Chapter 03 The Environment and Corporate Culture

1
The Environment Corporate Culture
2
Organizational Environment

• All elements existing outside the organization's
  boundaries that have the potential to affect the
  organization.

3
External Environments Two Layers

• Task environment.
• General environment.

4
Organizational Environment
Technological
Task Environment
Customers
International
Sociocultural
Labor Market
Competitors
Suppliers
Legal/Political
Economic
5
Importance of International Dimension

• Provides New
• Customers
• Competitors
• Suppliers
• Shapes
• Social trends
• Technological trends
• Economic trends

The WTO will dramatically change the
international dimension.
6
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.
7
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.
• Key demographic trends in the United States
• African Americans and Hispanics will make up
  nearly a quarter of the U.S. population by the
  year 2050.
• Population and the workforce continue to age with
  the baby boomers.
• The fastest-growing living arrangement is
  single-father households.

8
Organizations Economic Environment

• Consumer purchasing power.
• Unemployment rate.
• Interest rates.
• Frequency of mergers.

9
Legal-Political

• Government regulations
• Local
• State
• Federal
• Considers political activities designed to
  influence company behavior.

10
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 firms reputation and sales.
SOURCEwww.untied.com web site
11
Task EnvironmentCompetitors

• Each industry is characterized by specific
  competitive issues.
• Part of the new workplace involves competitors
  working together.

12
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.

13
Task Environment Labor Market Factors

• Growing need for computer-literate information
  technology workers.
• The necessity for continuous investment in human
  resources in order to meet the borderless world.
• The effects of international trading blocks,
  automation, and shifting plant locations.

14
Adapting to the Environment

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

Preparing the organization for the environment.
15
Levels of Corporate Culture
16
Visible Manifestations

• Symbols
• Stories
• Heroes
• Slogans
• Ceremonies

17
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).
18
Cultural Leadership Influence

• 1. Cultural leadership articulates a vision for
  the organizational culture in which employees can
  believe.
• 2. Cultural leadership heeds the day-to-day
  activities that reinforce the cultural vision.