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BM_Ch 2

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BM_Ch 2

  1. 1. Chapter 2The Environment and Corporate Culture
  2. 2. New Manager’s Question 1I think sales companies should be allowed tosend out large catalogs because it can increaserevenues. 1 2 3 4 5mostly yes mostly no (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  3. 3. New Manager’s Question 2I like my job to have a good deal of stability. 1 2 3 4 5mostly yes mostly no (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  4. 4. New Manager’s Question 3When I get a new job, the managers shouldaccept me for who I am and let me be myself. 1 2 3 4 5mostly yes mostly no (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  5. 5. MindfulnessAn important quality for a new manager ismindfulness, which includes the qualities ofbeing open-minded and an independentthinker. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  6. 6. LeapFrog (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  7. 7. The External Environment • The elements of the world constantly change – Environment encompasses far-reaching global changes • General Environment: – Outer layer that indirectly affects organization • Task Environment: – Sectors that conduct day-to-day transactions with the organization • Internal Environment: – Elements within the organization boundaries (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  8. 8. The General Environment (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  9. 9. General Environment: International • Globalization influences all other aspects of the external environment – New competitors, customers, suppliers – Changes in social, technological and economic trends • All organizations must compete and think globally • Economic power has shifted to China and India • The global environment is complex and ever- changing (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  10. 10. General Environment: Technological • Technology has created massive changes for organizations • Technology has become the tool for doing business • Advances are impacting organizations and managers (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  11. 11. General Environment: Sociocultural• Demographic characteristics, norms, customs, and values• The Hispanic population is expected to increase 188%• Generation Y is flooding the workplace with new demands• Single-father households are the fastest-growing type of living arrangement• Aging workforce demographics are changing all over the world (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  12. 12. General Environment: Economic• Economic health of the country/region – Extended globally with uncertainty• Consumer buying power• Merger and acquisition opportunity• Growth in the small business sector – Significant portion of U.S. economy (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  13. 13. General Environment: Legal-Political • Government regulation; state, local and federal – Political activities – Government agencies and regulation • Managers must recognize the power of pressure groups – Work to influence companies to behave socially responsible (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  14. 14. AIG Bonuses (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  15. 15. General Environment: Natural • Organizations must be sensitive to the environment – Plants, animals, rocks and natural resources • The natural dimension does not have a voice of its own • Environmental groups advocate action/policy – Reduce pollution – Develop renewable energy – Climate change/global warming (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  16. 16. Task Environment  Customers  Competitors  Suppliers  Labor Market (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  17. 17. Task Environment: Customers• People and organizations in the environment that acquire goods or services from the organization• They determine the organization’s success• Today they have a greater power because of the internet• They can directly affect the organization’s reputation & sales (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  18. 18. Task Environment: Competitors • Other organizations in the same industry or type of business that provide goods or services to the same set of customers • Examples: • Netflix & Blockbuster • MySpace & Facebook (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  19. 19. Task Environment: Suppliers • Provide the raw materials the organization uses to produce its output (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  20. 20. Task Environment: Labor Market• People in the environment who can be hired to work for the organization• Every organization needs a supply of trained & qualified personnel• Forces affecting organizations right now • Growing need for computer-literate workers • Continuous investment in human resources • Effects of international trading blocs, automation or outsourcing (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  21. 21. Nortel Networks (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  22. 22. External Environment and Uncertainty (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  23. 23. Self-Test 1 (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  24. 24. Adapting to the Environment  Boundary-spanning roles  Interorganizational partnerships  Mergers/joint ventures  Shift from adversarial orientation to partnership orientation (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  25. 25. Task Environment: Boundary-spanning• Staying in touch with customers through the internet• Business intelligence • Results from using sophisticated software to search through large amounts of internal & external data to spot patterns, trends & relationships• Increasingly important because environmental shifts can happen quickly (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  26. 26. Task Environment: InterorganizationalPartnerships • Based on trust and the ability of partners to work out equitable solutions • Work to reduce cost • Add value • High level of information sharing (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  27. 27. Task Environment: Mergers or JointVentures • Merger occurs when 2 or more organizations combine to become one • Joint venture involves strategic alliance or program by 2 or more organizations (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  28. 28. The Shift to a Partnership Paradigm (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  29. 29. The Internal Environment: Corporate Culture (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  30. 30. Levels of Corporate Culture (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  31. 31. Corporate Culture: Symbols • Object, act or event that conveys meaning to others • Rich, nonverbal language (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  32. 32. Corporate Culture: Stories • Narrative based on true events • Repeated frequently • Shared among organizational employees (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  33. 33. Corporate Culture: Heroes • Figure who exemplifies the deeds, character, and attributes of a strong culture • Role models • Show how to do the right thing (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  34. 34. Corporate Culture: Slogans • Phrase or sentence that succinctly expresses a key corporate value (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  35. 35. Corporate Culture: Ceremonies • Planned activity at a special event that is conducted for the benefit of an audience • Special occasion • Create a bond among people (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  36. 36. Environmentally Adaptive VersusUnadaptive Corporate Cultures (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  37. 37. Four Types of Corporate Cultures (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  38. 38. Types of Culture: Adaptability • Emerges in an environment that requires fast response & high-risk decision – Employees have autonomy to make decisions – Act freely to meet new needs – Responsiveness to customers is highly valued (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  39. 39. Types of Culture: Achievement • Suited to organizations concerned with serving specific customers in the external environment but without the intense need for flexibility & rapid change – Competitiveness – Aggressiveness – Personal initiative – Willingness to work long & hard – Emphasis on winning (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  40. 40. Types of Culture: Involvement • Emphasizes an internal focus on the involvement & participation of employees to adapt rapidly to changing needs from the environmental – Caring – Family-like atmosphere (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  41. 41. Types of Culture: Consistency • Uses an internal focus and a consistency orientation for a stable environment – Following rules – Being thrifty (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  42. 42. Shaping Corporate Culture for InnovativeResponse • Corporate culture plays a key role in organization climate • Successful companies balance culture and performance (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  43. 43. Self-Test 2 (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  44. 44. Combining Culture and Performance (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  45. 45. High-Performance Culture • Based on a solid organizational mission or purpose • Embodies shared adaptive values that guide decisions & business practices • Encourages individual employee ownership of both bottom-line results & the organization’s cultural backbone (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  46. 46. 1 of the Most Important Things ManagersDo… • Create & influence organizational culture to meet strategic goals because culture has a significant impact on performance (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  47. 47. Cultural Leadership 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. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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