Download presentation
1
Chapter 4: Environment and Organizational Culture
PowerPoint Presentation to Accompany Management, 9/e John R. Schermerhorn, Jr. Chapter 4: Environment and Organizational Culture Prepared by: Jim LoPresti University of Colorado, Boulder Published by: John Wiley & Sons, Inc.
2
Planning Ahead — Chapter 4 Study Questions
What is the external environment of organizations? What is a customer-driven organization? What is organizational culture? How is diversity managed in a multicultural organization? Management 9/e - Chapter 4
3
Study Question 1: What is the external environment of organizations?
Competitive advantage is a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace. Management 9/e - Chapter 4
4
Study Question 1: What is the external environment of organizations?
Companies may achieve competitive advantage in many ways, including: Products Pricing Customer service Cost efficiency Quality Management 9/e - Chapter 4
5
Study Question 1: What is the external environment of organizations?
The general environment — all of the background conditions in the external environment of the organization including: Economic Socio-cultural Legal-political Technological Natural environment Management 9/e - Chapter 4
6
Study Question 1: What is the external environment of organizations?
The specific (task) environment — actual organizations, groups, and persons with whom an organization interacts and conducts business. Includes important stakeholders such as: Customers Suppliers Competitors Regulators Investors/owners Management 9/e - Chapter 4
7
Management 9/e - Chapter 4
Figure 4.1 Stakeholder analysis of value creation for key constituencies of a business firm: an open-systems approach. Management 9/e - Chapter 4
8
Study Question 1: What is the external environment of organizations?
Environmental uncertainty is a lack of complete information regarding what exists and what developments may occur in the external environment. Two dimensions of environmental uncertainty: Complexity Rate of change Management 9/e - Chapter 4
9
Study Question 2: What is a customer-driven organization?
External customers purchase the organization’s goods or utilize its services. Internal customers are the persons and groups within an organization who depend on the results of others' work to do their own jobs. Management 9/e - Chapter 4
10
Study Question 2: 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. Management 9/e - Chapter 4
11
Study Question 2: What is a customer-driven organization?
Customer relationship management establishes and maintains high standards of customer service in order to strategically build lasting relationships with and add value to customers. Supply chain management is the strategic management of all operations relating to an organization’s resource suppliers. Management 9/e - Chapter 4
12
Study Question 3: What is organizational culture?
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members. Management 9/e - Chapter 4
13
Study Question 3: 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? Management 9/e - Chapter 4
14
Study Question 3: 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. Management 9/e - Chapter 4
15
Study Question 3: What is organizational culture?
What is observable culture? What one sees and hears when walking around an organization. Elements of observable culture: Stories Heroes Rites and rituals Symbols Management 9/e - Chapter 4
16
Management 9/e - Chapter 4
Figure 4.2 Levels of organizational culture—observable culture and core culture. Management 9/e - Chapter 4
17
Study Question 3: What is organizational culture?
What is the core culture? Underlying assumptions and beliefs that influence behavior 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. Management 9/e - Chapter 4
18
Study Question 3: What is organizational culture?
Important cultural values include: Performance excellence Innovation Social responsibility Integrity Worker involvement Customer service Teamwork Management 9/e - Chapter 4
19
Study Question 3: What is organizational culture?
Value-based management: Describes managers who actively help to develop, communicate, and enact shared values. Criteria for evaluating core values: Relevance Integrity Pervasiveness Strength Management 9/e - Chapter 4
20
Study Question 3: What is organizational culture?
Symbolic leadership Symbolic leaders use symbols 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. Management 9/e - Chapter 4
21
Study Question 3: What is organizational culture?
S-C-O-R-E-S 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? Management 9/e - Chapter 4
22
Management 9/e - Chapter 4
Study Question 4: How is diversity managed in a multicultural organization? Diversity: Describes differences 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 competitive advantage. Management 9/e - Chapter 4
23
Management 9/e - Chapter 4
Study Question 4: How is diversity managed in a multicultural organization? Diversity trends in the sociocultural environment: People of colors are an increasing percentage of the workforce. More women are working. People with disabilities are gaining more access to the workplace. Average age of workers is increasing. Religious diversity of workers is increasing. Management 9/e - Chapter 4
24
Management 9/e - Chapter 4
Study Question 4: 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 Management 9/e - Chapter 4
25
Management 9/e - Chapter 4
Study Question 4: How is diversity managed in a multicultural organization? Organizational subcultures Cultures based on shared work responsibilities and/or personal characteristics. Ethnocentrism is the belief that one’s subculture is superior to all others Common subcultures include: Occupational Functional Ethnic or national Racial Generational Gender Management 9/e - Chapter 4
26
Management 9/e - Chapter 4
Study Question 4: 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. Management 9/e - Chapter 4
27
Management 9/e - Chapter 4
Figure 4.3 Glass ceilings as barriers to women and minority cultures in traditional organizations. Management 9/e - Chapter 4
28
Management 9/e - Chapter 4
Study Question 4: How is diversity managed in a multicultural organization? Diversity leadership approaches: Managing diversity commits to changing the organizational culture. Affirmative action commits the organization to hiring and advancing minorities and women. Valuing diversity commits the organization to education and training programs. Management 9/e - Chapter 4
29
Management 9/e - Chapter 4
Figure 4.4 Leadership approaches to diversity—from affirmative action to managing diversity. Source: Developed from R. Roosevelt Thomas, Jr., Beyond Race and Gender (New York: AMACOM, 1991), p. 28. Management 9/e - Chapter 4
30
COPYRIGHT Copyright 2008 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.