Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2002 by South-Western, a division of Thompson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Organizational Environment Includes all elements existing outside the boundary of the organization that have the potential to affect the organization

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Two Layers of the External Environment  Task environment  General environment

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Organizational Environment Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Sociocultural International General Environment Task Environment

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Importance of International Dimension  Provides New: Customers Competitors Suppliers  Shapes: Social trends Technological trends Economic trends

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Socio-Cultural Dimension Important characteristics are geographical and population density, age, and education levels. Key demographic trends in the United States:  Hispanics will make up nearly a quarter of the U.S. population by the year  Population and the workforce continue to age with the baby boomers.  The single father is the fastest growing living arrangement.  The U.S. will continue to receive large numbers of immigrants especially from Asia and Mexico.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Organization’s Economic Environment Consumer purchasing power Unemployment rate Interest rates

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Labor Market Forces Affecting Organizations 1.Growing need for computer literate information technology workers 2.The necessity for ongoing investment in human resources 3.International trading blocks European Union: “European integration has delivered half a century of stability, peace and economic prosperity. It has helped to raise standards of living, built an internal market, launched the euro and strengthened the Union's voice in the world.”

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. External Environment and Uncertainty Number of Factors in Organization Environment Adapt to Environment High Uncertainty Low Uncertainty HighLow High Rate of Change in Factors in Environment

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Adopting to the Environment Boundary-spanning Inter-organizational partnerships Mergers or joint ventures

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 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” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Visible Manifestations Symbols Stories Heroes Slogans Ceremonies

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Corporate Cultures Adaptive CultureUnadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Four Types of Corporate Culture Adaptability Culture Achievement Culture Bureaucratic Culture Clan Culture External Internal FlexibilityStability Strategic Focus Needs of the Environment

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Influencing & Cultural Leadership  Need to articulate a vision that employees can believe in and get excited about  Heeds the day to day activities that reinforce the cultural vision