BME Chapter 2 (Changing Environment of Orgs)
6. Skills
7. Abilities
8. Attitudes
3. Intersectionality
- Simultaneous
- More than one demographic
category
4. Separation
- Differences in opinion/position
- Reflecting disagreement and
opposition
- Dissimilarity in attitude or value
w/ regard to group goals
5. Variety
- Certain type or category
1. Expertise
2. Knowledge
3. Functional background
6. Disparity
- Concentration of valuable assets
or resources
1. Rank
6 Most important environmental forces
2. Pay
● Globalization
3. Decision making authority
● Diversity
4. Status
● Technology
Trends
● Ethics
- By 2060, population is forecasted to grow
● Corporate governance
from 282.1M (2000) to 404M
● New employment relationships
- Changes in workforce and population is
geared towards greater diversity
Diversity, Equity and Inclusion
- Talent shortages are to rise globally
- Population is aging, diversity in
Diversity
workforce is increasing
- Variety of observable and unobservable
a. May result in younger managers
similarities and differences among people
supervising older employees
Types of Diversity
b. Pairing of junior to mentor a senior
1. Surface Level
employee for more technological
- Observable differences
advanced skills
1. Race
2. Age
3. Ethnicity
4. Physical abilities
5. Physical characteristics
6. Gender
2. Deep Level
- Cannot be seen directly
- Includes:
1. Goals
2. Values
3. Personalities
4. Decision making styles
5. Knowledge
BME Chapter 2 (Changing Environment of Orgs)
Barriers of Inclusion
1. Like me bias
- Perceive others to be like
themselves
2. Stereotypes
- Belief about individual or group
based on the idea that everyone
would act the same
- As shown, almost 62% aged 55-64 are 3. Prejudice
working and 18% are aged 65 older - Outright bigotry or intolerance to
others
Generational differences 4. Perceived threat of loss
- Today's workforce is characterized by 5 - Others may feel sense of threat
generational groups: - Leads to impeding of diversity
1. Silent generation (1928-1945) 5. Ethnocentrism
2. Baby boomers (1946-1964) - Belief that own language, country
3. Generation X (1965-1980) and culture is superior
4. Gen Y or Millennials (1981-1996) 6. Unequal access to organizational
5. Gen Z (1997-2012) networks
- Older workers may have better job - Women and minorities are often
performance excluded
- May need monitoring to adopt to new
technology Managing Diversity, Equity and Inclusion
- Top management support for diversity
Business Case and its initiatives
- Diversity fosters greater creativity and - Reciprocal mentoring, match seniors
innovation with juniors to allow learning from both
- Org performance increases when sides
employees have positive attitude to - Older adults may benefit from self paced
diversity learning and interventions for confidence
- Culturally diverse teams make better - Its unrealistic to claim an “I am unbiased”
decisions than homogenous ones stance in diversity
- Women in top management result in more
innovation
- Title VII of Civil Rights Act of 1964
prohibits employee discrimination
BME Chapter 2 (Changing Environment of Orgs)
Globalization and Business Hofsteade’s Dimensions of Culture
1. Individualism
Trends - Exists to the extent that people
- The internalization of activities and shift define themselves as individuals
to an integrated global economy rather than an organization
2. Collectivism
Factors Increasing Globalization - People base their identities to the
- Advances in communication and transpo group or organization where they
- Businesses have expanded internationally belong
to increase own markets 3. Power distance
- Control of labor, distribution and costs - Extent where amount of power is
- Increased international competition accepted
4. Uncertainty avoidance
Cultural competence - Extent to which one feels
- Culture is a set of shared values threatened by unknown situations
- Cultural competence is the ability to 5. Masculinity
interact effectively to people with - Extent which dominant values in
different cultures society
a. Awareness of our worldview and - Emphasizes aggressiveness and
people who differ acquisition of property or money
b. Reactions to differences in culture - Also called materialism
c. Knowledge of different views and 6. Long-term values
cultures - Focusing on future
d. Cross cultural skills - Works on projects that have
distant payoff
Cross cultural differences and similarities 7. Short-term values
- More oriented towards past and
General observations present
- Cultural and national boundaries may not - Include respect for traditions and
coincide social obligations
- Behaviors in organization setting varies in
cultures
- Culture is one of major causes of variation
- Organizations and its structure is growing
more similar
- The same individual behaves differently
in different culture settings
- Cultural diversity can be an important
source of synergy
Attitudes and behaviors
- Differ because of values and beliefs that
characterize different countries
BME Chapter 2 (Changing Environment of Orgs)
Global Perspective Ethics and Corporate Governance
- Is distinguished by:
a. Willingness to be open and learn Ethics
from alternative systems and - Persons beliefs of what is right
meanings of other cultures
b. Capacity to avoid assuming that Framing ethical issues
everyone from everywhere is the - Relates to:
same a. Treatment of employees (Hiring,
- Managers need a global perspective and a Firing, Wages, Working
supportive set of skills and knowledge to Conditions, Respect, Privacy)
be most effective b. How they treat the organization
c. Treatment of economic agents
Technology and Business d. Variations in legal and ethical
business practices
Manufacturing and Service Tech ┌──────────────────────────────────
- Technology refers to methods used to ────┐
create products (Tangible and Intangible) │ Managerial Ethics │
- Manufacturing is a form of business that ├──────────────────────────────────
converts resources to tangible products ────┤
a. Once the dominant tech in the US │ ┌─────────────────────────────┐ │
- Services organizations are the ones who │ │ Organization treats │ │
convert resources to intangible products │ │ Employees │ │
a. Experiences tremendous growth │ │ • Hiring/Firing │ │
even though decline of │ │ • Wages/Conditions │ │
manufacturing │ │ • Respect/Privacy │ │
│ └─────────────┬───────────────┘ │
Technology and Competition │ │ │
- Maintaining leadership position │ ┌─────────────▼───────────────┐ │
- Technology is basis of competition for │ │ Employees treat │ │
some firms │ │ Organization │ │
- Coping w/ decreasing cycle times (Time it │ │ • Conflicts of Interest │ │
takes to accomplish recurring activities) │ │ • Secrecy/Confidentiality │ │
- Information technology │ │ • Personal Internet Use │ │
a. Allows for more leaner and flexible │ │ • Absenteeism │ │
organizations, improved │ └─────────────┬───────────────┘ │
management (Good Shit) │ │ │
b. Less personal communication, less │ ┌─────────────▼───────────────┐ │
downtime increased sense of │ │ Both treat Economic │ │
urgency (Bad Shit) │ │ Agents │ │
│ │ • Customers/Competitors │ │
│ │ • Stockholders/Suppliers │ │
│ │ • Dealers/Unions │ │
│ └─────────────────────────────┘ │
└──────────────────────────────────
BME Chapter 2 (Changing Environment of Orgs)
Ethical issues in Corporate Governance Outsourcing
- Refers to oversight of public corporation - Practice of hiring outside firms to do
by its BOD work previously performed by the
a. Proper management of business in organization itself
best interest of shareholders - Often called offshoring
b. Independence of the board from
the business Advantages
- Helps focus on core activities
Ethical Issues in Corporate Governance - Lowers labor costs due to exportation of
- Individual rights to privacy and potential work
abuse of information tech by companies
Disadvantages
Corporate Social Responsibility - Disaffected employees, out of job workers
- Business living and working together for are used to train newly hired foreign
common good and valuing human dignity workers
a. Can help firm attract best talent - Reduction of domestic job opportunities
b. Customers favor companies who
do the right thing Offshoring and contingency workers
- To have lasting effects, social - Outsourcing to workers in another
responsibility efforts should be integrated country
into culture of organization
- International Organization for Contingency worker
Standardization (ISO) has created variety - Person who works for an organization on
of standards that help orgs gain something other than full time basis
international acceptance - Includes:
1. Independent contractors
New Employment Relationships 2. On call workers
3. Temp employees (Outside
Management of knowledge workers companies)
- Some employees add to business simply 4. Contract and leased employees
because of what they know
a. Computer scientists Worker Mobility
b. Physical Scientist - Working remotely is not a new concept
c. Engineers - Prevalent result of COVID 19
d. Product Designers - So called “Great Resignation” begun in
e. Video Game Developers 2021
- Unique working arrangements and - Record number of american workers
performance motivation req.: quitting when knowing
1. Autonomous work, strong a. They could survive on lower wages
identification w/ professional b. Wanted flexibility from other jobs
standard c. Experienced change in priorities
2. Specifically (Individual) tailored and sought better work-life
compensation packages balance
3. Growth Opportunities, profit
sharing and bureaucracy
BME Chapter 2 (Changing Environment of Orgs)
Changing Nature of Psychological Contract
- A persons set of expectations
- Regards to what they will contribute to an
organization and in return what will the
org provide to them
a. Individuals provide time, effort,
skills and abilities
b. Organizations provide
inducements in the form of
tangible or intangible rewards
- Psych contracts govern the relationship
between people and the organization