Ch 2 MGT 350

Levels of Corporate Culture: Invisible

Deeper values and shared understandings held by organization members

Organizational Ecosystem

-An organizational ecosystem is a system formed by the interaction among a community of organizations in the environment. -Includes organizations in all the sectors of the task and general environments that provide resource and information transactions, flows, and linkages necessary for an organization to thrive

Levels of Corporate Culture: Visible

-Culture that can be seen at the surface level - dress, office layout, symbols, slogans, ceremonies, story, hero

Peter Drucker

-creator and inventor of modern management -"culture eats strategy for breakfast"

Task Environment includes

-customers -competitors -suppliers -labor market

Cultural Leader

•A cultural leader defines and uses signals and symbols to influence corporate culture. •He or She articulates a vision for the organizational culture that employees can believe in. •He or She heeds the day-to-day activities that reinforce the cultural vision.

Boundary Spanning

•Boundary spanning links to and coordinates the organization with key elements in the external environment. •Boundary spanning includes activities that represent the organization's interest in the environment and attempt to influence elements of the external environment.

Corporate Culture

•Corporate culture surfaces as being extremely important to competitive advantage. •Culture is the set of key values, beliefs, understandings, and norms shared by members of an organization.

General Environment includes

•International dimension •Technological dimension •Sociocultural dimension •Economic dimension •Legal-political dimension •Natural dimension

4 types of corporate culture: achievement culture

•The achievement culture is suited to organizations concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change. •This results-oriented culture values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results.

4 types of corporate culture: adaptability culture

•The adaptability culture emerges in an environment that requires fast response and high-risk decision making. •Managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors.

4 types of corporate culture: consistency culture

•The consistency culture uses an internal focus and a consistency orientation for a stable environment. •Following the rules and being thrifty are valued, and the culture supports and rewards a methodical, rational, and orderly way of doing things.

The External Environment

•The external organizational environment includes all elements existing outside the boundary of the organization that have the potential to affect it. •Includes competitors, resources, technology, and economic condition

Internal Environment

•The internal environment includes the elements within the organization's boundaries. •Current employees •Management •Corporate culture

4 types of corporate culture: involvement culture

•The involvement culture emphasizes an internal focus on the participation of employees to adapt rapidly to changing needs from the environment. •It places a high value on meeting the needs of employees. •Managers emphasize values such as cooperation, consideration of both employees and customers, and avoiding status differences.

External Environment: Task and General

•The organization's external environment can be conceptualized as having two components: •The task environment is closer to the organization and directly influences its basic operations and performance. •The general environment affects organizations indirectly.

Environmental Uncertainty

•Uncertainty means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes.