chapter 3 the environment and corporate culture. the elements of the world constantly change the...
Post on 21-Dec-2015
224 views
TRANSCRIPT
![Page 1: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/1.jpg)
Chapter 3The Environment and Corporate Culture
![Page 2: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/2.jpg)
The elements of the world constantly change• The external organizational environment
includes all outside elements that effect the organization
• General Environment:– Outer layer that directly affects organization
• Task Environment:– Sectors that conduct transactions with the
organization• Internal Environment:– Elements within the organization boundaries
The External Environment
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2
![Page 3: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/3.jpg)
3.1 The General, Task, and Internal Environments
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3
![Page 4: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/4.jpg)
• 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
General Environment: International
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4
![Page 5: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/5.jpg)
Massive changes for organizations
The tool for doing business
Advances are impacting organizations and managers
Technological
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5
![Page 6: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/6.jpg)
Demographic characteristics, norms, customs, and values
U.S. Population is aging
Large influx of immigrants
Generation Y is entering the workplace
Sociocultural
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 6
![Page 7: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/7.jpg)
• Economic health of the country/region
– Extended globally with uncertainty
• Consumer purchasing power
• Unemployment rate
• Economic shift impacted small business although there is still vitality in small business
Economic
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 7
![Page 8: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/8.jpg)
• 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 in a socially
responsible way
Legal-Political
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 8
![Page 9: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/9.jpg)
• Growing importance and pressure
• Organizations must be sensitive to the environment
• Natural dimension does not have own voice
• Environmental groups advocate action/policy
– Reduce pollution
– Develop renewable energy
– Climate change/global warming
Natural
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 9
![Page 10: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/10.jpg)
Customers
Competitors
Suppliers
Labor Market
Task Environment
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 10
![Page 11: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/11.jpg)
3.2 Environmental Performance Index
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 11
![Page 12: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/12.jpg)
The environment creates uncertainty for managers
Managers must respond and design adaptive organizations
Uncertainty can be managed through effectiveness
Organization-Environment Relationship
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 12
![Page 13: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/13.jpg)
3.3 Sample External Environment
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13
SOURCES: “Chinese Ministry of Railways Chooses Nortel Mobile Network,” M2Presswire (January 29, 2008); Nortel Web site, http:www.nortel.com (accessed May 12, 2010); J. Weber with A. Reinhardt and P. Burrows, “Racing Ahead at Nortel,” BusinessWeek (November 8, 1999): 93–99; “Nortel’s Waffling Continues: First Job Cuts, Then Product Lines, and Now the CEO,” Telephony (May 21, 2001): 12; and M. Heinzl, “Nortel’s Profits of 499 Million Exceeds Forecast,” The Wall Street Journal, January 30, 2004.
![Page 14: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/14.jpg)
3.4 External Environment and Uncertainty
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 14
![Page 15: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/15.jpg)
Boundary-spanning roles – link and coordinate the organization with external environment, seek:• Business intelligence
• Competitive intelligence
Interorganizational partnerships – reduce boundaries and begin collaborating with other organizations
Mergers/joint ventures – legal combination of operations; legal collaboration for specific project
Adapting to the Environment
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 15
![Page 16: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/16.jpg)
3.5 The Shift to a Partnership Paradigm
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 16
![Page 17: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/17.jpg)
The Internal Environment: Corporate Culture
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 17
![Page 18: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/18.jpg)
3.6 Levels of Corporate Culture
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 18
![Page 19: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/19.jpg)
3.7 Four Types of Corporate Cultures
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 19
![Page 20: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/20.jpg)
• Corporate culture plays a key role in learning and innovate responses
• Bottom-line strategies are successful in the short-term
• Successful companies balance culture and performance
• Culture is the “glue” that holds the organization together
Shaping Corporate Culture for Innovative Response
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 20
![Page 21: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/21.jpg)
Based on solid organizational mission/purpose
Shared adaptive values that guide decisions and practices
Encourages individual employee ownership– Bottom-line results– Organization’s culture
High Performance Culture
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 21
![Page 22: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/22.jpg)
3.8 Combining Culture and Performance
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 22
![Page 23: Chapter 3 The Environment and Corporate Culture. The elements of the world constantly change The external organizational environment includes all outside](https://reader035.vdocuments.us/reader035/viewer/2022062304/56649d575503460f94a36631/html5/thumbnails/23.jpg)
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
Cultural Leadership
Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 23