Chapter 3

Report
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Chapter Objectives
 Summarize the demographics of the new American workforce.
 Explain why America’s education and workplace readiness situation is a
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

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crisis.
Define the term managing diversity, and explain why it is particularly
important today.
Discuss how the changing political-legal environment is affecting the
practice of management.
Discuss why business cycles and the global economy are vital economic
considerations for modern managers.
Describe the three-step innovation process, and define the term
intrapreneur.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Social Environment
 Dimensions of the Social Environment
 Demographics

Changes in the statistical profiles of population
characteristics
 Inequalities

Persistent barriers encountered by women, minorities, and
others in the workplace
 Managing diversity

Creating organizational cultures that enable all employees
to realize their potential
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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, world-class education – but
American kids aren’t getting one
 Problems start early and persist throughout the
education process
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Figure 3.1: The Changing
U.S. Workforce: 2008-2018
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Figure 3.1: The Changing
U.S. Workforce: 2008-2018 (cont)
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
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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
 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
 Proactively trying to identify and respond to issues
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The Political-Legal Environment (cont’d)
 Specific Political Strategies
 Campaign financing

Political action committees (PACs)
 Lobbying

Garnering political support
 Coalition building

Common rallying points
 Indirect lobbying

Advocacy advertising
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Economic Environment
 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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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.
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The Technological Environment (cont’d)
 The Innovation Process
 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
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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
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Summary
 The U.S. workforce will continue to become larger, older, more diverse,
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and more female.
America’s education system has major problems at all levels.
The persistence of opportunity and income inequalities (and the glass
ceiling) among women and minorities is a strong stimulus for change.
Managers are becoming increasingly politicized and more likely to be
held personally responsible for their decisions and actions.
Managers can make timely decisions during somewhat unpredictable
business cycles by taking a consensus approach to economic forecasts.
A healthy innovation process is vital to technological development. An
organizational climate that fosters intrapreneurship can help.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Terms to Understand
 Demographics
 Business cycle
 Glass ceiling
 Technology
 Contingent workers
 Innovation process
 Managing diversity
 Product technology
 Issues management
 Production technology
 Advocacy advertising
 Innovation lag
 Legal audit
 Concurrent engineering
 Alternative dispute
 Intrapreneur
resolution
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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