© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. SEMINAR 3 Corporate Culture and the Environment 1

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. A. The environments that affect an organisation  General (external) environment  Task (external) environment  Internal environment B. Corporate culture  Types of corporate culture  Creation of a high performance culture

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 3

An organisation works within the framework provided by the various elements of the society 1. External Environment: All elements which lie outside the organisation constitute its external environment. 2. Internal Environment: All elements that lie inside the organisation constitute its internal environment. The events that have greatest impact on organisation originate in the external environment.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 5 EXTERNAL

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 6

 The general environment represents the outer layer of the environment.  broad environmental forces that influence the working of the organisations over time.  but often are not involved in day-to-day transactions with it.  The task environment represents the inner layer of the environment.  specific factors that are directly relevant to the day-to-day decision-making and transformation process of the organisation. G eneral environment is the same for all organisations in a given society. Task environment is different for each organisation.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. The dimensions of general environment include: P olitical-legal E conomic S ocio-cultural T echnological I nternational N atural It is important to note that different organisations have different responses towards each dimension.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Government: state, local and federal Political activities Government agencies Do the laws, policies and regulations facilitate and encourage growth of businesses?  Managers must recognize power of pressure groups Work to influence companies to behave in a socially responsible way 9 P

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Economic health of the country/region Extended globally with uncertainty  Consumer purchasing power  Unemployment rate  Interest rates 10 E

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. Demographic profile, characteristics, norms, customs and values 11  Example: Connected Generation or Generation C has woven technology into every aspect of life S

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Technological advancements: Design Manufacturing New materials Logistics Access to information and prices  Advances drive competition and help innovative companies gain market share 12 T

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  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 13 I

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Organizations must be sensitive to the environment  Growing importance and pressure  Natural dimension does not have own voice 14 N

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Environmental groups advocate action/policy Reduce pollution Develop renewable energy Sustainable use of scarce resources Global warming 15

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. CustomersCompetitorsSuppliers Labor Market 16 Each organisation’s task environment is unique and changes with conditions.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 17

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 18

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  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 19

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Mergers – occurs when two or more organizations combine to become one  Joint ventures – strategic alliance or program by two or more organizations 20

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 21

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 22

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 23 Vision, Mission, Goals ManagementCultureEmployees All three elements must be aligned to achieve the organisation’s vision, mission and goals

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 24

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. Corporate culture is the set of key values, beliefs, understandings, and norms that members of an organization share  Symbols  Stories  Heroes  Slogans  Ceremonies 25

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 26

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 27

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. Need to rapidly detect what’s happening in external environment. Employees have autonomy to make decisions, act freely to meet new needs. Responsiveness to customers is key. Reward creativity, experimentation and risk- taking. Concerned with serving specific external customers. But no need for intense change/flexibility. Professionalism, willingness to work hard to achieve results, aggressiveness, personal initiative, competitiveness. Achievers are rewarded well; non-achievers fired. Focus on involvement & participation of employees in adapting to external rapid changes. Emphasis on meeting employees’ needs; caring, family-like atmosphere. Co-operation, values employees & customers, avoid status differences. Focus on following rules and being thrifty. Methodical, rational, orderly way of doing things. Going home on time.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Corporate culture plays a key role in learning and innovate responses  Successful companies balance culture and performance  Culture is the “glue” that holds the organization together 29

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.  Pay close attention to cultural values, besides business performance BUT don’t neglect top-line and bottom line performance matters  Insist on a solid organisation mission and purpose.  Employees have common adaptive values that guide decisions and business practices.  Encourage individual employee’s ownership of results  Shape cultural norms and values to build a high- performance culture through Cultural Leadership.

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 31

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. Defines and uses signals and symbols to influence corporate culture  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 32

© 2014 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.