MGMT 309 Chapter 3 Understanding the Organizations Environment

What are the determinants of organization culture?

-founder -Symbols, stories, heroes, slogans, and ceremonies -Shared experiences that bond organizational members

Culture that is part of the internal Environment ?

-overall feel of the organization

What is the International dimension that is part of the general Environment?

In all countries, changes are based on demand of country. -Ex. Mcdonalds in Ireland doesn't have ranch

What is associated with the gender diversity?

The " glass ceiling" has a discriminatory effect on female managers. -Females are 47% of workforce

What is the Sociocultural dimension that is part of the general Environment?

The customs, Mores, values, and demographics characteristics of the society in which the organization functions. - Ex. obesity in the USA

How to Manage the organizations culture?

UNDERSTAND the current culture to understand whether to maintain or change it. -ARTICULATE the culture through slogans, ceremonies, and shared experiences. - REWARD and promote people whose behaviors are consistent with desired cultural values. -Ex. Loftin implementing saying "Howdy"

What is the Political-Legal dimension that is part of the general Environment?

The extent of government regulation of business and the general relationship between business and government. -Ex. The FDA

Systems Flexibility Argument

-Firms must become flexible as a way of managing a diverse workforce, causing the overall organization to be more flexible

The Resource Acquisition Argument

-Firms who manage diversity effectively will become known among women and minorities as good places to work

The Marketing Argument

-Firms with diverse workforces will be better able to understand market segments than those with less diverse ones.

Creativity Argument

-Firms with diverse workforces will generally be more creative and innovative than those with less diversity

External Enviornment

-General Environment -Task Enviornment

Managing Diversity in organizations

-Individual Stratagies -understanding -Developing empathy -Developing tolerance -Having a willingness to communicate

What are the components of culture ?

-Observable artifacts -Espoused values -Basic Underlying

What are the sources of conflict?

-Personal actions being attributed to diversity status. -Misunderstood, Misinterpreted, or inappropriate actions between people or groups. -Cultural differences in work hours, personal styles, interpersonal relations, and conflict.

owner that is part of the internal Environment ?

-Persons with legal property rights to a business

What is the Technological dimension that is part of the general Environment?

The methods available for converting resources into products or services -EX. Mcdonalds rotating soft drink cup

What is the economic dimension that is part of the general Environment?

The overall health and vitality of the economic system in which the organization operates. -Ex Disemployment

The importance of an Organizations culture

- "feel of the organization -force that can shape the firms effectiveness and longterm success

Change & complexity

- Environmental change occurs in two ways. - 1.Degree to which change in environmental is occurring -2.Degree of homogeneity or complexity of the environment

Basic Underlying

- are taken for granted beliefs that are so ingrained that employees simply act on them

How to Change an Organizations culture ?

-ADOPT new slogans, stories, ceremonies. -DEVELOP clear idea of what kind of culture want to create -2 ways to change it. : -Bring outsiders - Being bought out or merging. - To implement culture change you have to start early

How do Environments affect organizations?

-Change & complexity -Environmental Turbulence

What is the Task Environment that is part of the External Environment ?

-Competitors:Seeking the same resources as the organization. -Customers:Who acquire an organizations products or resources -Suppliers: that provide resources for the organization -Regulators: that Control , legislate, or influence the organizations policies or practices Strategic partners:Allies who are in a joint venture or partnership with the organization

What does the internal Environment consist of ?

-Conditions and stakeholder forces within an organization. -Owners -Board of directors -Employees -Physical work environment -Culture

Arguments for Competitiveness

-Cost argument -Resource Acquisition Argument -Marketing Argument -Creativity Argument -Problem -Solving Argument -Systems Flexibility Argument

Problem-Solving Argument

-Diverse organizations have a better pool of information from which to draw and make decisions.

What is the General Environment that is part of the External environment?

-Economic, -legal -political, -Socio-Cultural, -International, -Technical forces.

What does the Organizations Environment consist of?

-External -Internal

The Cost argument for Competitiveness

-Firms learn to cope with diversity will generally have higher levels of productivity and lower levels of turnover and absenteeism.

How do you achieve a Multicultural organization?

-Pluralism -Full Structural integration -Full integration of the informal network that removes barriers to entry -Absence of prejudice and discrimination -No gap in organizational identification based on cultural -low levels of conflict

What is the Task Environment that is part of the External Environment ?

-Specific groups and organizations that affect the firm.

Observable artifact

-Symbols, physical structures, language

Porters 5 competitive Forces

-Threat of new entrants -Competitive rivalry - Threat of substitute products -Power of buyers -Power of suppliers

Employees that is part of the internal Environment ?

-are persons who work for the firm & have a vested interest in its contained operation & existence

Espoused values

-beliefs , philosophies and norms that a company explicitly show. -ex. Core values at A&M

what is multiculturalism

-broad issues associated with the difference in values, beliefs, behaviors, customs, attitudes

Physical work environment that is part of the internal Environment ?

-the actual physical environment of the organization and the work that people do

what is diversity?

-when members of a group differ from one another along the dimensions of age, gender, ethnicity

Board of directors that is part of the internal Environment ?

Elected by the stockholders and are charged with overseeing the general management of the firm to ensure that it is run in a way that best serves the stockholders interest