The Environment Corporate Culture Developed by Cool Pictures

The Environment & Corporate Culture Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Organizational Environment • All elements existing outside the organization's boundaries that have the potential to affect the organization. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

External Environment’s Two Layers Task environment. General environment. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Organizational Environment General Environment iona l Technological Task Environment rnat Inte Labor Market Employees Management Suppliers ga l/P oli tic Developed by Cool Pictures & Multi. Media Presentations Culture Competitors Le Internal Environment ltural Sociocu Customers al m o n ic o c E Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Importance of International Dimension ÖProvides New: – Customers – Competitors – Suppliers ÖShapes: – Social trends – Technological trends – Economic trends Developed by Cool Pictures & Multi. Media Presentations The WTO will dramatically change the international dimension. Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Technological Dimension • Includes scientific and technological advancements in specific industry and society at large. Today computers are practically taken for granted as one of the minimum tools for doing business. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

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. • Key demographic trends in the United States: ð African Americans and Hispanics will make up nearly a quarter of the U. S. population by the year 2050. ð Population and the workforce continue to age with the baby boomers. ð The fastest-growing living arrangement is single-father households. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Organization’s Economic Environment • Consumer purchasing power. • Unemployment rate. • Interest rates. • Frequency of mergers. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Legal-Political • Government regulations – Local – State – Federal • Considers political activities designed to influence company behavior. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Task Environment Customers • A concern is the power the internet has given customers. • This new found power enables customers to directly impact organizations in new ways. • Managers are using the internet to learn about customers. Employees and disgruntled customers can quickly damage a firm’s reputation and sales. SOURCE: www. untied. com web site Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Task Environment Competitors • Each industry is characterized by specific competitive issues. • Part of the new workplace involves competitors working together. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Task Environment Suppliers • Many companies are now using fewer suppliers while trying to build better relationships. • Traditionally the role has been adversarial many companies are looking to cooperation. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Task Environment Labor Market Factors 1. Growing need for computer-literate information technology workers. 2. The necessity for continuous investment in human resources in order to meet the borderless world. 3. The effects of international trading blocks, automation, and shifting plant locations. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

External Environment and Uncertainty High Uncertainty Adapt to and Influence Environment Rate of Change in Factors in Environment Low Uncertainty Low High Number of Factors in Organization Environment Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Adapting to the Environment ü ü Boundary-Spanning Inter-organizational Partnership Mergers & Joint Ventures Flexible Structure Preparing the organization for the environment. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Levels of Corporate Culture that can be seen at the surface level Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies Invisible 2. Expressed values, such as “The Penney Idea, ” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Deeper values and shared understandings held by organization members Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Visible Manifestations • • • Developed by Cool Pictures & Multi. Media Presentations Symbols Stories Heroes Slogans Ceremonies Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

Four Types of Corporate Culture SOURCES: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness, ” Organization Science 6 no. 2 (March-April 1995): 204 -223; Robert Hooijberg and Frank Petrock, “On Cultural Change: Using the Competing Values Framework to Help Leaders Execute a Transformational Strategy, ” Human Resource Management 32, no. 1 (1993): 29 -50; and R. E. Quinn, Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance (San Francisco: Jossey. Bass, 1988). Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.

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. Developed by Cool Pictures & Multi. Media Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.