Ch. 3

Based on previous research regarding the impact of values on business performance, you would expect that ________ managers would have higher-performing companies

Japanese

International

Lack of oil in the United States causing other countries to increase the number of wells they drill

Natural

Lack of oil in the United States causing other countries to increase the number of wells they drill

Jointventure

Panasonic partnered with DirecTV to bring 3-D television shows into people's homes. -Walmart recently teamed with Bharti Enterprises, Inc. to create a new wholesale business that supplies restaurants, hospitals, vegetable vendors, and hotels. -Delaco Steel, a U.S. steelmaker, and ArcelorMittal, a Luxembourg steelmaker, work together to run two new laser welding plants.

Sociocultural

People moving from Louisiana to Oklahoma to avoid the effects of the spill

When organizations operate in an environment with a ______ rate of change, managers experience more uncertainity

high

Slogan culture

-"Just Do It" serves both as a catchphrase for Nike and as a way of telling employees what is expected of them. -"I Am Canadian" is not only an eye-catching advertisement, it encourages Molson employees to act in a way that displays their pride in their country.

Boundary-spanningroles

-A Little League baseball coach sends out a survey to parents to find out how satisfied they are with the program. -Some organizations are staying in touch with customers using Twitter and Facebook. -Visa has an employee who searches the Internet for two hours each day for insights on MasterCard and other competitors.

Hero culture

-At Virginia Tech, students and professors remember the courage of professor Liviu Librescu, who died protecting his students from a gunman in 2007. -In your company, people talk about Owen, the auto mechanic who stripped an entire car to find an electrical problem, as a role model for everyone to follow.

Technological dimension

Evolving quickly, this dimension includes new communication tools like videoconferencing and scientific breakthroughs like molecular electronics.

Strategic Focus

External and Internal

Adaptability Culture

Flexibility and External Values: quick action to adapt to a rapidly changing environment Managers: reward behaviors that create change: creativity, experimentation, risk-taking dynamic and changing, where people take risks

Involvement Culture

Flexibility and Internal Values: meeting the needs of employees, who participate in responding to a rapidly changing environment Managers: try to create a family atmosphere by emphasizing cooperation, consideration of employees and customers very personal, much like an extended family

Needs of the Environment

Flexibility and Stability

a one-way system:

changes in the task environment affect the general environment, and changes in the general environment affect the task environment

Managers work in an internal environment which includes _________

culture

Internal Environment

Employees Management Culture

Managers who face high uncertainty are most likely operating in a _______________ environment

rapidly changing

Suppliers

Companies make their products using goods purchased from these companies.

Story culture

-In your company, people talk about making deliveries, even when the weather was so bad that the post office didn't deliver mail, as a way of emphasizing the value of customer service. -At IBM, people talk about the meeting where people were told to turn off the projector and "just talk." This de-emphasized the importance of slides in organizational communications.

Task Environment (external)

-Labor Market -Competitors -Suppliers -Customers

Ceremony culture

-Students who have completed their degrees are publicly honored by the university during graduation, in part to show the value the university places on their education. -Every Friday afternoon around 4:00 PM, Nerf darts start flying around the office at Aplia, where both work and play are highly valued.

Inter-organizationalpartnerships

-Supermarket chains Kroger, Albertsons, and Safeway banded together to negotiate with labor unions. -Rayovac produces batteries in special Disney packaging for sale at all Disney theme parks. -Burger King offers toys and drinking glasses tied into movies from Paramount pictures.

General Environment (external)

-Technological -Legal/Political -International -Sociocultural -Natural -Economics

Mergers

-United Airlines buys Continental Airlines to create one airline company with more than 87,000 employees. -Wells Fargo combined with Wachovia to form the nation's fourth largest banking corporation.

Organizational culture

-culture can create a competitive advantage for a company -employees may be unaware of the underlying assumptions that guide an organization's culture -the actions managers take can change a company's culture

Visible

-culture that can be seen at the surface level 1) artifacts, such as dress, office layout, symbols, slogans, ceremonies

Invisible

-deeper values and shared understandings held by organization members 2) expressed values, such as "The Penney Idea," "The HP Way" 3) underlying assumptions and deep beliefs, such as "people here care about one another like a family"

High attention to business performance & high attention to values

-high performance -high cultural values -managers achieve performance goals and uphold desired cultural values

High attention to Business Performance & Low Attention to Values:

-high performance -low cultural values -managers meet performance goals but fail to uphold cultural values

Low attention business performance & high attention to values

-low performance -high cultural values -managers do not meet performance goals but do uphold cultural values

Low attention to business performance & low attention to values

-low performance -low cultural values -managers do not meet performance goals or uphold cultural values

Internal environment

-one employee saying to another, "it's just the way we do things around here - it's our organizational culture" -high job satisfaction ratings from current employees

What can managers do to shape an organization's culture?

-reward employees when they act in accordance with the company's vision -establish a vision for the company -over-communicate company values

Adversarial Orientation

-suspicion, competition, arm's length -price, efficiency, own profits -information and feedback limited -lawsuits to resolve conflicts -minimal involvement and up-front investment -short-term contracts -contracts limit the relationship

General environment

-the introduction of tablet computers - a worldwide recession

Partnership Orientation

-trust, value, added to both sides -equity, fair dealing, everyone profits -E-business links to share information and conduct digital transactions -close coordination; virtual teams and people onsite -involvement in partner's product design and production -long-term contracts -business assistance goes beyond contract

Symbol Culture

At Chico State University, there are cherry trees planted at each corner of a plot of land to commemorate the fact that the university was founded on a donated cherry orchard in 1887.

Achievement Culture

Stability and External Values: high performance stemming from aggressive, professional actions Managers: emphasize setting and meeting goals accomplishment oriented, with the focus on competition and getting jobs done

Consistency Culture

Stability and Internal Values: following rules and doing things the way they should be done Managers: reward people who act in methodical, rational, orderly ways stable and structured, with clarity and established procedures

Business intelligence

This information is gained by scanning both internal and external environmental trends with sophisticated software to find relationships that might influence a company's performance.

Technical

Using deep-sea submersibles to take pictures of the oil leak a mile below the surface of the water

Legal-political dimension

When government regulates the way industries do business, this dimension is at play.

Culture can be defined as __________________

a set of key values, beliefs, and norms

A manager who allows employees to make the decisions necessary to face a rapidly changing environment _______ culture emphasizes an internal focus on the participation of employees to adapt rapidly to changing needs from the environment

involvement

American managers pay _____ attention to values and ________ attention to business performance

little; a lot of

Rapid changes in technology and other environmental issues force a manager to pay ______ attention to external issues

more