1. MANAGEMENT
RICHARD L. DAFT

2. The Environment and Corporate Culture
The Environment and Corporate Culture
CHAPTER 3

3. 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.
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4. 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
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5. 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
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6. International Dimension
Events originating in foreign countries
Impacts all aspects of the external environment
New competitors
New customers
New suppliers
Today, all companies globally
Portion of the external environment that represents events originating in foreign countries as well as opportunities for U.S. companies in other countries.
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7. Technological Dimension
Scientific and technological advances
Specific industries
Society at large
Impact:
Organizations
Managers
Customers
Desktop computers
Networks
Internet Access
Handheld devices
Videoconferencing
Cell phones
Laptop
WiFi
Medical advances
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8. 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
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9. 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
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10. Legal-Political Dimension
Federal, state, and local government regulations
Political activities designed to influence company behavior
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11. 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
Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved.

12. Changes in these various sectors can create tremendous 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 tremendous challenges…
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13. External Environment
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14. Environmental Uncertainty
Management must adapt to changes
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15. Adapting to the Environment
Boundary-Spanning Roles: coordinating the organization with key elements in the external environment
Interorganizational Partnerships: collaborating with other organizations
Mergers: combination of two organizations
Joint Ventures: an alliance of organizations for a specific project
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16. Partnership Paradigm
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17. 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”
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18. Culture Symbols Stories Heroes Slogans Ceremonies
Symbols
Stories
Heroes
Slogans
Ceremonies
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19. 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
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20. Adaptive vs. Unadaptive Corporate Culture
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21. Four Types of Corporate Culture
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22. Shaping Corporate Culture for Innovative Response
How people are treated increases a company’s value
Culture attracts, motivates and retains talent
Corporate culture enables learning and innovation
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23. Combining Culture and Performance
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24. Cultural Leadership
Articulate a vision for the organizational culture that employees can believe in
The cultural leader heeds the day-to-day activities that reinforce the cultural vision
Managers communicate the cultural values through words and actions
Cultural leaders uphold their commitment to values during difficult times
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