3Chapter

Integrative
Managerial
Issues

3-1
Learning Outcomes
• Explain globalization and its impact on
organizations.
• Discuss how society’s expectations are
influencing managers and organizations.

3-2
Learning Outcomes (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.

3-3
Management Myth
• MYTH: Managers are less ethical today than in
the past.
• TRUTH: Ethical misconduct is at an all-time low.

“Have you seen any unethical conduct in your

workplace and if so, how was this handled?”

3-4
3.1 Explain
globalization and its
impact on
organizations.

3-5
What Does it Mean to Be “Global”?
• Global Organizations
• Exchanging goods and services with consumers in
other countries.
• Using managerial and employee talent from other
countries.
• Using financial sources and resources outside home
country.

From other countries

3-6
Types of Global Organizations
• Global village
• a boundaryless world where goods and services are
produced and marketed worldwide.

• MNC (multinational corporation)

• Any type of international company that maintains
operations in multiple countries. Three types are:
• Multidomestic corporation
• Transnational organization
• Global corporation
3-7
Types of Global Organizations (Cont.)
• Multidomestic corporation
• Management and other decisions are decentralized to
the local country in which it is operating.
• Transnational (borderless) organization
• An MNC where artificial geographical boundaries are
eliminated.
• Global corporation
• An MNC in which management and other decisions
are centralized in the home country.

3-8
How Do Organizations Go Global?

3-9
Managing in a Global Organization

A person with a parochial attitude cannot

succeed in today’s world.

3-10
Hofstede’s Framework

3-11
GLOBE Findings

Global Leadership and Organizational

Behavior Effectiveness (GLOBE)

3-12
GLOBE: 9 Dimensions of Cultural
Difference
1. Assertiveness 6. Individualism/
2. Future orientation Collectivism
3. Gender 7. In-group
differentiation collectivism
4. Uncertainty 8. Performance
avoidance orientation
5. Power distance 9. Humane orientation

3-13
 Discuss how
3.2 society’s
expectations are
influencing
managers and
organizations.

3-14
Society’s Expectations

3-15
Social Responsibility

• Corporate social responsibility (CSR)

• a business’s intention to do the right things and
act in ways that are good for society.
• Social obligations
• activities a business engages in to meet certain
economic and legal responsibilities.
• Social responsiveness
• characteristic of the business firm that engages in
social actions in response to a popular social need.
3-16
Should Organizations be Socially
Involved?

3-17
Does Social Involvement Affect
Economic Performance?

• Positive?
• Negative?
• Neutral?

3-18
Sustainability Means Different
Things to Different People
Meeting the needs of people today without
compromising the ability of future generations
to meet their own needs.

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.

3-20
3.3 Discuss the factors
that lead to ethical
and unethical
behavior in
organizations.

3-21
Ethical Behavior
Ethics:
a set of rules or
principles that
defines right and
wrong conduct

3-22
Different Views of Ethics

• Utilitarian view of ethics

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

3-23
Factors Determining Ethical
Behavior
• Morality
• Values
• Personality
• Experience
• Organization’s culture
• Issue being faced

3-24
Encouraging Ethical Behavior

• Code of ethics
• Ethical leadership
• Ethics training

3-25
Ethical Leadership

3-26
Ethics Training
Can ethics be taught?

Critics: value systems learned in youth.

Proponents: ethical problem solving increases

ethical behavior, moral development,
awareness.

3-27
 Describe how the
3.4 workforce is
changing and its
impact on the way
organizations are
managed.

3-28
The Changing Workforce

Diversity is visible in age, gender, race, physical

attributes, styles of dress, and personality type.

3-29
Workplace Diversity

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

3-30
Types of Diversity

3-31
Adapting to a Changing Workforce

• Work-life balance programs

• Contingent workforce
• Generational differences

3-32