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LECTURE OUTLINE AND LECTURE NOTES THE WORLD OF WORK The Taco Barn Melting Pot (Text pages 366-367) Tony attends a unit managers’ meeting and finds the opening discussion about diversity hiring and how this will become a company policy and mandate going forward. Tony has some concerns, especially if he is faced with hiring new staff and has to consider gender and race over skills. 1. Why has diversity become a focus for the Taco Barn Corporation? The concern is that the current management team does not reflect the diverse workforce or the customer population that exists. By creating a culture of diversity that is open to different behavioral styles the company can improve its overall decision making process. 2. Do you agree with Tony’s concerns about the new initiative? Why or why not? Tony sees this as a threat to his own management opportunities and is now a bit unsure where he stands after hearing this edict from the regional manager. Tony now must not only get past this from his own personal viewpoint, but must also begin helping other diverse employees of his own staff. This will involve encouraging them about the new opportunities that will be available. 3. Tony’s mentor, Jerry Smith, was one of the original supporters of the plan. Do you think that will influence Tony’s decision? Why or why not? Tony may want to discuss his own viewpoints with Jerry. However, with the new objectives of the company, he is going to find his concerns viewed more as complaints and problems than as him being an agent for the new change. 4. What do you think Taco Barn should do to increase diversity in the company? Explain your answer. An important element to making this new edict part of the company’s new philosophy is to get the entire organization to embrace the mental change that must occur. The Lewin model can be a great facilitation of this process in which employees go through a series of steps: (1) unfreezing, breaking down the forces supporting or maintaining old behavior, (2) presenting a new alternative that 13.1

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LECTURE OUTLINE AND LECTURE NOTES

THE WORLD OF WORKThe Taco Barn Melting Pot (Text pages 366-367)

Tony attends a unit managers’ meeting and finds the opening discussion about diversity hiring and how this will become a company policy and mandate going forward. Tony has some concerns, espe-cially if he is faced with hiring new staff and has to consider gender and race over skills.

1. Why has diversity become a focus for the Taco Barn Corporation?

The concern is that the current management team does not reflect the diverse workforce or the customer population that exists. By creating a culture of diversity that is open to different behavioral styles the company can improve its overall decision making process.

2. Do you agree with Tony’s concerns about the new initiative? Why or why not?

Tony sees this as a threat to his own management opportunities and is now a bit unsure where he stands after hearing this edict from the regional manager. Tony now must not only get past this from his own personal viewpoint, but must also begin helping other diverse employees of his own staff. This will involve encouraging them about the new opportunities that will be available.

3. Tony’s mentor, Jerry Smith, was one of the original supporters of the plan. Do you think that will influence Tony’s decision? Why or why not?

Tony may want to discuss his own viewpoints with Jerry. However, with the new objectives of the company, he is going to find his concerns viewed more as complaints and problems than as him being an agent for the new change.

4. What do you think Taco Barn should do to increase diversity in the company? Explain your an-swer.

An important element to making this new edict part of the company’s new philosophy is to get the entire organization to embrace the mental change that must occur. The Lewin model can be a great fa-cilitation of this process in which employees go through a series of steps: (1) unfreezing, breaking down the forces supporting or maintaining old behavior, (2) presenting a new alternative that involves a clear and attractive option representing new patterns of behavior, and (3) refreezing, which requires that the changed behavior be reinforced by the formal and informal reward system and the work group.

LECTURE OUTLINE LECTURE NOTES

I. DIVERSITY AND MANAGEMENTA. The Changing Workforce 1. For many years the workforce was

dominated by white males. 2. In the last quarter century women and

POWERPOINT 13-1Chapter Title (Refers to text page 366)

POWERPOINT 13-2Learning Objectives (Refers to text page 367)

13.1

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LECTURE OUTLINE LECTURE NOTES

minorities have entered the workforce in large numbers.

3. However, most senior managers are still white men.

a. The term GLASS CEILING refers to a level within the managerial hi-erarchy beyond which very few women and minorities advance.

b. It is the invisible barrier preventing women and minorities from ad-vancing into senior management.

4. Today the glass ceiling is opening.5. Downsizing has led to the retirement

of many white males, opening job op-portunities for women.

B. What Is Diversity?LEARNING OBJECTIVE 1Define diversity and explain how it applies to management. (Text pages 368-371)

1. DIVERSITY means including people of different genders, races, religions, na-tionalities, ethnic groups, age groups, and physical abilities.

2. Workforce diversity is a major social change and expected to continue into the 21st century.

C. Reasons for Creating a Diverse Work-force

1. Employee and customer populations are increasingly diverse.

2. A diverse culture can improve decision making.

3. As companies became more global, managers need to consider the effects of diversity, including:

LECTURE LINK 13-1Where Are the Women Workers Going?Women professionals are be-coming less willing to juggle the demands of a career and motherhood. See complete lecture link on page 13.Error:Reference source not found of this manual.

POWERPOINT 13-3Diversity and Management(Refers to text pages 368-369)

TEXT FIGURE 13.1Projected U.S. Population, by Demographic Group, 2000–2050 (Percent of Pop-ulation) (Text page 369)

POWERPOINT 13-4Diversity and Management (continued) (Refers to text pages 369-371)

13.2 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTES

a. race and language b. values and customs 4. A multicultural workplace presents

challenges for both employees and su-pervisors, such as dealing with reli-gious holidays.

5. Employees no longer fit into the same corporate mold.

6. Human resource policies must change to deal with the needs of these em-ployees.

a. Communication problems and misunderstandings can occur.

b. Verbal and written materials must be translated into different lan-guages.

7. Employees may also need additional training in basic skills.

8. However, diversity creates an organi-zational culture that is more tolerant of different views.

TEXT FIGURE 13.2The Changing American Workplace Advances in Civil Rights (Text page 370)

ETHICAL MANAGEMENT (Text page 369)

A colleague of yours is on an annual contract that is soon due to be renewed. During your time working together you have become friends with him even though, as an African American, he was origi-nally hired as part of an increased workforce diversity campaign (in preference to your brother-in-law, who didn’t offer the necessary diversity bonus). You are aware that your friend’s wife has recently be-come pregnant with their second child.

However, while he tries hard and means well, your colleague is really quite incompetent at his job. You frequently need to work harder to try to compensate for this and have been aware of him cover-ing up some relatively serious mistakes.

1. Your boss has asked for your advice as to whether or not your friend’s contract should be re-newed. What will you tell your boss?

When approached by your boss regarding the rehire of a colleague, it is dangerous to try to be-come the decision maker and/or influence the outcome of the process. A better approach for a boss wanting advice might be to ask specific questions that can be answered with yes/no answers rather any

CHAPTER 13: Contemporary Issues 13.3

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LECTURE OUTLINE LECTURE NOTESinjection of opinion. Your comments here should only be on specifics of the job, answering honestly to best of your knowledge.

2. Would your answer be different if diversity wasn’t a factor? Why or why not?

Your answers should be a reflection of the job performance only. People can usually detect if you are answering the questions with some level of bias. Companies are competing in a diverse, global economy and the selection and hiring of employees will be more reflective of this.

3. How would you convince your boss that your feedback wasn’t influenced by sour grapes over the decision not to hire your brother-in-law?

If the questioning remains objective, then the impact of opinion can be kept out of the equation and the facts can lead to a more sound decision. This should be the objective of the boss seeking the in-formation and asking for cooperation from employees

4. If the company requires a specific hiring ratio for employee diversity, is the diversity factor worth keeping an incompetent employee? Why or why not?

Great discussion question for the class to see if they understand the diversity concepts and how it plays out in application.

PROGRESS CHECK QUESTIONS (Text page 371)

1. Why are organizations seeking diverse workforces?2. Why are religious holidays a challenge for managers

of a diverse workforce?3. What are the challenges of increased diversity?4. How diverse is the organization you work for (or one

you have worked for in the past)? Explain your an-swer.

13.4 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTES

II. GLOBAL MANAGEMENTLEARNING OBJECTIVE 2Define global management. (Text pages 371-372)

A. Companies now operate in a global econ-omy.

1. INTERNATIONAL TRADE is the ex-change of goods and services by dif-ferent countries.

2. International trade helps maintain the world’s standard of living.

3. A country may engage in international trade because it may:

a. not be able to produce a good it wants

b. have an advantage over other countries in producing particular good

B. Absolute Advantage 1. Each country has a unique combina-

tion of resources (land, labor, and cap-ital).

2. An ABSOLUTE ADVANTAGE is the ability to produce more of a good than another producer.

C. Comparative Advantage 1. Some countries may not have an ab-

solute advantage, but can be compar-atively more efficient at producing some goods.

2. The LAW OF COMPARATIVE ADVANTAGE states that producers should produce the goods they are most efficient at producing and pur-chase from others the goods they are less efficient at producing.

POWERPOINT 13-5Global Management(Refers to text pages 371-372)

LECTURE LINK 13-2Europe Is ShrinkingAccording to the United Na-tions, Europe’s population will shrink by more than 90 million people in the next 50 years. See complete lecture link on page 13.Error: Refer-ence source not found of this manual.

CHAPTER 13: Contemporary Issues 13.5

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LECTURE OUTLINE LECTURE NOTES

III. EXPORTING AND IMPORTINGLEARNING OBJECTIVE 3Compare and contrast importing and export-ing. (Text pages 372-375)

A. International trade occurs when companies buy or sell products to or from other coun-tries.

1. EXPORTS are goods and services that are sold abroad.

2. IMPORTS are goods and services pur-chased abroad.

3. The U.S. is both the largest exporter and the largest importer in the world.

B. Exports 1. Why do companies export? a. About 95% of the world’s con-

sumers live outside the U.S. b. Companies engage in global trade

to reach these customers. c. Exporting creates revenue

DIVERSIFICATION, in which the company engages in a variety of operations.

2. How do companies identify export markets?

a. Companies analyze demand based on demographics, eco-nomic data, customer tastes, etc.

b. Government agencies, such as the U.S. Dept. of Commerce, can assist.

c. Businesses need to determine what restrictions exist and what documentation is required.

d. Some countries limit the amount

POWERPOINT 13-6Exporting and Importing(Refers to text pages 372-373)

BONUS CASE 13-1Entering the Import/Ex-port BusinessGordon and Carole Segal started an import/export busi-ness with $17,000 and one employee. Today Crate & Barrel has 144 stores and is expanding into Canada. See complete case, discussion questions, and suggested an-swers on page 13.Error: Ref-erence source not found of this manual.

13.6 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTES

IV. PROTECTIONISMLEARNING OBJECTIVE 4Identify protectionism. (Text pages 375-376)

A. International trade can benefit all trading partners, but may also hurt some domestic producers.

1. Governments sometimes impose pro-tectionist measures to help domestic manufacturers compete against for-eign companies.

2. Protective tariffs, quotas, and other re-strictions reduce the volume of interna-tional trade.

B. Tariffs 1. A TARIFF is a government-imposed

tax charged on goods imported into a country.

2. It is designed to raise the price of for-eign goods to protect domestic manu-facturers.

C. Quotas 1. QUOTAS establish the maximum

quantity of a product that can be im-ported or exported during a given pe-riod.

2. The U.S. imposes quotas on many kinds of goods.

D. Embargoes 1. An EMBARGO involves stopping the

flow of exports to or imports from a for-eign country.

2. It is a total ban on the import of a good from a particular country.

3. Most embargoes are imposed for polit-ical reasons (example: the U.S. em-

POWERPOINT 13-8Protectionism (Refers to text pages 375-376)

TEXT REFERENCEStudy Skills Box: Time to Group Up!College study is an exciting opportunity if you are mature enough to accept the chal-lenge. (Box in text on page 375.) An additional exercise and discussion is available in this chapter on page 13.Er-ror: Reference source not foundError: Reference sourcenot foundError: Reference source not found.

CHAPTER 13: Contemporary Issues 13.7

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LECTURE OUTLINE LECTURE NOTES

V. DOING BUSINESS GLOBALLYA. Thousands of U.S. businesses participate

in global trade.B. Forms of International Operations 1. Level 1: Working through a foreign in-

termediary. a. Working through an intermediary

requires minimum investment. b. A FOREIGN INTERMEDIARY is a

wholesaler or agent that markets products for companies wanting to do business abroad.

2. Level 2: Signing a licensing agreement with a foreign company

a. A LICENSING AGREEMENT per-mits one company to sell another company’s products abroad in re-turn for a percentage of the com-pany’s revenues.

3. Level 3: Forming a strategic alliance a. In a STRATEGIC ALLIANCE

companies pool resources and skills in order to achieve common goals.

b. Strategic alliances let all partners share research, broaden their product lines, etc.

4. Level 4: Becoming a multinational cor-poration

a. A MULTINATIONAL CORPORATION (MNC) is a busi-ness that: i. maintains a presence in two

or more countries

POWERPOINT 13-9Doing Business Globally(Refers to text pages 376-379

LECTURE LINK 13-3Why There Are No Indian Wal-MartsThere are millions of small shop owners in India that are fighting to keep the big retail chains out of the country. See complete lecture link on page 13.Error: Reference source not found of this manual.

CRITICAL THINKING

13.8 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTESii. has a considerable portion of

its assets invested in, and de-rives a substantial portion of its sales and profits from, in-ternational activities

iii. considers opportunities throughout the world

iv. has a worldwide perspective and orientation

b. Becoming a multinational corpora-tion has many advantages, includ-ing access to inexpensive labor.

C. Challenges include dealing with customers, producers, and employees from different countries

2. learning local laws and customsD. Understanding Foreign Cultures 1. Managers in other countries need to

be aware of different cultural attitudes. 2. Business customs vary considerably

among countries.E. Coalitions of Cooperating Countries

and Trading Blocs 1. Coalitions of cooperating countries are

established to improve the economic conditions of the member countries.

2. The European Union was created to: a. reduce tariffs on goods sold

among member countries b. eliminate the fiscal, technical, and

border barriers between member countries

3. Europe was intended to be a single market, but many problems still exist.

EXERCISE 13-2Evaluating Global ExpansionOne company is faced with the decision of whether or not to enter a joint venture with a Latin American coun-try. See complete exercise on page 13.Error: Reference source not found of this man-ual.

TEXT FIGURE 13.4Multinational Corporations(Text page 378)

POWERPOINT 13-10Doing Business Globally (continued) (Refers to text pages 379-380)

BONUS INTERNETEXERCISE 13-1Which Country?This Internet exercise asks students to use Internet re-search to evaluate a possible expansion into one of two countries. See complete exer-cise on page 13.Error: Refer-ence source not found of this manual.

TEXT FIGURE 13.5Examples of Foreign

CHAPTER 13: Contemporary Issues 13.9

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LECTURE OUTLINE LECTURE NOTES 4. Another coalition is the Organization of

Petroleum Exporting Countries (OPEC,) created to control oil prices and production levels.

5. The three largest trading blocks are: a. European Union b. North American Free Trade Al-

liance (U.S., Mexico, and Canada) c. Pacific Asia (Pacific Rim coun-

tries)F. Political Changes 1. The international business environ-

ment changed dramatically with the breakup of the Soviet Union and the fall of communist governments in the early 1990s.

G. Human Rights and Ethics 1. One thorny question is how to deal

with human rights abuses. 2. Business ethics are not consistent

globally. 3. This creates dilemmas for multina-

tional firms.

PROGRESS CHECK QUESTIONS (Text page 381)

5. What is the balance of trade?6. List and explain three examples of protectionism.7. Explain the positive and negative aspects of NAFTA.8. List and explain four forms of international opera-

tions.

Business Practices(Text page 379)

POWERPOINT 13-11Doing Business Globally (continued) (Refers to text page 380)

BONUS CASE 13-2Cooling Off the SweatshopsApparel leaders such as Nike, Reebok, and Liz Clai-borne are responding to crit-ics by joining The Fair Labor Association, a sweatshop monitoring organization. See complete case, discussion questions, and suggested an-swers on page 13.Error: Ref-erence source not found of this manual.

13.10 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTES

CASE INCIDENT 13.1Imposed Quotas (Text page 381)

A labor union official was alleged to have made the following statement:

“Foreign imports of textiles have cost American jobs and tax revenues. In order to slow down the disruptive impacts on American society, quotas should be placed on imports into the United States for those goods and product lines that are displacing significant percentages of U.S. production and em-ployment.”

1. Do you agree with the union official? Explain.

If international trade is good for all trading partners, this statement makes international trade more complicated. Companies seek to export their goods and services to diversify their sources of rev-enue so that sluggish sales in one market can be offset by stronger sales in other markets. If you agree that local industry should be protected, then quotas would be part of this strategy to slow imports from other countries.

2. Do you believe import quotas should be established for certain industries? Which ones?

In the short term, it can help a particular good or service of that industry enjoy less competition and do more business; however, other domestic manufacturers who use this same raw material will pay more for it with less competition (import quotas). This higher input cost will make users of the raw ma-terial charge more for their products and therefore make domestic users pay more for local products.

3. Does the United States benefit or lose from international business activity?

In the big picture, the United States loses from restriction of international trade because of the comparative advantage concept (other countries can produce some goods cheaper because of their abun-dance of natural resources). Also, the standard of living is reduced when our choice of goods and ser-vices are limited to our own production capabilities.

4. What do you think the response from other countries could be if the United States did impose import quotas?

Other countries can use the same tactic and slow down exporting opportunities for U.S. compa-nies. This will make their markets smaller and, in time, reduce their workforce and contribute to a weaker U.S. economy.

CHAPTER 13: Contemporary Issues 13.11

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VI. MANAGING CHANGELEARNING OBJECTIVE 5Explain how to manage change and the change process. (Text pages 381-390)

A. According to Tom Peters, leaders at all lev-els must become obsessive about change.

1. Managers are now expected to insti-gate change.

2. Managing change is an essential skill for managers since change is occur-ring at an ever-increasing rate.

3. Some managers are unable to cope with the rapid changes in their organi-zation.

4. Other managers have trouble transfer-ring their skills to a new assignment.

5. To be successful, managers must be able to adapt to these changes.

B. Change as a Global Issue 1. Our global trading partners have

adopted change as part of their long-term strategies.

2. To successfully compete, U.S. busi-nesses must successfully change.

C. Types of Change 1. TECHNOLOGICAL CHANGES are

changes in such things as new equip-ment and new processes.

2. ENVIRONMENTAL CHANGES are all non-technological changes that occur outside the organization.

3. INTERNAL CHANGES are budget ad-justments, policy changes, personnel changes, and the like.

4. Technological and environmental

POWERPOINT 13-12Doing Business Globally (continued) (Refers to text pages 381-383)

TEXT REFERENCECareer Management Box: Job Interviewing – Make It Count!The job interview is an op-portunity to impress, if you are prepared. (Box in text on page 382.) An additional ex-ercise and discussion is avail-able in this chapter on page 13.Error: Reference source not foundError: Reference source not foundError: Ref-erence source not found.

TEXT FIGURE 13.6Types of Changes Affecting Organizations (Text page 383)

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LECTURE OUTLINE LECTURE NOTES

VII. THE CHANGE PROCESSA. Lewin’s Force Field Analysis 1. Kurt Lewin identified two forces: a. those that support or promote

change b. those that oppose or resist the

change 2. The sum total of these forces deter-

mines whether change will be suc-cessful.

B. Lewin’s Three-Step Model for Change 1. The first step, unfreezing, deals with

breaking down the forces supporting or maintaining the old behavior.

2. Step two, presenting a new alternative, involves offering a clear option for new patterns of behavior.

3. Step three, refreezing, requires that the changed behavior be reinforced.

4. Failure at any of these steps can pre-vent successful change.

C. Resistance to Change 1. The first reaction of most people is to

resist change. a. All change requires adjustments. b. These may be more frightening

than the actual change. 2. Reasons for resisting change: a. Fear of the unknown b. Economics – change may

threaten employees’ jobs or in-come.

c. Fear that skills and expertise will

CRITICAL THINKING EXERCISE 13-3Change Plan for StavrosThe owner of four family-run restaurants considers what changes are needed. See complete exercise on page 13.Error: Reference source not found of this manual.

POWERPOINT 13-13The Change Process(Refers to text pages 383-384)

POWERPOINT 13-14The Change Process (continued) (Refers to text pages 384-385)

CHAPTER 13: Contemporary Issues 13.13

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LECTURE OUTLINE LECTURE NOTESlose value

d. Threats to power e. Additional work and inconve-

niencef. Threats to interpersonal relations

3. Reducing resistance to change: a. Individuals perceive change in

four basic ways:i. If employees cannot foresee

how the change will affect them, they will resist the change or be neutral.

ii. If employees perceive that the change does not fit their needs and hopes, they will re-sist the change.

iii. If employee see that change is inevitable, they may first re-sist then resign themselves to the change.

iv. If employees view the change as being in their best inter-ests, they will be motivated to make the change work.

b. The manager first needs to evalu-ate how employees will react to change.i. Determine the response

needed from the employee.ii. Estimate the expected re-

sponse if the directive is sim-ply published.

iii. If a discrepancy exists, deter-mine how the two responses

POWERPOINT 13-15The Change Process (continued) (Refers to text pages 386-388)

13.14 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTEScan be reconciled.

4. Ways to reduce resistance to change: a. Build trust

i. If employees trust manage-ment, they are more likely to accept change.

ii. Managers build trust by dis-cussing upcoming changes and actively involving employ-ees in the process.

b. Discuss upcoming changes with each affected employee to reduce the fear of the unknown.

c. Involve the employees – ask for employees’ ideas and input as early as possible in the process.

d. Make sure the changes are rea-sonable.

e. Avoid threats. Forcing change:i. is likely to decrease employee

trustii. has a negative impact on em-

ployee moralef. Follow a sensible time schedule.

5. The way in which change is imple-mented often determines whether it is accepted.

6. One study found that the biggest barri-ers to change are:

a. lack of management visibility and support

b. inadequate management skills c. employee resistance to change

TEXT FIGURE 13.7Employee Response Model (Text page 387)

TEXT FIGURE 13.8Methods of Overcoming Resistance to Change (Text page 388)

TEXT FIGURE 13.9Model for Leading Change(Text page 389)

POWERPOINT 13-16The Change Process

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LECTURE OUTLINE LECTURE NOTESD. Leading Change: John Kotter’s Eight-

Step Method 1. Establish a sense of urgency. a. Successful managers constantly

look for change. b. Then they establish an urgency for

making it happen. 2. Create a guiding coalition. a. Most major changes are initiated

by top management. b. To be successful, top manage-

ment must involve all levels of the organization.

3. Develop a vision and strategy. 4. Communicate the change vision. 5. Empower broad-based action. a. Eliminate obstacles to the change

process. b. Empower employees to take the

actions necessary to implement the change.

6. Generate short-term wins – recognize and celebrate small successes.

7. Consolidate gains and produce more change.

8. Anchor new approaches in the culture. a. Emphasize the positive results of

the changes. b. Continually give credit to those

who help in the change process.

(continued) (Refers to text pages 389-390)

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LECTURE OUTLINE LECTURE NOTES

VIII. ORGANIZATIONAL DEVELOPMENTLEARNING OBJECTIVE 6Explain the process of organizational develop-ment. (Text pages 390-393)

A. ORGANIZATIONAL DEVELOPMENT (OD) is an organization-wide planned ef-fort, managed from the top, to increase or-ganizational performance through planned interventions.

1. OD looks at the human side of organi-zation and tries to change attitudes, values, and management practices to improve performance.

2. Most OD efforts go through four phases.

B. Diagnosis 1. First, determine if the organization

have the talent and time necessary to conduct the diagnosis.

2. Next, decide whether to hire an out-side consultant.

3. Then gather and analyze information by:

a. reviewing available records, espe-cially personnel records and finan-cial reports

b. surveying questionnaires to mea-sure employee attitudes and per-ceptions

c. conducting personal interviews d. using direct observationC. Change Planning 1. The data collected must be carefully

interpreted to determine the best OD plan.

2. Look for trends and areas of agree-

POWERPOINT 13-17The Change Process (continued) (Refers to text pages 390-392)

TEXT FIGURE 13.10Model for the Management of Organizational Develop-ment (Text page 393)

CHAPTER 13: Contemporary Issues 13.17

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LECTURE OUTLINE LECTURE NOTES

IX. MANAGING INNOVATIONA. Innovation refers to doing new things that

inherently involve change.B. Innovation is an organization’s best source

of growth, competitive advantage, and new wealth.

C. Four Principles for Successful Innova-tion:

1. The approach to innovation must be comprehensive.

2. Innovation involves systematic, orga-nized, and continual search for new opportunities.

3. Organizations must involve everyone in the innovation process.

4. The organization must work constantly on improving the climate for innova-tion.

D. Innovation is critical in dealing with the in-creasing rate of change.

POWERPOINT 13-18Managing Innovation (Refers to text pages 393-395)

X. THE LEARNING ORGANIZATIONA. Learning organizations establish environ-

ments that support change and innovation.B. A learning organization is one that is skilled

at creating, acquiring, and transferring knowledge.

C. Five Principles for Creating a Learning Organization:

1. system thinking—seeing the big pic-ture

2. personal mastery to experiment, inno-vate, and explore

3. mental models

13.18 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

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LECTURE OUTLINE LECTURE NOTES 4. shared vision

5. team learning

PROGRESS CHECK QUESTIONS (Text page 396)

13. Explain Kurt Lewin’s three-step model for change.14. List the six most frequently used reasons employees

use to resist change.15. List six things a manager can do to reduce resistance

to change and help employees to accept and even commit themselves to change.

16. What are the four phases of an organizational devel-opment effort?

CASE INCIDENT 13.2The Way We Do Things (Text page 395)

The Fitzgerald Company, once the industry leader in manufacturing of consumer products sold in retail stores, has fallen to third in the market share and has experienced a loss in profitability. The com-pany president, understanding the drastic changes, hires a management consultant group to help them re-verse the trend and regain its competitiveness.

1. Describe, in general terms, the current state of the Fitzgerald Company.

The Fitzgerald Company appears to be a prisoner of how business has been done in the past. This is not in sync with today’s demographics of customers.

2. What does Valerie mean when she says the Fitzgerald Company has to come to terms with its ca-pacity for change? What are some of the necessary changes?

The company has to first recognize what can happen when change is not embraced and the effect it has on sales and market share in the competitive marketplace.

3. Discuss the problems the company may encounter in attempting to implement changes.

Employees resist change for many reasons. This company has operated in the same culture for many years, and it will encounter some of the normal issues of change such as: (1) fear of the unknown, (2) economics of their jobs and incomes, (3) current skills and expertise will lose value, (4) threats of power, (5) additional work and inconvenience, and (6) threats to interpersonal relations.

4. Do you think the changes will work? Why or why not?

If employees view the change as being in their best interest; they will be motivated to make the change work. The key is for employees to feel sure the change will make things better.

THE WORLD OF WORKTony Builds a Rainbow Coalition (Text page 396)

CHAPTER 13: Contemporary Issues 13.19

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Tony has discussed the diversity hiring initiative with Jerry and hears the exact thoughts and con-cerns that Dawn expressed at the previous meeting. Tony heeds his advice and decides to explain this new policy at his next staff meeting and finds how well it is received.

1. Jerry feels that the diversity issue is simply good business. Do you agree? Why or why not?

Jerry feels that the diversity hiring objectives will make a positive statement about the company to customers, suppliers, and employees that might have aspirations of careers with Taco Barn.

2. What does Tony’s position as “one of those white managers” have to do with his concerns about the company’s new diversity initiative?

Employees that encounter new hiring initiatives can fear that their skills and expertise will lose value. There can also be some feelings of threats of power and threats to interpersonal relationships. Tony has some initial fears of how this new policy might change his status and value and is somewhat reluctant going forward.

3. What do you think will happen the first time Tony has to choose between two equally talented ap-plicants of different races? Explain your answer.

Because of the hiring initiative Tony’s staff is energized. The Taco Barn management will also be directly monitoring how each unit manager implements the diversity movement for the company. Tony will have some doubts, which are normal for someone faced with the company changes in hiring and con-sidering how this will affect his status and his stores status

4. Do you agree with Taco Barn’s approach to diversity? Why or why not?

This can be an interesting class discussion, especially if students are or have been in the work-force. Discussing diversity in theory is always easier than discussing diversity in the real world.

13.20 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual