change: • fear of unknown • economics • fear of skills loosing value • threats to power • additional work • threats to interpersonal relations

The Change Process Reducing resistance to change Four basic situations Ways to reduce resistance & build commitment: build trust discuss upcoming change involve the employee ensure change reasonableness avoid threats, and follow a sensible time schedule

The Change Process Leading change – Kotter’s eight-step method Establish a sense of urgency Create a guiding coalition Develop a vision and strategy Communicate the change vision Empower broad-based action Generate short-term wins Consolidate gains and produce more change Anchor new approaches in the culture

The Change Process Organizational Development • The human side of organization • Ultimate goal of OD • Diagnoses • Review available records, survey questionnaire, personal interviews, direct observations • Change planning • Intervention/Education • Direct feedback, team building, sensitivity training • Evaluation

Managing Innovation • Robert Tucker’s 4 Principles • Ability to innovate is critical as rate of change increases The Learning Organization • Peter Senge’s five principles • System’s thinking • Personal mastery • Mental models • Shared vision • Team learning

Contemporary Issues