Week 4 Chapter 3 The environment and corporate culture:

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BSNS5390 Managing in Organisations s1 2015Class ID 9692198

Enrolment password BSNS5390s1 case sensitiveGroup answer to readings – Use Xorro to record

group answer Go to q.xorro.com/ebzh

Lecture overview• The external environment: general and task• The organisation–environment relationship• The internal environment: corporate culture• Environment and culture• Shaping corporate culture for the 21st century• Common citing and referencing information

Lecture overview cont.• Shaping corporate culture for innovative

response• Cultural leadership• Sustainable development and the business

environment• Intro to citing and referencing, more week 6• Firstly lets examine what is this External

environment before viewing video segment for Part 2 from Moodle site week 4

The external environment

Now checkout video

Quiz Assignment 3• Go to q.xorro.com/ebzh• iPhone, iPad, laptop….

The external environment• All elements existing outside the

organisation’s boundaries that have the potential to affect the organisation.

• Explore general and task environment.

The external environment: general environment

• International• Technological• Sociocultural• Economic • Legal–political• Natural

The layer of the external environment that affects the organisation indirectly:

International events• What examples can you think of that would

effect a New Zealand or Australian organisation?

• Radio NZ and NZ Herald – significant geo-political happenings every day

• Context that influences all other aspects of the external environment:– e.g. Lower cost parts supplied from

Malaysia or China.– e.g. Changes to the New Zealand dollar’s

foreign exchange rate.

Events originating in foreign countries, as well as opportunities for local organisations in other countries.

General environment: International

General environment: Technological

• e.g. E-business (Dell) with no retail stores.• e.g. Internet access (booking hotels, etc.).

Includes scientific and technological advancements in the industry and society at large.

General environment: Sociocultural

• e.g. Multiculturalism in Australia andNew Zealand. Most common names in Auckland and NZ changing

• e.g. The ageing of the population (leading to possible skill shortages).

Represents the demographic characteristics, norms, customs and values of the population within which the organisation operates.

General environment: Economic• In a small group explore what is happening

with the economy? • What measures (statistical measures)can we

use?

General environment: Economic

• e.g. Economies of countries are more closely tied together.

• e.g. Frequency of mergers and acquisitions.• 24 July 2014:“The Reserve Bank today increased the

Official Cash Rate (OCR) by 25 basis points to 3.5%.”• Today no change, still 3.5% (http://rbnz.govt.nz/monetary_policy/ocr/)

Represents the overall economic health of the country or region in which the organisation functions.

General environment: Legal–political

• e.g. Government laws (occupational health and safety; labour laws; environmental protection)

• NZ Government exploring influence on Auckland Super City 30 year plan

• Auckland City and Ports of Auckland conflict

Includes local and national government regulations, and political activities designed to control organisational behaviour.

General environment: Natural • Includes all elements that occur naturally on earth,

including plants, animals, rocks and natural resources such as air, water, and climate.

• Gen Environment: No voice of it’s own• Influenced by other sectors (Government

regulation, consumer concerns, bad press in the media, competitors’ actions or even employees.

• Auckland earthquake: Have you ever felt one?

Tongariro Crossing • Alert/Important notice• Track open / Road access /

Volcanic hazard• Temp: The Crossing is open to

the Blue Lake saddle (between Blue Lake and North Crater).

• Since reopened • Volcanic eruption hazard

remains in the Te Maari Volcanic Hazard Zone on the northern side of Mount Tongariro.

• March 2015 hazard level 0 to 1!

The external environment: Task environment

• Customers• Competitors Review Case study start p84• What would you suggest to Microsoft?• Use Xorro for group answer • Suppliers• Labour market• Your example of an unexpected problem

The layer of the external environment that directly influences the organisation’s operations and performance.

• e.g. Patients in the hospital.• e.g. Students in schools.• e.g. Travellers using airlines.

The task environment: CustomersPeople and organisations in the environment who acquire goods or services from the organisation.

The task environment: Competitors

• e.g. New Zealand major banks compete fiercely for customers, but at the same time save resources by allowing customers to use the ATMs of their competitors to access their funds.

• Pharmaceuticals can be profitable because of high entry barriers into the industry.

Other organisations in the same industry or type of business that provide goods or services to the same set of customers.

The task environment: Suppliers

• e.g. Steel mill requires iron ore (iron sands) , energy, machines and financial resources.

• Large companies perhaps 5000 suppliers.

Provide the raw materials the organisation uses to produce its output

The task environment: Labour market

• Labour market factors:– The growing need for computer literate workers.– Continuous investment in human resources through

recruitment, education and training.– The effects of international trading blocs, automation

and shifting facility locations (relocation).– e.g. New Zealand business taking advantage of cheap

labour and international resources to manufacture their products.

The people available for hire by the organisation.

Unemployment rate in New Zealand• What do you think it is?

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11396734

The organisation–environment relationship

• Environmental uncertainty– Managers know what goal they wish to achieve,

but information about alternatives and future events is incomplete.

• Strategies for coping with uncertainty– Adapt the organisation to changes in the

environment.– Influence the environment to make it more

compatible with organisational needs.

The organisation–environment relationship

• Adapting to the environment– Boundary-spanning roles see p.99– Forecasting and planning eg Media monitor– Interorganisational partnerships (Airbus and Boeing

each have over 100 partner coys)– Mergers and joint ventures(Gemtime NZ and

Showcase jewellers Aust merged to compete against Michael Hill, Pascoes etc

– Tui oilfields – NZ Oil and Gas, and 4 other coys (p102)

The organisation–environment relationship

• Influencing the environment

The internal environment

Corporate culture: The shared knowledge, beliefs, values, behaviours and ways of thinking among members of a society.

Corporate Culture (Cont.)• Symbols (i.e. Convey the organisation’s important

values)• Stories (i.e. True events repeated to keep

organisations primary values alive)• Heroes (i.e. A figure who exemplifies the deeds,

character and attributes of a strong corporate culture)

• Slogans (i.e. Saying to convey a special meaning to employees)

• Ceremonies (i.e. Events that provide dramatic examples of organisation values)

Environment and culture

• Corporate culture is influenced by the external environment.

• Strong corporate culture alone does not ensure business success (as this could be unadaptive and unhealthy).

Environment and culture• Adaptive cultures– Visible behaviour: managers play close

attention to all their constituencies (especially customers).

– Managers initiate change when needed to serve legitimate interests (even if risky).

– Expressed values: managers care deeply about customers, stakeholders and employees.

– Managers strongly value people and processes that can create useful change.

Environment and culture

Shaping corporate culture for the 21st century

• Changing and merging corporate cultures– Culture gaps (especially with mergers and

acquisitions). e.g. acquisition of Formica by New Zealand’s Fletcher Building in 2007.

• Symbolic leadership– A manager who defines and uses signals and

symbols to influence corporate culture that generates excitement and that employees can believe in.

Shaping corporate culture for innovative response

‘Corporate culture plays a key role in creating an organisational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities or organisational crises’

(Samson, Catley, Cathro and Daft, 2012, p. 117).

Shaping corporate culture for innovative response

Managing the high performance culture:• Attending to business performance and values– Solid organisational mission or purpose.– Embodies shared adaptive values that guide

decisions and business practices.– Encourages individual ownership of both bottom-

line results and the organisation’s cultural backbone .

Cultural leadership• Managers must over-communicate to ensure

employees understand the new culture values (in actions as well as words).

• Influence culture in two key areas:– Articulation of a vision for the organisational

culture that employees can believe in.– Heeds the day-to-day activities that reinforce the

cultural vision.

Sustainable development and the business environment

• Five aspects that have major implications for managers:– Globalisation, advanced technology, industry

maturity, variance and volatility and climate change.

• Modern managers are ‘doing well by doing good’– e.g. – A supermarket promotes recycling of

packaging and eliminates plastic bags.

Homework• Complete your part of Assignment one. Send to group members such as a

goggle document

• Week 5 Chapter 7 Organizational planning and goal setting• For week 5 Management Challenge p.254. How would you as a manager

prepare your organization to cope with unexpected problems?• Bring an example of an unexpected change in the External environment

with you to class.• Sir (Richard) Michael Hill p.259. Read the case and summarize the goals that

the he has achieved in the past. What factors would you consider to answer the question: How realistic is his goal for 2020?

• Search the business news for recent reports about this business• Easter Thursday so need to ensure team members on task with assignment • Week 6 devoted to Assignment, review citation and referencing + Quiz

Repeat of early slide info• Turnitin details Register yourself with email

etc. at Turnitin.com BSNS5390 Managing in Organisations s2 2014

• Have you signed the Roll ?• Have you found your group and exchanged

contact details?• Have you found some books, eBooks to

support your assignment answers

Your group and assignment 1• A plan? Keep a diary or log of participation and

progress. Group parts due to team?• Group part and individual part 2 cover sheets • Due date Turnitin.com. only one group member to

submit team effort 10pm Friday 17 April, in TURNITIN

• Keep duplicate electronic copies. Wait for request in case issues with TURNITIN experiment

• Emergency plan signed assignment Cover sheet to Lecturer

APA referencing Discuss wk 6 but start now• http://libguides.unitec.ac.nz/apareferencing• Citing• In-text citations• • When using another's ideas or words in your assignment or project, you should

include an in-text citation to the original work.• Example of a direct quote (of fewer than 40 words)

Lampkin (1990) states that good root storage "depends on minimising handling damage, soil and top contamination and poor tapping" (p. 409).

• Keegan and Green (2013) states "a free trade area (FTA) is formed when two or more countries agree to eliminate tarriffs and other barriers that restrict trade" (p. 69).

• OR• Good root storage "depends on minimising handling damage, soil and top

contamination and poor tapping" (Lampkin, 1990, p. 409).

Citing: Indirect quote• Example of an indirect quote

If you paraphrase (use your own words) to explain something you have read, putting the page numbers in the in-text citation is optional but including them may assist the person reading your work.

• To ensure that root storage is good you should handle them as little a possible to prevent damage, poor tapping or contamination of the soil (Lampkin, 1990, p. 409).

• OR• To ensure that root storage is good you should handle them as

little a possible to prevent damage, poor tapping or contamination of the soil (Lampkin, 1990).

Citing work cited by another author!• Jones 2001, as cited in Howard, 2014, reports

that students have to think carefully which source to include in a reference list. It is the source that you read that appears in the reference list. In this case the Howard, 2014 appears in the reference list

Websites – no page numbers? References?• Example of a quote from an item that does not have page numbers• If you are quoting from an item that does not have page numbers eg. a web page or html file, you should state which paragraph

the quote comes from.• Lampkin (1990) states that good root storage "depends on minimising handling damage, soil and top contamination and poor

tapping" (para. 409).

• Unitec video intro to referencing • http://www.youtube.com/watch?v=VIYU6Hu0nrw&feature=youtu.be

• Alternative video • http://www.youtube.com/watch?v=SOEmM5gmTJM

• Te Puno Ako handouts and seminars• Emerson, L. (2013). Writing guidelines for business students (5th ed.). Sth Melbourne: Cengage

Learning.• Manalo, E., Wong-Toi, G., & Bartlett-Trafford, J. (2009). The business of writing: Written

communication skills for business students (3rd ed.). Rosedale Nth Shore Auckland: Pearson Education.

• Samson, D., Catley, B., Cathro, V., & Daft, R. (2012). Management in New Zealand. Albany North Shore Auckland: Cengage Learning.

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