1. Environment power and culture
Class 10

2. Social context
Social context refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
Examples of Social Context
Regulations (EPA, Anti Trust Laws, Food and drug acts)
Norms (Ways of doing business – Universities don’t recruit teachers after May 1st, In the diamond trade large deals happen on basis of a handshake)
Shared Understandings (Certain ethnicities being drawn to certain jobs, Siesta!) .

3. POWER
Power is an individual actors ability to accomplish his or her goals by using resources obtained through “Non contractual exchange relationships” Non contractual exchange contracts * Any exchanges take place outside traditional economic markets * Not enforceable in court Power does not equal authority – Authority is given to individuals through contract.

4. Do successful organizations need powerful managers?
Unless employee relationships can be completely governed by incentive contracts – a manager has to have some sort of power. But power does not guarantee success.
How can decision makers be paid through “power” and not through higher salaries?

5. Culture
A firms culture is a set of values, beliefs, norms of behavior shared by its members that influences employee preferences and behaviors. Examples of cultural fit Zappos – Does a cultural fit interview which is 50% of the interview. Also after training they give you $2000 to leave. All Blacks – They clean up after themselves. “Better people make better All Blacks” Southwest Airlines – Employees are allowed to go the extra mile to make customers happy.

6. Individual questions
Identify 3 cultural examples in the organization you work for
Identify the “Power” players in your organization – what is the source of their power?
What unique ways do your organizations do business – “norms” that you would not necessarily see in other organizations?

7. Assignment group questions
What is your product/service?
How much of a profit will you make in the short term?
What are the opportunities for profit in the long term?
Who is your biggest competitor?
Who has more power you or your buyers?
What is your relationship with your suppliers?
What is your profit margins per item sold?
How many references do your have in your works cited page?
If you were going to start this business today, how much money do you need?
What is the most important lesson of this assignment?