MAN1006: Introduction to Management Lecture 3 The Environment and Corporate Culture Lecturer: Oswy Gayle Wednesday 10, 2008 - Groups BBA1G-I University of Technology, Jamaica School of Business Administration
By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004
Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power.
The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerous
Unprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone.
The set of key values, beliefs, understanding, and norms that members of an organization shares.
Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 2. Expressed values, such as “The Penney Idea,” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members
A big influence on internal corporate culture is the external environment
Cultures can vary widely across organizations
Organizations within same industry reveal similar cultural characteristics
Experiential Exercise: Working in an Adaptive Culture, p. 104
Corporate Culture Adaptability Adaptive Culture Unadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.
Four Types of Corporate Cultures Adaptability Culture Achievement Culture Consistency Culture Involvement Culture External Internal Flexibility Stability Strategic Focus Needs of the Environment