MANAGEMENT RICHARD L. DAFT
The Environment and Corporate Culture The Environment and Corporate Culture CHAPTER 3
Learning Outcomes Describe the general and task environments and the dimensions of each. Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment. Define corporate culture and give organizational examples. Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture. Describe how corporate culture relates to the environment. Define a cultural leader and explain the tools a cultural leader uses to create a high-performance culture. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Are You Fit for Managerial Uncertainty? The environment in which businesses operate are increasingly dynamic Some managers cannot respond to environmental surprises In an uncertain environment, managers need to facilitate new thinking, new ideas and new ways of working Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
External Environment General environment – affects indirectly General environment – affects indirectly Task environment Affects directly Influences operations and performances Internal environment – elements within the organization’s boundaries Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
International Dimension Events originating in foreign countries Impacts all aspects of the external environment New competitors New customers New suppliers Today, all companies globally Portion of the external environment that represents events originating in foreign countries as well as opportunities for U.S. companies in other countries. Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Technological Dimension Scientific and technological advances Specific industries Society at large Impact: Organizations Managers Customers Desktop computers Networks Internet Access Handheld devices Videoconferencing Cell phones Laptop WiFi Medical advances Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Socio-Cultural Dimension Dimension of the general environment Demographic characteristics Norms Customs Values Today’s demographics are the foundation of the future workforce Demographic trends affect organizations globally Norms Customs Values of population Geographical Distribution Population Density Age Education Levels Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Economic Dimension General economic health Recent Trends Economic Dimension General economic health Consumer purchasing power Unemployment rate Interest rates Recent Trends Frequency of mergers and acquisitions Small business sector vitality Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Legal-Political Dimension Federal, state, and local government regulations Political activities designed to influence company behavior Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Natural Dimension Concern for the environment Concern for the environment The natural dimension has no voice Pressure comes from advocacy and managers Eliminate nonbiodegradable plastic bags from the environment Improving efficiency of plants and factories Investing in cleaner technologies Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Changes in these various sectors can create tremendous challenges… Task Environment Sectors that have a direct working relationship with the organization: Customers Competitors Suppliers Labor Market Changes in these various sectors can create tremendous challenges… Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
External Environment Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Environmental Uncertainty Management must adapt to changes Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Adapting to the Environment Boundary-Spanning Roles: coordinating the organization with key elements in the external environment Interorganizational Partnerships: collaborating with other organizations Mergers: combination of two organizations Joint Ventures: an alliance of organizations for a specific project Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Partnership Paradigm Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
The Internal Environment: Corporate Culture Corporate culture should match the needs of the external environment The importance of corporate culture has been growing Culture is a pattern of shared values “how things are done” Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Culture Symbols Stories Heroes Slogans Ceremonies Symbols Stories Heroes Slogans Ceremonies Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Environment and Culture The external environment influences culture The internal environment should embody the requirements for success Manager’s must pay attention to culture Recognize the ways culture can help or hurt your department Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Adaptive vs. Unadaptive Corporate Culture Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Four Types of Corporate Culture Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Shaping Corporate Culture for Innovative Response How people are treated increases a company’s value Culture attracts, motivates and retains talent Corporate culture enables learning and innovation Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Combining Culture and Performance Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.
Cultural Leadership Articulate a vision for the organizational culture that employees can believe in The cultural leader heeds the day-to-day activities that reinforce the cultural vision Managers communicate the cultural values through words and actions Cultural leaders uphold their commitment to values during difficult times Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.