Management Chapter 3

strategic issues

"events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives."

Cultural Leadership

Articulate a vision for the organizational culture that employees can believe in. Heeds the day-to-day activities that reinforce the cultural vision. Leaders communicate through words and actions

High Performance Culture

Based on solid organizational mission/purpose. Shared adaptive values that guide decisions and practices. Encourages individual employee ownership: Bottom-line results, Organization's culture.

Uncertainty

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

Pressure group

An interest group that works within the legal-political framework to influence companies to behave in a socially responsible way

Mergers

- occurs when two or more organizations combine to become one Joint ventures - strategic alliance or program by two or more organizations

inter-organizational partnership

- reduce boundaries and begin collaborating with other organizations

Joint ventures

- strategic alliance or program by two or more organizations

Adaptability culture

A culture characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior response

Involvement culture

A culture that places hight value on meeting the needs of employees and values cooperation and equality

Consistency culture

A culture that values and rewards a methodical, rational, orderly way to do things

heros

A figure who exemplifies the deeds, character, and attributes of a strong culture. example: Many people have wondered if the culture that Steve Jobs created at Apple would be sustained after his death in 2011. Jobs exemplified the creativity, innovation, risk taking, and boundary-breaking thinking that made the company famous.

story

A narrative based on true events that is repeated frequently and shared among organizational employees. example: A frequently told story at UPS concerns an employee who, without authorization, ordered an extra Boeing 737 to ensure timely delivery of a load of Christmas packages that had been left behind in the holiday rush. As the story goes, rather than punishing the worker, UPS rewarded his initiative. By telling this story, UPS workers communicate that the company stands behind its commitment to worker autonomy and customer service.Footnote

slogans

A phrase, such as Disney's "The happiest place on earth," that succinctly expresses a key corporate value. example: Disney uses the slogan "The happiest place on earth."

Ceremony

A planned activity at a special event that is conducted for the benefit of an audience. Managers hold ceremonies to provide dramatic examples of company values

Achievement culture

A results oriented culture that values competitiveness personal initiative and achievement

4 Types of Corporate Cultures

Adaptability Culture (Focus = External, Needs = Flexibility), Achievement Culture (Focus = External, Needs = Stability), Involvement Culture (Focus = Internal, Needs = Flexibility), Consistency Culture (Focus = Internal, Needs = Stability)

Values

Can energize and motivate employees, shape and guide employees behavior to align culture

Sociocultural dimension

Demographic characteristics, norms, customs, and values. U.S. Population is aging. Large influx of immigrants. Generation Y is entering the workplace

Economic dimension

Economic health of the country/region. Extended globally with uncertainty. Consumer purchasing power. Unemployment rate. Economic shift impacted small business although there is still vitality in small business

General environment dimension

Globalization influences all other aspects of the external environment. New competitors, customers, suppliers, sociocultural, technological, legal/political, and economic trends Indirectly influences all organizations within an industry; includes five dimensions. It includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally.

Legal/Political dimension

Government regulation; state, local, and federal. Political activities. Government agencies and regulation. Managers must recognize the power of pressure groups. Work to influence companies to behave in a socially responsible way

Natural dimension

Growing importance and pressure. Organizations must be sensitive to the environment. Natural dimension does not have own voice. Environmental groups advocate action/policy, Reduce pollution, Develop renewable energy, Climate change/global warming

External environment

Includes all outside elements that effect the organization. (international, sociocultural, economic, legal-political)

Internal environment

Includes elements within the organization's boundaries, such as employees, management, and corporate culture.

Corporate culture

Is the set of key values, beliefs, understandings, and norms that members of an organization share: Symbols, Stories, Heroes, Slogans, Ceremonies.

Technological dimension

Massive changes for organizations. The tool for doing business. Advances are impacting organizations and managers.

Slogans

Phrase or sentence that succinctly expresses a key corporate value. Many companies use a slogan or saying to convey special meaning to employees. The Ritz-Carlton adopted the slogan, "Ladies and gentlemen taking care of ladies and gentlemen" to demonstrate its cultural commitment to take care of both employees and customers.

Corporate culture

Plays a key role in learning and innovate responses. Bottom-line strategies are successful in the short-term. Successful companies balance culture and performance. Culture is the "glue" that holds the organization together

International dimension

Represents events originating in foreign countries as well as opportunities for U.S. companies in other countries. All organizations must compete and think globally. Economic power has shifted to China and India. The global environment is complex and ever-changing

Boundary-spanning roles

Roles assumed by people and/or departments that link and coordinate the organization with key elements in the external environment. link and coordinate the organization with external environment, seek: Business intelligence Big Data analytics

Task environment

Sectors that conduct transactions with the organization: Customers, Competitors, Suppliers, Labor Market Includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance.

Organization/Environment Relationship

The environment creates uncertainty for managers. Managers must respond and design adaptive organizations. Uncertainty can be managed through effectiveness.

customers

Those people and organizations in the environment that acquire goods or services from the organization are customers. *determine organaztions success

symbol

an object, act, or event that conveys meaning to others. Symbols can be considered a rich, nonverbal language that vibrantly conveys the organization's important values concerning how people relate to one another and interact with the environment. example: At Menlo Innovations, the open workplace is a physical symbol. Mindy Grossman, CEO of HSN Inc., found that sometimes even mundane things can be highly symbolic. When she became CEO, Grossman found a business that was fundamentally broken and employees who were beaten down and uninspired. To fix it, she needed to change the culture. She used physical symbols to give people hope and motivation.

business intelligence

business intelligence, which results from using sophisticated software to search through internal and external data to spot patterns, trends, and relationships that might be significant. The fastest-growing segment of business intelligence is big data analytics.

ceremony

planned activity as special event example: Managers hold ceremonies to provide dramatic examples of company values. Ceremonies are special occasions that reinforce valued accomplishments, create a bond among people by allowing them to share an important event, and anoint and celebrate heroes.

big data analytics

searching and examining massive, complex sets of data to uncover hidden patterns and correlations and make better decisions. Big data analytics is becoming a driving force in many organizations, with 85 percent of Fortune 500 companies reporting in 2012 that they have launched big data initiatives.Footnote One of the best-known examples of the use of data analytics among the general population is in the sports world. The popular book Moneyball: The Art of Winning an Unfair Game,