1. CHAPTER 4 ENVIRONMENT, ORGANIZATIONAL CULTURE, AND DIVERSITY
BOH4M1

2. External Environment and Competitive Advantage

3. What is the external environment of organizations?
____________________ __________________ is a core competency that clearly sets an organization apart from ________________ and gives it an advantage over them in the marketplace.

4. What is the external environment of organizations?
Companies may achieve competitive advantage in many ways, including:
___________________
___________________ ________________
______________ __________________
_____________________

5. What is the external environment of organizations?
The general environment — all of the background conditions in the external environment of the organization including:
____________________
_______________________
____________________ _____________________

6. What is the external environment of organizations?
The specific (task) environment — actual organizations, groups, and persons with whom an ___________________ _________________ and __________________ __________________.
Includes important stakeholders such as:
Customers
Suppliers
Competitors
Regulators
Investors/owners

7. What is the external environment of organizations?
Environmental uncertainty is a ___________ ____ ________________ __________________ regarding what exists and what developments may occur in the external environment.
Two dimensions of environmental uncertainty:
____________________
___________ _______ _______________

8. Customer-Driven Organizations

9. What is a customer-driven organization?
External customers purchase the organization’s goods or utilize its services.
Internal customers are the persons and groups _____________ _____ __________________who depend on the results of __________ __________ to do their own jobs.

10. What is a customer-driven organization?
Customers want:
High quality.
Low price.
On-time delivery.
Key customer service lessons:
Protect reputation for quality products.
Treat customers right.

11. What is a customer-driven organization?
Customer relationship management establishes and maintains __________ _______________ of _______________ ______________ in order to strategically build lasting relationships with and _______ ____________ to customers.
Supply chain management is the strategic management of ______ _______________ relating to an organization’s ______________ ________________.

12. Quality-Driven Organizations

13. What is a quality-driven organization?
_____________ ________________ _____________________ (TQM)
Quality principles are an integral part of organization’s strategic objectives.
Applying them to all aspects of operations.
Committing to continuous improvement.
Striving to meet customers’ needs by doing things right the first time.

14. What is a quality-driven organization?
Crosby’s _____________________________ of management for total quality control:
Quality means __________________ to standards.
Quality comes from ____________ ________________, not defect correction.
Quality as a _________________ _______________ must mean defect-free work.
Quality saves _______________.

15. What is a quality-driven organization?
Quality and continuous improvement
W. Edwards Deming emphasized:
Constant innovation.
Use of Statistical methods.
Training in the fundamentals of quality assurance.
Continuous improvement
Seeking ways to improve on current performance.
Quality circles
A small group of workers who meet regularly to discuss ways of improving quality.

16. What is a quality-driven organization?
Quality and manufacturing technology:
Lean production
Uses _________ __________________ to streamline systems.
Flexible manufacturing
Processes can be _____________ _____________to produce different products or modifications of existing ones.
Agile manufacturing/mass customization
Permits ____________ _________________of individualized products.

17. What is a quality-driven organization?
Quality and product design:
A good design has eye appeal and is easy to manufacture with productivity.
Design for manufacturing emphasizes lower production costs and high-quality results.
Design for disassembly involves taking into account how components will be recycled.

18. Organizational Culture

19. What is organizational culture?
Organizational culture is the ______________ ____ ______________ ______________ _____ _______________ that develops within an organization and guides the behavior of its members.

20. What is organizational culture?
Diagnostic questions for assessing cultural differences:
How tight or loose is the structure?
Are decisions change oriented or driven by the status quo?
What outcomes or results are most highly valued?
What is the climate for risk taking, innovation?
How widespread is empowerment, worker involvement?
What is the competitive style, internal and external?

21. What is organizational culture?
Strong cultures:
Commit members to do things that are in the best interests of the organization.
Discourage dysfunctional work behavior.
Encourage functional work behavior.
The best organizations have strong cultures that:
Are performance-oriented.
Emphasize teamwork.
Allow for risk taking.
Encourage innovation.
Value the well being of people.

22. What is organizational culture?
What is observable culture?
What one _________ and ________ when _______________ _______ ____ ____________________
Elements of observable culture:
Stories
Heroes
Rites and rituals
Symbols

23. What is organizational culture?
What is the core culture?
Underlying _____________________ and ________________ that __________________ ___________________ and contribute to the observable culture.
Core culture and values:
Strong cultures have a small but enduring set of core values.
Commitment to core values is a key to long-term success.

24. What is organizational culture?
Important cultural values include:
Performance excellence
Innovation
Social responsibility
Integrity
Worker involvement
Customer service
Teamwork

25. What is organizational culture?
Value-based management:
Describes managers who _______________ help to __________________, __________________, and ______________ _______________ ____________.
Criteria for evaluating core values:
Relevance
Integrity
Pervasiveness
Strength

26. What is organizational culture?
Symbolic leadership
Symbolic leaders use ______________ well to establish and maintain a desired organizational culture.
Symbolic leaders behave in ways that espouse organization’s values.
Symbolic leaders:
Use language metaphors.
Highlight and dramatize core values and observable culture.
Use rites and rituals to glorify performance.

27. Multicultural Organizations and Diversity

28. How is diversity managed in a multicultural organization?
Describes ___________________ among people at work.
How diversity is handled in the workplace reflects the organization’s culture.
Respect and inclusion.
Disrespect and exclusion.
A potential source of ___________________ _____________________.

29. How is diversity managed in a multicultural organization?
Characteristics of multicultural organizations:
Pluralism
Structural integration
Informal network integration
Absence of prejudice and discrimination
Minimum intergroup conflict

30. How is diversity managed in a multicultural organization?
Organizational subcultures
Cultures based on shared work responsibilities and/or personal characteristics.
Common subcultures include:
Occupational
Functional
Ethnic or national
Racial
Generational
Gender

31. How is diversity managed in a multicultural organization?
Challenges faced by minorities and women:
Glass ceiling
Misunderstanding and lack of sensitivity
Sexual harassment
Pay discrimination
Job discrimination
Minorities may adapt by exhibiting biculturalism.

32. How is diversity managed in a multicultural organization?
Diversity leadership approaches:
Affirmative action commits the organization to hiring and advancing minorities and women.
Valuing diversity commits the organization to education and training programs.
Managing diversity commits to changing the organizational culture.