Chapter Two Environmental Context: Information, Technology, Globalization, Diversity, and Ethics McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives • Examine the role of information technology • Present developments in knowledge management and human capital/intelligence • Discuss the impact of globalization • Identify the meaning of diversity and its importance • Discuss the meaning of ethics and major factors of ethical behavior • Describe major areas of ethical concern and steps taken to effectively address it • Examine specific ethical issues Introduction • Environmental context for organizational behavior is markedly different from past • Management is forced to rethink approaches to operations and human resources because of: – Information technology, globalization, diversity, and ethics • Organizations are now more responsive to both external and internal environments Role of Information Technology • E-business – Still portrayed as a recent phenomenon and is almost equated with today’s Internet • Knowledge management – Tangible knowledge assets captured and retained in organization structures and systems – Intangible knowledge or intelligence possessed by employees and other stakeholders • Human/Intellectual capital – Can be thought of as investors in the business expecting a return on investment Globalization • Third phase of globalization - Friedman – Fueled by information technology available to everyone in the world • Implications for organizational behavior are profound and direct – Cultures around the world impact the organizational behavior of managers and employees quite differently Major Reasons for Increasing Diversity Diversity in Workplace Continued • Developing the multicultural organization – Reflects the contributions and interests of diverse cultural and social groups – Acts on a commitment to eradicate social oppression – Includes the members of diverse cultural and social groups – Follows through on broader external social responsibilities Diversity in Workplace Continued • Individual approaches to managing diversity – Learning – Empathy Organizational Approaches to Managing Diversity • Most common techniques include: – Testing – Training – Mentoring – Work/Family Programs A Flextime Framework Innovative Work/Family Programs Ethics and Ethical Behavior • Factors determining ethical behavior: – – – – Individuals and groups Cultural Organizational External environment • Other factors leading to ethical problems in organizations: – Peer pressure on people to be less ethical – Difference in views from one person to another Ethics and Ethical Behavior Continued • The impact of ethics on “bottom-line” outcomes – Increasing evidence that ethics programs and being ethical pays off for organizations • Employee privacy issues – Computer technology – Mandatory drug testing – Efforts of organizations to control the lifestyles of their employees Questions ... Fueled by information technology available to everyone in the world • Implications for organizational behavior are profound and direct – Cultures around the world impact the organizational behavior. .. ethical behavior • Describe major areas of ethical concern and steps taken to effectively address it • Examine specific ethical issues Introduction • Environmental context for organizational behavior. .. Innovative Work/Family Programs Ethics and Ethical Behavior • Factors determining ethical behavior: – – – – Individuals and groups Cultural Organizational External environment • Other factors