Discussion Topic
wtfbm69
Daft12ePPT_Ch03.pptxChapter 3
The Environment and Corporate Culture
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.1 - The General, Task, and Internal Environments
4
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.2 Sample External Environment
5
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technological
Massive advancements in a specific industry and society
Advances drive competition and help innovative companies gain market share
7
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Economic
Economic health of the country/region
Extended globally with uncertainty
Consumer purchasing power
Unemployment rate
Interest rates
9
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Natural
Organizations must be sensitive to the environment
Growing importance and pressure
Natural dimension does not have own voice
11
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Natural
Environmental groups advocate action/policy
Reduce pollution
Develop renewable energy
Global warming
Sustainable use of scarce resources
12
© 2016 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 Environmental Performance Index
13
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.4 External Environment and Uncertainty
15
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.5 The Shift to a Partnership Paradigm
18
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.6 Levels of Corporate Culture
20
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.7 Four Types of Corporate Culture
21
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3.8 Combining Culture and Performance
25
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
26
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
