Chapter 3 revised 1


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Chapter 3-Organization Culture & Environment

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Chapter 3 revised 1

  1. 1. MGT 113PRINCIPLES OFMANAGEMENTOrganizational Culture and EnvironmentChapter Three 1
  2. 2. ORGANISATION CULTUREbe able to: What is organization culture? Why it matters? 2
  3. 3. Challenges• The crisis• New competitors• Demanding Customers• Complaining Staff of Subordinates• Decrease in profit & sales• Merger or Reorganization 3
  4. 4. Culture makes the difference! Research has shown its powerful impact on performance and long term effectiveness of organization. The effects on employee morale and retention commitment productivity and innovation are well documented. 4
  5. 5. Organizational culture impacts:• Daily Behavior• Organizational Performance 5
  6. 6. What is culture:• It’s simply “the way we do things around here”.• Because of shared subconscious assumptions and beliefs 6
  7. 7. So, if you don’t use culture,culture will use you:- If you are not aware it will shape you Human beings copy, coach, and correct each other to fit into the groupSo make sure culture works for you instead ofagainst your necessary change! 7
  8. 8. Lets watch a video on Google’s organizationsculture:- 8
  9. 9. ORGANIZATIONALENVIRONMENT • External environment -refers to force and institutions outside organization that potentially affect an organizations performance • General and Specific Environment 9
  10. 10. ORGANIZATIONAL ENVIRONMENT • Specific Environment that is directly relevant to achievement of an org’s goal • Customers, competitors, suppliers, pressure groups • General environment broad external conditions that may affect the org • Economic conditions, political/legal conditions, socio cultural conditions, demographic conditions, technological and Global conditions 10
  11. 11. ENVIRONMENTAL UNCERTAINTY• The degree of change and complexity in an org’s environment• Degree of change: If the components of in an org’s environment changes frequently we call it dynamic environment• If the change is minimal we call it stable 11
  12. 12. ENVIRONMENTAL UNCERTAINTY• Environmental complexity: number of components in an org’s environment and extent of an org’s knowledge about its environmental components• Complexity is measured in terms of the knowledge and an org needs to have about its environment• Fewer competitors, customers, suppliers governmental institutes, less complex environment and thus less uncertainty 12
  13. 13. Let’s discuss-What is organization environment?Who are the elements involved in the two types oforganizational environment? 13