The Environment and Corporate Culture1. Define an organizational.docx

The Environment and Corporate Culture
1. Define an organizational ecosystem and how the general and
task environments affect an organization’s ability to thrive.
The organizational environment consists of all elements existing
outside the boundary of the organization that have the potential
to affect and influence the organization. This environment
consists of two layers: the task environment and the general
environment.
The task environment is closer to the organization and includes
the sectors that conduct day-to-day transactions with the
organization and directly influence its basic operations and
performance such as competitors, suppliers, and customers.
The general environment affects the organization indirectly. It
includes social, economic, legal-political, international, natural,
and technological factors that influence all organizations about
equally.
2. Explain the strategies that managers use to help organizations
adapt to an uncertain or turbulent environment.
The environment creates uncertainty for organization managers.
Uncertainty means that managers do not have sufficient
information about environmental factors to understand and
predict environmental needs and changes. Two basic factors
that influence uncertainty are the number of factors that affect
the organization and the extent to which those factors change.
Strategies to adapt to these changes in the environment include
boundary-spanning roles, interorganizational partnerships, and
mergers and joint ventures.
Boundary-spanning roles are assumed by people and/or
departments that link and coordinate the organization with key
elements in the external environment. Interorganizational
partnerships are a popular strategy for adapting to the
environment by reducing boundaries and increasing
collaboration with other organizations. A merger is the
combining of two or more organizations into one. A joint

venture involves a strategic alliance or program by two or more
organizations.
3. Define corporate culture.
Culture can be defined as the set of key values, beliefs,
understandings, and norms shared by members of an
organization. It can be analyzed at two levels. At the surface
level are visible artifacts, which include things such as manner
of dress, patterns of behavior, physical symbols, organizational
ceremonies, and office layout. At a deeper, less obvious level
are the expressed values and beliefs, which can be discerned
from how people explain and justify what they do. These are
values that members of the organization hold at a conscious
level. They can be interpreted from the stories, language, and
symbols that organization members use to represent them.
Some values become so deeply embedded in a culture that
members are no longer consciously aware of them. These basic,
underlying assumptions and beliefs are the essence of culture
and subconsciously guide behavior and decisions.
4. Provide organizational examples of symbols, stories, heroes,
slogans, and ceremonies and explain how they relate to
corporate culture.
Fundamental values and corporate culture cannot be observed
directly, but they can be understood through the visible
manifestations of symbols, stories, heroes, slogans, and
ceremonies. A symbol is an object, act, or event that conveys
meaning to others. Symbols associated with corporate culture
convey the organization’s important values. A story is a
narrative based on true events that is repeated frequently and
shared among organizational employees. Stories are told to new
employees to keep the organization’s primary values alive. A
hero is a figure who exemplifies the deeds, character, and
attributes of a strong culture. Heroes are role models for
employees to follow. A slogan is a phrase or sentence that
succinctly expresses a key corporate value. Many companies
use a slogan or saying to convey special meaning to employees.
A ceremony is a planned activity that marks up a special event

and is conducted for the benefit of an audience. Managers hold
ceremonies to provide dramatic examples of company values.
Organizational culture represents the values, understandings,
and basic assumptions that employees share, and these values
are signified by the above events. Managers help define
important symbols, stories, heroes, slogans, and ceremonies to
shape the future.
5. Describe four types of culture
The adaptability culture is characterized by values that support
the company’s ability to rapidly detect, interpret, and translate
signals from the environment into new behavior responses. This
culture emerges in an environment that requires fast response
and high-risk decision making.
The achievement culture is a results-oriented culture that values
competitiveness, aggressiveness, personal initiative, and
willingness to work long and hard to achieve results. It is
suited to organizations concerned with serving specific
customers in the external environment, but without the intense
need for flexibility and rapid change. An emphasis on winning
and achieving specific ambitious goals is the glue that holds the
organization together.
The involvement culture places high value on meeting the needs
of employees and values cooperation and equality. This culture
has an internal focus on the involvement and participation of
employees to adapt rapidly to changing needs from the
environment. Managers emphasize values such as cooperation,
consideration of both employees and customers, and avoiding
status differences.
The consistency culture values and rewards a methodical,
rational, orderly way of doing things. This culture uses an
internal focus and a consistency orientation for a stable
environment
The external environment exerts a big influence on internal
corporate culture. The internal culture should embody what it
takes to succeed in the environment. If the external
environment requires extraordinary customer service, the

culture should encourage good service; if it calls for careful
technical decision making, cultural values should reinforce
effective managerial decision making.
6. Examine the relationship between culture, corporate values,
and business performance.
Companies that succeed in a turbulent world are those in which
managers are evaluated and rewarded for paying careful
attention to both cultural values and business performance.
Some companies put high emphasis on both culture and solid
business performance as drivers of organizational success.
Managers in these organizations align values with the
company’s day-to-day operations—hiring practices,
performance management, budgeting, and criteria for
promotions and rewards.
7. Define a cultural leader and explain the tools a cultural
leader uses to create a high-performance culture.
A cultural leader is a manager who uses signals and symbols to
influence corporate culture. Cultural leaders influence culture
by articulating a vision for the organizational culture that
employees can believe in, and heeding the day-to-day activities
that reinforce the cultural vision. To create a high-performance
culture, a cultural leader would tie the central values that
employees believe in to the need for high performance, and then
make sure that work procedures and reward systems match and
reinforce those values. Finally, the cultural leader must be sure
to exemplify high-performance in his or her own work
activities.
Planning and Goal Setting
1. Define goals and plans and explain the relationship between
them.
A goal is a desired future state that the organization attempts to
realize. A plan is a blueprint for goal achievement and
specifies the necessary resource allocations, schedules, tasks,

and other actions. The term planning usually incorporates both
ideas and means determining the organization’s goals and
defining the means for achieving them.
2. Explain the concept of organizational mission and how it
influences goal setting and planning.
The overall planning process begins with a mission statement,
which describes the organization’s reason for existence. The
mission describes the organization’s values, aspirations and
reason for being. A well-defined mission is the basis for
development of all subsequent goals and plans. Without a clear
mission, goals and plans may be developed haphazardly and not
take the organization in the direction it needs to go. Because of
mission statements, employees, customers, suppliers, and
stockholders know the company’s stated purpose and values.
3. Categorize the types of goals an organization should have.
Within the organization there are three levels of goals:
strategic, tactical, and operational.
· Strategic goals are broad statements of where the organization
wants to be in the future. Strategic goals pertain to the
organization as a whole and are the stated intentions of what the
organization wants to achieve.
· Tactical goals define the results that major divisions and
departments within the organization must achieve. Tactical
goals apply to middle management and describe what major
subunits must do in order for the organization to achieve its
overall goals.
· Operational goals describe specific results expected from
departments, work groups, and individuals. Operational goals
are precise and measurable.
Designing Organizational Structures
1. Discuss the fundamental characteristics of organizing and
explain work specialization, chain of command, span of
management, and centralization versus decentralization.

Organizing is the deployment of organizational resources to
achieve strategic goals. Organizing is important because it
follows the management function of planning. Planning and
strategy define what to do; organizing defines how to do it.
Organization structure is a tool that managers use to harness
resources for getting things accomplished. The deployment of
resources is reflected in the organization's division of labor into
specific departments and jobs, formal lines of authority, and
mechanisms for coordinating diverse organization tasks.
Work specialization, sometimes called division of labor, is the
degree to which organizational tasks are subdivided into
separate jobs. When work specialization is extensive,
employees specialize in a single task. Jobs tend to be small, but
they can be performed efficiently.
The chain of command is an unbroken line of authority that
links all employees in an organization and shows who reports to
whom.
The span of management is the number of employees reporting
to a supervisor. Sometimes called the span of control, this
characteristic of structure determines how closely a supervisor
can monitor subordinates. The average span of control used in
an organization determines whether the structure is tall or flat.
A tall structure has an overall narrow span and more
hierarchical levels. A flat structure has a wide span, is
horizontally dispersed, and has fewer hierarchical levels.
Centralization and decentralization pertain to the hierarchical
level at which decisions are made. Centralization means that
decision authority is located near the top of the organization.
With decentralization, decision authority is pushed downward to
lower organization levels.
2. Describe functional and divisional approaches to structure.
Functional structure is the grouping of positions into
departments based on similar skills, expertise, work activities,
and resource use. A functional structure can be thought of as
departmentalization by organizational resources because each
type of functional activity such as accounting, human resources,

engineering, and manufacturing, represent specific resources for
performing the organization's task. People and facilities
representing a common organizational resource are grouped
together into a single department.
Divisional structure occurs when departments are grouped
together based on similar organizational outputs. In the
divisional structure, divisions are created as self-contained units
for producing a single product. Each functional department
resource needed to produce the product is assigned to one
division. In a functional structure, all engineers are grouped
together and work on all products whereas, in a divisional
structure, separate engineering departments are established
within each division. Each department is smaller and focuses
on a single product line. Departments are duplicated across
product lines.
3. Explain the matrix approach to structure and its application
to both domestic and international organizations.
The matrix structure uses functional and divisional structures
simultaneously in the same part of the organization. The matrix
structure has dual lines of authority. The functional hierarchy
of authority runs vertically, and the divisional hierarchy of
authority runs horizontally. The matrix approach to structure
provides a formal chain of command for both the functional and
divisional relationships. The matrix structure is typically used
when the organization experiences environmental pressure for
both a strong functional departmentalization and a divisional
departmentalization. Global corporations often use the matrix
structure. The problem for global companies is to achieve
simultaneous coordination of various products within each
country or region and for each product line. The two lines of
authority typically are geographic and product, and the matrix
provides excellent simultaneous coordination. It is an
organizational structure that deliberately violates Fayol’s
principle of unity of command.
4. Describe the contemporary team and virtual network
structures and why they are being adopted by organizations.

The implementation of team concepts has been a widespread
trend in departmentalization. The vertical chain of command is
a powerful means of control, but moving decisions through the
hierarchy takes much time and keeps responsibility at the top.
The trend is to delegate authority, push responsibility to the
lowest possible levels, and create participative teams that
engage the commitment of workers. This approach enables
organizations to be more flexible and responsive in a
competitive global environment. The dynamic network
organization is another approach to departmentalization. Using
the network structure, the organization divides major functions
into separate companies that are brokered by a small
headquarters organization. The network approach is
revolutionary because it is difficult to answer the question,
“Where is the organization?” This organizational approach is
especially powerful for international operations.
5. Explain why organizations need coordination across
departments and hierarchical levels and describe mechanisms
for achieving coordination.
Coordination refers to the quality of collaboration across
departments. It is required whether there is a functional,
divisional, or team structure. Coordination problems are
amplified in the global arena, because units differ not only by
goals and work activities but by distance, time, culture, and
language. Coordination is the outcome of information and
cooperation; managers can design systems and structures to
promote horizontal coordination. The vertical structure is
flattened, with perhaps only a few senior executives in
traditional support functions such as finance or human
resources. A task force is a temporary team or committee
designed to solve a short-term problem involving several
departments. Task force members represent their departments
and share information that enables coordination. Companies
also set up cross-functional teams for coordination. Companies
also use project managers, responsible for coordinating the

activities of several departments on a full-time basis for the
completion of a specific project. Reengineering is the radical
redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed. Because the
focus of reengineering is on process rather than function,
reengineering generally leads to a shift away from a strong
vertical structure.
6. Identify how structure can be used to achieve an
organization’s strategic goals.
Structure depends on a variety of contingencies. The right
structure is “designed to fit” the contingency factors of strategy,
environment, and technology. These three areas are changing
for organizations, creating a need for stronger horizontal
coordination. Two strategies proposed by Porter are
differentiation and cost leadership; these strategies require
different structural approaches. The pure functional structure is
appropriate for achieving internal efficiency goals. The
vertical functional structure uses task specialization and a chain
of command. It does not enable the organization to be flexible
or innovative. Horizontal teams are appropriate when the
primary goal is innovation and flexibility. The firm can
differentiate itself and respond quickly to change. Other forms
of structure represent intermediate steps on the firm’s path to
efficiency or innovation. The functional structure with cross-
functional teams and project teams provides greater
coordination and flexibility than the pure functional structure.
The divisional structure promotes differentiation because each
division can focus on specific products and customers.
7. Define production technology and explain how it influences
organization structure.
Technology includes the knowledge, tools, techniques, and
activities used to transform organizational inputs into outputs.
Joan Woodward described three types of manufacturing
technology.
a. Small-batch and unit production. Small-batch
production firms produce goods in batches of one or a few

product products designed to customer specification. Examples
include custom clothing, special-order machine tools, space
capsules, satellites, and submarines.
b. Large-batch and mass production. Mass
production technology is distinguished by standardized
production runs in which a large volume of products is produced
and all customers receive identical products. This technology
makes greater use of machines than does small-batch
production. Examples include automobiles, tobacco products,
and textiles.
c. Continuous process production. In continuous process
production, the entire workflow is mechanized in a
sophisticated and complex form of production technology. The
process runs continuously and therefore has no starting or
stopping. Human operators are not part of actual production
because machinery does all the work. Examples include
chemical plants, distilleries, petroleum refineries, and nuclear
power plants.
Service organizations include consulting companies, law firms,
brokerage houses, airlines, hotels, advertising companies,
amusement parks, and educational organizations. Service
technology also characterizes departments such as legal, human
resources, finance, and market research in large corporations.
Service technology involves:
· intangible output—services are perishable and, unlike
physical products, cannot be stored in inventory; and
· direct contact with customers—employees and customers
interact directly to provide and purchase the service.
Production and consumption are simultaneous.
Chapter 10
Designing Adaptive Organizations

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Organizing
All organizations wrestle with structural design and
reorganization
The deployment of organizational resources to achieve strategic
goals
Division of labor
Lines of authority
Coordination
Organizing is important because it follows from strategy
2
Organizing the Vertical Structure
Organizing structure defines:
The set of formal tasks assigned to individuals and departments
Formal reporting relationships
The design of the systems to ensure effective coordination
3

10.1 Sample Organization Chart
4
Organizing Concepts
5
Work Specialization is the degree to which organizational tasks
are subdivided into individual jobs; also called division of labor
Chain of Command is an unbroken line of authority that links
all individuals in the organization and specifies who reports to
whom
Authority, Responsibility,
and Delegation
Authority is vested in organizational positions, not people
Authority flows down the vertical hierarchy
Authority is accepted by subordinates
6

Authority, Responsibility,
and Delegation
Responsibility is the duty to perform the task or activity as
assigned
Accountability is the mechanism through which authority and
responsibility are aligned
Delegation is the process managers use to transfer authority and
responsibility down the chain
7
Line and Staff Authority
Line departments perform primary business tasks
Sales
Production
8
Staff departments support line departments
Marketing
Labor relations
Research
Accounting
Human Resources

9
Line authority means that people in management positions have
formal authority to direct and control immediate subordinates
Staff authority is narrower and includes the right to advise,
recommend, counsel in the staff specialists’ area of expertise
10
Span of Management
The number of employees reporting to a supervisor
Less supervision/larger spans of control
Work is stable and routine
Subordinates perform similar work
Subordinates are in one location
Highly trained/require little direction
Rules and procedures are defined
Few planning or nonsupervisory activities
Manager’s preference
11

Span of Management
12
Tall structure have more levels and narrow span
Flat structure have a wide span and fewer levels
10.2 Reorganization and
Span of Management
13
Centralization and Decentralization
Centralization – decision authority is located near the top of the
organization
Decentralization – decision authority is pushed downward to all
levels
Factors that influence centralization versus decentralization:
Change and uncertainty are usually associated with
decentralization
Strategic fit
Crisis requires centralization
14

Departmentalization:
Functional and Divisional
Basis for grouping positions into departments and departments
into the total organization
Vertical functional approach
Grouping of positions into departments based on skills,
expertise, work activities, and resource use
15
10.3 Five Approaches to Structural Design
16
17

17
18
19
20
Functional and Divisional
Divisional approach
Grouping based on organizational output
Product, program, business

Geographic or Customer-based divisions group activities by
geography or customer
21
10.4 Functional vs. Divisional Structure
22
10.5 Geographic-Based Global Organization Structure
23
Matrix and Team Approach
Matrix approach combines functional and divisional approaches
Improve coordination and information
Dual lines of authority
Team approach is a very widespread trend
Allows managers to delegate authority
Flexible, responsive

24
10.6 Dual-Authority Structure in a Matrix Organization
25
10.7 Global Matrix Structure
26
Virtual Network Approach
Extends idea of horizontal coordination and collaboration
Could be a loose interconnected group
i.e., outsourcing
Virtual network structure means that the firm subcontracts most
of its major functions to separate companies

27
10.8 Network Approach to Departmentalization
28
10.9 Structural Advantages and Disadvantages
29
Organizing for Horizontal Coordination
Companies need more flexibility than vertical structure can
offer
Meet fast-shifting environment
Break down barriers between departments
Need integration and coordination
Lack of coordination and cooperation can cause information
problems
Growing global challenge

30
10.10 Evolution of Organization Structures
31
Reengineering
32
Radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed
Task Forces, Teams, and
Project Management
33
Project Manager – person responsible for coordinating
activities of several departments for the completion of a specific
project
Task Force – a temporary team or committee formed to solve a
specific short-term problem involving several departments

Cross-functional Team – furthers horizontal coordination by
including members across the organization
10.11 Project Manager
Relationships to Departments
34
Relational Coordination
Frequent, timely, problem-solving communication carried out
through [employee] relationships of shared goals, shared
knowledge, and mutual respect.
35
Structure Follows Strategy
36
Business performance is influenced by structure
Strategic goals should drive structure
Structure should facilitate strategic goals

10.12 Factors Affecting Organization Structure
37
10.13 Relationship of Structural Approach to Strategy
38
Structure Fits the Technology
Knowledge, tools, techniques, and activities should match
production activities
Manufacturing firms can be categorized according to:
Small-batch and unit production
Large-batch and mass production
Continuous process production
The technical complexity of each type of firm differs
39

Chapter 8
Strategy Formulation and Execution
Strategy
Every company is concerned with strategy
It determines which organizations succeed and which ones
struggle
Strategic blunders can hurt a company
Strategic management is a specific type of planning
2
Thinking Strategically
The long-term view of the organization and competition
Thinking strategically impacts performance and financial
success
Today’s environment requires everyone to think strategically
3

Strategic Management
4
Decisions and actions used to formulate and execute strategies
that will provide competitively superior fit between the
organization and its environment to achieve organizational
goals
Purpose of Strategy
Explicit strategy is the plan of action
Competitive advantage is the organization’s distinctive edge
for meeting customer needs
Strategies should:
Exploit Core Competencies
Achieve Synergy
Create Value
Target Customers
5
8.1 The Elements of Competitive Advantage
6

8.2 Three Levels of Strategy in Organizations
7
8.3 The Strategic Management Process
8
Strategy Formulation
versus Execution
9
Formulation:
Assessing the external environment and internal problems to
create goals and strategy
Execution:
the use of managerial and organizational
tools to direct
resources toward accomplishing

strategic results
SWOT Analysis
Formulating strategy often begins with an audit of internal and
external factors
Internal Strengths and Weaknesses
External Opportunities and Threats
Information is acquired from reports, surveys, discussions, and
meetings
10
Formulating Corporate-Level Strategy: Portfolio Strategy
Strategic Business Units (SBUs) have a unique mission,
products, and competitors
Portfolio strategy pertains to the mix of SBUs and product lines
to provide synergy and competitive advantage
Organizations should not become too dependent on one business
11
Formulating Corporate-Level Strategy: The BCG Matrix

Organizes business along two dimensions
Business growth rate
Market share
Four categories for corporate portfolio
The combination of high/low market share and high/low
business growth
12
8.5 The BCG Matrix
13
Formulating Corporate-Level Strategy: Diversification Strategy
Related diversification: expansion into new business related to
existing business activities
Unrelated diversification: expansion into new lines of business
Vertical integration: expansion into businesses that supply to
the business or are distributors
14

Formulating Business-Level Strategy
Strategy within the business units: How do we compete?
Business-level strategies are developed by Porter’s Five Forces
Web technology is impacting all industries in positive and
negative ways
15
8.5 Porter’s Five Forces
16
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content related to Porter's Five Forces is not given in the text
Porter’s Competitive Strategies
Differentiation
Distinguishing products and services
Cost Leadership
Cost reductions, cost controls
Focus Strategy
Concentration on a specific region or buyer
Either differentiation or cost leadership approach
17

8.7 Characteristics of Porter’s Competitive Strategies
18
Chapter 7
Managerial Planning and Goal Setting
Planning is Fundamental
All of the other management functions stem from planning
How do you plan for an undefined future?
No plan is perfect
Without plans and goals, organizations flounder
2

Goals and Plans
3
A goal is a desired future state that the organization attempts to
realize
A plan is a blueprint for goal achievement and specifies the
necessary resource allocations, schedules, tasks, and other
actions
PLANNING
7.1 Levels of Goals and Plans
4
7.2 The Organizational
Planning Process
5
Goal-Setting in Organizations

Organizational mission – the organization’s reason for existence
Strategic goals – official goals, broad statements describing the
organization’s future
Strategic plans – define the action steps the company will take
Goals should be aligned using a strategy map
6
7.4 A Strategy Map for
Aligning Goals
7
Operational Planning
Direct employees and resources
Guide toward efficient and effective performance
Includes planning approaches:
Management-by-Objectives (MBO)
Single-Use Plans
Standing Plans
8

7.5 Characteristics of Effective Goal Setting
9
7.6 Model of the MBO Process
Defined in 1954 by Peter Drucker
Method for defining goals and monitoring performance
10
7.7 MBO Benefits
11
Single-Use and Standing Plans
Single-Use Plans
Achieve one-time goals
Programs and projects

Standing Plans
Ongoing plans
Policies, rules, procedures
12
Types of Single-Use and
Standing Plans
Single-Use Plans
Program: building new headquarters, converting paper files to
digital
Project: renovating the office, setting up a new company
intranet
13
Types of Single-Use and
Standing Plans
Standing Plans
Policy: Sexual harassment policies, Internet and social media
policies
Rule: No eating rule in areas of company where employees are
visible to public
Procedure: Procedures for issuing refunds, Procedures for
handling employee grievances
14

7.8 Major Types of Single Use and Standing Plans
15
Benefits and Limitations
of Planning
Goals and plans provide a source of motivation and commitment
Goals and plans guide resource allocation
Goals and plans are a guide to action
Goals and plans set a standard of performance
Goals and plans can create a false sense of certainty
Goals and plans may cause rigidity in a turbulent environment
Goals and plans can get in the way of intuition and creativity
16
Planning for a Turbulent Environment
Contingency Planning
Planning for emergencies, setbacks, or unexpected conditions
Building Scenarios
A forecasting technique to look at current trends and
discontinuities and visualize future possibilities
Crisis Planning

Unexpected events that are sudden and devastating
17
7.9 Essential Stages of
Crisis Planning
18
Set Stretch Goals for Excellence
Stretch goals are highly ambitious
Clear, compelling, and imaginative
Require innovation
Goals must be seen as achievable
Like Big Hairy Audacious Goal (BHAG) from 1996 article on
“Building Your Company’s Vision”
As times move faster and become more turbulent, these are
important
19
Use Performance Dashboards
Dashboards

keep track of key performance metrics
align and track goals
can be applied throughout the company on the factory or sales
floor.
20
7-10 A Performance Dashboard for Planning
21
Deploy Intelligence Teams
Intelligence teams
cross-functional group of managers
work together
gain a deep understanding of a specific competitive issue
offer insight and recommendations for planning
22

Chapter 3
The Environment and Corporate Culture
The External Environment
The elements of the world constantly change
The external organizational environment includes all outside
elements that affect the organization
General environment:
Affects organizations indirectly
2
The External Environment
Task environment:
Sectors that conduct transactions with the organization
Organizational ecosystem:
Formed by the interaction among a community of organizations
in the environment
Internal environment:
Elements within the organization boundaries
3

3.1 - The General, Task, and Internal Environments
4
3.2 Sample External Environment
5
General Environment: International
Managers must consider the international dimension
Events originating in foreign countries
New opportunities for U.S. companies in other countries
New competitors, suppliers, customers
New technological, social, and economic trends
6
Technological

Massive advancements in a specific industry and society
Advances drive competition and help innovative companies gain
market share
7
Sociocultural
Demographic characteristics, norms,
customs, and values
Connected Generation or Generation Z has woven technology
into every aspect of life
Widespread social equality
Growing diversity has implications for business
8
Economic
Economic health of the country/region
Extended globally with uncertainty
Consumer purchasing power
Unemployment rate
Interest rates
9

Legal-Political
Government regulation; state, local, and federal
Political activities
Government agencies and regulation
Managers work with lawmakers, educating them about
products and services
legislation’s impact on their business strategies
10
Natural
Organizations must be sensitive to the environment
Growing importance and pressure
Natural dimension does not have own voice
11

Natural
Environmental groups advocate action/policy
Reduce pollution
Develop renewable energy
Global warming
Sustainable use of scarce resources
12
3.3 Environmental
Performance Index
13
Organization-Environment Relationship
The environment creates uncertainty for managers
Managers must respond and design adaptive organizations
Uncertainty – managers do not have sufficient information
about environmental factors to understand and predict
environmental needs and changes
14

3.4 External Environment
and Uncertainty
15
Adapting to the Environment
Boundary-spanning roles – link and coordinate the organization
with external environment, seek:
Business intelligence
Big Data analytics
Interorganizational partnerships – reduce boundaries and begin
collaborating with other organizations
16
Adapting to the Environment
Mergers – occurs when two or more organizations combine to
become one
Joint ventures – strategic alliance or program by two or more
organizations
17

3.5 The Shift to a
Partnership Paradigm
18
The Internal Environment: Corporate Culture
Corporate culture is the set of key values, beliefs,
understandings, and norms that members of an organization
share
Symbols
Stories
Heroes
Slogans
Ceremonies
19
3.6 Levels of Corporate Culture
20

3.7 Four Types of
Corporate Culture
21
Shaping Corporate Culture for Innovative Response
Corporate culture plays a key role in learning and innovate
responses to:
Threats from the external environment
Challenging new opportunities
Organizational crises
22
Managing the High-Performance Culture
Bottom-line strategies are successful in the short term
Successful companies balance culture and business performance
Culture is the “glue” that holds the organization together

23
High-Performance Culture
Based on solid organizational mission/purpose
Shared adaptive values that guide decisions and practices
Encourages individual employee ownership
Bottom-line results
Organization’s culture
24
3.8 Combining Culture
and Performance
25
Cultural Leadership
Defines and uses signals and symbols to influence corporate
culture
Articulate a vision for the organizational culture that employees
can believe in

Heeds the day-to-day activities that reinforce the cultural vision
Leaders communicate through words and actions
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The Environment and Corporate Culture1. Define an organizational.docx

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