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3 Integrative Managerial Issues Copyright © 2017 Pearson Education, Ltd. 3 -2

Learning Outcomes q Explain globalization and its impact on organizations. q Discuss how society’s expectations are influencing managers and organizations. q Discuss the factors that lead to ethical and unethical behavior in organizations. q Describe how the workforce is changing and its impact on the way organizations are managed. Copyright © 2017 Pearson Education, Ltd. 3 -3

3 -1 Explain globalization and its impact on organizations. Copyright © 2017 Pearson Education, Ltd. 3 -4

Globalization and its Impact Global village: a boundaryless world where goods and services are produced and marketed worldwide. Copyright © 2017 Pearson Education, Ltd. 3 -5

What Does it Mean to Be “Global”? n Exchanging goods and services with consumers in other countries. n Using managerial and employee talent from other countries. n Using financial sources and resources outside home country. Copyright © 2017 Pearson Education, Ltd. 3 -6

How Do Organizations Go Global? Copyright © 2017 Pearson Education, Ltd. 3 -7

Types of Global Organizations MNC (multinational corporation) n Multidomestic corporation n Transnational organization n Global corporation Copyright © 2017 Pearson Education, Ltd. 3 -8

Managing in a Global Organization A person with a parochial attitude cannot succeed in today’s world. Copyright © 2017 Pearson Education, Ltd. 3 -9

GLOBE Findings Global Leadership and Organizational Behavior Effectiveness (GLOBE) Copyright © 2017 Pearson Education, Ltd. 3 -10

GLOBE: Dimensions of Cultural Difference n Assertiveness n Future orientation n Gender differentiation n Uncertainty avoidance n Power distance n Individualism/ Collectivism n In-group collectivism n Performance orientation n Humane orientation Copyright © 2017 Pearson Education, Ltd. 3 -11

3 -2 Discuss how society’s expectations are influencing managers and organizations. Copyright © 2017 Pearson Education, Ltd. 3 -12

Society’s Expectations Copyright © 2017 Pearson Education, Ltd. 3 -13

Social Responsibility n Corporate social responsibility (CSR) n Social obligations n Social responsiveness Copyright © 2017 Pearson Education, Ltd. 3 -14

Should Organizations be Socially Involved? Copyright © 2017 Pearson Education, Ltd. 3 -15

Does Social Involvement Affect Economic Performance? n Positive? n Negative? n Neutral? Copyright © 2017 Pearson Education, Ltd. 3 -16

What is Sustainability? Copyright © 2017 Pearson Education, Ltd. 3 -17

Sustainability: 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. Copyright © 2017 Pearson Education, Ltd. 3 -18

3 -3 Discuss the factors that lead to ethical and unethical behavior in organizations. Copyright © 2017 Pearson Education, Ltd. 3 -19

Ethical Behavior Ethics: a set of rules or principles that defines right and wrong conduct Copyright © 2017 Pearson Education, Ltd. 3 -20

Different Views of Ethics n Utilitarian view of ethics n Rights view of ethics n Theory of justice view of ethics Copyright © 2017 Pearson Education, Ltd. 3 -21

What Determines Ethical Behavior? n. Morality n. Values n. Personality n. Experience n. Organization’s culture n. Issue being faced Copyright © 2017 Pearson Education, Ltd. 3 -22

Encouraging Ethical Behavior n Code of ethics n Ethical leadership n Ethics training Copyright © 2017 Pearson Education, Ltd. 3 -23

Being an Ethical Leader n Be a good role model by being ethical and honest. n Tell the truth always. n Don’t hide or manipulate information. n Be willing to admit your failures. n Share your personal values by regularly communicating them to employees. n Stress the organization’s or team’s important shared values. n Use the reward system to hold everyone accountable to the values. Copyright © 2017 Pearson Education, Ltd. 3 -24

Ethics Training Can ethics be taught? Critics: value systems learned in youth. Proponents: values can be learned and ethical problem solving increases ethical behavior, moral development, awareness. Copyright © 2017 Pearson Education, Ltd. 3 -25

3 -4 Describe how the workforce is changing and its impact on the way organizations are managed. Copyright © 2017 Pearson Education, Ltd. 3 -26

The Changing Workforce Diversity is visible in age, gender, race, physical attributes, styles of dress, and personality type. Copyright © 2017 Pearson Education, Ltd. 3 -27

Workplace Diversity Workforce diversity: the ways in which people in an organization are both different from and similar to one another. Copyright © 2017 Pearson Education, Ltd. 3 -28

Types of Workplace Diversity Copyright © 2017 Pearson Education, Ltd. 3 -29

Adapting to a Changing Workforce n Work-life balance programs n Contingent workforce n Generational differences Copyright © 2017 Pearson Education, Ltd. 3 -30