Transcript Chapter 03 The Environment and Corporate Culture

Understanding
Management
First Canadian Edition
Slides prepared by
Janice Edwards
College of the Rockies
Copyright © 2009 Nelson Education Ltd.
Chapter 2
The Environment and
Corporate Culture
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Learning Objectives
1.
2.
3.
4.
5.
6.
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.
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The External Organizational Environment
•
All elements existing outside the
organization's boundaries that have the
potential to affect the organization.
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External Environment’s Two Layers
1.
General environment.
2.
Task environment.
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Location of the Organization’s General,
Task, and Internal Environments
Ex. 2.1
Importance of International Dimension
Provides new:
•
Customers
•
Competitors
•
Suppliers
•
Labour market
Shapes:
•
Sociocultural trends
•
Technological trends
•
Economic trends
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Technological Dimension
•
Includes scientific and
technological advancements in
specific industry, and society at
large.
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Sociocultural Dimension
•
Demographic characteristics, and the norms, customs,
and values of the general population.
•
Important characteristics are geographical distribution
and population density, age, and education levels.
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Sociocultural Dimension (Cont’d)
Key demographic trends in Canada:
•
•
•
Visible minorities will make up 20% of the Canadian
population by the year 2016.
The baby boomers are approaching retirement and losing
interest in high-cost goods.
Traditional married couple households (mother, father, and
children) have slipped from 55% in 1981 to 44% in 2001.
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Organization’s
Economic Environment
Influenced by:
•
Consumer purchasing power
•
Unemployment rate
•
Interest rates
•
Complexity creates uncertainty for managers
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Legal-Political Environment
Influenced by:
•
Government regulations
•
Municipal
•
Provincial
•
Federal
Considers political activities designed to influence company
behaviour.
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Task Environment:
Customers
•
•
•
Customers have increased power via the Internet.
Customers can directly impact organizations in new
ways.
Managers are using the Internet to learn about
customers.
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Task Environment:
Competitors
•
Each industry is characterized by specific competitive
issues.
•
Competitive wars are being waged worldwide in all
industries.
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Task Environment:
Suppliers
•
Many companies are now using fewer suppliers while
trying to build better relationships with them.
•
Traditionally the role has been adversarial; many
companies now are looking to cooperation.
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Task Environment:
Labour Market Factors
•
•
•
Growing need for computer-literate information
technology workers.
The necessity for continuous investment in human
resources in order to meet the demands of the
borderless world.
The effects of international trading blocs,
automation, and shifting plant locations.
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Ex. 2.3
The External Environment and Uncertainty
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Strategies to Adapt to the Environment
• Boundary-spanning roles
• Inter-organizational partnership
• Mergers & joint ventures
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Ex. 2.5
Levels of Corporate Culture
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Visible Manifestations of
Corporate Culture
•
Symbols
•
Stories
•
Heroes
•
Slogans
•
Ceremonies
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Ex. 2.7
Four Types of Corporate Cultures
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Cultural Leadership Influence
1.
2.
Cultural leadership articulates a vision for the
organizational culture in which employees can believe.
Cultural leadership heeds the day-to-day activities that
reinforce the cultural vision.
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