![Chapter 2: Challenges for Managers 45
© 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.
because cocoa bean growers have often not received adequate pay; some have even been subject
to slave labor. The social benefits of fair trade are far reaching. In particular, fair trade enables
farmers to take their livelihoods to the next level by blending the benefits of modern techniques
with artisan practices.
Theo Chocolate’s dedication to fair trade shows dedication to two aspects of organizational
justice: distributive justice, or the fairness of outcomes individuals receive, and procedural
justice, or the fairness of the process by which outcomes are allocated. Whinney states: “What
we're really doing is trying to give an alternative to practices that have contributed to social,
economic, and environmental degradation. The average cocoa farmer earns less than a dollar a
day for their entire family, and they have very little options in cocoa growing regions to grow
other cash crops—as a result, they are beholden to an industry that is very oppressive. The cocoa
price has been so low compared to the cost of their production that in West Africa cocoa farmers
have had to resort to slavery.”
CASE SOLULTION: Netflix: Push and Pushback in Streaming Video
Linkage of Case to Chapter Material
The case focuses on the efforts of Netflix to become a key player in the emerging video
streaming market. Reed Hastings, the Netflix CEO, believes that Internet video streaming will
substantially displace online DVD rentals; he forecasts that as soon as mid-2013, “the business
that generates most of Netflix’s revenue today [mid-2009] will begin to decline, as DVDs
delivered by mail steadily lose ground to movies sent straight over the Internet.” Consequently,
Hastings is “quickly trying to shift Netflix’s business⎯seeking to make more videos available
online and cutting deals with electronics makers so consumers can play those movies on
television sets.”
The Netflix business transformation is occurring within the context of four major managerial
challenges. First, Netflix is entering into deals with manufacturers of various video devices to
deploy technology that enables user-friendly, ease-of-access to the Netflix streaming service.
Second, Netflix faces growing competition from businesses such as Amazon.com and Google,
Inc. in the video streaming market as all three companies race to dominate the digital delivery of
TV shows and films, thereby encroaching on turf traditionally controlled by cable- and satellite-
television providers. Third, Netflix is becoming involved in developing original programming;
this threatens the pay TV industry, which is a key source of revenue for major media companies.
The major media companies, not particularly happy with this Netflix initiative, are pushing back
to various degrees by restricting Netflix’s access to their programming. Fourth, studios are
increasing the fees they charge Netflix for access to the studios’ content. This fee increase is
occurring because studio executives believe that Netflix’s pricing system is devaluing the
studios’ content; at least one studio executive characterizes Netflix as “cannibalistic.”
The four specific managerial challenges faced by Netflix can be related to the three generic managerial
challenges⎯globalization, managing diversity, and ethics⎯that are discussed in Chapter 2. Globalizing
the firm’s operations to compete in the global village challenges managers to deal with an evolving and
changing global marketplace and to deal with the cultural differences and sensitivities that are inherent in](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-27-320.jpg)
![48 Chapter 2: Challenges for Managers
© 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.
businesses. Netflix also needs to work vigorously to repair damaged relationships with content
suppliers.
The students should be encouraged to be creative as well as practical in providing suggestion as
to what course of action Netflix could or should pursue. Of course, the students should be
pushed to think through and logically justify their suggested course(s) of action.
SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L.
Morgal Chair of Christian Business Ethics and Professor of Management, College of Business,
Valparaiso University.
COHESION CASE: DonorsChoose.org: An Online Charity Helps Public Education
in America (A)
1. What lessons about leading people and managing organizations are provided by
DonorsChoose.org and its founder and CEO, Charles Best?
Charles Best was very astute in identifying an important challenge that was not being addressed
effectively by existing organizations or methods. According to Best, “[t]eachers spend an insane
amount of their own money on supplies, but mostly we just saw our students going without the
resources that they needed to learn.” Best sensed that this was a challenge that many people
could identify with and would have an interest in helping to solve. He devised an innovative
way in which this challenge could be addressed by bringing together the people who wanted to
help provide resources with the public educators who needed the resources. “In a move that
redefines traditional philanthropy, DonorsChoose uses the Internet to connect teachers directly to
donors. Teachers who once spent their own money for supplies, or simply went without, can
now turn to donor support to roll out creative lesson plans. Meanwhile, rather than writing
checks blindly, donors of any scale can decide which projects they wish to support.”
Identifying a challenge, formulating a vision, and getting people to vigorously support that vision
are valuable lessons that others can learn from Charles Best. Further, Best’s approach is
instructive with regard to a person being willing to take a considerable risk to pursue a dream of
making a difference in society. Moreover, Best is a model of enthusiasm for and commitment to
achieving significant goals.
2. What do you like about DonorsChoose.org? What do you dislike about DonorsChoose.org?
Explain your answer.
This question provides students with the opportunity to explore their attitudes and beliefs about
involvement with a not-for-profit organization that managerially operates much like a for-profit
organization with respect to functions such as planning, organizing, and controlling. The
students should be encouraged to consider the value of working for a not-for-profit organization,
and what the personal advantages and disadvantages would be of doing so. The reasons
underlying their expressed attitudes and beliefs should be discussed as well.](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-30-320.jpg)
![Chapter 2: Challenges for Managers 49
© 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.
3. What challenges did DonorsChoose face as a start-up organization?
As a social studies teacher at Wings Academy, a public charter high school in the Bronx, New
York City, Charles Best became aware that “[t]eachers spend an insane amount of their own
money on supplies, but mostly we just saw our students going without the resources that they
needed to learn.” Best says he “figured that there were people…who wanted to improve public
schools but were skeptical about writing a check for $100 and not seeing where their money was
going.” But how to connect the people who might want to make financial contributions with the
teachers who could use those resources? Therein resides the most fundamental challenge
confronting Charles Best. He had to devise a system that effectively and efficiently connected
donors and teachers in need. Charles Best also faced the challenge of persuading teachers to
submit requests to the DonorsChoose Web site. Additionally, he faced the challenge of
generating sufficient financial resources to get his “brainstorm” operational to the point that it
could attract donors⎯and to that end he drew on his own funds.
4. What challenges does DonorsChoose face in today’s environment?
DonorsChoose is committed to an ambitious mission and vision. Its mission: “DonorsChoose.org
engages the public in public schools by giving people a simple, accountable and personal way to
address educational inequity.” Its vision: “We envision a nation where children in every
community have the tools and experiences needed for an excellent education.”
The vigorous pursuit of this vision and mission invokes the challenges that DonorsChoose
currently faces. A fundamental challenge is the growing need for financial support of public
education in American in light of the funding reductions that have occurred in many states due to
the Great Recession, declining state revenues, and multiple pressures on limited governmental
resources. Another current challenge concerns maintaining and enhancing the quality of public
education when there are numerous signs that quality is being compromised in many public
school systems throughout the nation. A third current challenge is the need to grow the donor
base in order to accommodate the growing needs for funding projects.
5. How do the challenges that you discussed in questions 3 and 4 relate to the management
challenges – globalization; leading a diverse workforce; and ethics, character, and personal
integrity⎯that are discussed in the text?
Globalization is related to the specific challenges that DonorsChoose has faced in the past and is
currently facing in that public education in America is falling behind other nations in preparing
its youth to function well in an increasing complex and competitive world. Because of these
global pressures America must improve the quality of the education⎯particularly in science and
mathematics⎯provided to its youth. DonorsChoose can help teachers to address this
performance gap.
Leading a diverse workforce is related to all of the past and current challenges facing
DonorsChoose. DonorsChoose has a diverse workforce to manage. Plus it encounters diversity
among the teachers submitting project requests and among the donors contributing money to
fund projects, not to mention the diversity that exists among the American students who it is](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-31-320.jpg)
![50 Chapter 2: Challenges for Managers
© 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.
trying to benefit.
Ethics, character, and personal integrity is infused throughout the DonorsChoose organization.
This is evident in the process by which DonorsChoose operates, the role model that Charles Best
is, and the behavioral expectations for DonorsChoose staffers.
6. DonorsChoose describes its mission as follows: “DonorsChoose.org engages the public in
public schools by giving people a simple, accountable and personal way to address
educational inequity.” Its vision is articulated as follows: “We envision a nation where
children in every community have the tools and experiences needed for an excellent
education.” How does this mission and vision guide DonorsChoose in addressing the
challenges that you discussed in the preceding three questions?
The vision and mission of DonorsChoose guides all that is does in responding to its challenges
and in conducting its ongoing operations. The DonorsChoose mission is supported by a strategy
of “harness[ing] the Internet to connect teachers with donors.” Charles Best’s long-term hope is
that people who become involved with DonorsChoose will realize the magnitude of public
school underfunding, and as a result “will become grass-roots advocates for steering more
resources to schools.”
The day-to-day operations of DonorsChoose also indicate how it is responding to the
aforementioned challenges. Specifically, the operating paradigm is as follows:
• “[P]ublic school teachers from every corner of America post classroom
project requests on DonorsChoose.org. Requests range from pencils for a
poetry writing unit, to violins for a school recital, to microscope slides for
a biology class.”
• “Then, you can browse project requests and give any amount to the one
that inspires you. Once a project reaches its funding goal, we deliver the
materials to the school.”
• “You’ll get photos of your project taking place, a thank-you letter from the
teacher, and a cost report showing how each dollar was spent. If you give
over $100, you’ll also receive hand-written thank-you letters from the
students.”
• “At DonorsChoose.org, you can give as little as $1 and get the same level
of choice, transparency, and feedback that is traditionally reserved for
someone who gives millions. We call it citizen philanthropy.”
7. What particular aspects of DonorsChoose.org would other organizations⎯either nonprofit
or for-profit organizations⎯do well to emulate? Explain your answer.
Possible aspects to emulate would include clearly understanding the challenges the organization
faces, being adept at finding ways of addressing those challenges, establishing a clear vision and
mission, and working vigorously to fulfill that vision and mission. The students should be
encouraged to identify other possible aspects for emulation.](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-32-320.jpg)
![political police, which was charged with the general safety of the
kingdom and the surveillance of political parties, constantly in a state
of commotion even under the heavy hand of Napoleon; it was
always intrusted to the minister of a department, and the situation
was at that time filled by General Savary; and the prefecture of
police, an appointment of a more simple order, circumscribed within
the walls of Paris, whose chief had charge of the édilité, that is to
say, of the safety and cleanliness of the city and the inspection of
the markets and provisions, all duties of considerable importance.
The prefect of police also regulated the bulletins concerning the
state of the public mind, so as to act as a check upon the minister of
police. During the time of the Empire, each of these situations
involved serious duties and considerable responsibility.
When appointed to the prefecture of police, M. Pasquier devoted
himself entirely to the discharge of his official duties, and
voluminous writings still exist upon the provisioning of the capital,
and the method of multiplying magazines in the time of abundance;
this had now become a question of great anxiety, occupying the
serious attention of the government, for in the year 1811, the first
symptoms of an alarming scarcity made their appearance. The price
of bread had reached an exorbitant height, and people were
constantly on the brink of a disturbance owing to the dearness of
grain of all kinds. I have perused and analysed with the greatest
attention the important writings of M. Pasquier under the empire,
deposited in the archives of the prefecture of police.[26]
It must be recollected that Napoleon was then about to depart upon
his Russian expedition, and it may easily be imagined that
contending parties would give occasion to extreme anxiety during his
adventurous campaign: how great was that entertained by the
prefect of police! his nights were devoted to quieting the alarms
excited by false bulletins, and strengthening the confidence of the
people, for the prestige that surrounded Napoleon was beginning to
disappear, a certain spirit of independence and animadversion was](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-45-320.jpg)
![said before, General Savary had charge of the political police. This
severe trial soon afforded M. Pasquier an opportunity of rendering an
important service to the city of Paris, by the creation and
organisation of the gendarmerie, which, under a different name, has
on so many occasions greatly contributed to maintain the peace and
security of the capital. He had before, in the year 1811, remodelled
the corps of firemen,[27] whose devotion to their duty and noble
courage deserves the highest praise.
The difficult circumstances of the times were increasing; if the
management of the Parisian police was a hard task while the glory
and prosperity of Napoleon were at their height, how much more
delicate, and consequently more odious and watchful, was its office
during the season of reverses and misfortune? Parties were now in
commotion, people were no longer silent upon their desire of a
change, and the probability such might be the case, and the enemy
was rapidly approaching the capital: M. Pasquier fulfilled his duties
to the very last moment, by the wise and firm administration of his
office; he reduced the duties of his prefecture to the maintenance of
public tranquillity, and the careful management of every thing
relating to the repose and well-being of the city; thus returning to
the original charge he had received from the Emperor,—attention to
the safety and cleanliness of Paris, which were formerly almost the
only duties required from the lieutenant of police.
When the artillery was heard in thunders upon the capital, the
senatorial party and Talleyrand invited him to support the political
alterations produced by circumstances, but it was not until the
evening before the allies entered Paris, that he, like M. Chabrol,[28]
prefect of the Seine, joined the movement which led to the
restoration. The enemy were about to enter Paris, and it was
necessary the public safety should not be endangered by any
popular tumult; the influence of the prefect of police was therefore
most essential, but it was merely passively exerted with regard to
political events; it received an impulse from them, but did not
communicate any. Talleyrand had formed a just estimate of the](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-47-320.jpg)
![circumlocution, and as to the phrase with which he has been so
much reproached, sur l'arbitraire,[29] is it any thing beyond a simple
declaration of what the government was desirous of obtaining, and
requested from the power authorised to grant it? Every thing that
was obtained had demanded incredible efforts, and whatever may
have been said of the session of 1820 by those under the influence
of party spirit, it was undoubtedly the finest period of the
representative system, recalling the times of Pitt, Grenville, and
Dundas, opposed to Fox, Erskine, and Sheridan.
M. Pasquier's situation was not less difficult as minister for foreign
affairs; for the revolutionary spirit had declared itself almost
simultaneously in Spain, Naples, and Piémont. France, it is true,
adopted the repressive system, and in this respect agreed with the
plan suggested at the congresses of Laybach and Troppau;
nevertheless the minister for foreign affairs could not overlook the
material interests of France; the Austrians, desirous of marching
upon Piémont and Naples, wanted to occupy definitively both these
places, and how was it possible France should not feel uneasy at the
sight of the German standards unfurled beyond the Alps, and
extending even as far as Savoy? A series of notes passed on this
occasion between M. Pasquier and Prince Metternich; and it was
positively decided between the two ministers, that if the Austrian
occupation should be necessary, it should be strictly limited to such a
period, as would neither affect the consideration nor the importance
of France. Metternich faithfully fulfilled this engagement, and the
evacuation of Piémont took place at the stipulated time.
If you consult any of the persons employed in the foreign office,
they will speak of M. Pasquier's assiduous attention to his work, and
of his perfect capability of bringing a negotiation to the termination
he wished; and they will also tell you he shewed extreme judgment,
in all the great difficulties incident to a situation so liable to constant
change of circumstances.
A complete rupture had taken place with the old liberal system; and
to insure success in this enterprise, the Richelieu ministry had been](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-52-320.jpg)
![obliged to apply to the ultra-royalist party. At the commencement of
the session of 1821, the council decided upon adding MM. de la
Corbière, de Villèle, and Lainé, to the cabinet; it was a great
mistake, it was either granting too much or too little; for, in fact,
what figure could they make in the cabinet as ministers without
appointments, and yet chiefs of the majority? And what was the
consequence? secret dissensions, as might naturally be expected,
arose from the very commencement of the attempted coalition;
consultations were held in the king's council, after which, MM. de
Villèle and Corbière privately expressed their dissatisfaction, and
revealed the designs of the ministry to their colleagues on the côté
droit in the Piet society; quarrels naturally suceeded, which
eventually led to the rupture that took place after the session of
1821.
The royalists, in general, entertained an extreme dislike to M.
Pasquier, and a great part of the côté droit could could not endure
him.[30] All the opposition towards the end of the session was
directed against him, till, at last, his patience was exhausted, and he
assumed a high tone with the Ultras by openly and unhesitatingly
declaring his inclinations and his repugnances, expressing himself
with so much boldness and freedom that the whole of the parti droit
declared war to him. M. Pasquier wanted to have done with the
whole business; his situation fatigued him, and, foreseeing the
downfall of the ministry, he obtained a seat in the upper chamber,
being made a peer of France in the course of the month of
November 1821. The ministry of the Duc de Richelieu had resigned
office on the occasion of the address, and the Duc de Montmorency
assumed the charge of foreign affairs.
M. Pasquier took his seat in the upper chamber, at that time a
powerful institution possessed of hereditary rank, property, and the
majorats. The prospects of the young peerage were very great, and
evidence was soon afforded of what they were capable of doing, by
their constant opposition to the faults and ill-judged proceedings of
the restoration. M. Pasquier, placing himself on the same benches as](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-53-320.jpg)
![the statesmen of the Richelieu party, made a point of speaking upon
every subject that came before the house, and the judgment and
deep thought which characterised his discourses, caused them to
exercise great influence over the chamber. He spoke against the
rights of primogeniture, the creation of the three per cents, and the
law of sacrilege; and his speeches were often the means of deciding
the question by their influence on the majority obtained. He placed
himself in constant and direct opposition to the Villèle cabinet, which
occasioned a strange advance in revolutionary ideas, by the constant
injury it inflicted upon the interests and affections of modern France.
There was not quite the same vehemence of debate in the chamber
of peers as in that of the deputies, but it attained to more certain
results. There was a degree of quiet, and at the same time great
political judgment, in the discussions, not allowing themselves to be
carried away by the spirit of party, but continuing so steadily to
advance towards the downfall of M. de Villèle's ministry, that we may
safely assert, the retirement of the royalist cabinet of the restoration
was owing to their efforts. It must be confessed, this opposition was
rather against the order of things; an aristocratic power which
opposed the elements of an aristocratic constitution, was not in good
keeping; but the fault lay with the party of the restoration, which
interfered too hastily with the new ideas and prejudices prevalent in
France.
The chamber of peers obtained a complete triumph; although
weakened by successive promotions,[31] its influence over the
elections of 1827 was very great. The Martignac ministry was formed
upon the principles of the Richelieu administration, that is to say,
with the upright intentions that characterised the statesmen of that
noble school. M. Pasquier naturally assumed his proper degree of
ascendancy over that administration; the bond of recollections and
of similarity of principles united him with M. Portalis, the keeper of
the seals; and it was repeatedly proposed that he should resume the
charge of the foreign office, his name having even been suggested
by the council of the ministers after the retirement of M. de la](https://image.slidesharecdn.com/9436-250322223301-cfc55b11/85/Solution-Manual-for-Organizational-Behavior-Science-The-Real-World-and-You-8th-Edition-54-320.jpg)
Solution Manual for Organizational Behavior Science, The Real World, and You, 8th Edition
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- 5. © 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. 24
- 7. Chapter 2: Challenges for Managers 25 © 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. KEY TERMS Chapter 2 introduces the following key terms: character theory masculinity collectivism power distance consequential theory procedural justice distributive justice rule-based theory diversity social responsibility expatriate manager time orientation femininity transnational organization glass ceiling uncertainty avoidance guanxi whistle-blower individualism THE CHAPTER SUMMARIZED I. THINKING AHEAD: Ford: Thriving in Challenging Times II. MANAGEMENT CHALLENGES IN A NEW TIME PPT Slide 3 Recent surveys indicate that U.S. firms are encountering unprecedented global competition. Chief executives note their primary challenges as (1) globalizing the firm's operations to compete in the global village, (2) leading a diverse workforce, and (3) encouraging positive ethics, character, and personal integrity. Globalization has led to the emergence of the global village in the world economy. The Internet, along with rapid political and social changes, has broken down old national barriers to competition. Managing a diverse workforce is more challenging than ever before and requires going beyond the surface to deep-level diversity. Good character, ethical behavior, and personal integrity require managers to do the right thing in difficult situations. Successful organizations respond to these challenges as opportunities instead of threats. The United States faces tough competition from countries such as Canada, Germany, Japan, and the United Kingdom. III. THE GLOBAL VILLAGE PPT Slides 4, 5 The concepts of globalization have helped to define the terms organizations use to determine the level of activity in the global marketplace.
- 8. 26 Chapter 2: Challenges for Managers © 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. Globalization implies that the world is free from national boundaries, whereas international carries with it a connotation of nationality. Transnational organizations must assume global viewpoints that supersede national issues. A. Changes in the Global Marketplace PPT Slide 6 Numerous global, social, and political changes have led organizations to change the way they conduct business and encourage their members to think globally. A few of these changes are the unification of East and West Germany, the European Union, the political changes in Russia and opening of business ventures in Russia and China, and NAFTA. Business ventures in China have helped to emphasize the importance of guanxi, or networking, in order to accomplish personal and business goals. B. Understanding Cultural Differences Figure 2.1 In order to compete globally, and because cultural differences affect work-related attitudes, organizations must understand diverse cultures. Hofstede’s research focused on the differences among cultures in work-related settings and found five dimensions of cultural differences that formed the basis for work-related attitudes. 1. Individualism vs. Collectivism PPT Slide 7 People in individualist cultures have primary concern for themselves and their families. People in Collectivist cultures belong to tightly knit social frameworks and depend on extended families. Group decisions are valued and accepted. 2. Power Distance PPT Slide 7 Power distance is the degree to which a culture accepts unequal distribution of power. High power distance cultures are more accepting of unequal power distributions; low power distance cultures are less accepting. 3. Uncertainty Avoidance PPT Slide 7 Uncertainty avoidance is the degree to which a culture tolerates ambiguity and uncertainty. Cultures with high uncertainty avoidance place importance on security and tend to avoid conflict. People are more willing to take risks in cultures with low uncertainty avoidance. 4. Masculinity vs. Femininity PPT Slide 8 In cultures that are characterized by masculinity, assertiveness and materialism are valued. Cultures that are characterized by femininity emphasize relationships and concern for others.
- 9. Chapter 2: Challenges for Managers 27 © 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. 5. Time Orientation PPT Slide 8 The time orientation value determines the long-term or short-term orientation of a culture. Long-term orientation is toward the future, whereas short-term orientation is toward the past and present. 6. U.S. Culture PPT Slide 10 The United States scored the most individualistically of all the countries measured. The U.S. ranked low on power distance, and is a masculine culture with a short-term time orientation. PPT Slides 11, 12 There is an increase in organizational cooperation for training employees for cultural sensitivity. Cross-cultural task forces or teams are increasing. Employees are more often being trained to be expatriates. Integrity, insightfulness, risk taking, the courage to take a stand, and the ability to bring out the best in people are key competencies for expatriate managers – managers who work outside their home countries. International executives are executives whose jobs have international scope. Learning- oriented attributes of international executives include cultural adventurousness, flexibility, openness to criticism, desire to seek learning opportunities, and sensitivity to cultural differences. C. Developing Cross-Cultural Sensitivity Table 2.1; PPT Slide 13 As organizations compete in the global marketplace, employees must become more skilled at working with individuals from diverse cultural backgrounds. Cultural sensitivity training is a popular method for helping employees recognize and appreciate cultural differences. Human resource managers must prepare employees to live outside their native countries, and must also help foreign employees learn to interact with U.S. culture. The Real World 2.1: A Golden Opportunity? Linda Myers thought she had landed her dream job when she became one of the first female American executives in a South Korean company. Being a trailblazer in a foreign land turned into a much more challenging job than she ever imagined. She felt shut out, experienced difficulty getting information from colleagues who spoke English, was unprepared for the rigidity of the hierarchy in which she found herself, and her ideas of cultural change and how to execute were dramatically different from her superiors’ ideas. Still, she turned the situation into a learning opportunity from which she derived four lessons. 1) Cultural training may not always prepare you for reality. 2) Understand your mandate clearly. 3) Do not let day-to-day misunderstandings bother you. 4) Take time to think about new ways of working.
- 10. 28 Chapter 2: Challenges for Managers © 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. IV. THE DIVERSE WORKFORCE PPT Slide 14 Diversity encompasses all forms of differences among individuals, including culture, gender, age, ability, religion, personality, social status, and sexual orientation. Motivation and communication skills must be adapted to account for diversity. A. Cultural Diversity PPT Slide 15 Cultural diversity is increasing due to the globalization of business. Demographic changes significantly affect diversity as well. Population shifts have dramatically increased the proportion of Hispanic and African-American workers in the labor force. The challenge for managers is to capitalize on the wealth of differences provided by cultural diversity. B. Gender Diversity PPT Slide 16 Women made up over 60 percent of the labor force in 2004, and by the year 2020, a balance of genders is expected in the workforce. Women continue to receive less compensation than men for their work, at a level of 80 percent of their male counterparts. The transparent barrier referred to as the glass ceiling continues to keep many women (and minorities) from rising above a certain level in organizations. Women comprised only 13.6 percent of corporate board members in 2003. One place women are making progress is in ownership of entrepreneurial companies. Women now own nearly 10.4 million American businesses, employing more than 12.8 million people and generating $1.9 trillion in sales. C. Age Diversity PPT Slide 17 The number of middle-aged Americans is rising dramatically, resulting in an older workforce. This will place emphasis on intergenerational work situations. This will also have an impact on benefits and policies relating to an aging workforce. By 2030, people over age sixty-five will comprise 20 percent of the population. Younger workers may have false impressions about older workers, viewing them as resistant to change, unable to learn new work methods, less physically capable, and less creative than younger employees. In reality, older workers are more satisfied with their jobs, more committed to the organization, and possess more internal work motivation than their younger cohorts. D. Ability Diversity PPT Slide 18 The number of disabled individuals in the workforce has increased dramatically because of the passing of the Americans with Disabilities Act in 1992. This law stipulates that employers should make reasonable accommodations to assist disabled individuals to become contributing employees. McDonald’s has trained and hired more than 9,000 mentally and physically challenged individuals through its McJOBS program since 1981. E. Differences are Assets
- 11. Chapter 2: Challenges for Managers 29 © 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. Managing diversity is one way in which organizations can become more competitive. Part of the challenge of managing diversity lies in attempting to combat prejudices and discrimination. Managing diversity is one way a company can become more competitive. As the workforce becomes more diverse in the next decade, it will be imperative that companies appreciate diversity. F. Diversity’s Benefits and Problems Table 2.2; PPT Slide 19 Diversity management can help organizations attract and retain human resources, enhance marketing efforts, promote creativity and innovation, improve problem solving, and enhance organizational flexibility. There are five problems associated with diversity: resistance to change, lack of cohesiveness, communication problems, interpersonal conflicts, and decision making. V. ETHICS, CHARACTER, AND PERSONAL INTEGRITY PPT Slides 20, 21 There is plenty of evidence that ethical problems are still a major concern in corporations. The toughest of these problems include employee theft, environmental issues, conflicts of interest, and sexual harassment. Managers have the responsibility of initiating programs to improve the ethical climate. Consequential theories of ethics emphasize the consequences or results of behavior. In contrast, rule-based theories of ethics emphasize the character of the act itself rather than its effects. The third type of ethical theory, character theory, emphasizes the character of the individual and the intent of the actor. A. Employee Rights PPT Slide 22 Employee rights encompass many current issues, such as drug testing, free speech, downsizing and layoffs, due process, smoking policies, AIDS/HIV disclosure, and even questions regarding activities away from the organization. B. Sexual Harassment PPT Slide 23 Sexual harassment includes verbal or physical unwelcome sexual attention that affects job conditions or creates a hostile work environment, and consists of three types of harassment: gender harassment, unwanted sexual attention, and sexual coercion. Sexual harassment costs the typical Fortune 500 company $6.7 million per year in absenteeism, turnover, and loss of productivity. Gender harassment includes crude comments or sexual jokes and behaviors that disparage someone’s gender or convey hostility toward a particular gender. Unwanted sexual attention involves unwanted touching or repeated unwanted pressure for dates. Sexual
- 12. 30 Chapter 2: Challenges for Managers © 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. coercion consists of implicit or explicit demands for sexual favors by threatening negative job-related consequences or promising job-related rewards. Sexual harassment costs the typical Fortune 500 company $6.7 million per year in absenteeism, turnover, and loss of productivity. C. Romantic Involvements As the number of women in the workplace increases, the resulting interaction between men and women means that organizations must address a number of issues related to the occurrence of romantic relationships at work. Hierarchical and utilitarian romances are especially problematic in the workplace. D. Organizational Justice PPT Slide 24 Organizational justice includes both distributive justice, which deals with the fairness of outcomes received, and procedural justice, which involves the fairness of the outcome allocation process. E. Whistle-Blowing PPT Slide 24 Employees who inform authorities of wrongdoing by their companies or coworkers are referred to as whistle-blowers. Whistle-blowers can be perceived as either heroes or villains depending on the circumstances. The Real World 2.2: Sex Plus Office romances and affairs have survived no-fraternization policies, philandering chief executives, and even ambiguous contractors. Some see these informal or surreptitious relationships as humorous while others are well aware of the hidden dangers and risks, including the extreme risk of fatal attraction. The new threat in the office romance is legal liability and retaliatory lawsuits filed by third parties at work. The legal theory involved is “Sex Plus” in which employees claim discrimination based on gender “plus” another characteristic, such as a pregnant woman claiming that a manager’s failed office romance caused him to focus more on her work, thus increasing her work demands. Still, some companies encourage matchmaking with the idea that couples are more energized about coming to work. Science: From Inaction to External Whistle-blowing Prevention is always the preferred approach to unethical behavior at work, but it is not always possible. Detecting and correcting wrongdoing are vital complements to prevention. In a study involving over 5,000 working adults, organizational cultures with ethical clarity, support for action, and sanctions for wrongdoing were more likely to foster employee internal actions of confrontation, reporting to management, and calling the ethics hotline. These same ethical culture dimensions discouraged inaction as well as whistle-blowing. Transparency in the ethical culture discouraged confrontation and report to management while it encouraged external
- 13. Chapter 2: Challenges for Managers 31 © 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. F. Social Responsibility PPT Slide 25 The obligation that an organization feels to behave in ethical ways within its social environment is referred to as social responsibility. Current concerns include protecting the environment, promoting worker safety, supporting social issues, and investing in the community, among others. G. Codes of Ethics Figure 2.2, Figure 2.3; PPT Slides 26, 27 Increasing numbers of organizations are implementing codes of ethics. One of the more concise tests of ethical and moral questions is the simple four-way test created by Rotary International in 1904. The four-way test asks the following questions of everything we think, say, or do: 1. Is it the TRUTH? 2. Is it FAIR to all concerned? 3. Will it build GOODWILL and better friendships? 4. Will it be BENEFICIAL to all concerned? Beyond the individual and professional level, corporate culture is another excellent starting point for addressing ethics and morality. In some cases, the corporate ethics may be captured in a regulation. The Joint Ethics Regulation (DOD 5500.7-R) specifies the ethical standards to which all U.S. military personnel must adhere. In other cases, corporate ethics may be in the form of a credo. Johnson & Johnson’s Credo helped hundreds of employees ethically address criminal tampering with Tylenol products in 1986. VI. MANAGERIAL IMPLICATIONS: Beating the Challenges PPT Slide 26 VII. LOOKING BACK: Ford: Opening Up, Focusing on the Ford Brand YOU 2.1 Planning For a Global Career Careers in management have taken on a global dimension. Working in trans-national organizations may well give managers the opportunity to work in other countries. Expatriate managers, those who work outside their home countries, benefit from having as much knowledge as possible about cultural differences. Because managers are increasingly exposed to global work experiences, it is never too early to begin planning for this aspect of one’s career. This exercise asks students to begin gathering information about a country in which they would like to work, including information on its culture. whistle-blowing as well as inaction. Creating an infrastructure for internal whistle-blowing via an ethics hotline is one way to encourage and support reporting.
- 14. 32 Chapter 2: Challenges for Managers © 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. Students choose countries they would like to work in, do business in, or visit, and find out all they can about the countries’ cultures, using Hofstede’s dimensions as guidelines. Then, students answer the seven questions provided in the exercise. Once the research is completed and the questions answered, students can be placed in small groups for discussion or the topic may be used as the basis for a full-class discussion on Hofstede’s cultural dimensions. 2.2 How Much Do You Know About Sexual Harassment? While somewhat ambiguous, sexual harassment is defined in the eyes of the beholder. This exercise offers ten True/False statements to students to determine how much they know about sexual harassment. Once students have completed the exercise, they can be placed in small groups for discussion of their results, followed by a class discussion about the topic, including many of the misconceptions that exist about sexual harassment in the workplace. This might also be a good opportunity to provide students with information about any educational and counseling resources available on campus with regard to sexual harassment. DIVERSITY DIALOGUE The U.S. Supreme Court: Another Good Ol’ Boy Ivy League Network? The U.S. Supreme Court is arguably the most diverse it has been in the history of the organization. Three of the nine justices are women and one is African American. However, eight of the nine justices have Ivy League educations. Some question whether this is represents an obsession with Harvard-Yale pedigrees. Only two of the nine justices come from states other than New York, New Jersey, or California, and none of the nine are Protestants. 1. If a recruitment source has been proven successful in the past for yielding highly qualified talent, what is the harm in continuing to draw from that source to recruit employees? A potential problem with continuing to recruit employees from the same source is the loss of diversity in ideas and approaches to issues. Drawing from a variety of sources can yield a greater variety of ideas as people from different backgrounds look at things differently. Of course, it is important to ensure that all new employees possess a similarly high level of quality. 2. Is having a diversity of backgrounds in organizations as important as having demographic diversity? Why or why not? Diversity of backgrounds has the strong potential to increase innovation and creativity within organizations. While demographic diversity may also do the same, the likelihood is less because people of different sexes, ages, cultures, etc. may have the same backgrounds. It is not the differences in demographics that bring about diversity of ideas, but the differences in background within those demographics that results in such diversity. CHAPTER SUMMARY
- 15. Chapter 2: Challenges for Managers 33 © 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. • To ensure that their organizations meet the competition, managers must tackle three important challenges: globalization, workforce diversity, and ethical behavior. • The five cultural differences that affect work-related attitudes are individualism versus collectivism, power distance, uncertainty avoidance, masculinity versus femininity, and time orientation. • Diversity encompasses gender, culture, personality, sexual orientation, religion, ability, social status, and a host of other differences. • Managers must take a proactive approach to managing diversity so that differences are valued and capitalized upon. • Three types of ethical theories include consequential theories, rule-based theories, and character theories. • Ethical dilemmas emerge for people at work in the areas of employee rights, sexual harassment, romantic involvements, organizational justice, whistle-blowing, and social responsibility. REVIEW QUESTIONS: SUGGESTED ANSWERS 1. What are Hofstede's five dimensions of cultural differences that affect work attitudes? Using these dimensions, describe the United States. The dimensions are polarized concepts of the following: (1) individualism/collectivism, (2) high power distance/low power distance, (3) high uncertainty avoidance/low uncertainty avoidance, (4) masculinity/femininity, and (5) long-term orientation/short-term orientation. The United States is extremely individualistic, tolerant of uncertainty, weak on power distance, masculine, and short term in regard to time orientation. 2. What are the primary sources of diversity in the U.S. workforce? The U.S. workforce is characterized by diversity of all types: culture, gender, age, personality, sexual orientation, religion, ability, and social status. 3. What are the potential benefits and problems of diversity? Diversity management may serve as a vehicle for attracting and retaining human resources, enhancing marketing efforts, promoting creativity and innovation, improving problem solving, and enhancing flexibility. Potential problems of diversity include resistance to change on the part of current employees, group cohesiveness may take longer to develop, and diversity may lead to communication problems, interpersonal conflict, and a slower decision-making process. 4. What is the reality of the glass ceiling? What would it take to change this reality? The reality of the glass ceiling is that women are not promoted to top management positions at the same rates as men and often are not paid equitably. Efforts to change this reality should
- 16. 34 Chapter 2: Challenges for Managers © 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. include training managers to be aware of biases and stereotypes, and other proactive stances toward the management of diversity. 5. What are some of the ethical challenges encountered in organizations? Employee theft, environmental issues, issues of comparable worth of employees across job categories, conflicts of interest at work, and sexual harassment are just some of the ethical challenges encountered in organizations. 6. Describe the difference between distributive and procedural justice. Distributive justice addresses the perceived fairness of outcomes, while procedural justice addresses the perceived fairness of procedures used to determine outcomes. DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS 1. How can managers be encouraged to develop global thinking? How can managers dispel stereotypes about other cultures? All managers can enhance their perspectives by participating in cross-cultural sensitivity workshops offered by organizations. Another way is to volunteer for cross-cultural task forces. Students have opportunities to meet and learn about other cultures on campus by attending the festivals and celebrations that are typically held each academic year for student groups. 2. Some people have argued that offshoring jobs is un-American and unethical. What do you think? Some students will argue that a company’s first responsibility is to protect its stockholders. Accordingly, if stockholders’ wealth can be increased by offshoring jobs, then doing so supports free enterprise and is therefore both ethical and American. Others will argue that offshoring hurts Americans and the American economy and is therefore both unethical and un-American. 3. How do some companies accommodate the differing needs of a diverse workforce? Workforce diversity is an important issue for organizations. The United States, as a melting pot nation, has always had a mix of individuals in its workforce. Diversity encompasses all forms of differences among individuals, including culture, gender, age, ability, religion, personality, social status, and sexual orientation. Educational systems within the workplace are needed to supply minority workers the skills necessary for success. Companies such as Motorola are already recognizing and meeting this need by focusing on basic skills training. Corporations that shatter the glass ceiling have several practices in common. Upper managers clearly demonstrate support for the advancement of women, often with a statement of
- 17. Chapter 2: Challenges for Managers 35 © 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. commitment issued by the CEO. Leaders incorporate practices into their diversity management programs to ensure that women perceive the organization as attractive. Women are represented on standing committees that address strategic business issues of importance to the company. Women are targeted for participation in executive education programs, and systems are in place for identifying women with high potential for advancement. One company that is succeeding in accommodating the baby busters is Patagonia, a manufacturer of products for outdoor enthusiasts. Although the company does not actively recruit twenty- year-olds, approximately 20 percent of Patagonia’s workers are in this age group because they are attracted to its products. Personal leaves of absence are also offered, generally unpaid, for as much as four months per year. This allows employees to take an extended summer break and prevents job burnout. Patagonia has taken into consideration the baby busters’ desire for more time for personal concerns and has incorporated that desire into the company. 4. What effects will the globalization of business have on a company's culture? How can an organization with a strong "made in America" identity compete in the global marketplace? Globalization will help in understanding needs of current constituents, as well as future clients. By learning about various cultures, organizational members are able to understand that other companies' missions and objectives are not vastly different from their own, and that they need not surrender their company loyalty to interact and negotiate with others. 5. Why is diversity such an important issue? Is the workforce more diverse today than in the past? The population is much more diverse than it has ever been. Whether the business is service- or product-oriented, the constituents and clients of the company must be understood in order to satisfy their needs. New ideas come from analyzing old problems differently. Diverse work- forces assist in seeing traditional problems in a new frame of reference. Today’s workforce is definitely more diverse than past workforces. 6. How does a manager strike a balance between encouraging employees to celebrate their own cultures and forming a single unified culture within the organization? This is a difficult balance. Any organization that is referenced for a strong culture can be countered with an example of rigidity in their practices and views. The key seems to be separating the personalities from the missions and objectives of the organization. 7. Do you agree with Hofstede's findings about U.S. culture? Other cultures? On what do you base your agreement or disagreement? This answer will vary by work experience and by cultural identity of the students. Often students will perpetuate stereotypes in their answers of other countries, yet rationalize the weaknesses of their own society. It is interesting to ask students from other cultures what their stereotypes were about the U.S. before arriving, and if those perceptions have been reinforced since being here.
- 18. 36 Chapter 2: Challenges for Managers © 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. One item worth mentioning to students is that Hofstede's study, although monumental, was completed almost 25 years ago. The study is currently being updated with cooperation from participating countries. 8. Select one of the three challenges (globalization, diversity, ethics) and write a brief position paper arguing for its importance to managers. Encourage students to use specific answers in support of their position. This exercise can generate interesting discussion in class as students present potentially different perspectives on why an issue is important to managers. 9. Find someone whose culture is different from your own. This could be a classmate or an international student at your university. Interview the person about his or her culture, using Hofstede’s dimensions. Also ask what you might need to know about doing business in that person’s culture, e.g., customs, etiquette. Be prepared to share this information in class. This provides an excellent opportunity for students to learn about another culture. During class discussion, have students share anything that surprised them in the information that they gathered. Discuss why they were surprised by this information. ETHICAL DILEMMA Darcy has a number of options open to her, including firing either Ryan or his boss, Natalie, or taking some less drastic measure against them, or taking no action at all. 1. Using consequential, rule-based, and character theories, evaluate Darcy’s options. Consequential – Firing Ryan will appease Hisa, please Natalie, and is likely to facilitate future business between the two firms. However, reprimanding Ryan and reassigning him may accomplish the same things. Firing or reprimanding Natalie might please Ryan, but is unlikely to appease Hisa or allow for the possibility of future business between the two firms. Doing nothing won’t make anyone happy and will almost certainly preclude future business dealings between the two firms. At the same time, firing Ryan may cause considerable problems among other project managers in the firm who could potentially find themselves being sent to a foreign country without adequate cultural training. Rule – Ryan is directly responsible for insulting the Japanese business people, and Natalie is indirectly responsible. If Darcy fires or reprimands Ryan, her action will most readily be seen by Hisa as the right thing to do. Firing or reprimanding Natalie may also be seen as right by Hisa, but the failure to fire/reprimand Ryan will probably be seen as wrong and is likely to outweigh the rightness of actions taken against Natalie. Doing nothing will almost certainly be seen as wrong by Hisa and his staff.
- 19. Chapter 2: Challenges for Managers 37 © 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. Character – If accountability is an important character trait for Darcy, she will probably feel compelled to fire or reprimand Ryan, or possibly Natalie, and not doing so will seem unethical to her. 2. What should Darcy do? Why? The best answer might be that Darcy should reprimand Ryan and reassign him back in the United States, and put in place a process to ensure that other project managers are not given foreign assignments without first receiving adequate cultural training. This course of action is likely to please Hisa and perhaps facilitate future business between the two firms. It is also likely to please Natalie, who believes Ryan is solely to blame for the current situation. Ryan will not be pleased, but will be better off than if he had lost his job altogether. This course of action seems to provide the greatest good for the greatest number of people, and is thus the most ethical course of action under the consequential theory. This same course of action observes the moral rule of accountability by holding Ryan accountable for his lack of sensitivity to cultural differences. In this way, this course of action represents an ethical option under the rule theory. Finally, holding Ryan accountable by reprimanding and reassigning him shows that Darcy possesses and acts in accordance with a character trait most people find positive. Moreover, putting in place a process to prevent similar situations from occurring in the future shows Darcy’s intention to improve the company’s way of doing business – another character trait most consider positive. Thus, this course of action represents the most ethical choice for Darcy under the character theory as well. EXPERIENTIAL EXERCISES 2.1 International Orientations The exercise immediately following the case is a difficult one. The students are asked to rate a potential expatriate and his spouse with very little information about the couple. The key to this exercise is to assess the reasons why they made the choices they did. Are they justified, given the information provided? What follow-up questions could the student ask to make more confident ratings? There are many behavioral details the students may attend to in order to make their ratings. The details, however, do not provide the full picture about the couple. Here are some points the students may list: Jonathan: He has never lived outside his hometown. He speaks a second language (i.e., German). He is familiar with some German ethnic traditions. OSI does not have a location in Germany. Jonathan is active and likes people. He organizes OSI’s softball and volleyball teams - both of which are American sports. Sue: She has studied English literature. She is a teacher by profession and a trainer at a city mission. At the mission, she interacts with people who are of a lower socioeconomic status.
- 20. 38 Chapter 2: Challenges for Managers © 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. Given that she volunteers her time, she is probably a person who likes to help others. Her interests include ethnic cooking, which indicates that she likes to try new foods. Discussion Questions: 1. This is an opportunity for the students to write questions that could map the international orientation of the couple. What types of questions are they asking? Some critical information they may include is a realistic preview of what the assignment may entail – allowing the couple to self-select out if they so choose. They could discuss the educational opportunities for the couple’s daughter and career opportunities for Sue. 2 and 3. Do the students expect that the Australian culture would be an easier transition than would the French or Japanese transfers? The “country difficulty,” that is, the extent to which the foreign country differs from one’s own, should be considered in all expatriate cases. The Australian transfer would have less of a language barrier than would the French or Japanese transfers. 4. There are many possible types of training. For example, the couple could listen to lectures, see films, read books, etc., about the host country. Likewise, the couple could take language and culture training, go visit the country for a short stay to “test the waters,” or talk to people who have been on expatriate assignments in the same country. 5. This gives the students an opportunity for some personal reflection on their own international orientations. 6. Dual-career couples will need to find placement for both members or make other arrangements for the spouse (e.g., the spouse could take a sabbatical from work, be transferred to the same country as well, take a break in his or her career). In an age when both men and women have careers, multinational companies must think of more creative ways to satisfy both the expatriate and his or her spouse. 7. In general, younger children have an easier time adapting to living abroad. Older children, especially teenagers, have a more difficult time adjusting. For example, they resent being moved so far from their friends. For this reason, multinational companies should allow the entire family (not just the expatriate) ample opportunity to self-select in or out of the foreign position. This needs to be decided as a family because any member may impact the success of the expatriate when he or she is abroad. International Orientation Scale The International Orientation Scale is an index of behaviors that are related to one’s acceptance of, and interest in, other cultures. From the criterion-related validity study conducted, it was found that International Orientation is related to how well individuals adjust to living abroad, and how much they will interact with host nationals. The International Orientation Scale has also been found to be related to tolerance of ambiguity, interpersonal orientation, optimism, personal
- 21. Chapter 2: Challenges for Managers 39 © 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. need for structure, and openness to challenges. The IOS was not related to self-monitoring or time urgency. There are two major limitations of the scale that should be addressed in class discussion. First, there are no established norms for the scale. For this reason, one cannot say, “he or she falls above or below normal” on the scale. As yet, the scale is only intended to guide one’s thinking about international orientation and to generate awareness for self-assessment. The second major limitation of the scale is that the items were generated with an American population. Likewise the reliability and validity evidence was established on an American population. The behaviors of Dimensions Two, Three, and Four were generated from experiences that Americans may either have or choose to have in their lives. As one can imagine, it would be inappropriate to assess (or even worse, interpret) non-Americans who have had little or no opportunity to have the types of experiences on the IOS. The items of Dimension One (i.e., International Attitudes) are reverse scored. The rest of the scores can be added and used for personal reflection. As mentioned in the previous paragraph, there are no established norms, such that the scores cannot indicate some specific deficit or talent the student has. The scores can be used as a means to think about one’s own international orientation (e.g., one’s answers to the self-assessment discussion questions.) *Experiential Exercise 2.1 is by Paula M. Caligiuri, Department of Psychology, Pennsylvania State University. Used with permission. In Dorothy Marcic and Sheila Puffer, Management International, West Publishing, 1994. 2.2 Ethical Dilemmas This is a simple, beginning overview of ethical issues. As students become more familiar with ethical issues, these could be revisited for elaboration. This exercise serves as an initial icebreaker, beginning orientation for group work, and an introduction to ethical issues. After discussing the questions provided, the five themes of the book could be discussed in terms of ethical issues related to these new challenges. Ask students to provide examples of ethical issues related to: technology, quality, workforce diversity, and globalization. You may want to help begin the conversation with the following issues: security and privacy with technology, promotion of a lesser qualified minority to meet requirements, providing entertainment for potential clients from another country, and altering the information for the Malcolm Baldrige Award. ALTERNATIVE EXPERIENTIAL EXERCISE Nutty Buddy: An Exercise in Individual Differences This exercise requires a bag of peanuts-in-the-shell. Students do not need an additional handout to complete this exercise. This exercise may be used as a team-builder or an icebreaker for the beginning of the semester. The time necessary for the exercise and debriefing is about twenty
- 22. 40 Chapter 2: Challenges for Managers © 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. minutes and is ideal for group sizes of 10-25, although it easily accommodates larger groups as well. (1) The instructor rummages through a bag of peanuts-in-the-shell, choosing peanuts most similar in shape and size. Peanuts having clearly evident defining characteristics, such as split shell, an attached stem, discoloration, three nuts rather than two, etc., should be discarded. The selection process should yield approximately one-fourth more peanuts than number of participants. The qualifying peanuts are place in a large bowl that is then passed to each participant, who is asked to choose a peanut and to wait for additional instructions. (2) Each person has one minute to get to know his or her peanut. Students cannot mark on their peanut, open it, or alter it in any way. They may sniff it, talk to it, lick it, fondle it, argue with it, confess to it - in short, whatever will aid them in getting to know it better. (3) The peanuts are returned to the bowl along with those extra peanuts that had not been selected. The peanuts are then emptied onto a table or in the middle of the floor and participants are instructed to "find your peanut." (4) If anyone cannot locate his or her peanut, he or she is invited to check everyone else's peanut and to negotiate ownership. (A short intervention by the instructor on the vagaries of "peanut napping" may be appropriate here.) Instructor's Notes This exercise is an adaptation from the old Gestalt-learning exercise, "know your lemon," to help participants become more aware of nonverbal cues in perception. This exercise illustrates issues of individual differences and diversity in organizational life, as well as stereotypes and prejudice. The following excerpt is a typical debriefing/application sequence of questions and discussion items. The purpose is to move students in a logical manner to a clearer, gut-level understanding and appreciation of differences among people and between themselves and others. (1) Ask students to analyze their peanuts carefully. How are they able to recognize it? What distinguishes it? How confident are you that this peanut is your peanut? Amazingly, typically 90+% of participants are absolutely confident. (2) Next, ask students to compare their peanut with a neighbor's peanut. How are they similar? How are they different? Is one peanut more identifiable than another? After all, kids have been comparing their peanuts for decades, maybe centuries. This question allows for a short discussion on surface traits versus substantive traits, and observable traits versus implied traits also works well here. Some people possess characteristics that make them more salient as employees, leaders, influencers, etc.
- 23. Chapter 2: Challenges for Managers 41 © 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. (3) Have students introduce their peanut to the other person and the other person's peanut should be introduced to them. Get to know their peanut, get them to know your peanut. When Peter tells you about Paul, you often learn more about Peter than you do Paul. Sometimes it is easier for people to talk through another person than to be direct themselves. This characteristic has been used successfully in puppet therapy with children and in psychodrama with adults, in order to help clients more honestly express themselves. (4) Ask students if anyone wants to trade peanuts, because they like someone else's peanut butter, or better. (This is known in Freudian psychology as peanuts-envy.) Point out how attached we can get to something that is ours in such a short time. What might that tendency say about us as people? Themes of possessiveness, intolerance, and even attribution work well here. (5) Ask students to relay what their peanut would say about them if it could talk. (It might say that they are tough nuts to crack, but what else might it say?) Depending on the previous discussion, the facilitator may or may not want to encourage such self-disclosure. Part of the debriefing hinges upon comments by the students. In fact, the instructor should be prepared to follow-up virtually any comment or side-comment with discussion. Most participants report that the experience is fun, energizing, light-hearted, and even charming. A brief warning before proceeding with debriefing: this exercise lends itself to words that are highly conducive to short gags and double-entendres. These flights into marginal humor provide part of the fun of this exercise and can be promoted or suppressed according to the composition of the group. As can be seen from the questions, the discussion can unfold in a variety of directions over a broad range of issues. The richness and learning possible from this exercise often depends on the risk-taking level of the participants and the skill of the instructor. Even so, the exercise is almost goof-proof. One interesting phenomenon often occurs, especially in extended workshops. Participants often carry their peanut around with them, refer back to it, make jokes including it, and truly personalize it. A few people eat their peanuts, much to the chagrin (and even disgust) of others. For most participants, the peanut becomes a "Linus' blanket." *Christopher Taylor, Organizational Behavior Teaching Review, Vol. 13, (4) 1988-89, 123-124. Used with permission. EXTRA EXPERIENTIAL EXERCISES
- 24. 42 Chapter 2: Challenges for Managers © 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. The following alternative exercises to supplement the material in the textbook can be obtained from: Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and Cases, 6th Ed. South-Western College Publishing Company, 2001. Personality Assessment: Jung’s Typology. p. 11-16. Time: 15-20 minutes Purpose: To determine personality according to Jung’s Personality Typology. The Owl: Cross-Cultural Sensitivity. p. 253. Time: 50 minutes or more Purpose: To experience and understand how cultural values influence behavior and relationships. Ethics in International Business. p. 261-263. Time: 50 minutes. Purpose: To examine ethical foundations of bribery in an international setting. TAKE 2 BIZ FLIX: Lost in Translation PPT Slide 28 Organizations Discussed: Tokyo Train Station Jet lag conspires with culture shock to force the meeting of Charlotte (Scarlett Johansson) and Bob Harris (Bill Murray). Neither can sleep after their Tokyo arrival. They meet in their luxury hotel’s bar, forging an enduring relationship as they experience Tokyo’s wonders, strangeness, and complexity. Based on director Sophia Coppola’s Academy Award winning screenplay, this film was shot entirely on location in Japan. It offers extraordinary views of various parts of Japanese culture that are not available to you without a visit. Cross-Cultural Observations: Visiting Japan This sequence is an edited composite taken from different parts of the film. It shows selected aspects of Tokyo and Kyoto, Japan. Charlotte has her first experience with the complex and busy Tokyo train system. She later takes the train to Kyoto, Japan’s original capital city for more than ten centuries. What to Watch for and Ask Yourself PPT Slide 27 1. While watching this sequence, pretend you have arrived in Tokyo and you are experiencing what you are seeing. Do you understand everything you see? The complexity of the multilevel Tokyo Train Station overwhelms Charlotte. Notice her confused look as she tries to understand the subway map. She cannot read any signs in Japanese and none of the signs are in English. Your students, except those from Japan, should have an equally bewildering experience while viewing this scene. If your class has students from Japan, you can ask them to comment on the complexity of the station.
- 25. Chapter 2: Challenges for Managers 43 © 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. 2. Is Charlotte bewildered by her experiences? Is she experiencing some culture shock? Charlotte not only has bewildering experiences in the station but also with aspects of Japanese culture. She watches the young bride-to-be and her party walk toward the temple wearing clothing unfamiliar to her. She also experiences Kyoto’s exotic beauty. 3. What aspects of Japanese culture appear in this sequence? What do you see as important values of Japanese culture? Review the earlier section, “Understanding Cultural Differences,” to gain some insights about these questions. The role of religion in Japanese culture comes through clearly in this scene. Charlotte observes monks praying in a Tokyo temple. When she gets to Kyoto, she again sees religious observance at a temple. She participates in this cultural tradition by buying and placing a prayer sheet on the branch of a bush. WORKPLACE VIDEO: Theo Chocolate Video Case Synopsis As a boy growing up just hours from Hershey, Pennsylvania, Joe Whinney had a love of chocolate. In his teen years, while on a conservation trip, Whinney visited cocoa bean farms in the rainforests of Central America. The experience was life changing. Motivated by his dual love of chocolate and the environment, Whinney dreamed of building the first organic fair trade chocolate factory in the United States. In 1994, he pioneered the import of organic cocoa beans to the United States, and in 2006, Whinney’s company, Theo Chocolate, became the first and only sustainable chocolate maker in the nation. Unlike leading candy manufacturers that deliver sweets in high volume, Theo produces award winning organic chocolate in small batches. The company boasts a bean-to-bar production method that uses cocoa beans grown without pesticides, and without harm to farmers or the environment. The result is a creamy, delectable milk chocolate bar that is as good for the ecosystem as it is for the palate. Like other social entrepreneurs, Joe Whinney is a man with a mission. “After my experience in Central America, I saw that social and environmental degradation were really business problems, and I wanted to help save the world by making chocolate.” The Philadelphia native adds that his business ethic is informed by the belief that all life on the planet is interconnected. “We need consumers to be healthy and well, our farmers to be healthy and well, and the entire planet to be healthy and well in order for us to be successful and profitable,” Whinney states. At Theo Chocolate, the terms organic and fair trade are no mere marketing buzzwords. Organic means that the cocoa beans are grown naturally and harvested in ways that preserve habitats and the balance of the ecosystem; fair trade is an economic business approach that ensures equity between buyers and growers in developing nations, as well as fair treatment of workers.
- 26. 44 Chapter 2: Challenges for Managers © 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. Leaders at Theo Chocolate are proud of the company’s status as a certified fair trade company. Debra Music, the vice-president of sales and a self-proclaimed chocoholic, claims that Theo is an example of “enlightened capitalism.” According to Music, Theo’s competitive advantage lies in its knack for combining artisan chocolate-making with sustainable business practices. “It's about doing good while doing well,” Music says. Discussion Questions and Solutions 1. What practices at Theo Chocolate illustrate the concept of social responsibility? Corporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. For Theo Chocolate, social responsibility centers on protecting the environment and the farmers who produce cocoa beans. Socially responsible practices at Theo Chocolate include the following: sourcing ingredients that are grown organically without pesticides, ensuring that growers earn a living wage and have access to education for their families, promoting habitat preservation and reforestation in cocoa growing regions, using green energy sources to power the chocolate factory, purchasing sustainable packaging, and educating the public about social and environmental accountability. To implement a philosophy of sustainability, managers at Theo Chocolate weave environmental and social concerns into strategic decisions and measure progress toward sustainability goals. 2. What does Vice President Debra Music mean when she says that Theo is a “triple bottom line” company? What happens if Theo’s social objectives conflict with the organization’s economic objectives? In the video, Debra Music says, “We see ourselves as a triple bottom line company, which means we value people, the planet, and profit in equal measure. None of those things suffer at the expense of something else.” The triple bottom line is a green corporate performance measure that evaluates a company’s success in terms of “people, planet, and profits.” Developed by corporate social responsibility leader John Elkington, the triple bottom line concept differs from the traditional bottom line in that it attempts to judge a company’s success by three measures, instead of by the singular measure of profitability. Despite the idealism inherent in the triple bottom line, every company’s foundational social responsibility is to be profitable. Without economic sustainability, all other concerns of the company end in bankruptcy. For companies like Theo, the challenge is to find ways to effectively align social and economic objectives. Social entrepreneurs usually attempt to organize strategic plans in such a way that the pursuit of profit simultaneously achieves the firm’s social objectives. 3. What does fair trade mean to the leaders at Theo, and how does this relate to workers’ rights and organizational justice? Fair trade is a relationship between producers, sellers, and consumers that is based on the principle of equity. Joe Whinney says that fair trade is important in the chocolate industry
- 27. Chapter 2: Challenges for Managers 45 © 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. because cocoa bean growers have often not received adequate pay; some have even been subject to slave labor. The social benefits of fair trade are far reaching. In particular, fair trade enables farmers to take their livelihoods to the next level by blending the benefits of modern techniques with artisan practices. Theo Chocolate’s dedication to fair trade shows dedication to two aspects of organizational justice: distributive justice, or the fairness of outcomes individuals receive, and procedural justice, or the fairness of the process by which outcomes are allocated. Whinney states: “What we're really doing is trying to give an alternative to practices that have contributed to social, economic, and environmental degradation. The average cocoa farmer earns less than a dollar a day for their entire family, and they have very little options in cocoa growing regions to grow other cash crops—as a result, they are beholden to an industry that is very oppressive. The cocoa price has been so low compared to the cost of their production that in West Africa cocoa farmers have had to resort to slavery.” CASE SOLULTION: Netflix: Push and Pushback in Streaming Video Linkage of Case to Chapter Material The case focuses on the efforts of Netflix to become a key player in the emerging video streaming market. Reed Hastings, the Netflix CEO, believes that Internet video streaming will substantially displace online DVD rentals; he forecasts that as soon as mid-2013, “the business that generates most of Netflix’s revenue today [mid-2009] will begin to decline, as DVDs delivered by mail steadily lose ground to movies sent straight over the Internet.” Consequently, Hastings is “quickly trying to shift Netflix’s business⎯seeking to make more videos available online and cutting deals with electronics makers so consumers can play those movies on television sets.” The Netflix business transformation is occurring within the context of four major managerial challenges. First, Netflix is entering into deals with manufacturers of various video devices to deploy technology that enables user-friendly, ease-of-access to the Netflix streaming service. Second, Netflix faces growing competition from businesses such as Amazon.com and Google, Inc. in the video streaming market as all three companies race to dominate the digital delivery of TV shows and films, thereby encroaching on turf traditionally controlled by cable- and satellite- television providers. Third, Netflix is becoming involved in developing original programming; this threatens the pay TV industry, which is a key source of revenue for major media companies. The major media companies, not particularly happy with this Netflix initiative, are pushing back to various degrees by restricting Netflix’s access to their programming. Fourth, studios are increasing the fees they charge Netflix for access to the studios’ content. This fee increase is occurring because studio executives believe that Netflix’s pricing system is devaluing the studios’ content; at least one studio executive characterizes Netflix as “cannibalistic.” The four specific managerial challenges faced by Netflix can be related to the three generic managerial challenges⎯globalization, managing diversity, and ethics⎯that are discussed in Chapter 2. Globalizing the firm’s operations to compete in the global village challenges managers to deal with an evolving and changing global marketplace and to deal with the cultural differences and sensitivities that are inherent in
- 28. 46 Chapter 2: Challenges for Managers © 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. the global marketplace. Leading a diverse workforce challenges managers to deal with the issues associated with all forms of individual differences including gender, age, sexual orientation, social status, religion, ability, personality, and culture. Encouraging ethics, character, and personal integrity should be involved in all managerial decisions and actions, thereby challenging people to do what is fair, right, and just in dealing with the organization’s various stakeholders. Suggested Answers for Discussion Questions 1. Briefly describe each of the four major challenges that Netflix faces. Which of these four challenges will be the most difficult to address? Why? Which challenge will be the easiest to address? Why? The four major challenges facing Netflix are: • Netflix is entering into deals with manufacturers of various video devices to deploy technology that enables user-friendly, ease-of-access to the Netflix streaming service. • Netflix faces growing competition from businesses such as Amazon.com and Google, Inc. in the video streaming market as all three companies race to dominate the digital delivery of TV shows and films, thereby encroaching on turf traditionally controlled by cable- and satellite-television providers. • Netflix is becoming involved in developing original programming; this threatens the pay TV industry, which is key source of revenue for major media companies. The major media companies, not particularly happy with this Netflix initiative, are pushing back to various degrees by restricting Netflix’s access to their programming. • Studios are increasing the fees they charge Netflix for access to the studios’ content. This fee increase is occurring because studio executives believe that Netflix’s pricing system is devaluing the studios’ content; at least one studio executive characterizes Netflix as “cannibalistic.” Paying the increased fees is a challenge that should not be extraordinarily difficult to address. The higher fees could necessitate an increase in Netflix’s own price structure, which, in turn, could have an effect on demand for its distribution services. Deploying technology that enables user-friendly, ease-of-access to the Netflix streaming service is another challenge that should be relatively easy to address. Netflix has already negotiated some deals with manufacturers to deploy this technology. Netflix should be able to readily continue in this direction. The other two challenges would be much more difficult to address. However, dealing with the growing competition in the video streaming market would not be as difficult as developing original programming. Netflix would need to invest considerable resources to maintain a dominant position in the video streaming market, but video streaming is already an area of Netflix expertise. Netflix’s development of original programming requires a major investment and is a major effort in a quite different direction from distributing video either through DVD rental or online streaming. 2. How do each of the four major challenges faced by Netflix relate to the generic managerial challenges of dealing with globalization, diversity, and ethics? The three generic managerial challenges are globalization, managing diversity, and ethics. Globalizing the firm’s operations to compete in the global village challenges managers to deal
- 29. Chapter 2: Challenges for Managers 47 © 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. with an evolving and changing global marketplace and to deal with the cultural differences and sensitivities that are inherent in the global marketplace. Leading a diverse workforce challenges managers to deal with the issues associated with all forms of individual differences including gender, age, sexual orientation, social status, religion, ability, personality, and culture. Encouraging ethics, character, and personal integrity should be involved in all managerial decisions and actions, thereby challenging people to do what is fair, right, and just in dealing with the organization’s various stakeholders. Globalization, managing diversity, and ethics are linked to all of the challenges that confront Netflix; some links are more obvious than others. Technology deployment is occurring with manufacturers around the world. The growing competition in the video streaming market is going global as well; and the development of original programming in competition with major media companies transcends the borders of the United States. The fee increases to Netflix are not just for content produced in America, but for all of the studios’ content⎯no matter where it is produced. Diversity is, by definition, inherent in any workforce and is therefore relevant to any challenge that Netflix faces. Moreover, with Netflix’s global connections, the need to recognize and respond effectively to diversity issues is ever present. Finally, every managerial challenge has ethical implications and every response to every managerial challenge should be infused with ethics, character, and personal integrity. 3. Explain how Netflix already has or might be able to convert the four major challenges into meaningful opportunities for the company. Netflix is addressing the technology deployment challenge head-on. “Among the large and expanding base of devices streaming from Netflix are Microsoft’s Xbox 360, Nintendo’s Wii and Sony’s PS3 consoles; an array of Blu-ray disc players, Internet-connected TVs, home theater systems, digital video recorders and Internet video players; Apple’s iPhone, iPad and iPod touch, as well as Apple TV and Google TV.” Netflix needs to continue in this direction. To meet the competition, Netflix must develop ways of attracting and retaining subscribers. Netflix needs to develop its brand as the preferred video streaming alternative. As a side note, Netflix’s ill-fated decision in mid-2011 to alter its subscription pricing structure is not the way to develop a market advantage over the competition. Perhaps Netflix should cease its pursuit of original programming. This would enable the company to concentrate on its core business of distributing digital media rather than stretching itself thin by getting into a different, though related, business. In addition, such an action could help in repairing relationships with the major studios and perhaps help in resolving the fees issue. 4. What advice would you give to Reed Hastings regarding handling the pushback from competitors and other affected businesses? Perhaps the best advice reflects the suggestion made in the last paragraph of the suggested response to the preceding question. In short, Netflix needs to focus on its core competency, which is the distribution of digital media, and not get distracted into pursuing other related
- 30. 48 Chapter 2: Challenges for Managers © 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. businesses. Netflix also needs to work vigorously to repair damaged relationships with content suppliers. The students should be encouraged to be creative as well as practical in providing suggestion as to what course of action Netflix could or should pursue. Of course, the students should be pushed to think through and logically justify their suggested course(s) of action. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. COHESION CASE: DonorsChoose.org: An Online Charity Helps Public Education in America (A) 1. What lessons about leading people and managing organizations are provided by DonorsChoose.org and its founder and CEO, Charles Best? Charles Best was very astute in identifying an important challenge that was not being addressed effectively by existing organizations or methods. According to Best, “[t]eachers spend an insane amount of their own money on supplies, but mostly we just saw our students going without the resources that they needed to learn.” Best sensed that this was a challenge that many people could identify with and would have an interest in helping to solve. He devised an innovative way in which this challenge could be addressed by bringing together the people who wanted to help provide resources with the public educators who needed the resources. “In a move that redefines traditional philanthropy, DonorsChoose uses the Internet to connect teachers directly to donors. Teachers who once spent their own money for supplies, or simply went without, can now turn to donor support to roll out creative lesson plans. Meanwhile, rather than writing checks blindly, donors of any scale can decide which projects they wish to support.” Identifying a challenge, formulating a vision, and getting people to vigorously support that vision are valuable lessons that others can learn from Charles Best. Further, Best’s approach is instructive with regard to a person being willing to take a considerable risk to pursue a dream of making a difference in society. Moreover, Best is a model of enthusiasm for and commitment to achieving significant goals. 2. What do you like about DonorsChoose.org? What do you dislike about DonorsChoose.org? Explain your answer. This question provides students with the opportunity to explore their attitudes and beliefs about involvement with a not-for-profit organization that managerially operates much like a for-profit organization with respect to functions such as planning, organizing, and controlling. The students should be encouraged to consider the value of working for a not-for-profit organization, and what the personal advantages and disadvantages would be of doing so. The reasons underlying their expressed attitudes and beliefs should be discussed as well.
- 31. Chapter 2: Challenges for Managers 49 © 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. 3. What challenges did DonorsChoose face as a start-up organization? As a social studies teacher at Wings Academy, a public charter high school in the Bronx, New York City, Charles Best became aware that “[t]eachers spend an insane amount of their own money on supplies, but mostly we just saw our students going without the resources that they needed to learn.” Best says he “figured that there were people…who wanted to improve public schools but were skeptical about writing a check for $100 and not seeing where their money was going.” But how to connect the people who might want to make financial contributions with the teachers who could use those resources? Therein resides the most fundamental challenge confronting Charles Best. He had to devise a system that effectively and efficiently connected donors and teachers in need. Charles Best also faced the challenge of persuading teachers to submit requests to the DonorsChoose Web site. Additionally, he faced the challenge of generating sufficient financial resources to get his “brainstorm” operational to the point that it could attract donors⎯and to that end he drew on his own funds. 4. What challenges does DonorsChoose face in today’s environment? DonorsChoose is committed to an ambitious mission and vision. Its mission: “DonorsChoose.org engages the public in public schools by giving people a simple, accountable and personal way to address educational inequity.” Its vision: “We envision a nation where children in every community have the tools and experiences needed for an excellent education.” The vigorous pursuit of this vision and mission invokes the challenges that DonorsChoose currently faces. A fundamental challenge is the growing need for financial support of public education in American in light of the funding reductions that have occurred in many states due to the Great Recession, declining state revenues, and multiple pressures on limited governmental resources. Another current challenge concerns maintaining and enhancing the quality of public education when there are numerous signs that quality is being compromised in many public school systems throughout the nation. A third current challenge is the need to grow the donor base in order to accommodate the growing needs for funding projects. 5. How do the challenges that you discussed in questions 3 and 4 relate to the management challenges – globalization; leading a diverse workforce; and ethics, character, and personal integrity⎯that are discussed in the text? Globalization is related to the specific challenges that DonorsChoose has faced in the past and is currently facing in that public education in America is falling behind other nations in preparing its youth to function well in an increasing complex and competitive world. Because of these global pressures America must improve the quality of the education⎯particularly in science and mathematics⎯provided to its youth. DonorsChoose can help teachers to address this performance gap. Leading a diverse workforce is related to all of the past and current challenges facing DonorsChoose. DonorsChoose has a diverse workforce to manage. Plus it encounters diversity among the teachers submitting project requests and among the donors contributing money to fund projects, not to mention the diversity that exists among the American students who it is
- 32. 50 Chapter 2: Challenges for Managers © 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. trying to benefit. Ethics, character, and personal integrity is infused throughout the DonorsChoose organization. This is evident in the process by which DonorsChoose operates, the role model that Charles Best is, and the behavioral expectations for DonorsChoose staffers. 6. DonorsChoose describes its mission as follows: “DonorsChoose.org engages the public in public schools by giving people a simple, accountable and personal way to address educational inequity.” Its vision is articulated as follows: “We envision a nation where children in every community have the tools and experiences needed for an excellent education.” How does this mission and vision guide DonorsChoose in addressing the challenges that you discussed in the preceding three questions? The vision and mission of DonorsChoose guides all that is does in responding to its challenges and in conducting its ongoing operations. The DonorsChoose mission is supported by a strategy of “harness[ing] the Internet to connect teachers with donors.” Charles Best’s long-term hope is that people who become involved with DonorsChoose will realize the magnitude of public school underfunding, and as a result “will become grass-roots advocates for steering more resources to schools.” The day-to-day operations of DonorsChoose also indicate how it is responding to the aforementioned challenges. Specifically, the operating paradigm is as follows: • “[P]ublic school teachers from every corner of America post classroom project requests on DonorsChoose.org. Requests range from pencils for a poetry writing unit, to violins for a school recital, to microscope slides for a biology class.” • “Then, you can browse project requests and give any amount to the one that inspires you. Once a project reaches its funding goal, we deliver the materials to the school.” • “You’ll get photos of your project taking place, a thank-you letter from the teacher, and a cost report showing how each dollar was spent. If you give over $100, you’ll also receive hand-written thank-you letters from the students.” • “At DonorsChoose.org, you can give as little as $1 and get the same level of choice, transparency, and feedback that is traditionally reserved for someone who gives millions. We call it citizen philanthropy.” 7. What particular aspects of DonorsChoose.org would other organizations⎯either nonprofit or for-profit organizations⎯do well to emulate? Explain your answer. Possible aspects to emulate would include clearly understanding the challenges the organization faces, being adept at finding ways of addressing those challenges, establishing a clear vision and mission, and working vigorously to fulfill that vision and mission. The students should be encouraged to identify other possible aspects for emulation.
- 33. Chapter 2: Challenges for Managers 51 © 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. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University.
- 34. Other documents randomly have different content
- 35. moderate measures had been rendered more difficult, by the threatening attitude assumed by different parties, and the prevalence of excited opinions armed with sufficient power to make them dangerous. Is no credit due to the wisdom which was the means of preserving peace? the forethought and moderation which averted the evil tendency of party spirit? Count Pozzo was loaded with compliments and expressions of gratitude, for he had probably saved Europe from a general war by not quitting Paris. The Polish insurrection was put down, after which all the forces of Russia were available against any foreign interference; and the ambassador who had safely passed through the dangerous crisis, had great cause to congratulate himself upon results, which left the cabinet of St. Petersburg at liberty to decide at once upon the fate of Poland. That country received no assistance from France; the interference of the French Chambers was limited to some barren protests in answer to which Pozzo di Borgo represented that Poland had been the aggressor, having torn asunder the bands of the constitution by her revolt, and that the Propaganda alone would be to blame should Poland now cease entirely to exist: that great efforts had been made since the year 1815 to overcome the natural antipathy entertained by the Russians for the Poles, which was as strong as the dislike existing between the Jews and Christians in Poland. What exertion and anxiety it had cost the generous heart of Alexander to give a national constitution to Poland! it was a subject on which he had consulted rather his feelings than his understanding, and the old Russian nobility had never forgiven his conduct on the occasion. In the midst of all these serious political occurrences, of the disturbances in Paris, the various plots both foreign and domestic, the Russian campaign against Constantinople, and the imperative,—I might almost say, the capricious orders of his court, Count Pozzo always preserved the character of a man of impartial moderation, and of a skilful statesman who conceives and works out a system, without giving way to any of the crotchets formed by prince or courtier capable of endangering more serious interests. He who had resisted the Emperor Alexander by expressing his opinion with
- 36. firmness, always continued to refuse obedience to instructions irreconcilable with the rules of general policy, which form the basis and regulate the relations between one state and another. Such was the constant tenor of his despatches after the year 1830. He was convinced that France, to the rest of Europe must serve as a principle either of order or disorder, possessing either way very great influence; and to all requisitions which did not tally with these ideas, he replied by writing to his court, "You have other agents besides me for affairs of this nature; I am only fit for moderate and conciliatory measures." When the Turkish war was concluded, the ambassador received orders to proceed to London for the purpose of forming a just estimate of the state of affairs, and the position of the Whigs and Tories; having been successful in his endeavours to prevent France from taking part against Russia, it now became equally essential to sound the Tories, and become acquainted with the bent of their views, should parliament and the march of public opinion again place them at the head of affairs. The official ambassador from Russia to London was Prince Lieven, or rather it was said Princess Lieven, a woman of great ability, whose brilliant assemblies were the favourite resort of the Tory nobility, and the centre of political intelligence. Count Pozzo had very little communication with the Whig ministry; his acquaintance was principally with the Duke of Wellington and the Earl of Aberdeen, who was minister for foreign affairs, for the Tory interest; for that party, although out of office, still retained some representatives among the ministry. The conversations between the Duke and Pozzo di Borgo, were an interchange of recollections and hopes, together with the means of regulating the probabilities of the return of the Tories into the ministry. It was already in contemplation, although public opinion had strongly opposed a premature attempt made by the Duke of Wellington to resume the direction of affairs. In political life it is a mark of great ability to know how to bide one's time. Still a kind of slight was about to cloud the life of Count Pozzo. Hitherto whatever missions might have been assigned to him
- 37. exclusive of his official functions in Paris, he had always retained the title of ambassador to the court of France, and his tastes and inclinations led him to consider that country as his own. When he was despatched to Madrid, and more recently to London, his sovereign had not withdrawn his credentials, his post was still Paris: what was the reason a different course of proceeding took place upon this occasion, and that he received the title of ambassador extraordinary to his Britannic Majesty? It would be in vain to deny that it was a mark of his being out of favour, nor was this the only occasion upon which such had been the case in the course of his life. His disposition was not one that would bend to caprices or submit to demands which did not concern him. I have heard him complain of being watched by a number of special envoys, whose employments did not fall within the range of the regular communications between two governments, two nations naturally formed to esteem each other. This somewhat haughty disposition, led to the ambassador's loss of favour; it was however covered by a purple robe, by the appointment of ambassador to London. Count Nesselrode entered into an explanation of the duties connected with the ambassador's new appointment. It was intended he should use all his influence to support the menaced Tory interest; his intimacy with the Duke of Wellington was well known, but it was considered that a merely provisional title, would not be sufficient to confer the necessary éclat and importance upon the Russian ambassador, for which reason he was to receive the definitive and official appointment. As soon as the mission should be accomplished, when the Duke of Wellington should have been dissuaded from his inclination to unite with Austria on the Eastern question, and the Tories have been actively supported, Pozzo di Borgo was to be reinstated in his appointment in Paris, and permitted to follow his tastes and habitual pursuits in the country he considered as his home. This despatch afforded some consolation to the ambassador, who was affected by a feeling of sadness in breaking the ties that bound him to a society in which he had so many intimate friends, but in these mournful separations he was now supported by the
- 38. hope of a speedy return. Every thing around was dear to him, even the palace whose gradual embellishment he had taken pleasure in watching; the verdure of the gardens, the shade of exotic trees, the fragrant flowers, the vast and well-chosen library of Italian authors, whose works he was so fond of reciting from memory, and the views of Corsica suspended in his apartments, the gulf of Ajaccio which recalled the early youth of the friend of Paoli. When admitted to any degree of intimacy with Count Pozzo, you were particularly struck with the energy of his manners and his vigorous mode of expression; his handsome though swarthy countenance was shaded by greyish hair, always arranged in a picturesque manner, as Gerard has represented him in one of his admirable portraits. His conversation was at first reserved and guarded, but gradually became animated and full of imagery and wit which sparkled through a slightly Corsican accent; his memory resembled a vast bazaar, full of the varied recollections of a long and troubled life. If you were desirous of seeing the mind of Count Pozzo in its full glory, you had only to speak to him of Corsica, ask him questions concerning the history of Paoli, or turn the conversation upon the national republic established in the island, and the Consulta which chose him as secretary to the government, and then you would be struck with the animation of his voice and gestures; his piercing eyes seemed to seek in your mind the emotions that glowed in his own, till you actually felt as if present with him at the assembly where the Corsican people proclaimed their independence. He did not indulge in anecdotes to the degree Talleyrand used to do in his long evening conversations, but he was more serious and truthful in his reminiscences, and did not play with facts, but always took a serious view of them. Without the habitual tact that characterised him, he might have been drawn into further confessions, for he was scarcely master of himself when speaking of his early political life. He was a man whose memory was so full of facts, that they oozed out at every pore; a spirit I took great delight in consulting, because the great struggle of Europe against Napoleon
- 39. was shadowed forth by him, in a very different point of view from that assumed by the bad pamphlets of the imperial school. I saw him depart for London in the full enjoyment of his powerful faculties, retaining his eagle glance, the elevated expression of his noble brow, and his bright searching eyes, while his mouth was expressive of mildness and goodness. But he was evidently out of spirits, and he quitted Paris with the idea that some misfortune would occur before he should see it again. In London he transacted the affairs of his government with the same devotion and activity as ever, but he took no pleasure in his employment; the friendship of the Duke of Wellington, his companion in more than one battle-field, was his only enjoyment; they passed whole days together at Apsley House talking over the affairs of Europe, and their recollections; speaking, the one of the caprice of the people who broke his windows, the other of the ingratitude of a court incapable of comprehending that order, and peace with a powerful nation like France, are essential to the tranquillity of Europe. Weary of so long a diplomatic career, he had at last obtained permission to seek the retirement he so ardently coveted, when a letter from the Emperor apprised him of the intended journey of a Czarewitch to London, and requested him to act as a guide to the young prince during his stay in England. This involved a degree of responsibility and of moral fatigue which shortened the life of Count Pozzo. How would the heir to the Russian throne be received by the English nation, so capricious both in their affections and their hatred? The trial terminated happily, but it may be safely asserted that the last remains of strength possessed by the ambassador sunk under the exertion. I saw him on his return to Paris: what a sad alteration from his former self! and what mere worms we are in the hand of God, who disposes at His pleasure of the mind and intellects of man! He no longer found any enjoyment or ease except in the society of his nephew, Count Pozzo di Borgo, and his amiable niece, a daughter of the noble house of Crillon. Was the old ambassador desirous of
- 40. shewing that he had never ceased to be a Frenchman, by quartering his Corsican coat-of-arms with the escutcheon and honourable devices borne by the brother-in-arms of Henry IV.?
- 41. M. PASQUIER. The administration of the Empire was, generally speaking, strong, full of energy and unity of purpose; it was composed of two elements, the ruins of the republican party now rallied around the dictatorship of Napoleon, and became submissive under his iron rule, such as Treilhard, Merlin, and Thibaudeau, and the pure and elevated remains of the old monarchical school, like Molé, De Fontanes, and De Narbonne. According to the custom observed in all governments possessed of any portion of strength and intelligence, Buonaparte collected around himself all the persons whose names were honourably connected with past events, or exercised any influence over the present or the past; he indulged neither in fear nor repugnance, because he had perfect confidence in his own power of restraining and managing every thing. Before the revolution of 1789, some parliamentary families existed, who transmitted the highest magisterial offices from one generation to another, forming a sanctuary in which public morals, duties, and learning, were preserved and perpetuated. There were no doubt some little party prejudices among them, together with a tendency towards the feelings of the patricians of Rome; considering themselves to have succeeded to the assemblies of the states-general. But though the parliament sometimes threw difficulties in the way of the executive government, still they maintained the spirit of liberty and probity through the lapse of ages, and people considered them as a political
- 42. guarantee, upon occasions when a degree of confusion and disorder prevailed in the constitution of the country. The family of the Pasquiers were descended from Etienne Pasquier, a man of great talent and erudition, author of a celebrated work entitled "Recherches sur la France." His character was very remarkable from the versatility of his talents and occupations; he wrote clever verses, and displayed the greatest ability in the important correspondence in which he was engaged, and during the troubles of the League, he strove to find a middle course from whence he might offer himself as a timid mediator among the opposing parties. In my writings upon the events of the sixteenth century, I have often spoken of that good Etienne Pasquier, with his ingenious talents and the exquisite tact he displayed in the evil times of civil war. The direct progenitors of the subject of this memoir held an appointment in the parliament, and his father, Etienne Pasquier, councillor in the parliament of Paris, was denounced at the revolutionary tribunal and condemned to death on the 21st of April, 1794. His son was brought up at the College of Juilly, a fine institution, which has produced many distinguished characters. I have always admired the mild and careful system pursued by religious bodies, where the education of the heart and mind is as carefully attended to as that of the head, and which invested each professor with so paternal a character, that even the most ungrateful of his pupils could never entirely shake off the recollection; witness Voltaire and Diderot. M. Pasquier had scarcely left college before he was appointed to a situation in the Parisian parliament, according to the custom observed in families of the legal profession, where the office of the father was inherited by the son. He did not long continue to wear the parliamentary habit; he was, however, enabled to be present at the solemn debates which took place in that assembly, and were terminated by the convocation of the States-general, and he there received his first lesson in political life. The magistracy were carried
- 43. away in the general tempest, and the parliaments were destroyed by the revolution; the resistance to the royal prerogative had originated with them, and both were abolished at the same time. Popular excitement is always ungrateful, and deals its first blow upon those by whom it has been assisted or fostered, thus affording an important lesson to demagogues or flatterers of the populace. M. Pasquier did not emigrate during the revolutionary troubles; he was proscribed like all persons bearing a historic name, and at the age of twenty-six years he received a summons to appear before the committee of public safety, which was soon after succeeded by his being placed under arrest at St. Lazare, on the evening before the 9th Thermidor. The close of the reign of terror restored him to liberty, and the restoration of the property of condemned persons enabled him to retire to the estates of his family, which like those possessed by all the parliamentary races were covered with thick woods, in whose impenetrable retreats they were accustomed to seek shelter, in the evil days of exile, from their accustomed employments. When order was restored under Napoleon, M. Pasquier returned to Paris, and appeared in society, especially at the house of M. Cambacérès, who was partial to the old magisterial families, and his remarkable talents soon brought him into notice. At that period the Emperor was desirous of establishing a monarchical system upon elevated principles, and sought every where among men and things the materials for his purpose; every noble or influential name attracted his attention, for he was well aware of the power exercised by hereditary rank, and knew that past recollections have as much influence as present energy in the restoration of States. The Arch- chancellor Cambacérès agreed in the Emperor's sentiments; and he, who was himself one of the enlightened magistrates of the Cour des Aides at Montpelier, suggested the name of M. Pasquier for the situation of Master of Requests. It is rather a remarkable circumstance that the memorial of the Arch-chancellor contained the names of three candidates, MM. de Molé, Pasquier, and Portalis; they
- 44. all received appointments on the same day, and have never been separated in the course of their political life, their career having been facilitated and its importance augmented by the strong political friendship that subsisted between them, in spite of the difference in their age and capacity. M. Pasquier, while master of requests at the Conseil d'Etat, was distinguished by his laborious attention and assiduity, at the time when improvement had assumed a serious and reflective form; he had passed his fortieth year when he was appointed attorney- general of the great seal, and afterwards Councillor of state. The State council was a powerful and important school; the Emperor, who entertained a strong antipathy towards all bodies that deliberated under the sanction of publicity, had a perfect horror of the representative system, and public speaking; he liked to collect suffrages, to listen to all opinions, reserving to himself the right of deciding upon them, and weighing them against each other in such a manner, that an imperial decree should never sanction an equivocal project or a bad measure. The council of state, composed of very eminent men, was the real corps politique; and even the title of Master of requests was not a common rank granted to aspirants of an inferior grade. In this anxious and laborious situation, the Masters of requests, attached to a section of the council, devoted their existence to it, and the great end and aim of their executive career was the situation of Councillor of state, a title of which the characters best known to fame were ambitious. This close and incessant every-day application suited perfectly the studious mind of M. Pasquier; a generation of young men had sprung up, whose souls were entirely given up to assiduous attention to business, and who devoted themselves to the active and deliberative portion of the administration. The Master of requests had already received the title of Baron and officer of the legion of honour in reward of his services, when the dismissal of M. Dubois, after the melancholy burning of Prince Schwartzenburg's palace, left vacant the prefecture of police, an appointment originally instituted during the Consulate. The police was divided into two parts:—the
- 45. political police, which was charged with the general safety of the kingdom and the surveillance of political parties, constantly in a state of commotion even under the heavy hand of Napoleon; it was always intrusted to the minister of a department, and the situation was at that time filled by General Savary; and the prefecture of police, an appointment of a more simple order, circumscribed within the walls of Paris, whose chief had charge of the édilité, that is to say, of the safety and cleanliness of the city and the inspection of the markets and provisions, all duties of considerable importance. The prefect of police also regulated the bulletins concerning the state of the public mind, so as to act as a check upon the minister of police. During the time of the Empire, each of these situations involved serious duties and considerable responsibility. When appointed to the prefecture of police, M. Pasquier devoted himself entirely to the discharge of his official duties, and voluminous writings still exist upon the provisioning of the capital, and the method of multiplying magazines in the time of abundance; this had now become a question of great anxiety, occupying the serious attention of the government, for in the year 1811, the first symptoms of an alarming scarcity made their appearance. The price of bread had reached an exorbitant height, and people were constantly on the brink of a disturbance owing to the dearness of grain of all kinds. I have perused and analysed with the greatest attention the important writings of M. Pasquier under the empire, deposited in the archives of the prefecture of police.[26] It must be recollected that Napoleon was then about to depart upon his Russian expedition, and it may easily be imagined that contending parties would give occasion to extreme anxiety during his adventurous campaign: how great was that entertained by the prefect of police! his nights were devoted to quieting the alarms excited by false bulletins, and strengthening the confidence of the people, for the prestige that surrounded Napoleon was beginning to disappear, a certain spirit of independence and animadversion was
- 46. gradually gaining ground, and numerous caricatures, bons mots, and epigrams, attacked the moral power of the Emperor. The romantic enterprise of General Mallet took place at this juncture; it was a prodigious act of boldness, shewing how slight was the tenure of Napoleon's power; one hour more, or one man less, and the most powerful empire of modern times would have been at an end! M. Pasquier has been reproached with having allowed himself to be surprised by the insurrection, but, in the first place, he had nothing to do with watching the formation of plots, that duty devolved upon M. Savary, the minister of police; and besides, to do justice to all parties, what vigilance can possibly foresee or control the plans conceived by one man in the silence of a prison? General Mallet was armed with a military power which it was in vain to resist, and M. Pasquier was surprised at the prefecture, hurried into a voiture de place and conveyed to the prison of La Force, with injunctions that he should be detained there until the provisional government was established. He was not liberated until after the suppression of the conspiracy, having steadily refrained from making any concessions to the conspirators, but merely submitting to the fate prepared for him by a military insurrection. A magistrate who gives way to the commands of unlawful authority, is guilty of betraying his trust; he ought to remain steadfast in his duty, even should violence cast him into a dungeon. Napoleon formed a favourable judgment of the conduct of M. Pasquier, and continued him in his appointment of prefect of police, while M. Frochot, prefect of the Seine, was dismissed by the council of state, assembled to examine into the degree of culpability and negligence, to be attributed to the different functionaries in the sad affair of Mallet. The Emperor viewing matters from his elevated position, judged the prefect of police to be perfectly undeserving of blame or censure, as he had merely yielded to force, and it was utterly impossible for him either to foresee or to prevent a disturbance conducted in so unusual a manner; the most subtle and watchful mind could not have suspected the meditations indulged in by so adventurous a person as General Mallet; besides which, as I
- 47. said before, General Savary had charge of the political police. This severe trial soon afforded M. Pasquier an opportunity of rendering an important service to the city of Paris, by the creation and organisation of the gendarmerie, which, under a different name, has on so many occasions greatly contributed to maintain the peace and security of the capital. He had before, in the year 1811, remodelled the corps of firemen,[27] whose devotion to their duty and noble courage deserves the highest praise. The difficult circumstances of the times were increasing; if the management of the Parisian police was a hard task while the glory and prosperity of Napoleon were at their height, how much more delicate, and consequently more odious and watchful, was its office during the season of reverses and misfortune? Parties were now in commotion, people were no longer silent upon their desire of a change, and the probability such might be the case, and the enemy was rapidly approaching the capital: M. Pasquier fulfilled his duties to the very last moment, by the wise and firm administration of his office; he reduced the duties of his prefecture to the maintenance of public tranquillity, and the careful management of every thing relating to the repose and well-being of the city; thus returning to the original charge he had received from the Emperor,—attention to the safety and cleanliness of Paris, which were formerly almost the only duties required from the lieutenant of police. When the artillery was heard in thunders upon the capital, the senatorial party and Talleyrand invited him to support the political alterations produced by circumstances, but it was not until the evening before the allies entered Paris, that he, like M. Chabrol,[28] prefect of the Seine, joined the movement which led to the restoration. The enemy were about to enter Paris, and it was necessary the public safety should not be endangered by any popular tumult; the influence of the prefect of police was therefore most essential, but it was merely passively exerted with regard to political events; it received an impulse from them, but did not communicate any. Talleyrand had formed a just estimate of the
- 48. character of M. Pasquier, and attached great importance to obtaining his concurrence. It was he who prepared the proclamations urging the citizens to the maintenance of order; and he entered into a communication with Count Nesselrode and the allied generals, then taking possession of Paris. His connexion with diplomatic affairs dates from this difficult period, as well as his political career under the restoration; and when afterwards appointed minister for foreign affairs, the reminiscences of Paris in the year 1814 rose to his mind and were of great service to him in assisting the diplomatic arrangements of his cabinet. A conciliatory character was manifested at the accession of the Bourbons, and the police ceased to possess the importance attached to its active administration during the reign of Napoleon; it was no longer a fit situation for a man of such abilities as M. Pasquier, he therefore resigned the prefecture, and was appointed by the king one of the council of state, and received, a few days afterwards, the situation of inspector-general of the bridges and causeways, an active and important appointment in a country where so much remained to be done for the improvement of the roads, and internal communication of the kingdom. He displayed in his new office the activity and laborious attention which characterised the imperial school, and the principal part of the great enterprises with regard to roads were executed under his direction. In France we think a great deal of public speeches and very little of improvement; and it is a singular fact that we, who are the most intelligent and industrious of nations, are at least twenty years behind our neighbours in every thing relating to roads: even Germany and Switzerland are far in advance of us. The commissioners for bridges and causeways, while they spend large sums of money, are faulty in their mode of administration, and do not make the most of their resources; M. Pasquier exerted himself to improve this vast branch of the public service, but his appointment was of short duration, for the march of Napoleon upon Paris put an end to all executive existence, and he was unemployed during the hundred days.
- 49. When the white flag of Louis XVIII. floated above the tower of St. Denis, M. Pasquier offered his services to the king; he was included in the first ministry of Talleyrand as keeper of the seals, and exercised at the same time the functions of minister for the interior, an appointment of extreme delicacy and difficulty in the crisis of that period. France was invaded by 700,000 strangers, the public mind was in a state of constant agitation, and the principles of the restoration had excited a deplorable reaction in several of the provinces; it thus became necessary to organise the system of the prefects, to repress the too ardent zeal occasionally exhibited, prevent the sanguinary vengeance of parties, and prepare and advance the election of upright persons of moderate views, in order to heal the wounds of the country. Nothing is easier than to judge people with severity after a lapse of years, and when events are long over; and thus the services rendered by some statesmen in seasons of peril are soon forgotten, or are but imperfectly appreciated by people, who are in the full enjoyment of peace and security, and therefore inclined to exercise a mathematical rectitude in their judgment of facts. If we look back upon the year 1815, after the double invasion and heavy military contributions, we shall see that it was impossible for a government to display more exemplary moderation, before the face of a victorious party, to whose conditions it had been compelled to submit. M. Pasquier followed the fortunes of Prince Talleyrand; he gave in his resignation and was succeeded by M. de Barbé-Marbois. He had however, always been strongly inclined towards the moderate system which gained the ascendant under the Richelieu ministry, and shortly after its formation he was appointed one of the commissioners for the liquidation of the foreign debts; it was a post of great confidence, for if the laws of honesty were set aside, enormous fortunes might soon be amassed. M. Pasquier's integrity was unimpeachable, and he was the worthy colleague of M. Mounier, the most honest man belonging to the noble Richelieu school. He was elected by the department of the Seine as their representative, and on taking his seat in the chamber of deputies,
- 50. after the ordonnance of the 3d of September, he was nominated president; from this parliamentary position, he again passed into the ministry in the month of January 1817, the Duc de Richelieu having caused him to be appointed keeper of the seals. A conciliatory system was predominant in the whole of M. Pasquier's ministerial conduct at this period, and he was the first to enlarge at the tribune upon the principles of the liberty of the press and the responsibility of editors. There was still too much irritation in people's minds, and the country still too much overwhelmed, to allow the independence of the newspapers to be safely established as a principle; books and pamphlets only were free, for a gradual approach was making towards liberty, and the opinions laid down by M. Pasquier are still considered as law upon the subject. The degree of responsibility was perfectly well regulated, and the minister's motives are clearly explained, and expressed with an elevation of principle and closeness of reasoning which distinguish the true parliamentary style. In England statesmen are in the habit of publishing their speeches, because they form the record of their lives. When the Duc de Richelieu's ministry was dissolved in the latter part of the year 1817, M. Pasquier had no hesitation in retiring from office with the noble negotiator of the treaty of Aix-la-Chapelle. M. Dessolle was at the head of the new ministry, and M. Decaze naturally filled a post of the highest importance in it; but the movement which was about to incline them towards the ideas of the parti gauche was too decided to make it possible M. Pasquier should join them; and it soon became apparent to him that the law of elections, although commendable for its simplicity, was still liable to produce evil results. He possessed very remarkable influence over the course of affairs, in spite of his having retired from office; and one of his political habits was always to compose a memorial upon every situation that occurred, for he liked to observe men and circumstances as from an eminence, so as to enlighten those in authority. In the month of October 1819, he presented a memorial to Louis XVIII. upon the proceedings of the ministry, calling attention
- 51. to the faults they had committed and the bad effects of the law of elections; and he considered the situation of affairs to be such as to render an immediate change necessary in the government of the country. Accordingly when the ministry of M. Decaze decided upon modifying the law of elections, M. Pasquier was offered an appointment; he did not resume the situation of keeper of the seals, but undertook the direction of foreign affairs; our situation with regard to our foreign relations having assumed a serious aspect, it was necessary they should be under the charge of a minister quite resolved to resist any tendency towards a spirit of revolution. M. Decaze lost office after the assassination of the Duc de Berry; and on the formation of the second Richelieu ministry, M. Pasquier retained the situation of minister for foreign affairs, only with the proviso that he was to consult the noble duke upon points relating to diplomatic matters. The Duc de Richelieu, from his connexion with the various cabinets of Europe, must have inspired great confidence in diplomatic proceedings of importance. From this period the existence of M. Pasquier was divided into two distinct portions, the one being passed at the tribune, and the other devoted to business. I am not acquainted with any session when the debates were more violent or more contested than that of 1820; the speeches were remarkable for their eloquence, the names of General Foy, of Camille Jordan, and Benjamin Constant, appeared, beside those of Casimir Périer and Lafitte; each question was decided by a small majority, and it was necessary to modify the law of elections, and determine upon measures rendered indispensable by the circumstances succeeding the death of the Duc de Berry. The superiority of M. Pasquier's abilities was evident during this long session, where he was incessantly in the tribune, opposing, in the most decided and authoritative manner, the orators of the liberal party. When an alarming tumult took place in the public square, M. Pasquier appeared at the tribune to denounce the instigators of the disturbances, undismayed by the threats and vociferations of the revolutionary parti gauche. He spoke without disguise or
- 52. circumlocution, and as to the phrase with which he has been so much reproached, sur l'arbitraire,[29] is it any thing beyond a simple declaration of what the government was desirous of obtaining, and requested from the power authorised to grant it? Every thing that was obtained had demanded incredible efforts, and whatever may have been said of the session of 1820 by those under the influence of party spirit, it was undoubtedly the finest period of the representative system, recalling the times of Pitt, Grenville, and Dundas, opposed to Fox, Erskine, and Sheridan. M. Pasquier's situation was not less difficult as minister for foreign affairs; for the revolutionary spirit had declared itself almost simultaneously in Spain, Naples, and Piémont. France, it is true, adopted the repressive system, and in this respect agreed with the plan suggested at the congresses of Laybach and Troppau; nevertheless the minister for foreign affairs could not overlook the material interests of France; the Austrians, desirous of marching upon Piémont and Naples, wanted to occupy definitively both these places, and how was it possible France should not feel uneasy at the sight of the German standards unfurled beyond the Alps, and extending even as far as Savoy? A series of notes passed on this occasion between M. Pasquier and Prince Metternich; and it was positively decided between the two ministers, that if the Austrian occupation should be necessary, it should be strictly limited to such a period, as would neither affect the consideration nor the importance of France. Metternich faithfully fulfilled this engagement, and the evacuation of Piémont took place at the stipulated time. If you consult any of the persons employed in the foreign office, they will speak of M. Pasquier's assiduous attention to his work, and of his perfect capability of bringing a negotiation to the termination he wished; and they will also tell you he shewed extreme judgment, in all the great difficulties incident to a situation so liable to constant change of circumstances. A complete rupture had taken place with the old liberal system; and to insure success in this enterprise, the Richelieu ministry had been
- 53. obliged to apply to the ultra-royalist party. At the commencement of the session of 1821, the council decided upon adding MM. de la Corbière, de Villèle, and Lainé, to the cabinet; it was a great mistake, it was either granting too much or too little; for, in fact, what figure could they make in the cabinet as ministers without appointments, and yet chiefs of the majority? And what was the consequence? secret dissensions, as might naturally be expected, arose from the very commencement of the attempted coalition; consultations were held in the king's council, after which, MM. de Villèle and Corbière privately expressed their dissatisfaction, and revealed the designs of the ministry to their colleagues on the côté droit in the Piet society; quarrels naturally suceeded, which eventually led to the rupture that took place after the session of 1821. The royalists, in general, entertained an extreme dislike to M. Pasquier, and a great part of the côté droit could could not endure him.[30] All the opposition towards the end of the session was directed against him, till, at last, his patience was exhausted, and he assumed a high tone with the Ultras by openly and unhesitatingly declaring his inclinations and his repugnances, expressing himself with so much boldness and freedom that the whole of the parti droit declared war to him. M. Pasquier wanted to have done with the whole business; his situation fatigued him, and, foreseeing the downfall of the ministry, he obtained a seat in the upper chamber, being made a peer of France in the course of the month of November 1821. The ministry of the Duc de Richelieu had resigned office on the occasion of the address, and the Duc de Montmorency assumed the charge of foreign affairs. M. Pasquier took his seat in the upper chamber, at that time a powerful institution possessed of hereditary rank, property, and the majorats. The prospects of the young peerage were very great, and evidence was soon afforded of what they were capable of doing, by their constant opposition to the faults and ill-judged proceedings of the restoration. M. Pasquier, placing himself on the same benches as
- 54. the statesmen of the Richelieu party, made a point of speaking upon every subject that came before the house, and the judgment and deep thought which characterised his discourses, caused them to exercise great influence over the chamber. He spoke against the rights of primogeniture, the creation of the three per cents, and the law of sacrilege; and his speeches were often the means of deciding the question by their influence on the majority obtained. He placed himself in constant and direct opposition to the Villèle cabinet, which occasioned a strange advance in revolutionary ideas, by the constant injury it inflicted upon the interests and affections of modern France. There was not quite the same vehemence of debate in the chamber of peers as in that of the deputies, but it attained to more certain results. There was a degree of quiet, and at the same time great political judgment, in the discussions, not allowing themselves to be carried away by the spirit of party, but continuing so steadily to advance towards the downfall of M. de Villèle's ministry, that we may safely assert, the retirement of the royalist cabinet of the restoration was owing to their efforts. It must be confessed, this opposition was rather against the order of things; an aristocratic power which opposed the elements of an aristocratic constitution, was not in good keeping; but the fault lay with the party of the restoration, which interfered too hastily with the new ideas and prejudices prevalent in France. The chamber of peers obtained a complete triumph; although weakened by successive promotions,[31] its influence over the elections of 1827 was very great. The Martignac ministry was formed upon the principles of the Richelieu administration, that is to say, with the upright intentions that characterised the statesmen of that noble school. M. Pasquier naturally assumed his proper degree of ascendancy over that administration; the bond of recollections and of similarity of principles united him with M. Portalis, the keeper of the seals; and it was repeatedly proposed that he should resume the charge of the foreign office, his name having even been suggested by the council of the ministers after the retirement of M. de la
- 55. Ferronays. Charles X. however negatived the appointment when the list of the candidates was presented to him, for he did not wish to have any man of importance in a ministry which could only be of transitory duration; and certain prejudices, dating from the year 1815, which had never been effaced from the king's mind, first made him prefer M. de Rayneval, and afterwards, finding the influence of that able diplomatist upon the two chambers not sufficiently powerful, M. de Portalis was appointed minister for foreign affairs. The formation of the Polignac ministry occasioned great uneasiness to the political party, which was always composed of men of eminent talents, and desirous of the establishment and preservation of order; they observed with great anxiety the impending crisis, and they dreaded the fatal struggle likely to be attempted by the party of the restoration. All these experienced minds were well acquainted with Charles X.; they knew that with all the advantages of his chivalrous disposition, his undoubted uprightness of mind, his thoroughly French character, he still had an unfortunate inclination for coups d'état, and extravagant actions that might compromise the safety of his government. The corps diplomatique were equally uneasy, and confidential communications took place between them and the political party, expressing their sense of the danger and agitation likely to be caused by a coup d'état; they were consequently less surprised than alarmed by the promulgation of the ordonnances of July. The political party held itself in reserve during the popular crisis, and when order was a little restored, it confined itself to giving a monarchical bias to society, as the only means of preserving France from a foreign or domestic war. As soon as the charter had restored the balance of power, and the monarchical form of government, M. Pasquier was appointed president of the chamber of peers. He had hardly taken his seat before he had to encounter the trial of the ministers of Charles X., the chamber of peers having been converted into a court of justice. We must look back upon the feelings of that time, and remember the storm of passion that roared around,—the tumult that was excited! Those parties who seek their
- 56. own advantage in every thing wanted to profit by the solemnity of these trials to occasion disorder; this sovereign people, these heroes of the barricades, thirsted after the blood of the imprudent ministers of Charles X.; shouts and yells were heard recalling the days of horror of the first revolution, the national guard was devoid of energy, and the troops of the line discouraged by the check they had received at the barricades. Matters were in this state, when the chamber of peers was called upon to deliberate in the midst of tumult and disorder, and history will confess that it proved itself worthy of better times, by refusing to sanction the sanguinary vengeance so loudly demanded by the populace. Some degree of strength of mind and courage was required, when crowds of people, agitated like a troubled sea, threatened to invade the Luxembourg and assassinate all the members of the chamber; nevertheless the peers resisted, and a sentence of imprisonment alone was pronounced, which could hardly be considered as a punishment, because in seasons of political troubles, if people escape with their lives, there is no doubt that in due time the popular fury will subside, and permit their restoration to liberty and civil existence. The prudence and talents of M. Pasquier did admirable service to the cause of justice and order at this juncture. It was no doubt to reward the spirit of moderation evinced by the peers on this occasion, that the parties made haste to deprive them of their right to hereditary succession. The first blow aimed at the importance of this assembly was evidently the clause in the charter, which annulled the peerages created by Charles X. The peerage was thus deprived of its indelible character, it was now no more than an office capable of being revoked, and of which one might be deprived almost like a prefecture; what sort of aristocracy could be formed of such elements? The next step was to take away the hereditary transmission of the peerage, majorats were abolished, it was reduced to a mere office for life, without power or influence upon the government. From the time the peers consented to vote away their hereditary rights, they became a mere council of elders, a kind of chapel of ease to the chamber of deputies; the chamber of peers
- 57. was converted into a sort of noble hospital, where the wounded among the old political or military ranks might seek repose. The chamber of peers no longer possessed inviolability, hereditary rank, or property; from henceforth it could no longer be an aristocratic body capable of resisting a democratic impulse, but its sole greatness must consist in the superiority of intelligence, the extensive experience, and great political ability it possessed, and which no other body could dispute with it. Parties were not yet overcome, and a despairing effort had been made by the republican party in the streets of Paris: the sword of justice still hung suspended over many of the accused, and in virtue of the charter all these offences were referred for trial to the chamber of peers. It was said at that time in the newspapers, and even at the tribune, that these trials would not take place; "It was impossible," repeated they, "that the accused should be summoned before an old worn-out body, like the chamber of peers." I must mention that M. Pasquier's personal opinion had in the first instance been in favour of an amnesty, and he wrote a memorial in which his motives were clearly explained, but when the government decided that course to be impossible, he comprehended the full extent of his duty as a magistrate. People may recollect the firmness, the gravity, the patience, even the haughtiness exhibited by the president of the court, during these debates; he retained his superiority over these excited and straightforward minds, and over the hearts of the young men who were animated by patriotism and elevation of feeling. Not a single sentence of death was pronounced, all the punishments were mild, and the prisoners were able to profit by the amnesty shortly afterwards granted to the solicitations of M. Pasquier. The trial of Fieschi was going on almost at the same time, after the atrocious crime which had filled Paris with horror and bloodshed. History will, perhaps, deprecate the too great consideration exhibited towards Fieschi, and blame the undue attention shewn to that sanguinary mountebank, who declaimed at the bar of justice like a street orator. One of the prisoners alone had something remarkable in his appearance and character; this was the aged Morey, a faithful
- 58. specimen of the old Jacobins, whose erroneous opinions are deserving of pity, because he sealed them with his blood. This abuse was remedied in the affair of Alibeau, by assigning a subordinate rank to that miserable trial, with which the chamber of peers was burdened. On this occasion the scene was restrained within due proportions, the reward of celebrity was no longer conferred upon all those who dreamed of murder and assassination, and the alteration produced so good an effect, that during the last trial, that of Meunier, public curiosity was scarcely excited, and the crime was abandoned to its proper obscurity. The great exertions M. Pasquier was compelled to make injured his health, but had no effect upon the great qualities of his mind, or upon the activity and skill in the management of affairs, which always particularly distinguished men of the political party. I believe no circumstance of importance has occurred during the last seven years, upon which he has not been consulted. It is said he exercised great influence on the formation of Casimir Perier's ministry; at all events, his habit of preparing memorials, and of examining closely into all the circumstances likely to produce any striking effect upon public life, has often decided the resolutions of government, and his connexion with the cabinet, and with the principal diplomatic characters, has always facilitated the direction of affairs. He rarely takes them in hand himself, but, like Talleyrand, he makes people act without personally appearing; occupying thus, perhaps, a more elevated position than if he were openly at the head of the government. He is a man of great experience and of extreme readiness of mind; add to which, I never knew a man more assiduously devoted to his work; and it is worthy of remark, that at the very time he was engaged in taking part in all the most active and violent questions of government, he found leisure to write more than twenty volumes upon the history of his own times. His positive determination not to allow any of his manuscripts to see the light during his lifetime, and even to forbid too early a publication of them after his death, is a sure pledge of the perfect independence of men and circumstances,
- 59. with which he has devoted himself to so great a work. This constant habit of occupation, and study of facts, enlarges the ideas, and nothing gives a more exalted tone to the minds of statesmen. In the present day we are apt to throw ourselves into political life without any preliminary study; and because we know how to write a few sentences, or that we have uttered a few words at the tribune, we consider ourselves equal to the task of governing a country. Far different is the English method! Political life among our neighbours is a great duty, an entire and constant devotion to the subject; history, diplomacy, administration, in fact every thing must be learned by a public man who aspires to the honour of the ministry, or to a confidential situation for the service of his country. M. Pasquier had attained his sixty-eighth year at the time he was invested with the dignity of chancellor of France, he had been president of the chamber of peers ever since the revolution of July. This elevated situation was well suited to a Pasquier, the descendant of a family which had held magisterial office for the last two centuries, and the present chancellor answers perfectly to the idea his ancestors had formed of the office he holds. There are few men in modern times who, like the magistrates of old, devote a certain portion of their leisure hours to study and to writing; all their country residences and their thick forests are redolent of their recollections and their learning; such are Malesherbes, Baville, and Champlâtreux. M. Pasquier's private life is very simple; he inhabits the apartments of the petit château at the Luxembourg, leaving the great palace to M. Decaze. No person is easier of access; he speaks rapidly, and apprehends and resolves questions with admirable perspicuity; his habits are very industrious, and reading is his favourite occupation; there is no time thrown away with him, for he contrives to make even his visits a matter of business. Perhaps he has been appreciated as president of the judicial court and of the chamber. He exhibits the most perfect impartiality in his
- 60. regulation of the debates in the court of justice. His dislike to useless words and lawyers' speeches, which are of no use either to direct or enlighten, is very great, and he always exercises a degree of firmness without severity, which abridges the proceedings without in any way interfering with the defence of the accused. As president of the chamber, he never separates himself from an idea or opinion in politics: it has been written that the president of a chamber ought not to have an opinion, but I think differently, for he is the expression of a majority, and essentially the man of a system, and therefore I think he ought to form his own opinion; he cannot allow every thing to be said or to be done, and it would be very fortunate if the president possessed authority to put a stop to all idle debates; we sink under the press of words in France, when shall we come to business? The political school of the restoration, of which M. Pasquier was one of the most eminent chiefs, is gradually disappearing; it was the heir of the moral and intellectual portion of the empire, and must have afforded great strength of support to the Bourbons. Every time that adverse parties have seized the reins of government by means of its expulsion, the most serious catastrophes have ensued; it is fortunate for the existence of kingdoms, and to preserve them from dangers occasioned by the prevalence of excitement, that some men of sense and reflection still exist, of a calm and prophetic turn of mind, who render the transition between one system and another almost imperceptible, and contrive that, in our capricious country, the only definitive system should have been linked with moderation and a constitutional government, which assumes its proper superiority after a long struggle of adverse parties.
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