MGMT 330 Daft Chapter 3

What is likely to happen to organizations that pay little attention to cultural values and instead stress business results?

Profitable in short run but difficult to sustain over long term

Adaptability culture

- emerges in an environment that requires fast responses and high-risk decision making Values that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors

Involvement culture

- emphasizes an internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment Values meeting the needs of employees; caring, family-like atmosphere

Joint venture

- involves a strategic alliance or program by two or more organizations Often occur when a project is too complex, expensive, or uncertain

Task Environment

- is closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance Ex. Competitors, suppliers, customers, & labor market

Achievement culture

- is suited to organizations concerned with serving specific customers in the external environment, but without the need for flexibility and rapid change Values competitiveness, aggressiveness, cost cutting and willingness to work long hours

Boundary-spanning roles

- link to and coordinate the organization with key elements in the external environment Two purposes: 1)Detect and process information about changes in the environment 2)They represent the organization's interests to the environment Ex. GE spends millions on lobbying to influence government officials to take actions that positively affect the company's business performance

Uncertainty

- managers do not have sufficient information about the environmental factors to understand and predict environmental needs and changes -Characteristics that influence uncertainty are the number of factors that affect an organization and how quickly the factors change

Merger

- occurs when two or more organizations combine to become one

Consistency culture

- uses an internal focus and a consistency orientation for stable environment Values following rules and being thrifty, rational, and orderly way of doing things

High performance culture (not one of the 4)

-- a culture that 1) is based on a solid organizational mission or purpose 2) embodies shared adaptive values that guide decisions and business practices 3) encourages individual employee ownership of bottom line results and the organization's cultural backbone

_____ is a part of Ford's, the U.S. auto manufacturer, task environment.

Chrysler

5 Signs of Corporate Culture

Symbol- is an object, act, or event that conveys meaning to others Story- a narrative based on true events and is repeated frequently Hero- is a figure who exemplifies the deeds, character, and attributes of a strong culture Slogan- a phrase or sentence that succinctly expresses a key corporate value Ceremony- a planned activity at a special event that is conducted for the benefit of an audience

____ are not a part of an organization's task environment.

employers

Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees, placing high value on meeting the needs of employees. The company is known for its caring, family-like atmosphere. Which type of corporate culture does Roadtec possess?

involvement culture

Ally's Applesauce is in the process of hiring sixty new workers. The personnel department has a large pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which dimension of the external environment is involved here?

labor market

Organizational Ecosystem

-a system formed by the interaction among a community of organizations in the environment; includes all organizations in both task & general environment Ex. Apple's ecosystem: hundreds of suppliers, millions of customers for the products it produces

Managers respond to strategic issues with:

-boundary-spanning roles -interorganizational partnerships -mergers/ joint ventures

Task Environment

-customers -competitors -suppliers -labor market

Strategic issues

-events or forces either inside or outside the organization that are likely to alter its ability to achieve its objectives

Organizational Environment

-includes all elements existing outside the boundary of the organization that have the potential to affect the organization Ex. competitors, resources, technology, and economic conditions that influence the organization Made up of two components: general & task environment

Natural Dimension

-includes all elements that occur naturally on Earth Plants, animals, rocks, and resources such as air, water, & climate Environmental Performance: 1)Switzerland 2)Latvia 3)Norway 49)U.S.

Internal environment

-includes elements within the organization's boundaries Ex.Current employees, management, & especially corporate culture

Legal-political dimension

-includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior

International Dimensions

-of the external environment represents events originating in foreign countries, as well as opportunities for U.S. companies in other countries Ex.An international environment provides new customers, competitors, and suppliers & shapes social, technological, and economic trends as well

Sociocultural dimension

-of the general environment represents the demographic characteristics as well as the norms, customs, and values of the general population -Important sociocultural dimensions: geographical distribution, population density, age, & education levels Current Trends: 1)New generation of technologically-savvy consumers called Connected Generation or Generation C (those born after 1990) 2)Senior-friendly products/ services for baby boomers 3)More than half of babies born are minorities

Economic dimension

-represents the general economic health of the country or region in which the organization operates Consumer purchasing power, unemployment rate, & interest rates

Business intelligence/ Competitive intelligence

-which results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant Related to - which refers to activities to get as much information as possible out of one's rivals Ex. Visa has an employee who searches the web for two hours each day for insights on Mastercard & other competitors (part of BI)

Types of Culture

1)Adaptability 2)Achievement 3)Involvement 4)Consistency

Based on two dimensions

1)The extent to which the external environment requires flexibility or stability 2)The extent to which the company's strategic focus is internal or external

General Environment consists of:

1. International 2. Technological 3. Sociocultural 4. Economic 5. Legal/Political 6. Natural

The External Environment consists of:

1. Organizational environment 2. General environment 3. Task environment 4. Organizational ecosystem 5. Internal environment

General Environment

affects organizations indirectly; social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally Ex. changes in federal regulations or an economic recession These events do not directly change day-to-day