PowerPoint Presentation to Accompany Management, 9/e John R. Schermerhorn, Jr.

1
PowerPoint Presentation to Accompany
Management, 9/eJohn R. Schermerhorn, Jr.
Chapter 4 Environment and Organizational Culture

• Prepared by Jim LoPresti
• University of Colorado, Boulder
• Published by John Wiley Sons, Inc.

2
Study Question 1 What is the external
environment of organizations?

• Competitive advantage is a core competency that
  clearly sets an organization apart from
  competitors and gives it an advantage over them
  in the marketplace.

3
Study Question 1 What is the external
environment of organizations?

• Companies may achieve competitive advantage in
  many ways, including
• Products
• Pricing
• Customer service
• Cost efficiency
• Quality

4
Study Question 1 What is the external
environment of organizations?

• The general environment all of the background
  conditions in the external environment of the
  organization including
• Economic
• Socio-cultural
• Legal-political
• Technological
• Natural environment

5
Study Question 1 What is the external
environment of organizations?

• The specific (task) environment actual
  organizations, groups, and persons with whom an
  organization interacts and conducts business.
• Includes important stakeholders such as
• Customers
• Suppliers
• Competitors
• Regulators
• Investors/owners

6
Figure 4.1 Stakeholder analysis of value creation
for key constituencies of a business firm an
open-systems approach.
7
Study Question 1 What is the external
environment of organizations?

• Environmental uncertainty is a lack of complete
  information regarding what exists and what
  developments may occur in the external
  environment.
• Two dimensions of environmental uncertainty
• Complexity
• Rate of change

8
Study Question 2 What is a customer-driven
organization?

• External customers purchase the organizations
  goods or utilize its services.
• Internal customers are the persons and groups
  within an organization who depend on the results
  of others' work to do their own jobs.

9
Study Question 2 What is a customer-driven
organization?

• Customers want
• High quality.
• Low price.
• On-time delivery.
• Key customer service lessons
• Protect reputation for quality products.
• Treat customers right.

10
Study Question 2 What is a customer-driven
organization?

• Customer relationship management establishes and
  maintains high standards of customer service in
  order to strategically build lasting
  relationships with and add value to customers.
• Supply chain management is the strategic
  management of all operations relating to an
  organizations resource suppliers.

11
Study Question 3 What is organizational culture?

• Organizational culture is the system of shared
  beliefs and values that develops within an
  organization and guides the behavior of its
  members.

12
Study Question 3 What is organizational culture?

• What is observable culture?
• What one sees and hears when walking around an
  organization.
• Elements of observable culture
• Stories
• Heroes
• Rites and rituals
• Symbols

13
Study Question 3 What is organizational culture?

• What is the core culture?
• Underlying assumptions and beliefs that influence
  behavior and contribute to the observable
  culture.
• Core culture and values
• Strong cultures have a small but enduring set of
  core values.
• Commitment to core values is a key to long-term
  success.

14
Study Question 3 What is organizational culture?

• Important cultural values include
• Performance excellence
• Innovation
• Social responsibility
• Integrity
• Worker involvement
• Customer service
• Teamwork

15
Study Question 4 How is diversity managed in a
multicultural organization?

• Diversity
• Describes differences among people at work.
• How diversity is handled in the workplace
  reflects the organizations culture.
• Respect and inclusion.
• Disrespect and exclusion.
• A potential source of competitive advantage.

16
Study Question 4 How is diversity managed in a
multicultural organization?

• Diversity trends in the sociocultural
  environment
• People of colors are an increasing percentage of
  the workforce.
• More women are working.
• People with disabilities are gaining more access
  to the workplace.
• Average age of workers is increasing.
• Religious diversity of workers is increasing.

17
Study Question 4 How is diversity managed in a
multicultural organization?

• Characteristics of multicultural organizations
• Pluralism
• Structural integration
• Informal network integration
• Absence of prejudice and discrimination
• Minimum intergroup conflict

18
Study Question 4 How is diversity managed in a
multicultural organization?

• Organizational subcultures
• Cultures based on shared work responsibilities
  and/or personal characteristics.
• Ethnocentrism is the belief that ones subculture
  is superior to all others
• Common subcultures include
• Occupational
• Functional
• Ethnic or national
• Racial
• Generational
• Gender

19
Study Question 4 How is diversity managed in a
multicultural organization?

• Challenges faced by minorities and women
• Glass ceiling
• Misunderstanding and lack of sensitivity
• Sexual harassment
• Pay discrimination
• Job discrimination
• Minorities may adapt by exhibiting biculturalism.

20
Figure 4.3 Glass ceilings as barriers to women
and minority cultures in traditional
organizations.
21
Study Question 4 How is diversity managed in a
multicultural organization?

• Diversity leadership approaches
• Managing diversity commits to changing the
  organizational culture.
• Affirmative action commits the organization to
  hiring and advancing minorities and women.
• Valuing diversity commits the organization to
  education and training programs.

22
Figure 4.4 Leadership approaches to
diversityfrom affirmative action to managing
diversity.
Source Developed from R. Roosevelt Thomas, Jr.,
Beyond Race and Gender (New York AMACOM, 1991),
p. 28.