chp02 final
TRANSCRIPT
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The Environment &
Corporate Culture
Chapter 2
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Learning Objectives1. Describe the general and task environments and the
dimensions of each.
2. Explain the strategies managers use to help organizations
adapt to an uncertain or turbulent environment.
3. Define corporate culture and give organizational examples.
4. Explain organizational symbols, stories, heroes, slogans, and
ceremonies and their relationship to corporate culture.
5. Describe how corporate culture relates to the environment.
6. Define a cultural leader and explain the tools a cultural
leader uses to create a high performance culture.
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The External Organizational Environment
All elements existing outside the
organization's boundaries that have thepotential to affect the organization.
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External Environments
Two Layers
Task environment.
General environment.
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Employees Culture
Management
Internal
Environment
TechnologicalGeneral Environment
Customers
Com
petitors
LaborMarket
Suppliers
Task Environment
Ex. 2.1Location of theOrganizations General,
Task, and Internal
Environments
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Importance of
International Dimension Provides New:
Customers
Competitors Suppliers
Shapes:
Social trends
Technological trends
Economic trends
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Technological Dimension
Includes scientific and
technological advancementsin specific industry andsociety at large.
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Socio-Cultural Dimension
Demographic characteristics as well as the
norms, customs, and values of the general
population. Important characteristics are geographical
and population density, age, and education
levels.
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Socio-Cultural Dimension (contd.)
Key demographic trends in the United States:
Hispanics will make up nearly a quarter of the U.S.population by the year 2050.
Population and the workforce continue to age with
the baby boomers.
The fastest-growing living arrangement is single-
father households.
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Organizations
Economic Environment
Consumer purchasing
power.
Unemployment rate.
Interest rates.
Frequency of mergers.
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Legal-Political
Government regulations
Local
State Federal
Considers political activities designed to
influence company behavior.
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Task (Industry) Environment
Stakeholders Stakeholder- Any person or group within or
outside the organization that is impacted by firm
actions and performance. Examples of stakeholders:
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Task Environment
Customers A concern is the power the Internet has given
customers.
This new found power enables customers todirectly impact organizations in new ways.
Managers are using the Internet to learn about
customers.
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Task Environment
Competitors
Each industry is characterized by specific
competitive issues.
Competitive wars are being waged
worldwide in all industries.
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Task Environment
Suppliers
Many companies are now using fewer
suppliers while trying to build betterrelationships.
Traditionally the role has been adversarial;
many companies now are looking tocooperation.
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Task Environment
Labor Market Factors
1. Growing need for computer-literateinformation technology workers.
2. The necessity for continuous investment inhuman resources in order to meet theborderless world.
3. The effects of international trading blocks,automation, and shifting plant locations.
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Ex. 2.3 Adapt to
Environment
High
Uncertainty
Low
Uncertainty
HighLowLow
High
Number of Factors in Organization Environment
Rate of
Change inFactors in
Environment
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Adapting to the Environment
Boundary-Spanning
Inter-organizationalPartnership
Mergers & Joint Ventures
Preparing the organizationfor the environment.
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Ex. 2.5 Levels of Corporate Culture
Visible
1. Artifacts, such as dress, office
layout, symbols, slogans,
ceremonies, mission statements.
2. Expressed values, such as The
Penney Idea, The HP Way
3. Underlying assumptions and deep
beliefs, such as people are lazyand cant be trusted
Invisible
Culture that can be
seen at the surface
level
Deeper values and shared
understandings held by
organization members
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Visible Manifestations
Symbols
Stories Heroes
Slogans
Ceremonies
Mission & Vision Statements
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Ex. 2.7 Four Types of Corporate Cultures
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Cultural Leadership Influence
1. Cultural leadership articulates a vision for the
organizational culture in which employees
can believe.
2. Cultural leadership heeds the day-to-day
activities that reinforce the cultural vision.