powerpoint presentation to accompany management, 10/e john r. schermerhorn, jr. prepared by: jim...

PowerPoint Presentation to Accompany

Management, 10/eJohn R. Schermerhorn, Jr.

Prepared by: Jim LoPresti University of Colorado, Boulder

Published by: John Wiley & Sons, Inc.

Chapter 3: Environmental and Organizational

Culture

Management 10/e - Chapter 3 2

Planning Ahead — Chapter 3 Study Questions

What is the external environment of organizations?

What are key issues in organization-environment relationships?

What is the internal environment and organizational culture?

What are multicultural organizations?


Study Question 1: What is the external environment of organizations?

Successful companies in the new economy will need to focus on: Knowledge

customer behavior markets economies technology

Learning Speed


Figure 3.1 Starbucks general environment.



The general environment — all of the background conditions in the external environment of the organization including: Economic – health of the economy Legal-political – norms, customs, social values Socio-cultural – philosophy/objectives of political

party running the government Technological – development and availability og

technology Natural environment – nature and conditions of

environment



The specific (task) environment actual organizations, groups, and persons with whom an organization interacts and conducts business.

Includes important stakeholders such as: Customers Suppliers Competitors Regulators Investors/owners

Value creation is creating value for and satisfying the needs of constituencies


Figure 3.2 Multiple stakeholders in the environment of an organization.


Study Question 2: What are key issues in organization-environment relationships?

Competitive advantagea core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace.



Companies may achieve competitive advantage in many ways, including:

Products Pricing Customer service Cost efficiency Quality Knowledge



Environmental uncertainty

a lack of complete information regarding

what exists and what developments may

occur in the external environment.

Two dimensions of environmental

uncertainty: Degree of complexity

Rate of change



Customers want: High quality. Low price. On-time delivery. Great service.

Key customer service lessons: Protect reputation for quality products. Treat customers right.



Organizational Effectiveness – sustainable high performance in using resources to accomplish mission and objectives.• Systems resource approach focuses on resource

acquisition• Internal process approach focuses on operations

efficiency• Goal approach focuses on accomplishing key

objectives

• Strategic Constituencies focuses on stakeholder impact


Figure 3.3 Dimensions of uncertainty



Customer relationship management establishes and maintains high standards of

customer service in order to strategically build

lasting relationships with and add value to

customers.

Supply chain management

strategic management of all operations relating

to an organization’s resource suppliers.


Study Question 3: What is the internal environment and organizational culture?

Organizational culture the system of shared beliefs and values that develops within an organization and guides the behavior of its members.

Socializationto the culture. builds strong cultures by acclimating new members


Figure 3.4 Levels of organizational culture—observable culture and core culture in the organizational “iceberg.”



Strong cultures: Commit members to do things that are in the best

interests of the organization. Discourage dysfunctional work behavior. Encourage functional work behavior.

The best organizations have strong cultures that: Are performance-oriented. Emphasize teamwork. Allow for risk taking. Encourage innovation. Value the well being of people.



What is observable culture? What one sees and hears when walking around

an organization.

Elements of observable culture: Heroes Stories Rites and rituals Symbols



What is the core culture? Underlying assumptions and beliefs

that influence behavior and contribute to the observable culture.

Core culture and values:• Core values are beliefs and values

shared by organization members • Strong cultures have a small but

enduring set of core values. Commitment to core values is a key to

long-term success.



Diagnostic questions for assessing cultural differences: How tight or loose is the structure? Are decisions change oriented or driven by the

status quo? What outcomes or results are most highly valued? What is the climate for risk taking, innovation? How widespread is empowerment, worker

involvement? What is the competitive style, internal and external?



Important cultural values include: Performance excellence Innovation Social responsibility Integrity Worker involvement Customer service Teamwork



Value-based management: Describes managers who actively help

to develop, communicate, and enact shared values.

Criteria for evaluating core values: Relevance Integrity Pervasiveness Strength



Workplace spirituality: Practices that create meaning and shared

community among organizational members. Sample values include:

Meaningful purpose Trust and respect Honesty and openness Personal growth and development Worker friendly practices Ethics and social responsibility



Symbolic leadership Symbolic leaders use symbols well to establish

and maintain a desired organizational culture. Symbolic leaders behave in ways that espouse

organization’s values. Symbolic leaders:

Use language metaphors. Highlight and dramatize core values and

observable culture. Use rites and rituals to glorify performance.


Study Question 4: What are multicultural organizations?

Diversity: Describes differences among people at

work, such as; age, gender, race.

How diversity is handled in the workplace reflects the organization’s culture.

Respect and inclusion. Disrespect and exclusion.

A potential source of competitive advantage.



Diversity trends in the sociocultural environment: People of colors are an increasing percentage

of the workforce. More women are working. People with disabilities are gaining more

access to the workplace. Average age of workers is increasing. Religious diversity of workers is increasing.



Multicultural organizations Based on pluralism, operating with

inclusion and respect for diversity

Multiculturalism

• involves pluralism and respect for

diversity



Characteristics of multicultural organizations: Pluralism Structural integration Informal network integration Absence of prejudice and discrimination Minimum intergroup conflict



Organizational subcultures Cultures based on shared work responsibilities

and/or personal characteristics. Ethnocentrism is the belief that one’s subculture

is superior to all others Common subcultures include:

Occupational Functional Ethnic or national Racial Generational Gender



Challenges faced by minorities and women: Glass ceiling Misunderstanding and lack of sensitivity Sexual harassment Pay discrimination Job discrimination

Minorities may adapt by exhibiting

biculturalism - adopting characteristics of the

majority culture


Figure 3.5 Glass ceilings as barriers to women and minority cultures in traditional organizations.


Study Question 4: How is diversity managed in a multicultural organization?

Diversity leadership approaches: Managing diversity commits to building an

organizational culture that allows all members

to reach their full potential.

Affirmative action commits the organization to

hiring and advancing minorities and women.

Valuing diversity commits the organization to

education and training programs.


Figure 3.6 Leadership approaches to diversity—from affirmative action to managing diversity.

Source: Developed from R. Roosevelt Thomas, Jr., Beyond Race and Gender (New York: AMACOM, 1991), p. 28.

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powerpoint presentation to accompany management, 10/e john r. schermerhorn, jr. prepared by: jim...

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