MGT100 Organization and Management

Topic IIITopic III

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Organizational Culture and the Environment

• Content Content – The external environmentThe external environment– The organization-environment relationshipThe organization-environment relationship– The internal environmentThe internal environment– Environment and cultureEnvironment and culture– Shaping Corporate Culture for Innovative Shaping Corporate Culture for Innovative

ResponseResponse– Summary Summary

3

TheOrganization

Public PressureGroups

Government

CompetitorsLaborUnions

Customers

Suppliers

Global

Political

Social

Technological

Eco

nom

ic

4

The External Environment

General environment

Task environment

Internal environment

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The External Environment

• General environment– International/global– Technological– Sociocultural– Economic – Legal-Political

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The External Environment

• Task environmentTask environment– CustomersCustomers– CompetitorsCompetitors– SuppliersSuppliers– Labor marketLabor market

• StakeholdersStakeholders– Internal: shareholders, employeesInternal: shareholders, employees– External: External: who are they?who are they?

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The Organization-Environment Relationship

• Environmental uncertaintyEnvironmental uncertainty

Adapt toenvironment

Highuncertainty

Lowuncertainty

High

High Low

Low

Rate ofchange in factors in environment

Number of factors in organization environment

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The Organization-Environment Relationship

• Adapting to the environmentAdapting to the environment– Boundary-Spanning rolesBoundary-Spanning roles– Interorganizational partnershipsInterorganizational partnerships

• From adversarial orientation to partnership oFrom adversarial orientation to partnership orientationrientation

– Merger and joint venturesMerger and joint ventures

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The Internal Environment: Corporate Culture

• Levels of corporate cultureLevels of corporate culture

Culture that canbe seen at thesurface level

Deeper valuesand shared

understandingsheld by

Organizationmembers

Visible1. Artifacts, such as dress,

office layout, symbols, slogans, ceremonies

Invisible2. Expressed values, such as “the HP way”

3. Understanding assumptions and deep beliefs, such as “people

here care about one another like a family

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The Internal Environment: Corporate Culture

• Visible manifestationsVisible manifestations– SymbolsSymbols– StoriesStories– HeroesHeroes– SlogansSlogans– CeremoniesCeremonies

Symbol: an object, act, or event that conveys meaning to others

A figure who exemplifies the deeds, character, and attributes of a strong corporate cult

ure

A phrase or sentence that succinctly expresses a key corporate value

A planned activity that makes up a special event and is conducted for the benefit of an audience

A narrative based on true events that is repeated frequently and shared among organizational

employees

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Environment and Culture

• Adaptive culturesAdaptive cultures– Managers are concerned about customerManagers are concerned about customer

s and those internal people and processes and those internal people and processes that bring about useful changes that bring about useful change

• Unadaptive culturesUnadaptive cultures– Managers are concerned about themselvManagers are concerned about themselv

es, and their values tend to discourage rises, and their values tend to discourage risk taking and changek taking and change

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Environment and Culture

• Types of culturesTypes of cultures

AdaptabilityCulture

AdaptabilityCulture

AchievementCulture

AchievementCulture

InvolvementCulture

InvolvementCulture

ConsistencyCulture

ConsistencyCulture

Needs of the environmentFlexibility Stability

External

Internal

Stra

tegic

force

s

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Shaping Corporate Culture for Innovative Response

• Managing the high-performance cultureManaging the high-performance culture– Attention to business performanceAttention to business performance– Attention to valuesAttention to values

• Cultural leadershipCultural leadership– Articulating a vision for the organizational Articulating a vision for the organizational

culture that employees can believe inculture that employees can believe in– Heeding the day-to-day activities that Heeding the day-to-day activities that

reinforce the cultural visionreinforce the cultural vision

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Summary

• Environment scanning is continually using Environment scanning is continually using by organizations to obtain intelligence by organizations to obtain intelligence regarding existing or potential market, or regarding existing or potential market, or to determine the continuing viability of to determine the continuing viability of the organization’s goals and objectivesthe organization’s goals and objectives

• Organizational culture impacts all Organizational culture impacts all management functions, and strong management functions, and strong cultures have greater influence on cultures have greater influence on employees than weak ones employees than weak ones

Tips for English studies

Chit-chatting with others in Chit-chatting with others in English, and don’t be shyEnglish, and don’t be shy

Tips for English studies

Each week concentrating on Each week concentrating on one topic, and doing the one topic, and doing the

combination test each month combination test each month