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Chapter
Important
Managerial
Issues
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Learning Objectives
•Explain globalization and its impact on organizations.
•Discuss how society’s expectations are influencing managers
and organizations.
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Today’s managers are concerned with such integrative managerial issues as diversity,
globalization, and ethics and social responsibility throughout many aspects of what
they do and how they manage.
When you finish studying this chapter, you will be able to:
•Explain globalization and its impact on organizations.
•Discuss how society’s expectations are influencing managers and organizations.
As well as:
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Learning Objectives (cont.)
•Discuss the factors that lead to ethical and unethical behavior
in organizations.
•Describe how the workforce is changing and its impact on the
way organizations are managed.
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•Discuss the factors that lead to ethical and unethical behavior in organizations,
and
•Describe how the workforce is changing and its impact on the way organizations
are managed.
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Globalization and Its Impact
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An important issue that managers face is globalization. Globalization is the trend,
which has increased significantly over the last two decades, of companies operating
almost anywhere in the world.
Managers need to adapt to be successful in this global environment and continue to
foster an understanding of cultures, systems, and techniques that are different from
their own.
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What Does It Mean to Be “Global”?
Global organizations:
•Exchange goods and
services with consumers;
•Employ managerial and
technical employees; or
•Use financial sources and
resources
from other countries.
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Organizations are considered global if they have one or more of these characteristics:
1. They exchange goods and services with consumers in other countries.
2. They use managerial and technical employee talent from other countries, such as
in high-tech organizations. Managers must be alert to changes in immigration
laws and regulations because they affect talent globalization.
3. They use financial sources and resources outside their home countries, which is
also known as financial globalization.
This photo shows a Danish teen enjoying a Coke, one of more than 400 brands of the
Coca-Cola Company, which operates in more than 200 countries and generates
almost 80 percent of its revenue from operations outside the United States.
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Types of Global Organizations
•Global village –A world without boundaries where goods and
services are produced and marketed worldwide
•Multinational corporation (MNC) business –Any type of
international company that maintains operations in multiple
countries
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