Dynamic Environment in Organizational Behavior
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This document discusses five key forces changing the business environment: globalization, diversity, technology, ethics and corporate governance, and new employment relationships. It provides details on each force, including how globalization is increasing international trade and competition. It describes how a diverse workforce can benefit organizations if diversity is valued. It also outlines how the economy is shifting to services due to technology advances and how information technology is rapidly changing. The document discusses the relationship between law and ethics and principles of strong corporate governance. Finally, it briefly mentions changing employment relationships as another dynamic force for organizations.
![DIMENSIONS OF DIVERSITY
￮ Primary Dimensions
factors that are either inborn or exert extraordinary influence on early
socialization. This includes age, race and ethnicity, gender, physical and mental
abilities, and sexual orientation.
￮ Secondary Dimensions
Factors that matter to us as individuals and that to some extent define
us to others. They may be less permanent than primary dimensions and can be
changed. This include educational background, geographical location, income,
marital status, military experience, parental status, religious belie]efs and work
experiences.
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Dynamic Environment in Organizational Behavior
- 1. DYNAMIC ENVIRONMENT RACHEL L. MARTIN MAED EDAD Student Zamboanga City State Polytechnic College
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- 25. The environment of business is changing in an unprecedented rate. To truly understand the behavior of people in organizational settings, it is a necessary to understand the changing environment of business. 25
- 26. This chapter is intended to introduce and examine five of the central environmental forces for changed faced by today’s organizations: globalization, diversity, technology, ethics and corporate governance, and new employment relationships. 26
- 28. Globalization ￮ "Globalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century." Quote from "Globalism: The New Market Ideology" by Manfred D. Steger ￮ Merriam-Webster defines globalization as “the act or process of globalizing: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor market.” 28
- 29. THE GROWTH OF INTERNATIONAL BUSINESS ￮ In 2008, the volume of international trade in dollars was more than fifty times greater than the amount in 1960. 2. International expansion of businesses to increase their market 29 3. More firms are moving into international markets to control costs, esp. to reduce labor costs. 4. Many organizations have become international in response to competition. ￮ 1. Advanced Communication and transportation
- 30. CROSS-CULTURAL DIFFERENCES AND SIMILARITIES ￮ One major review of the literature on international management reached five basic conclusions. ￮ 1. behavior in organizational settings vary across cultures. ￮ 2. culture itself is one major cause of this variation. 3. Although the causes and consequences of behavior within organizational settings remain diverse across cultures, ￮ 4. the same individual behaves differently in different cultural settings. ￮ 5. cultural diversity can be an important source of enhancing organizational effectiveness. 30
- 31. Specific Cultural Issues ￮ Geert Hofstede Research Studied workers and managers in different countries and found that specific attitudes and behaviors differed significantly because of the values and beliefs of those countries. Hofstede Categories Individualism Collectivism Power Distance Uncertainty avoidance Masculinity Long-term and short-term orientation 31
- 32. DIVERSITY AND BUSINESS ￮ Workforce Diversity the important similarities and differences among the employees of organizations. ￮ Streotypes generalizations about a person or a group of persons based on certain characteristics or traits ￮ Prejudices judgments about others that reinforce beliefs about superiority and inferiority. 32
- 33. DIMENSIONS OF DIVERSITY ￮ Primary Dimensions factors that are either inborn or exert extraordinary influence on early socialization. This includes age, race and ethnicity, gender, physical and mental abilities, and sexual orientation. ￮ Secondary Dimensions Factors that matter to us as individuals and that to some extent define us to others. They may be less permanent than primary dimensions and can be changed. This include educational background, geographical location, income, marital status, military experience, parental status, religious belie]efs and work experiences. 33
- 34. THE VALUE OF DIVERSITY ASSIMILATION The process through which members of a minority group are forced to learn the ways of the majority group. 34
- 35. Blocking minority involvement in communication and decision-making can result in tensions among workers, increased costs due to increasing absenteeism, increased harassment suits, and lower morale among workers.
- 36. Valuing Diversity 36 Means putting an end to the assumption that everyone who is not a member of the dominant group must assimilate. Valuing diversity is not merely giving lip service to an ideal, putting up with a necessary evil, promoting a level of tolerance for those who are different, it is an opportunity to develop and utilize all of human resources available to the organization for the benefit of the workers as well as the organizations. One of the most important benefits of diversity id the richness of ideas and perspectives that it makes available to the organization. Overall, the organization wins when it truly values diversity.
- 37. TECHNOLOGY AND BUSINESS 37 Technology refers to the methods used to create products, including both physical goods and intangible services. Three specific areas of technology worth noting here are the 1) the shift toward a service-based economy,2) the growing use of technology for competitive advantage, and 3) mushrooming change in information technology.
- 38. MANUFACTURING AND SERVICE TECHNOLOGIES 38 Manufacturing is a form of business that combines and transforms resources into tangible outcomes that are then sold to others. Example: The Goodyear and Rubber Company is a manufacturer because it combines rubber and chemical compounds and uses blending equipment and molding machines to create tires.
- 39. MANUFACTURING AND SERVICE TECHNOLOGIES 39 Service organization is one that transforms resources into an intangible output and creates time or place utility for its customers.
- 40. MANUFACTURING AND SERVICE TECHNOLOGIES 40 angible Assets Intangible Asset 1. They have a physical existence. 1. They don’t have a physical existence. 2. Tangible assets are depreciated. 2. Intangible assets are amortized. 3. Are generally much easier to liquidate due to their physical presence. 3. Are not that easy to liquidate and sell in the market. 4. The cost can be easily determined or evaluated. 4. The cost is much harder to determine for Intangible assets. 5. Examples: vehicle, plant & machinery, etc. 5. Examples: Software, logo, patent, etc. Source: AccountingCapital.com
- 41. ETHICS AND CORPORATE GOVERNANCE 41 Ethics Branch of philosophy that focuses on morality and the way in which moral principles are applied to everyday life.
- 42. The Relationship Between Law and Ethics 42 • The Law is an expression of the ethical beliefs of our society • Law and ethics are not the same thing. • The law cannot codify all ethical requirements.
- 43. CORPORATE GOVERNANCE 43 Is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders.
- 44. Why CORPORATE GOVERNANCE? 44 • Better access to external finance • Lower costs of capital • Improved company performance • Reduced risk of corporation crisis and scandals
- 45. PRINCIPLES OF CORPORATE GOVERNANCE 45 • Sustainable development of all stakeholders • Effective management and distribution of wealth • Discharge of social responsibility • Application of best management practices • Compliance of Law in letter and spirit • Adherence to ethical standards
- 46. FOUR PILLARS OF CORPORATE GOVERNANCE 46 • 1. Transparency • 2. Accountability • 3. Fairness • 4. Responsibility
- 47. 8 Elements of Good Governance 47 • 1. Rule of Law • 2. Transparency • 3. Responsiveness • 4. Consensus Oriented • 5. Equity& Inclusiveness • 6. Effectiveness and Efficiency • 7. Accountability • 8. Participation
- 48. 8 Elements of Good Governance 48 • 1. Rule of Law • 2. Transparency • 3. Responsiveness • 4. Consensus Oriented • 5. Equity& Inclusiveness • 6. Effectiveness and Efficiency • 7. Accountability • 8. participation
- 49. THE NEWEMPLOYMENT RELATIONSHIP 49 • 1. Rule of Law • 2. Transparency • 3. Responsiveness • 4. Consensus Oriented • 5. Equity& Inclusiveness • 6. Effectiveness and Efficiency • 7. Accountability • 8. participation
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- 56. 56 Thanks! Any questions? You can find me at ￮ rachellsola@gmail.com