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cmm_session_3_compatibility_mode.pdf
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Session3 – Environment and diversity
Environment and diversity
Learning objectives:
• What is the external environment of organisations?
• What is the internal environment and organisational culture?
• What is a customer‐driven organisation?
• What is a quality‐driven organisation?
• How is diversity managed in a multicultural organisation?
Environment and competitive advantage
• Strategic capabilities: Those that are difficult to imitate, are of value to the customer, and are better than those possessed by the majority of competitors.
• Dynamic capabilities: Physical (e.g. state‐of‐the‐art equipment or advantageous location), organisational (e.g. outstanding sales force) and human (e.g. expertise in a specialised field).
• A competitive advantage allows an organisation to deal with market and environmental forces better than its competitors.
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© John Wiley and Sons Australia
The general environment
© John Wiley and Sons Australia
The specific environment
© John Wiley and Sons Australia
Environmental uncertainty
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Internal environment and organisational culture
• Organisational culture
– The system of shared beliefs and values that develops within an organisation and guides the behaviour of its members.
• The internal culture has the potential to shape attitudes, reinforce common beliefs, direct behaviour and establish performance expectations and the motivation to fulfil them.
© John Wiley and Sons Australia
Levels of organisational culture
Internal environment and culture
• Observable culture – The elements of daily organisational life through which new members learn the organisation’s culture and all members share and reinforce its special aspects over time.
• Examples of observable culture include: – Stories – Heroes – Rites and rituals – Symbols.
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Leadership and organisational culture
• A symbolic leader uses symbols to establish and maintain a desired organisational culture. They talk the ‘language’ of the organisation, highlight the observable culture, and tell key stories repeatedly.
• Group culture depends on values that should meet the following criteria:
– Relevance
– Pervasiveness
– Strength.
© John Wiley and Sons Australia
Customer‐driven organisations
Customer relationship management
• Customer relationship management (CRM)
– When the business strategically tries to build lasting relationships with, and add value for, customers.
• Supply chain management
– Involves strategic management of all operations relating an organisation to the suppliers of its resources, including purchasing, manufacturing, transportation and distribution.
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Total quality management
• ISO certification indicates conformance with a rigorous set of international quality standards.
• Total quality management (TQM) is managing with commitment to continuous improvement, product quality and customer satisfaction.
• The ‘four absolutes’ of TQM are: – Conformance to standards – Defect prevention – Defect‐free work – Quality saves money.
Quality and continuous improvement
• With regard to TQM, continuous improvement involves always searching for new ways to improve operations quality and performance.
• The key principles of TQM include: – Continuous improvement of quality – Reduced waste – Less variation and defect prevention – Supplier partnership – Team process – Customer focus.
Quality and continuous improvement
• Quality circle
– A group of employees who periodically meet to discuss ways of improving work quality.
• Benefits of a quality circle include:
– Achievement of creative potential
– Worker empowerment
– Cost savings from improved quality
– Greater customer satisfaction
– Improved morale and commitment.
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Quality, technology and design
• Lean production uses new technologies to streamline systems.
• Flexible manufacturing allows processes to be changed quickly and efficiently.
• Agile manufacturing and mass customisation allow individualised products to be made quickly and with production efficiencies.
Diversity and multicultural organisations
• The term diversity describes differences in race, gender, age, ethnicity, physical ability, culture and sexual orientation, among other individual differences.
• Inclusivity
– The degree to which the organisation is open to anyone who can do the job, regardless of their diversity attributes. The ‘best’ organisational cultures in this sense are inclusive, because they value the talents, ideas and creative potential of all members.
Diversity and multicultural organisations
• Multiculturalism: A multicultural organisation is based on pluralism and operates with respect for diversity.
• Characteristics of a truly multicultural organisation: – Pluralism: Members of both minority cultures and majority cultures are influential.
– Structural integration: Minority‐culture members are well represented at all levels and functions.
– Informal network integration. – Absence of prejudice and discrimination. – Minimum intergroup conflict.
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Organisational subcultures
• Subcultures
– Cultures common to groups of people with similar values and beliefs based on shared work responsibilities and personal characteristics.
• Subcultures can be:
– Occupational (e.g. lawyers, accountants)
– Functional (e.g. ‘marketing people’, ‘finance people’)
– Ethnic or national
– Generational.
© John Wiley and Sons Australia
Challenges faced by minority groups and women
Challenges faced by minority groups and women
• Minority‐group workers can be the targets of:
– A lack of sensitivity
– Sexual harassment
– Cultural jokes
– Discrimination.
• In Australia, various national and state laws cover equal employment opportunity and anti‐discrimination in the workplace.
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Diversity trends
• Diversity trends include the following:
– People from a non‐English‐speaking background are an increasing percentage of the workforce.
– More women are working.
– People with disabilities are gaining more work.
– Workers are increasingly from non‐traditional families (e.g. single parents).
– Average age of workers is increasing.
Managing diversity
• Leadership approaches to diversity: – Affirmative action commits the organisation to hiring and advancing minority groups and women.
– Valuing diversity commits the organisation to education and training programs to help people understand and respect differences.
– Managing diversity is the most comprehensive, approach, committing the organisation to changing the culture, in order to build an inclusive work environment that allows everyone to reach their full potential.
© John Wiley and Sons Australia
Multicultural organisations
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Diversity mature?
Questions to ask include: • Do you accept responsibility for improving your performance?
• Do you accept responsibility for improving the performance of your organisation?
• Do you understand important diversity concepts? • Do you understand that diversity is a complex and accompanied by tensions?
• Are you able to cope with tensions when dealing with diversity?
• Are you willing to challenge the way things are?
Session3 – Environment and diversity
Summary:
• What is the external environment of organisations?
• What is the internal environment and organisational culture?
• What is a customer‐driven organisation?
• What is a quality‐driven organisation?
• How is diversity managed in a multicultural organisation?
