Lec3 chp3

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Lec3 chp3

  1. 1. The Environment and Corporate Culture CHAPTER 3 0
  2. 2. Learning Outcomes <ul><li>Describe the general and task environments and the dimensions of each. </li></ul><ul><li>Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment . </li></ul><ul><li>Define corporate culture and give organizational examples. </li></ul><ul><li>Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture. </li></ul><ul><li>Describe how corporate culture relates to the environment . </li></ul><ul><li>Define a cultural leader and explain the tools a cultural leader uses to create a high-performance culture . </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  3. 3. External Environment <ul><li>General environment – affects indirectly </li></ul><ul><li>Task environment </li></ul><ul><ul><li>Affects directly </li></ul></ul><ul><ul><li>Influences operations and performances </li></ul></ul><ul><li>Internal environment – elements within the organization’s boundaries </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  4. 4. External Environment Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  5. 5. International Dimension Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 <ul><li>Events originating in foreign countries </li></ul><ul><li>Impacts all aspects of the external environment </li></ul><ul><ul><li>New competitors </li></ul></ul><ul><ul><li>New customers </li></ul></ul><ul><ul><li>New suppliers </li></ul></ul><ul><li>Today, all companies globally </li></ul>
  6. 6. Technological Dimension <ul><li>Scientific and technological advances </li></ul><ul><ul><li>Specific industries </li></ul></ul><ul><ul><li>Society at large </li></ul></ul><ul><li>Impact: </li></ul><ul><ul><li>Organizations </li></ul></ul><ul><ul><li>Managers </li></ul></ul><ul><ul><li>Customers </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 <ul><li>Desktop computers </li></ul><ul><li>Networks </li></ul><ul><li>Internet Access </li></ul><ul><li>Handheld devices </li></ul><ul><li>Videoconferencing </li></ul><ul><li>Cell phones </li></ul><ul><li>Laptop </li></ul><ul><li>WiFi </li></ul><ul><li>Medical advances </li></ul>
  7. 7. Socio-Cultural Dimension Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 <ul><li>Today’s demographics are the foundation of the future workforce </li></ul><ul><li>Demographic trends affect organizations globally </li></ul><ul><ul><li>Norms </li></ul></ul><ul><ul><li>Customs </li></ul></ul><ul><ul><li>Values of population </li></ul></ul><ul><ul><li>Geographical Distribution </li></ul></ul><ul><ul><li>Population Density </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Education Levels </li></ul></ul>
  8. 8. Economic Dimension <ul><li>General economic health </li></ul><ul><ul><li>Consumer purchasing power </li></ul></ul><ul><ul><li>Unemployment rate </li></ul></ul><ul><ul><li>Interest rates </li></ul></ul><ul><li>Recent Trends </li></ul><ul><ul><li>Frequency of mergers and acquisitions </li></ul></ul><ul><ul><li>Small business sector vitality </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  9. 9. Legal-Political Dimension <ul><li>Federal, state, and local government regulations </li></ul><ul><li>Political activities designed to influence company behavior </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  10. 10. Natural Dimension <ul><li>Concern for the environment </li></ul><ul><li>The natural dimension has no voice </li></ul><ul><li>Pressure comes from advocacy and managers </li></ul><ul><ul><li>Eliminate nonbiodegradable plastic bags from the environment </li></ul></ul><ul><ul><li>Improving efficiency of plants and factories </li></ul></ul><ul><ul><li>Investing in cleaner technologies </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  11. 11. Task Environment <ul><li>Sectors that have a direct working relationship with the organization: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Labor Market </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0 Changes in these various sectors can create tremendous challenges…
  12. 12. External Environment Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  13. 13. Environmental Uncertainty Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. Management must adapt to changes 0
  14. 14. Adapting to the Environment <ul><li>Boundary-Spanning Roles: coordinating the organization with key elements in the external environment </li></ul><ul><li>Interorganizational Partnerships: collaborating with other organizations </li></ul><ul><li>Mergers: combination of two organizations </li></ul><ul><li>Joint Ventures: an alliance of organizations for a specific project </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  15. 15. Partnership Paradigm Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  16. 16. The Internal Environment: Corporate Culture <ul><li>Corporate culture should match the needs of the external environment </li></ul><ul><li>The importance of corporate culture has been growing </li></ul><ul><li>Culture is a pattern of shared values </li></ul><ul><ul><ul><li>“ how things are done” </li></ul></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  17. 17. Culture <ul><li>Symbols </li></ul><ul><li>Stories </li></ul><ul><li>Heroes </li></ul><ul><li>Slogans </li></ul><ul><li>Ceremonies </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  18. 18. Environment and Culture <ul><li>The external environment influences culture </li></ul><ul><li>The internal environment should embody the requirements for success </li></ul><ul><li>Manager’s must pay attention to culture </li></ul><ul><ul><li>Recognize the ways culture can help or hurt your department </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  19. 19. Adaptive vs. Unadaptive Corporate Culture Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  20. 20. Four Types of Corporate Culture Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  21. 21. Shaping Corporate Culture for Innovative Response <ul><li>How people are treated increases a company’s value </li></ul><ul><li>Culture attracts, motivates and retains talent </li></ul><ul><li>Corporate culture enables learning and innovation </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  22. 22. Combining Culture and Performance Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  23. 23. Cultural Leadership <ul><li>Articulate a vision for the organizational culture that employees can believe in </li></ul><ul><li>The cultural leader heeds the day-to-day activities that reinforce the cultural vision </li></ul><ul><li>Managers communicate the cultural values through words and actions </li></ul><ul><li>Cultural leaders uphold their commitment to values during difficult times </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0

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