Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 3-1 3 Chapter Integrative Managerial Issues.

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 3-1

3Chapter

Integrative Managerial Issues

Learning Objectives

• Explain globalization and its impact on organizations.

• Discuss how society’s expectations are influencing managers and organizations.


Learning Objectives (cont.)

• Discuss the factors that lead to ethical and unethical behavior in organizations.

• Describe how the workforce is changing and its impact on the way organizations are managed.



Globalization and Its Impact


What Does It Mean to Be “Global”?

Global organizations:

• Exchange goods and services with consumers;

• Employ managerial and technical employees; or

• Use financial sources and resources

from other countries.


Types of Global Organizations

• Global village – A world without boundaries where goods and services are produced and marketed worldwide

• Multinational corporation (MNC) business – Any type of international company that maintains operations in multiple countries


Types of Global Organizations (cont.)

• Multidomestic corporation – An MNC that decentralizes management and other decisions to the local country where it’s doing business

• Global corporation – An MNC that centralizes management and other decisions in the home country


Types of Global Organizations (cont.)

• Transnational (borderless) organization – A structural arrangement for global organizations that eliminates artificial geographical barriers


How Do Organizations Go Global?


Managing in a Global Organization


Managing in a Global Organization (cont.)Analyzing cultural differences according to Geert Hofstede’s framework:

1. Power distance2. Individualism vs. collectivism3. Quantity of life vs. quality of life4. Uncertainty avoidance5. Long-term vs. short-term orientation


Managing in a Global Organization (cont.)

The Global Leadership and Organizational Behavior Effectiveness research program (GLOBE) studies cross-cultural leadership behaviors.


GLOBE’s 9 Dimensions of Cultural Difference1. Assertiveness2. Future orientation3. Gender differentiation4. Uncertainty avoidance5. Power distance6. Individualism/collectivism7. In-group collectivism8. Performance orientation9. Humane orientation



Society’s Expectations


Social Responsibility

Social responsibility refers to a company’s intention to do the right things and act in ways that are good for society.


Should Organizations Be Socially Involved?


The Importance of Sustainability

Sustainability is 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.



Ethical Behavior

Ethics is a set of rules or principles that defines right and wrong conduct.


Different Views of Ethics

• Utilitarian view of ethics• Rights view of ethics• Theory of justice view of ethics


Factors Determining Ethical Behavior

• Morality• Values• Personality• Experience• Organization’s culture• Issue being faced


Encouraging Ethical Behavior

• Establishing a code of ethics

• Providing ethical leadership

• Offering ethics training



Ethical Leadership


• Critics say that people establish individual value systems when young and can’t learn later in life.

• Proponents state that ethical problem solving increases :– Ethical behaviors– Level of moral development– Awareness of ethical issues

Ethics Training


The Changing Workforce

Diversity is visible in age, gender, race, physical attributes, styles of dress, and personality type.


Workplace Diversity

Workforce diversity is defined as the ways in which people in an organization are both different from and similar to one another.


Types of Diversity


Types of Diversity (cont.)


Adapting to a Changing Workforce

• Work-life balance programs

• Contingent workforce

• Generational differences



Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 3-1 3 Chapter Integrative Managerial Issues.

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