Transcript Objectives - Kean University

Objectives
1. Highlight major changes shaping the
twenty-first-century workplace.
2. Understand demographics of the new work
force.
3. Explain “managing diversity” and why it is
important today.
4. Discuss effects on management from the
political-legal environment
5. Discuss effects on management from
business cycles and globalization
1
Major Changes in the Workplace
•
•
•
•
•
•
•
Virtual Organizations
Just-in-Time Workforce
Knowledge Workers
e-Coaching and e-Monitoring
Increased Diversity
Aging Workforce
Dynamic Workforce
2
Virtual teams
• More communication-intensive
– but lose contextual cues/voice
• Asynchronous (24/7)
• Dispersed
• Implications for management:
characteristics of virtual team members self discipline, social needs ...
3
JIT Workforce
• Contingent, temporary, freelance workers
• Essentially outsourcing
• Creates a hiring pool - for “permanent”
positions
• Trust & loyalty an issue?
• Implications: which functions should
managers outsource - or not outsource?
4
The Social Environment
• “The organization is an arena where interests are
mobilized”
• Dimensions of the social environment
– Demographics
• Changes in the statistical profiles of population characteristics.
– The new social contract
• Changes in the employer-employee relationship.
– Inequalities
• Persistent barriers
– Managing diversity
• Creating organization cultures that enable all employees to
realize their potential.
5
Demographics of the New
Workforce
• Needed Remedial Education
– The shrinking U.S. workforce is increasingly
deficient in reading, writing, science, and basic
math skills.
6
Skill Level of Three Workforce
Categories
Adequate Skills
Percent of U.S.
College Graduates
38%
Percent of U.S.
Workers
34%
Percent of U.S. H.S.
Graduates
35%
0%
25%
Source: International Adult Literacy Survey
Inadequate Skills
Excellent Skills
16%
46%
41%
25%
52%
50%
14%
75%
100%
7
Demographics
• The workforce will have more Hispanics
and older persons in the future.
• Labor force growth rate is declining
8
Percent of Baby-Boom and BabyBust Generations by Race/Ethnicity
Asian
American
4%
Hispanic
14%
Hispanic
9%
Asian
American
5%
Black
15%
Black
11%
White
76%
Baby Boom
b.1946-64
Source: U.S. Bureau of the Census, HRI
White
66%
Baby Bust
b. 1965-83
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Annual Growth Rate of U.S. Labor
Force
3
2.5
2
1.5
1
0.5
0
-0.5
1955
1965
1975
1985
1995
2005
2015
2025
2035
10
Demographics of the New
Workforce
• Myths About Older Workers (Dispelled)
–
–
–
–
–
–
Are not less productive.
Do not incur higher benefits costs.
Do not have higher absenteeism.
Do not have more accidents at work.
Are not less willing to learn.
Are not inflexible about the hours they are
willing to work.
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A New Social Contract Between
Employer and Employee
• New Social Contract
– Employer-employee relationship will be
shorter-term, market-based.
• Employees are expected to manage their own
careers to increase their long-term value.
• Employers are expected to provide the means
necessary for continual workforce development .
12
Nagging Inequalities in the
Workplace
• Under the Glass Ceiling
– Women continue to experience a significant
gender-wage gap and strong barriers to
advancement.
– Women are demanding more equitable
compensation and workplace opportunities.
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Women in Top Management
46% of the U.S. Labor Force
48% of Managerial/Professional
Specialty Positions
10% of Corporate Officers
9.5% of Board Directors
2.4% of Highest Titles
1.9% of Top Earners
Two Fortune
500
CEO
Source: Catalyst’s Census of Women
Corporate Officers and Top Performers; HRI
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Minorities in Top Management
Minorities
22%
Minorities
2%
White
78%
While minorities make
up almost 22 percent of
the U.S. workforce...
Source: Federal Glass Ceiling Initiative; HRI
White
98%
... they represent only 2
percent at Fortune 2000
firms.
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Nagging Inequalities in the
Workplace (cont’d)
• Part-Timer Promises and Problems
– Contingent workers will comprise a increasing
percentage of the workforce.
– The advantages of lower wage and benefits
costs and the flexibility of a contingent
workforce are offset by their negative work
attitudes and increased likelihood of quitting.
• Continuing Pressure for Equal Opportunity
– Women, minorities, and the physically
challenged are all expected to press harder for
more employment opportunities
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Managing Diversity
• Managing Diversity
– The process of creating an organizational
culture that provides all employees with
opportunities to realize their potential
– Requires testing of personal biases, learning
• More than EEO
– The moral necessity to go beyond EEO and
affirmative action
– Multiple perspectives improve information and
decision making - creating economic value
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The Political-Legal Environment
• Specific Political Strategies
–
–
–
–
Campaign financing
Lobbying
Coalition building
Indirect lobbying
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Increased Personal Legal
Accountability
• Increases in Demands for Accountability
– “Cooking the books,” price fixing, and bid rigging are
serious white-collar crimes likely to draw stiff penalties
and a jail sentence. E.g. Sarbanes-Oxley act 2002
• Political and Legal Implications for Management
– Increased use of legal audits
• A review of all operations to pinpoint possible legal liabilities
or problems.
– Use of alternative dispute resolution (ADR)
• Settling disputes with less costly methods, including arbitration
and mediation.
19
The Economic Environment
• The Job Outlook in Today’s Service
Economy, Where Education Counts
– Service sector job growth in high paying
occupations that require at least a bachelor’s
degree is twice as fast as that of all other
occupations.
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Some Industries in the Service
Sector
• Banking, stockbrokerage
• Health care
• Lodging
• Education
• IT
• Wholesaling and retailing
• Insurance
• Law
• News and entertainment
• Education
• Transportation (freight and • Architecture
passenger)
• Consulting
21
The Economic Environment
• Coping with Business Cycles
– Business cycles
• The up and down movement of an economy’s ability
to generate wealth.
• Business cycles are converging worldwide (global
interdependence).
22
REAL GDP (units per time period)
The Business Cycle
Peak
Growth
trend
Peak
Peak
Trough
Trough
TIME
23
GROWTH RATE (percent per year)
The Business Cycle in
U.S. History
20
Annual
growth
15
Recession
10
5
3
0
-5
Zero growth
-10
1930
1940
1950
Long-term average
growth (3%)
1960
1970
YEAR
1980
1990
2000
24
The Economic Environment
• Cycle-sensitive decisions
– Timing decisions about appropriate responses
to changes in the business cycle is necessary to
• reduce the chances that a firm’s assets and resources
will be underutilized or wasted in economic
downturns.
• take advantage of opportunities that will arise during
periods of rapid expansion of the economy.
25
The Challenge of a
Global Economy
• A Single Global Marketplace
– Global trade is causing a shift to a single
economy (e.g., WTO, EU, NAFTA)
– The commercial world is no longer East-West,
North-South.
• Globalization Is Personal
– Working for a foreign-owned company is a
growing trend (brand ownership, FDI).
– Now a world standard for competitive quality
and costs
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The Technological Environment
• Technological innovation
– is concerned with tools and ideas that provide
practical solutions
– generates “Creative Destruction” (Schumpeter)
– creates new products and businesses
• e.g., e-Business models, disintermediation, biotech
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The Technological Environment
(cont’d)
• The Innovation Process
– Concept
– Product innovation
– Process innovation
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The Technological Environment
• Innovation Lag
(cont’d)
– The time it takes for a new product to be
translated into satisfied demand.
• Shortening Innovation Lag
– Goal setting: creating a sense of urgency and
purpose.
– Empowerment: pushing decision-making
authority down to the level of the decision.
– Concurrent engineering: using a team approach
to product design involving specialists from all
functional areas including research, production,
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and marketing.
Promoting Innovation Through
Intrapreneurship
• Intrapreneur
– An employee who personally shepherds an
innovative idea through a large organization.
• Fostering Intrapreneurship
– Focus on collaboration, innovation and risk
taking
– Tolerate/learn from mistakes
– Requires managerial approaches to creativity
individual and group dynamics, organization
culture (more on this later!),
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