THE ENVIRONMENT &CORPORATE CULTURE

Prepared By : ZAREEN SHAIKH, SZABIST LarkanaSession-3

Class-BBA.2

Organizational Environment

All elements existing outside the

organization's boundaries that have the

potential to affect the organization.

Parameters of Managerial Discretion

ManagerialDiscretion Organization’s EnvironmentOrganizational Culture

3-3

External Environment’s Two Layers

Task environment. General environment.

The Organizational Environment

Customers

Competitors

Suppliers

Labor Market

OrgInternal Env.

Culture/staff/ Mgt

GeneralEnvironment Task Env

International Dimension

Provides New: Customers Competitors Suppliers

Shapes: Social trends Technological

trends Economic trends

The WTO will dramatically change the international dimension.

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.

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.

Organization’s Economic Environment

Consumer purchasing power.

Unemployment rate.Interest rates.Frequency of mergers.

Legal-Political

Government regulations Local State Federal

Considers political activities designed to influence company behavior.

Task EnvironmentCustomers

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

Task EnvironmentCompetitors

Each industry is characterized by specific competitive issues.

Part of the new workplace involves competitors working together.

Task EnvironmentSuppliers

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.

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.

Adapting to the Environment

Boundary-Spanning Inter-organizational Partnership Mergers & Joint Ventures Flexible Structure

Preparing the organization for the

environment.

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

INTERNAL ENVIRONMENT Levels of Corporate Culture

Visible Manifestation

SymbolsStoriesHeroesSlogansCeremonies

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).

Cultural Leadership Influence

1. Cultural leadership articulates a vision for the organizational culture in which employees can believe.

2. Cultural leadership pay attention to the day-to-day activities that reinforce the cultural vision.