Objectives

1. Objectives • Highlight major changes shaping the twenty-first-century workplace. • Understand demographics of the new work force. • Explain “managing diversity” and why it is important today. • Discuss effects on management from the political-legal environment • Discuss effects on management from business cycles and globalization

2. Major Changes in the Workplace • Virtual Organizations • Just-in-Time Workforce • Knowledge Workers • e-Coaching and e-Monitoring • Increased Diversity • Aging Workforce • Dynamic Workforce

3. 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 ...

4. 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?

5. 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.

6. Demographics of the New Workforce • Needed Remedial Education • The shrinking U.S. workforce is increasingly deficient in reading, writing, science, and basic math skills.

7. Skill Level of Three Workforce Categories Source: International Adult Literacy Survey

8. Demographics • The workforce will have more Hispanics and older persons in the future. • Labor force growth rate is declining

9. Percent of Baby-Boom and Baby-Bust Generations by Race/Ethnicity Baby Boom b.1946-64 Baby Bust b. 1965-83 Source: U.S. Bureau of the Census, HRI

10. Annual Growth Rate of U.S. Labor Force

11. 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.

12. 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 .

13. 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.

14. 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

15. Minorities in Top Management Minorities 22% Minorities 2% White 98% White 78% While minorities make up almost 22 percent of the U.S. workforce... ... they represent only 2 percent at Fortune 2000 firms. Source: Federal Glass Ceiling Initiative; HRI

16. 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

17. 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

18. The Political-Legal Environment • Specific Political Strategies • Campaign financing • Lobbying • Coalition building • Indirect lobbying

19. 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.

20. 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.

21. Some Industries in the Service Sector • Health care • Education • Wholesaling and retailing • Law • Education • Architecture • Consulting • Banking, stockbrokerage • Lodging • IT • Insurance • News and entertainment • Transportation (freight and passenger)

22. 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).

25. 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.

26. 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

27. 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

28. The Technological Environment (cont’d) • The Innovation Process • Concept • Product innovation • Process innovation

29. The Technological Environment (cont’d) • Innovation Lag • 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, and marketing.

30. 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!),