KIN 464 1st Edition Lecture 2 Outline of Current Lecture I Management Environment II Trends Current Lecture III Management Environment a The environment of management in any industry is the sum of all the social cultural economic and physical factors that influence the lifestyle of an individual organization or community b Factors influencing Managers i Social 1 Aspects of the world created by people as they interact with each other ii Cultural 1 Having a handle on the culture such as legal and political issues is very important in management 2 Ways of life people create in a particular group or society 3 Ex Alabama is traditional iii Economic 1 You are going to have to budget and manage your spending iv Physical c Manager s ability to act or react is limited by i Internal Constraints originating within the organization 1 Organizational Documents a Define what organizations can and cannot do These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 2 Limited Resources a All resources are limited to some degree 3 Organizational Guidelines a red tape such as policies and procedures that influence the behavior of managers and employees 4 Custom Long Established Practice a Those practices carried on for so long by mutual consent unwritten law d External Constraints imposed from outside i Legal and Political Considerations 1 Such as laws and regulations taxes and political stability ii Constraints imposed by the public 1 Growing influence of consumers over the practices of any organization what is socially acceptable and what is not finite resources running out a Ex global warming iii Actions of Competitors 1 what are your competitors doing 2 Know your enemy iv Effect of Labor Unions 1 Where unions exist management s action is limited by contracts with them v Society s effect 1 Society as a whole ultimately sets the legal and social climate in which organizations operate by what it will accept 2 As a manager you need to have a grasp of society s opinions a Media and news vi The Economy 1 Economic factors that affect management actions include interest rates inflation rates unemployment availability of capita IV Trends a Managers must deal with a constantly changing environment i Changing ideas about work and authority 1 New set of values for current American society 2 The revised American dream a Staring at the bottom working hard and climbing up the ladder and being successful b Each generation of Americans would do better than the last 3 Quality of life issues emphasis on self fulfillment and achieving personal happiness 4 Cleaner environment 5 Consumerism rights to safety be informed choose be heard 6 Egalitarianism the advocacy of social political and economic equality 7 Managers must be people oriented 8 Align personal and organizational goals b Government Intervention in business despite deregulation in key industries government regulation has generally increased i Equal Employment Opportunity and its affect on minorities and women 1 Title VII Civil Rights Act 1964 2 Affirmative Action ii Occupational Safety and Health Act 1970 1 Safety and protection guidelines 2 Increased complexity for managers by government intervention c You want a balance of diversity d You want to hire people with different skill sets e Globalization i Expansion of markets internationally 1 Forces managers to become more productive 2 Leads to more efficiency 3 Fosters more creativity by managers 4 More difficult to manage manufacturing in another country a Language barriers b International laws and trade c Governmental barriers 5 Ex Nike is an American company but were produced elsewhere because it cheaper a Wages are lower in certain countries f Consumerism i As a manager you have to balance the needs of the investors with the needs of the customers and employees 1 The employees ted to get the short end of the stick and are forced to work in bad conditions a As manager your job is to make sure this does not happen ii Better educated consumers refuse to accept defective and or inferior products iii Consumer demand satisfaction of complaints often unreasonable and unpleasant 1 The customer is always right g Demographic Diversity i Factors that affect population affect workforce and management ii Demographics statistical study of human population with emphasis on size and density distribution and vital statistics iii Aging more diverse population iv Aging population creates many opportunities for sport managers wealthiest healthiest and most active senior citizens in history largest market h Injustice anywhere is a threat to justice everywhere Martin Luther King Jr i For most of history Anonymous was a woman Virginia Woolf i Diversity differences among people in a population with respect to gender age race or ethnicity religion cultural beliefs social class physical ability and sexual orientation i Management now is typically white males not very diverse but quickly changing j Requires diversity training to prepare people to deal with diverse workforce and demands of a diverse population i You need to develop a philosophy on how to deal with different people from different cultures and backgrounds k Shift to a Service Economy i More manufacturing production jobs lost to foreign markets Nike ii Managers in service organizations perform same management jobs work closely with consumers l Continued Emphasis on Technology and Technological Change i Managers must encourage innovation ii Managers must introduce employees to all technological changes and gain their acceptance of them iii Managers must retrain employees displaced by technological change iv Everything these days has become digitized and a manager must keep up with the technology