environment and corporate culture
TRANSCRIPT
THE ENVIRONMENT &CORPORATE CULTURE
Prepared By : ZAREEN SHAIKH, SZABIST LarkanaSession-3
Class-BBA.2
Organizational Environment
All elements existing outside the
organization's boundaries that have the
potential to affect the organization.
Parameters of Managerial Discretion
ManagerialDiscretion Organization’s EnvironmentOrganizational Culture
3-3
External Environment’s Two Layers
Task environment. General environment.
The Organizational Environment
Customers
Competitors
Suppliers
Labor Market
OrgInternal Env.
Culture/staff/ Mgt
GeneralEnvironment Task Env
International Dimension
Provides New: Customers Competitors Suppliers
Shapes: Social trends Technological
trends Economic trends
The WTO will dramatically change the international dimension.
Technological Dimension
Includes scientific and technological advancements in specific industry and society at large.
Today computers are practically taken for granted as one of the minimum tools for doing business.
Socio-Cultural Dimension
Demographic characteristics as well as the norms,
customs, and values of the general population.
Important characteristics are geographical and population
density, age, and education levels.
Organization’s Economic Environment
Consumer purchasing power.
Unemployment rate.Interest rates.Frequency of mergers.
Legal-Political
Government regulations Local State Federal
Considers political activities designed to influence company behavior.
Task EnvironmentCustomers
A concern is the power the internet has given customers.
This new found power enables customers to directly impact organizations in new ways.
Managers are using the internet to learn about customers.
Employees and disgruntled customers can quickly damage a firm’s reputation and sales.
SOURCE:www.untied.com web site
Task EnvironmentCompetitors
Each industry is characterized by specific competitive issues.
Part of the new workplace involves competitors working together.
Task EnvironmentSuppliers
Many companies are now using fewer suppliers while trying to build better relationships.
Traditionally the role has been adversarial many companies are looking to cooperation.
Task Environment Labor Market Factors
1. Growing need for computer-literate information technology workers.
2. The necessity for continuous investment in human resources in order to meet the borderless world.
3. The effects of international trading blocks, automation, and shifting plant locations.
Adapting to the Environment
Boundary-Spanning Inter-organizational Partnership Mergers & Joint Ventures Flexible Structure
Preparing the organization for the
environment.
Visible
1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies
2. Expressed values, such as “The Penney Idea,” “The HP Way”
3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted”
Invisible
Culture that can be seen at the surface level
Deeper values and shared understandings held by organization members
INTERNAL ENVIRONMENT Levels of Corporate Culture
Visible Manifestation
SymbolsStoriesHeroesSlogansCeremonies
Four Types of Corporate Culture
SOURCES: Based on Daniel R. Denison and Aneil K. Mishra, “Toward a Theory of Organizational Culture and Effectiveness,” Organization Science 6 no. 2 (March-April 1995): 204-223; Robert Hooijberg and Frank Petrock, “On Cultural Change: Using the Competing Values Framework to Help Leaders Execute a Transformational Strategy,” Human Resource Management 32, no. 1 (1993): 29-50; and R.E. Quinn, Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance (San Francisco: Jossey-Bass, 1988).
Cultural Leadership Influence
1. Cultural leadership articulates a vision for the organizational culture in which employees can believe.
2. Cultural leadership pay attention to the day-to-day activities that reinforce the cultural vision.