1. Understanding the Context of Management
Understanding the Context of Management

2. Learning Outcomes
Describe the general and task environments and the dimensions of each.
Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment.
Define corporate culture and give organizational examples.
Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture.
Describe how corporate culture relates to the environment.
Define a cultural leader and explain the tools a cultural leader uses to create a high-performance culture.

3. Are You Fit for Managerial Uncertainty?
The environment in which businesses operate are increasingly dynamic.
Some managers cannot respond to environmental surprises.
In an uncertain environment, managers need to facilitate new thinking, new ideas and new ways of working.

4. External Environment General environment – affects indirectly
General environment – affects indirectly
Task environment
Affects directly
Influences operations and performances
Internal environment – elements within the organization’s boundaries

5. International Dimension
Events originating in foreign countries.
Impacts all aspects of the external environment:
New competitors
New customers
New suppliers
Today, all companies need to think globally!
Portion of the external environment that represents events originating in foreign countries as well as opportunities for U.S. companies in other countries.

6. Technological Dimension
Scientific and technological advances
Specific industries
Society at large
Impact:
Organizations
Managers
Customers

7. Socio-Cultural Dimension
Dimension of the general environment
Demographic characteristics
Norms
Customs
Values
Today’s demographics are the foundation of the future workforce
Demographic trends affect organizations globally
Norms
Customs
Values of population
Geographical Distribution
Population Density
Age
Education Levels

8. Economic Dimension General economic health Recent Trends
Economic Dimension
General economic health
Consumer purchasing power
Unemployment rate
Interest rates
Recent Trends
Frequency of mergers and acquisitions
Small business sector vitality

9. Legal-Political Dimension
Federal, state, and local government regulations
Political activities designed to influence company behavior

10. Natural Dimension Concern for the environment
Concern for the environment
The natural dimension has no voice
Pressure comes from advocacy and managers
Eliminate nonbiodegradable plastic bags from the environment
Improving efficiency of plants and factories
Investing in cleaner technologies

11. Changes in these various sectors can create new challenges…
Task Environment
Sectors that have a direct working relationship with the organization:
Customers
Competitors
Suppliers
Labor Market
Changes in these various sectors can create new challenges…

12. Environmental Uncertainty
Management must understand and adapt to changes

13. Adapting to the Environment
Boundary-Spanning Roles: coordinating the organization with key elements in the external environment.
Inter-organizational Partnerships: collaborating with other organizations.
Mergers and Acqusitions: combination of two organizations.
Joint Ventures: an alliance of organizations for a specific project.

14. Partnership Paradigm

15. The Internal Environment: Corporate Culture
Corporate culture should match the needs of the external environment.
The importance of corporate culture has been growing.
Culture is a pattern of shared values
“How things are done around here…”

16. Culture
Symbols
Stories
Heroes
Slogans
Ceremonies

17. Environment and Culture
The external environment influences culture.
The internal environment should embody the requirements for success.
Manager’s must pay attention to culture
Recognize the ways culture can help or hurt your department.

18. Adaptive vs. Unadaptive Corporate Culture

19. Four Types of Corporate Culture

20. Combining Culture and Performance