KIN 464 1st Edition Lecture 2Outline of Current Lecture I. Management EnvironmentII. TrendsCurrent LectureIII. 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 communityb. Factors influencing Managers:i. Social1. Aspects of the world created by people as they interact with each otherii. Cultural1. 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 society3. Ex: Alabama is traditionaliii. Economic1. You are going to have to budget and manage your spending iv. Physicalc. Manager’s ability to act or react is limited by:i. Internal Constraints (originating within the organization)1. Organizational Documentsa. Define what organizations can and cannot doThese 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 Resourcesa. All resources are limited to some degree3. Organizational Guidelinesa. “red tape’” such as policies and procedures that influence the behavior of managers and employees4. Custom / Long Established Practicea. Those practices carried on for so long by mutual consent (unwritten law)d. External Constraints (imposed from outside)i. Legal and Political Considerations1. Such as laws and regulations, taxes and political stabilityii. Constraints imposed by the public1. 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 warmingiii. Actions of Competitors 1. what are your competitors doing2. Know your enemyiv. Effect of Labor Unions1. Where unions exist, management’s action is limited by contracts with themv. Society’s effect1. Society as a whole ultimately sets the legal and social climate in which organizations operate by what it will accept2. As a manager you need to have a grasp of society’s opinionsa. Media and newsvi. The Economy1. Economic factors that affect management actions include interest rates, inflation rates, unemployment, availability of capitaIV. Trends:a. Managers must deal with a constantly changing environmenti. Changing ideas about work and authority1. ‘New set of values for current American society2. The revised American “dream”a. Staring at the bottom, working hard and climbing up the ladder and being successfulb. Each generation of Americans would do better than the last3. Quality of life issues’ ‘emphasis on self-fulfillment and achieving personal happiness’4. Cleaner environment5. Consumerism - rights to safety, be informed, choose, be heard6. Egalitarianism – the advocacy of social, political and economic equality7. Managers must be people-oriented8. Align personal and organizational goalsb. Government Intervention in business – despite deregulation in key industries, government regulation has generally increased i. Equal Employment Opportunity and its affect on minorities and women1. Title VII Civil Rights Act (1964)2. Affirmative Actionii. Occupational Safety and Health Act (1970)1. Safety and protection guidelines2. Increased complexity for managers by government interventionc. You want a balance of diversity d. You want to hire people with different skill setse. Globalizationi. Expansion of markets internationally1. Forces managers to become more productive2. Leads to more efficiency3. Fosters more creativity by managers4. More difficult to manage manufacturing in another countrya. Language barriersb. International laws and tradec. Governmental barriers5. Ex: Nike is an American company but were produced elsewhere because it cheapera. Wages are lower in certain countriesf. Consumerismi. 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 conditionsa. As manager your job is to make sure this does not happen.ii. Better educated consumers refuse to accept defective and/or inferior productsiii. Consumer demand satisfaction of complaints – often unreasonable and unpleasant1. “The customer is always right” g. Demographic & Diversityi. Factors that affect population, affect workforce and managementii. Demographics: statistical study of human population with emphasis on size and density, distribution and vital statisticsiii. Aging & more diverse populationiv. Aging population creates many opportunities for sport managers: wealthiest, healthiest and most active senior citizens in history = largest marketh. “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 changingj. 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 Economyi. 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 Changei. Managers must encourage innovationii. Managers must introduce employees to all technological changes and gain their acceptance of themiii. Managers must retrain employees displaced by technological changeiv. Everything these days has become digitized and a manager must keep up with the