MGT Ch 2

General Environment

Affects the organizations indirectly. Includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally. Ex: changes in federal regulations/economic recession will shift social attitudes toward matters such as how and where the products we use are made. making change gradually.

Two dimensions of Culture//Four categories associated

(1) extent to which the external environment requires flexibility or stability (2) extent to which a company's strategic focus is internal or external Flexibility Stability External [Adaptability Culture] [Achievement Culture] Internal [Involvement Culture] [Consistency Culture]

Labor Market Forces

(1) growing need for computer-literate knowledge workers (2) necessity for continuous investment in human resources through recruitment, education, and training to meet the competitive demands of the borderless world (3) the effects of international trading blocs, automation, outsourcing, and shifting facility locations on labor dislocations, creating unused labor pools in some area and labor shortages in other

Levels of corporate culture

Visible: Culture you can see at surface level (artifacts: dress, office layout, symbols, slogans, ceremonies) Invisible: Deeper values/shared understandings held by organizations members (values, people here care about family)

External Enviornment

all elements existing outside the boundary of the organization that have the potential to affect the organization. two general components: task and general environments ex: competitors, resources, technology, economic conditions that influence the organization.

internal environment

elements within the organizations boundaries. includes employees, management, corporate culture

Adaptability culture

emerges from environment that requires fast response and high-risk decision making. managers encourage speed flexibility and pushing boundaries. ex: Box - Aaron Levie "10 times bigger, better, and faster"

Involvement Culture

emphasizes internal focus on participation of employees to adapt rapidly to changing needs from the environment. placing high value on meeting needs of employees, family care atmosphere. ex: Four Seasons Hotel and Resorts "100 best companies to work for" the relentless commitment to employees has sustained Four Seasons in recession.

strategic issues

events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives. as environmental turbulence increases, strategic issues emerge more frequently

boundary spanning

links to and coordinates the organization with key elements in the external environment ex: the use of business intelligence, results from using software to search through internal and external data to spot patterns, trends, and relationships that be significant

uncertainty

means managers don't have sufficient information about environmental factors to understand and predict environmental needs and changes

symbols

objects, act, or event that conveys meaning to others. can be considered as rich nonverbal language that vibrantly conveys the org's values.

Task environment

one of the external components that are closer to the organization. Includes sectors that conduct day-to-day transactions and directly influence basic operations with the org. (A university book store where the major elements are students and suppliers.) ex: competitors, suppliers, customers, and the labor market.

Inter-organizational partnerships

reduce boundaries and increase collaboration with other organizations. ex. GE motors and Honda compete fiercely, but joined together they develop a hydrogen fuel cell they both share for vehicles to use this decade.

joint venture

strategic alliance or program by two or more organizations

Achievement Culture

suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. *new manager self test ex: EMC - Jack Mollen "people may feel its aggressive but our people want to be put in jobs where they can work hard, take risks and get recognized."

Organizational ecosystem

system formed by the interaction among a community of organizations in the environment. including both task/general environments. ex: Apple's ecosystem includes hundreds of suppliers and millions of customers with products production across industries.

merger

two or more organizations combine to become one

Consistency Culture

uses an internal focus and a consistency orientation for stable environment. following the rules and being thrifty are valued, rewarding methodical, rational, orderly way of work. ex:Pacific Edge Software - husband/wife team, embedded order, discipline, and control meaning employees leave by 6 pm pg. 2.4d

big data analytics

uses powerful computer technology to search through massive complex sets of data to uncover hidden patterns so that managers can make better decisions