Management, 6e Schermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc

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Schermerhorn - Chapter 23 Chapter 2 Environmental and Organizational Culture 4 Planning Ahead –What is the environment of the organization? –What is a customer-driven organization? –What is the quality commitment in operations? –Why is organizational culture important? –What are current directions in organizational cultures?

Schermerhorn - Chapter 24 External Environments of Organizations 4 What is Competitive Advantage? –Utilization of a core competency that clearly sets an organization apart from its competitors and gives it an advantage over them in the marketplace

Schermerhorn - Chapter 25 External Environments of Organizations 4 What is Competitive Advantage? –Companies may achieve it in many ways including products pricing customer service cost efficiency quality

Schermerhorn - Chapter 26 External Environments of Organizations 4 The General Environment - all of the background conditions of the organization including: –Economic –Social-cultural –Legal-political –Technological –Natural environment

Schermerhorn - Chapter 27 External Environments of Organizations 4 The Specific (Task) Environment - actual organizations, groups, persons with whom an organization must interact in order to survive and prosper –stakeholders customers suppliers competitors regulators

Schermerhorn - Chapter 28 External Environments of Organizations 4 Environmental Uncertainty –lack of complete information regarding what developments will occur in the external environment two dimensions –complexity –rate of change

Schermerhorn - Chapter 29 Customer-Driven Organizations 4 Why Do Customers Count? –Important source of competitive advantage

Schermerhorn - Chapter 210 Customer-Driven Organizations 4 External and Internal Customers –External purchase the goods or services produced –Internal individuals who depend on the results of others' work to do their own jobs

Schermerhorn - Chapter 211 Customer-Driven Organizations 4 Customers and Operations Management –Operations activities and decisions through which organizations transform resource inputs into product outputs –product output can be goods or services –Transformation process actual set of operations used to produce finished goods or services

Schermerhorn - Chapter 212 Commitment to Quality Operations 4 International Standards Organizations (ISO), Geneva Switzerland –ISO 9000 certification provides customers with assurance that a set of solid quality standards and processes are in place increasingly necessary to compete internationally

Schermerhorn - Chapter 213 Commitment to Quality Operations 4 Total Quality Management –quality principles as an integral part of organization's strategic objectives applying them to all aspects of operations committing to continuous improvement striving to meet customers’ needs correctly the first time

Schermerhorn - Chapter 214 Commitment to Quality Operations 4 Malcolm Baldridge National Quality Award –established in the U.S. –benchmark of excellence in quality achievements –criteria include quality values are incorporated into day-to-day management workers are trained in quality techniques products are as good as or better than its competitor

Schermerhorn - Chapter 215 Commitment to Quality Operations 4 Deming’s Path to Quality –basic proposition that the cause of quality problems may be some component of the production and operations processes the systems must be analyzed and constructively changed

Schermerhorn - Chapter 216 Commitment to Quality Operations 4 Quality and Continuous Improvement –Continuous Improvement Always looking for new ways to improve upon current performance

Schermerhorn - Chapter 217 Commitment to Quality Operations 4 Quality Circles –group of workers who meet regularly to discuss ways of improving quality of products or services assume responsibility for quality –can result in cost savings from improved quality and increased customer satisfaction

Schermerhorn - Chapter 218 Commitment to Quality Operations 4 Benchmarking –identifying other high performance organizations –comparing them to one’s own way of doing things

Schermerhorn - Chapter 219 Commitment to Quality Operations 4 Cycle time –elapsed time between receipt of an order and delivery of the finished product objective is to reduce the amount of time and costs

Schermerhorn - Chapter 220 Commitment to Quality Operations 4 Quality and Operations Management –Lean production uses new technologies to streamline systems –Flexible manufacturing processes can be changed quickly to produce different products –Agile manufacturing/Mass customization allow individualized products quickly

Schermerhorn - Chapter 221 Commitment to Quality Operations 4 Quality and Operations Management –Design for manufacturing products are styled to lower production costs simplicity counts in product design

Schermerhorn - Chapter 222 Commitment to Quality Operations 4 Quality and Operations Management –Design for Manufacturing products designed by taking into account how components will be recycled

Schermerhorn - Chapter 223 The Nature of Organizational Culture 4 Organizational Culture is a system of shared beliefs and values that develop within an organization and guide the behavior of its members

Schermerhorn - Chapter 224 The Nature of Organizational Culture 4 What Strong Cultures Can Do –Strong cultures are clear, well defined widely shared among members –encourage positive work behaviors –performance oriented –emphasize teamwork

Schermerhorn - Chapter 225 The Nature of Organizational Culture 4 Levels of Organizational Culture –Observable culture stories heroes rites and rituals symbols

Schermerhorn - Chapter 226 The Nature of Organizational Culture 4 Leadership and Organizational Culture –Criteria of core values relevance pervasiveness strength

Schermerhorn - Chapter 227 The Nature of Organizational Culture 4 Symbolic Managers –someone who uses symbols well to establish and maintain desired organizational culture use language metaphors tell key stories and encourage others to tell them tell about organizational heroes use symbolic rites and rituals

Schermerhorn - Chapter 228 Directions in Organizational Culture 4 Culture and Empowerment –best organizational cultures value talents and creative potential of all members allow human resources to to utilized to fullest potential allow people involved to feel good about work

Schermerhorn - Chapter 229 Directions in Organizational Culture 4 Characteristics of Multi-cultural Organizations –pluralism –structural integration –informal network integration –absence of prejudice and discrimination –minimum intergroup conflict

Schermerhorn - Chapter 230 Directions in Organizational Culture 4 Organizational Subcultures –cultures based on shared work responsibilities and personal characteristics occupational functional ethnic and racial generational gender

Schermerhorn - Chapter 231 Directions in Organizational Culture 4 Ethical Cultures –top management has important role –managers at every level set ethical tone in their immediate area –greatly expand impact of organizational culture on performance