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The

Environment &
Corporate
Culture
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Organizational Environment

All elements existing outside the organization's


boundaries that have the potential to affect the
organization.

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External Environments
Two Layers

Task environment.
General environment.

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Organizational
Environment

General Environment

Task Environment

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Labor Market

Employees

Culture

Management

r al

Le
ga

Internal
Environment

tu
Sociocul

Customers

Competitors

Inte
r na t
iona

Technological

Suppliers
l/P
o

liti
ca
l

Ec

m
o
on

ic

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Importance of
International Dimension
Provides New:
Customers
Competitors
Suppliers
Shapes:
Social trends
Technological trends
Economic trends

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The WTO will dramatically change


the international dimension.

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Technological Dimension

Today computers are practically


taken for granted as one of the
minimum tools for doing
business.

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Includes scientific and


technological advancements in
specific industry and society at
large.

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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.
Key demographic trends in the United States:
African Americans and Hispanics will make up nearly a quarter of the
U.S. population by the year 2050.
Population and the workforce continue to age with the baby boomers.
The fastest-growing living arrangement is single-father households.
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Organizations
Economic Environment

Consumer purchasing
power.
Unemployment rate.
Interest rates.
Frequency of mergers.

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Legal-Political
Government regulations
Local
State
Federal
Considers political activities designed to influence
company behavior.

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Task Environment
Customers

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 firms reputation
and sales.
SOURCE:www.untied.com web site

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Task Environment
Competitors
Each industry is characterized by specific
competitive issues.
Part of the new workplace involves competitors
working together.

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Task Environment
Suppliers

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.

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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.

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External Environment and Uncertainty


High
High
Uncertainty

Adapt to and
Influence
Environment

Rate of
Change in
Factors in
Environment

Low
Uncertainty
Low

Low

High
Number of Factors in
Organization Environment

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Adapting to the Environment

Boundary-Spanning
Inter-organizational Partnership
Mergers & Joint Ventures
Flexible Structure
Preparing the organization
for the environment.

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Levels of Corporate Culture


Culture that can be
seen at the surface
level

Visible
1. Artifacts, such as dress, office
layout, symbols, slogans,
ceremonies

Invisible
2. Expressed values, such as The
Penney Idea, The HP Way
3. Underlying assumptions and deep
beliefs, such as people are lazy
and cant be trusted
Deeper values and shared
understandings held by
organization members
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Visible Manifestations

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Symbols
Stories
Heroes
Slogans
Ceremonies

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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: JosseyBass, 1988).

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Cultural Leadership Influence

1. Cultural leadership articulates a vision for the


organizational culture in which employees can
believe.
2. Cultural leadership heeds the day-to-day activities
that reinforce the cultural vision.

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