The Social Environment

Dimensions of the Social Environment

Demographics: Changes in the statistical profiles of population characteristics are the demographics social environment.

Inequalities: Persistent barriers encountered by women, minorities, and others in the workplace are the inequalities.

Managing diversity: Creating organizational cultures that enable all employees to realize their potential is managing diversity.

Demographics of the New Workforce

It is getting larger, increasingly female, more racially and ethnically diverse, older, and more age-diverse. America’s Education and Workplace Skills Crisis to compete in a global labor market, U.S. workers need a constantly improving, excellent education – but American kids are not getting one. Problems start early and persist throughout the education process.

Myths about Older Workers

They are less productive. They incur higher benefits costs. They have higher absenteeism.They have more accidents at work. They are less willing to learn.They are inflexible about the hours they are willing to work.

The Changing U.S. Workforce: 2008-2018

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. Many women are leaving the corporate ranks to start their own businesses.

Continuing Pressure for Equal Opportunity

Women, minorities, and the physically challenged are all expected to press harder for more employment opportunities. About 17% of the U.S. labor force is made up of contingent workers. Reasons are less costly, can be let go when times are bad. There is lower job involvement among part-timers in comparison to their full-time counterparts.

Managing Diversity

Managing Diversity: The process of creating an organizational culture that provides all employees, including women and minorities, with assistance and opportunities to help them realize their full potential.

More Than EEO: The moral necessity and commitment in going beyond EEO and affirmative action to create flexible organizations that encompass and value diversity

The Political-Legal Environment

The Political-Legal Environment

Politics is the art (or science) of public influence or control.

The Politicization of Management

Issues management: Ongoing process of identifying, evaluating, and responding to important social and political issues is concern about issue management. Purpose: Minimize “surprises” and make more systematic and effective responses to issues.

General political responses: Defending the status quo against all comers, adopting a “wait and see” approach and proactively trying to identify and respond to issues.

Management’s Political Response Continuum

Specific Political Strategies

Campaign financing: Political action committees (PACs)

Lobbying: Garnering political support

Coalition building: Common rallying points

Indirect lobbying: Advocacy advertising

Increased Personal Legal Accountability

Increases in Demands for Accountability

Sarbanes-Oxley Act (2002)

1.      Increased penalties for accounting fraud

2.      Established a new felony with stiff prison term for securities fraud

Political and Legal Implications for Management

Increased use of legal audits: A review of all operations to pinpoint possible legal liabilities or problems is legal audit.

Use of alternative dispute resolution (ADR): Settling disputes with less costly methods, including arbitration and mediation.

The Economic Environment

The Job Outlook in Today’s Service Economy Where Education Counts

 Service providers are expected to generate 14.5 million jobs between 2008 and 2018. A solid educational foundation and networking skills are especially important in tough economic times.

Coping with Business Cycles

• Up-and-down movement of an economy’s ability to generate wealth
• Predictive structure but variable timing

Cycle-Sensitive Decisions

• Timing is everything
• Stay ahead of the pack

Benefiting from Economic Forecasts

• Use a consensus approach

Business Cycles Affect Managerial Decisions

 

 

 

 

 

 

 

The Challenge of a Global Economy

A Single Global Marketplace: Global trade is causing a shift to a single economy. The size of the global economy has expanded dramatically.

Globalization is personal: a growing trend working for a foreign-owned company. Meeting world standards for quality and costs (through lower wages) is necessary to be globally competitive.

The Technological Environment

Technology: Technology includes all the tools and ideas available for extending the natural and mental reach of humankind. Technology is facilitating the evolution of the information age. Information has become a valuable strategic resource for gaining competitive advantage.

The innovation process is the systematic and practical application of a new idea.

Steps in the Innovation Process

Conceptualization: When a new idea occurs to someone

Product technology: Creation of a working prototype

Production technology: Development of a profitable production process

Innovation Lag: 

The time it takes 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.

Science Fiction Is Becoming Reality with Seven New Technologies

Three-Step Innovation Process

Promoting Innovation Through Intrapreneurship

Intrapreneurship : An employee who takes personal responsibility for pushing an innovative idea through a large organization.

Fostering Intrapreneurship

Focus on results and teamwork

Reward innovation and risk taking

Tolerate and learn from mistakes

Remain flexible and change-oriented