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Chapter 3: The Environment and the Corporate Culture. PRINMAN Prepared by: Go, Valerie Malinao, Karlo Maralit, Pauline Umbao, Kimberly AOG. External Environment & Culture. The External Environment. General Task Internal. - PowerPoint PPT Presentation
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The External Environment• General • Task• Internal
Source: Daft, R. L. 2008. Management. USA: Thomson Corporation
General Environment• the layer of the external environment that affects organization indirectly• includes dimensions like:
International TechnologicalSocio-culturalEconomicLegal-political
International Dimension• represents events originating in foreign countries as well as opportunities for U.S. companies in other countries
• Today, every company has to compete on a global basis. High-quality, low-priced automobiles from Japan and Korea have permanently changed the American automobile industry.
Technological Dimension• includes scientific and technological advancements in the industry and society at large
• Today, computer networks, Internet access, videoconferencing capabilities, cell phones, laptops, etc. are practically taken for granted as the minimum tools for doing business.
Socio – Cultural Dimension• representing the demographic characteristics, norms, customs, and values of the population within which the organization operates
• Today’s demographic profiles are the foundation of tomorrow’s workforce and consumers.
Economic Dimension• representing the overall economic health of the country or region in which the organization operates
• Consumer purchasing power, the unemployment rate, and interest rates are part of organization’s economic environment.
Legal – Political Dimension
• includes federal, state, and local government regulations and political activities designed to influence company behavior
Task Environment
• includes the sectors that conduct daily transactions with the organization and directly influence its basic operations and performance
Task Environment
• direct relationship with the organization, among them:
CustomersCompetitorsSuppliersLabor Market
Customers
• people and organizations in the environment who acquire goods or services from the organization
• Customers are important because they determine the organization’s success.
Competitors
• other organizations in the same industry or business that provide goods or services to the same set of customers
Suppliers
• people and organizations who provide the raw materials the organization uses to provide its output
Labor Market
• the people available for hire by the organization
• Every organization needs a supply of trained, qualified personnel.
Corporate Culture
• Culture – set of key values, beliefs, understandings, and norms that members of an organization share
• Culture Leadership - Culture Leader
Types of Cultures
• Adaptability culture – a culture characterized by values that support the company’s ability to interpret and translate signals from the environment into new behavior responses.
Types of Cultures
• Achievement culture – a results-oriented culture that values competitiveness, personal initiative, and achievement.
Types of Cultures
• Involvement culture – a culture that places high values on meeting the needs of employees and values cooperation and equality.
• Consistency culture – a culture that values and rewards a methodical, rational, orderly way of doing things.
• Symbol – an object, act, or event that conveys meaning to others.
• Story – a narrative based on true events that is repeated frequently and shared among organizational employees.
• Hero – a figure who exemplifies the deeds, character, and attributes of a strong corporate culture.
• Slogan – a phrase or sentence that succinctly expresses a key corporate value.
• Ceremony – a planned activity that makes up a special event and is conducted for the benefit of an audience.
Culture Leadership
• a one way managers shape cultural norms and values to build a high-performance culture