MAN1006: Introduction to Management Lecture 3 The Environment and Corporate Culture Lecturer: Oswy Gayle Wednesday 10, 200...
<ul><li>To provide a recap of the last class – emphasizing the importance of management and its evolution </li></ul><ul><l...
Recap  -  The Changing Dynamics of Organizations <ul><li>Driving Forces </li></ul><ul><ul><li>Telecommunications </li></ul...
What is Management? <ul><li>The  effective  and  efficient  attainment of   organizational goals  in through planning, org...
We then looked at …….. <ul><li>A definition of all the management functions and gave examples </li></ul><ul><li>The Roles ...
<ul><li>To provide a recap of the last class – emphasizing the importance of management and its evolution </li></ul><ul><l...
Management Perspectives Over Time 2010 1870 Exhibit 2.1, p.44 1930 Humanistic Perspective 1990 1890 Classical 1940 1950 20...
The importance of these Historical Perspectives <ul><li>Provides a context or environment </li></ul><ul><li>Develops an un...
<ul><li>To provide a recap of the last class – emphasizing the importance of management  </li></ul><ul><li>2. State briefl...
The Environment and  Corporate Culture
External Environment <ul><li>General environment  –  affects indirectly </li></ul><ul><li>Task environment </li></ul><ul><...
Organizational Environments Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market...
General Environment   International Dimension <ul><li>Provides New </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul>...
Technological Dimension <ul><li>Scientific and technological advances </li></ul><ul><ul><li>Specific industries </li></ul>...
Socio-Cultural Dimension <ul><li>Dimension of the general environment </li></ul><ul><ul><li>Demographic characteristics </...
Key Demographic Trends in U.S. <ul><li>By 2050 non-Hispanic whites will make up only about half of the population, down fr...
Key Demographic Trends in Jamaica <ul><li>More people graduating with degrees? </li></ul><ul><li>More single mothers ? </l...
Economic Dimension <ul><li>General economic health </li></ul><ul><ul><li>Consumer purchasing power </li></ul></ul><ul><ul>...
Task Environment <ul><li>Sectors that have a direct working relationship with the organization </li></ul><ul><ul><li>Custo...
Labor Market Forces <ul><li>Labor Market Forces Affecting Organizations today </li></ul><ul><ul><li>Growing need for compu...
Internal Environment <ul><li>the organization itself </li></ul><ul><ul><li>Management </li></ul></ul><ul><ul><li>Culture <...
Adopting to the Environment <ul><ul><li>1. Boundary-spanning </li></ul></ul><ul><li>2. Inter-organizational </li></ul><ul>...
External Environment and Uncertainty Number of Factors in Organization Environment Adapt to Environment High Uncertainty L...
Competitive Intelligence - CI <ul><li>What  -  Activities to get as much information as possible about one’s rivals </li><...
Interorganizational Partnerships <ul><li>Shift in paradigm </li></ul><ul><ul><li>Trust, value added to both sides </li></u...
<ul><li>To provide a recap of the last class – emphasizing the importance of management  </li></ul><ul><li>2. State briefl...
Organizational Environments - Internal Management Employees Culture Internal Environment Suppliers Competitors Customers L...
What is culture? <ul><li>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 ...
Visible Manifestations <ul><li>Symbols </li></ul><ul><li>Stories </li></ul><ul><li>Heroes </li></ul><ul><li>Slogans </li><...
Environment and Culture <ul><li>A big influence on internal corporate culture is the external environment </li></ul><ul><l...
Corporate Culture Adaptability Adaptive Culture Unadaptive Culture Visible Behavior Expressed Values Managers pay close at...
Four Types of Corporate Cultures Adaptability Culture Achievement Culture Consistency Culture Involvement  Culture Externa...
Cultural Leadership <ul><li>Articulates a vision   that employees can believe in   </li></ul><ul><ul><li>Defines and commu...
High-Performance Culture <ul><li>Creating and maintaining a high-performance culture in today’s turbulent environment and ...
Rap up <ul><li>Environments a company has to operate in </li></ul><ul><ul><li>General  </li></ul></ul><ul><ul><li>Task </l...
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Introduction to management groups g-i - wed sep 10 2008- the environment and corporate culture

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Introduction to management groups g-i - wed sep 10 2008- the environment and corporate culture

  1. 1. 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
  2. 2. <ul><li>To provide a recap of the last class – emphasizing the importance of management and its evolution </li></ul><ul><li>3. List and explain three (3) types of environment that organizations’ operate in and how they can potentially affect their ability to be effective and efficient </li></ul><ul><li>4. Define corporate culture </li></ul><ul><li>5. List and explain the levels of corporate culture </li></ul><ul><li>6. Explain how internal corporate culture affects organizations’ performance </li></ul>Objectives of the Session
  3. 3. Recap - The Changing Dynamics of Organizations <ul><li>Driving Forces </li></ul><ul><ul><li>Telecommunications </li></ul></ul><ul><ul><li>Diversity of Workers </li></ul></ul><ul><ul><li>Public consciousness </li></ul></ul><ul><ul><li>Global marketplace </li></ul></ul><ul><ul><li>Community of stakeholders </li></ul></ul>
  4. 4. What is Management? <ul><li>The effective and efficient attainment of organizational goals in through planning, organizing, leading, and controlling organizational resources. </li></ul>
  5. 5. We then looked at …….. <ul><li>A definition of all the management functions and gave examples </li></ul><ul><li>The Roles of a manager </li></ul><ul><li>The Skills a Manager needs </li></ul><ul><li>We looked at some of the driving forces of Organizational Change </li></ul>
  6. 6. <ul><li>To provide a recap of the last class – emphasizing the importance of management and its evolution </li></ul><ul><li>2. State briefly the evolution of management thinking </li></ul><ul><li>3. List and explain three (3) types of environment that organizations’ operate in and how they can potentially affect their ability to be effective and efficient </li></ul><ul><li>4. Define corporate culture. List and explain the levels of corporate culture </li></ul><ul><li>5. Explain how internal corporate culture affects organizations performance </li></ul>Objectives of the Session
  7. 7. Management Perspectives Over Time 2010 1870 Exhibit 2.1, p.44 1930 Humanistic Perspective 1990 1890 Classical 1940 1950 2000 Systems Theory 2000 2010 The Technology-Driven Workplace 1990 2010 The Learning Organization 1970 Contingency Views 2000 1980 Total Quality Management 2000 1940 Management Science Perspective 1990
  8. 8. The importance of these Historical Perspectives <ul><li>Provides a context or environment </li></ul><ul><li>Develops an understanding of societal impact </li></ul><ul><li>Achieves strategic thinking </li></ul><ul><li>Improves conceptual skills </li></ul><ul><li>Social, political, and economic forces have influenced organizations and the practice of management </li></ul>
  9. 9. <ul><li>To provide a recap of the last class – emphasizing the importance of management </li></ul><ul><li>2. State briefly the evolution of management thinking </li></ul><ul><li>3. List and explain three (3) types of environment that organizations’ operate in and how they can potentially affect their ability to be effective and efficient </li></ul><ul><li>4. Define corporate culture. List and explain the levels of corporate culture </li></ul><ul><li>5. Explain how internal corporate culture affects organizations performance </li></ul>Objectives of the Session
  10. 10. The Environment and Corporate Culture
  11. 11. 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>
  12. 12. Organizational Environments Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers
  13. 13. General Environment International Dimension <ul><li>Provides New </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><li>Shapes: </li></ul><ul><ul><li>Social trends </li></ul></ul><ul><ul><li>Technological trends </li></ul></ul><ul><ul><li>Economic trends </li></ul></ul>
  14. 14. 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>Competition </li></ul></ul><ul><ul><li>Relationship with Customers </li></ul></ul><ul><ul><li>Medical advances </li></ul></ul><ul><ul><li>Nanotechnology advances </li></ul></ul>
  15. 15. Socio-Cultural Dimension <ul><li>Dimension of the general environment </li></ul><ul><ul><li>Demographic characteristics </li></ul></ul><ul><ul><li>Norms </li></ul></ul><ul><ul><li>Customs </li></ul></ul><ul><ul><li>Values </li></ul></ul>
  16. 16. Key Demographic Trends in U.S. <ul><li>By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004 </li></ul><ul><li>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. </li></ul><ul><li>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 </li></ul><ul><li>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. </li></ul>
  17. 17. Key Demographic Trends in Jamaica <ul><li>More people graduating with degrees? </li></ul><ul><li>More single mothers ? </li></ul><ul><li>More females in the workforce? </li></ul><ul><li>More people driving? With 3 cell phones? </li></ul><ul><li>More street kids? </li></ul><ul><li>The poor getting poorer since the hopes of Cash Plus was wiped out? </li></ul>
  18. 18. 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>
  19. 19. 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>
  20. 20. Labor Market Forces <ul><li>Labor Market Forces Affecting Organizations today </li></ul><ul><ul><li>Growing need for computer literate information technology workers </li></ul></ul><ul><ul><li>Necessity for ongoing investment in human resources – recruitment, education, training </li></ul></ul><ul><ul><li>Effects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations </li></ul></ul>
  21. 21. Internal Environment <ul><li>the organization itself </li></ul><ul><ul><li>Management </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Employees </li></ul></ul>
  22. 22. Adopting to the Environment <ul><ul><li>1. Boundary-spanning </li></ul></ul><ul><li>2. Inter-organizational </li></ul><ul><li>partnerships </li></ul><ul><li>3. Mergers or joint </li></ul><ul><li>ventures </li></ul>
  23. 23. External Environment and Uncertainty Number of Factors in Organization Environment Adapt to Environment High Uncertainty Low Uncertainty High Low Low High Rate of Change in Factors in Environment
  24. 24. Competitive Intelligence - CI <ul><li>What - Activities to get as much information as possible about one’s rivals </li></ul><ul><li>Where - Web sites, commercial databases, financial reports, market activities, news clippings, trade publications, personal contacts </li></ul><ul><li>Why – Spot potential threats or opportunities </li></ul>Ethical Dilemma: Competitive Intelligence Predicament, P. 105
  25. 25. Interorganizational Partnerships <ul><li>Shift in paradigm </li></ul><ul><ul><li>Trust, value added to both sides </li></ul></ul><ul><ul><li>Equity, fair dealing, everyone profits </li></ul></ul><ul><ul><li>E-business links to share information and conduct digital transactions </li></ul></ul><ul><ul><li>Close coordination; virtual teams and people on site </li></ul></ul><ul><ul><li>Involvement in partner’s product design and production </li></ul></ul><ul><ul><li>Long-term contracts </li></ul></ul><ul><ul><li>Business assistance goes beyond the contract </li></ul></ul>
  26. 26. <ul><li>To provide a recap of the last class – emphasizing the importance of management </li></ul><ul><li>2. State briefly the evolution of management thinking </li></ul><ul><li>3. List and explain three (3) types of environment that organizations’ operate in and how they can potentially affect their ability to be effective and efficient </li></ul><ul><li>4. Define corporate culture. List and explain the levels of corporate culture </li></ul><ul><li>5. Explain how internal corporate culture affects organizations performance </li></ul>Objectives of Session
  27. 27. Organizational Environments - Internal Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers
  28. 28. What is culture? <ul><li>The set of key values, beliefs, understanding, and norms that members of an organization shares. </li></ul>
  29. 29. 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
  30. 30. Visible Manifestations <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>
  31. 31. Environment and Culture <ul><li>A big influence on internal corporate culture is the external environment </li></ul><ul><li>Cultures can vary widely across organizations </li></ul><ul><li>Organizations within same industry reveal similar cultural characteristics </li></ul>Experiential Exercise: Working in an Adaptive Culture, p. 104
  32. 32. 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.
  33. 33. Four Types of Corporate Cultures Adaptability Culture Achievement Culture Consistency Culture Involvement Culture External Internal Flexibility Stability Strategic Focus Needs of the Environment
  34. 34. Cultural Leadership <ul><li>Articulates a vision that employees can believe in </li></ul><ul><ul><li>Defines and communicates central values that employees believe in </li></ul></ul><ul><ul><li>Values are tied to a clear and compelling mission, or core purpose </li></ul></ul><ul><li>Heeds the day-to-day activities that reinforce the cultural vision – work procedures and reward systems match and reinforce the values </li></ul>
  35. 35. High-Performance Culture <ul><li>Creating and maintaining a high-performance culture in today’s turbulent environment and changing workplace is not easy. </li></ul><ul><ul><li>Managers widely communicate their cultural values through their words and particularly their actions </li></ul></ul><ul><ul><li>Value statements that are not reinforced by management behavior are meaningless or even harmful for employees and the organization </li></ul></ul><ul><ul><li>Cultural leaders uphold their commitment to values during difficult times or crises. </li></ul></ul>
  36. 36. Rap up <ul><li>Environments a company has to operate in </li></ul><ul><ul><li>General </li></ul></ul><ul><ul><li>Task </li></ul></ul><ul><ul><li>Internal </li></ul></ul>

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