Managing in the 21

Century
IMT580
Fall 2013
Instructor: Mala Sarat Chandra
mchand1@uw.edu
TA:
@uw.edu

st

Learning Objectives
Analyze the forces shaping work,
workplace and worker skills required in
the 21st Century.
Discuss the implications of these trends
for the workforce, firms and
management.
Articulate the ways in which people differ
from one another at a high level and why
it is important for management.
2/7/15

Mala Sarat Chandra

University of Washington

21 Century at Work
st

Rapid Pace
of
Technology
Shifting
Demograp
hics

Economic
Globalizati
on

21St
Centur
y
Work
Source: The 21st Century at Work, LYNN A. KAROLY, CONSTANTIJN W. A. PANIS, Rand Corporation (2004)

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Mala Sarat Chandra

University of Washington

SHIFTING DEMOGRAPHICS

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Mala Sarat Chandra

University of Washington

Civilian Labor Force in the USA

1950, 2000, 2050 (Projected)

Source: Mitra Toossi,

Monthly Labor Review
(May, 2002)

2/7/15

Mala Sarat Chandra

University of Washington

Educational Attainment in
the US

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Mala Sarat Chandra

University of Washington

Women in the US Workforce

Source:
http://carrington.edu/blog/carrington-college-news/women-i
n-the-workforce/

2/7/15

Mala Sarat Chandra

University of Washington

The Gender Journey - USA

Source: 20-first's Global Gender Balance Scorecard 2013 (PDF 2 MB)

2/7/15

Mala Sarat Chandra

University of Washington

The Gender Journey Europe

Source: 20-first's Global Gender Balance Scorecard 2013 (PDF 2 MB)

2/7/15

Mala Sarat Chandra

University of Washington

The Gender Journey - Asia

Source: 20-first's Global Gender Balance Scorecard 2013 (PDF 2 MB)

2/7/15

Mala Sarat Chandra

University of Washington

10

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Mala Sarat Chandra

University of Washington

11

Implications for the Workforce and Workplace:

Shifting Demographics
The workforce is becoming more diverse
in gender, race and ethnicity.
The workforce is becoming more balanced
in age.
Workers have more responsibilities
outside of work.
Many mature workers will remain in the
workforce.
Educational attainment will continue to
rise.
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Mala Sarat Chandra

University of Washington

12

RAPID ADVANCE OF
TECHNOLOGY
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Mala Sarat Chandra

University of Washington

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Rapid Advance of
Technology

Moores Law, Predicted and Actual

Price Indices for ICT

SOURCE: BEA NIPA Tables, Table 7.8 (http://www.bea.gov/bea/dn/nipaweb/SelectTable.asp).

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Mala Sarat Chandra

University of Washington

14

Global Knowledge and Hi-Tech

Industries 1998 - 2010
Value-Add

Exports

Source: National Science Board, Science and Engineering Indicators, 2012

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Mala Sarat Chandra

University of Washington

15

Global Growth of the

Internet

World
Population
Estimate

Internet Users Internet Users Growth

2000
2012

7,017,846,922
2/7/15

360,985,492
Mala Sarat 2,405,518,376
Chandra
University of Washington

566.4%

Source: www.internetworldstats.com

16

Factors Leading to Rapid Adoption of

Technology
Computing power and capacity, data transmission
speed, and network connectivity have increased
dramatically, while hardware costs have fallen
rapidly.
Increased user-friendliness of new software has
led to rapid adoption of computer systems.
Levels of business investment in computer
hardware during the mid- to late 1990s reaching
several times the level of previous years.
High bandwidth, affordable tariffs resulting in
widespread adoption of the Internet.
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Mala Sarat Chandra

University of Washington

17

Innovations of the 2nd

Millenium
20th Century

1. Electrification
2. Automobile
3. Airplane
4. Water supply and distribution
5. Electronics
6. Radio and television
7. Agricultural mechanization
8. Computers
9. Telephone
10. Air conditioning/refrigeration
11. Interstate highways
12. Space flight
13. Internet
14. Imaging
15. Household appliances
16. Health technologies
17. Petrochemical technology
18. Laser and fiber optics
19. Nuclear technologies
20. High-performance materials
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21st Century

1. Energy conservation
2. Resource protection
3. Food and water production and
distribution
4. Waste management
5. Education and learning
6. Medicine and prolonging life
7. Security and counter-terrorism
8. New technology
9. Genetics and cloning
10. Global communication
11. Traffic and population logistics
12. Knowledge sharing
13. Integrated electronic environment
14. Globalization
15. AI, interfaces and robotics
16. Weather prediction and control
17. Sustainable development
18. Entertainment
19. Space exploration
20. "Virtualization" and VR
Mala Sarat Chandra
University of Washington

18

Focus of Innovation
20th Century: Physical Capital
and Physical Objects

21st Century: Intellectual

Capital and Virtual Objects

Cheap power through

electrification
Capital assets such as
factories, mines, oil wells
and refineries
Telephony
Computers
Household appliances
The Internet

Digitization of information, Big

Data
Decoding the human genome
Online knowledge resources
(e.g., weather prediction and
control, traffic and logistics,
terrorism and security)
Global connectedness and
rapid knowledge
dissemination
User generated content
Internet of Things

2/7/15

Mala Sarat Chandra

University of Washington

19

21st Century IT Innovations

Consumerization of IT
Theres an App for that!

BYOD
Live Video Streaming

Big Data Analytics

Sensors and machine learning

The new Biology

Nanotechnology
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Mala Sarat Chandra

University of Washington

20

Impact of Technology
Use of PCs in the workplace doubled between 1984
and 2001.
80% of managers and professional workers use PCs in
the workplace.
Moores Law will continue for some time.
New technologies exploit the continued miniaturization
of computer chips and communications devices.
Continued growth in the volume, variety and velocity
of data.
The IT revolution is fundamentally intertwined with
economic globalization.
2/7/15

Mala Sarat Chandra

University of Washington

21

Implications for the Workforce and Workplace:

Technology Advancement and Adoption

Increase in productivity.
Shifting the skill requirement for jobs.
Changes to the wage structure.
Altering how firms are organized.
Changing the nature of employer-employee
relationship.
Provides the ability to work remotely.
Changes to the delivery of workplace
education and training.
2/7/15

Mala Sarat Chandra

University of Washington

22

ECONOMIC
GLOBALIZATION
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Mala Sarat Chandra

University of Washington

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Value of US Goods and Services

Trade

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Mala Sarat Chandra

University of Washington

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A Review of
Significant 21st Century Economic
Events
Leverage

Dotcom Bust

30 1 ratios in building CDO

portfolios

Yuan tied to $

Illiquidity

Securitization
85% of US mortgages in
Collateralized Debt Obligations

Insurance

Domino effect as defaults

accelerated

Deceit

Credit Default Swaps insure CDO

owners

Deceptive sales tactics

Complexity

Sub-prime crisis

CDOs could comprise CDOs

Source: What Matters Now, Gary Hamel

2/7/15

Hubris

Myopia, Greed,
Denial
9/11
Mala Sarat Chandra

University of Washington

25

Global Economic Integration

Growing trade, especially in services,
with more diverse countries.
IT Outsourcing.
Internationalization of Capital flows.
Globalization of Labor and Intellectual
Capital.

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Mala Sarat Chandra

University of Washington

26

Implications to the Workforce and Workplace:

Global Economic Integration

Expanding Markets.
Intensified Competition.
Importance of innovation.
Alteration in job mix, with
displacements in some sectors and
growth in others.
Changing employment relationships.

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Mala Sarat Chandra

University of Washington

27

Implications for 21st Century

Management
The business world is global and more complex.
Organizational boundaries are fluid and dynamic.
Leadership stretches across organizational
boundaries.
Enterprises are networks of organizations that must
respond quickly to emergent challenges and
opportunities.
Rapid pace and nature of change.
Impact of technology evolution and convergence.
Importance of resilience, adaptability and long term
relevance.
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Mala Sarat Chandra

University of Washington

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Hostage to Heritage

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Mala Sarat Chandra

University of Washington

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Profound Shifts in Business

Models
Focused competitors (jetBlue, Virgin America) gain
ground over industry Majors (AA, UA).
Transition from scattershot drug discovery to diseasefocused, gene-based drug design.
Plug-in hybrids and all-electrical vehicle challenge
combustion engine cars.
Software as a product transition to software as a
service.
Explosive growth of e-books and diminishing role of
traditional booksellers.
Healthcare fee for a service business model moving
to integrated care models.
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Mala Sarat Chandra

University of Washington

30

Management and Leadership Focus

Focus

20th Century

21st Century

Span

Within Organizations
with well defined
boundaries

Across an Enterprise a
network of
organizations with fuzzy
boundaries

Context

Generally stable and

Complex and uncertain,
predictable, with longer dynamic, real-time
planning horizons

Leadership

Hierarchical

Distributed

Orientation

Functional anchor

Issues anchor

Culture

Largely homogeneous

Highly diverse

Employment
base

Largely permanent,
full-time

Increasingly
contractors, outsource,
off-shore

Employee Skills
and Knowledge

Functional

Integrative

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Mala Sarat Chandra

University of Washington

31

Thought Provokers
Does organizational longevity have intrinsic
value?
Are Startups an alternative to established
companies?
Is institutional death inevitable?
What management values does the www
inspire?

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Mala Sarat Chandra

University of Washington

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