Quản trị kinh doanh - Chapter 3: The environment and corporate culture

The Environment and Corporate CultureChapter 31Organizational EnvironmentAll elements existing outside the boundary of the organization that have the potential to affect the organizationManager’s Challenge: IBM, p. 772External EnvironmentGeneral environment – affects indirectlyTask environmentAffects directlyInfluences operations and performancesInternal environment – elements within the organization’s boundaries3Organizational EnvironmentsManagementEmployeesCultureInternal EnvironmentSuppliersCompetitorsCustomersLabor MarketLegal/PoliticalEconomicTechnologicalSocio-CulturalInternationalGeneral EnvironmentTask EnvironmentTechnologicalSuppliers4International DimensionProvides NewCustomersCompetitorsSuppliersShapes:Social trendsTechnological trendsEconomic trends5Technological DimensionScientific and technological advancesSpecific industriesSociety at largeImpactCompetitionRelationship with CustomersMedical advancesNanotechnology advances6Socio-Cultural DimensionDimension of the general environmentDemographic characteristicsNormsCustomsValues7Key Demographic Trends in U.S.By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power.The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerousUnprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone.8Economic DimensionGeneral economic healthConsumer purchasing powerUnemployment rateInterest ratesRecent TrendsFrequency of mergers and acquisitionsSmall business sector vitality9Task EnvironmentSectors that have a direct working relationship with the organizationCustomersCompetitorsSuppliersLabor Market10Labor Market ForcesLabor Market Forces Affecting Organizations todayGrowing need for computer literate information technology workersNecessity for ongoing investment in human resources – recruitment, education, trainingEffects of international trading blocks, automation, outsourcing, shifting facility locations upon labor dislocations11Adopting to the EnvironmentBoundary-spanningInter-organizational partnershipsMergers or joint ventures 12External Environment and UncertaintyNumber of Factors in Organization EnvironmentAdapt toEnvironmentHighUncertaintyLowUncertaintyHighLowLowHighRate ofChange inFactors inEnvironment13Competitive Intelligence - CIWhat - Activities to get as much information as possible about one’s rivalsWhere - Web sites, commercial databases, financial reports, market activities, news clippings, trade publications, personal contactsWhy – Spot potential threats or opportunities Ethical Dilemma: Competitive Intelligence Predicament, P. 10514Interorganizational PartnershipsShift in paradigmTrust, value added to both sidesEquity, fair dealing, everyone profitsE-business links to share information and conduct digital transactionsClose coordination; virtual teams and people on siteInvolvement in partner’s product design and productionLong-term contractsBusiness assistance goes beyond the contract15Levels of Corporate CultureVisible1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies2. Expressed values, such as “The Penney Idea,” “The HP Way”3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted”InvisibleCulture that can be seen at the surface levelDeeper values and shared understandings held by organization members16Visible ManifestationsSymbolsStoriesHeroesSlogansCeremonies17Environment and CultureA big influence on internal corporate culture is the external environmentCultures can vary widely across organizationsOrganizations within same industry reveal similar cultural characteristicsExperiential Exercise: Working in an Adaptive Culture, p. 10418Corporate Culture AdaptabilityAdaptive CultureUnadaptive CultureVisible BehaviorExpressed ValuesManagers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks.Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments.Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy).Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives.Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.19Four Types of Corporate CulturesAdaptability CultureAchievement CultureConsistency CultureInvolvement CultureExternalInternalFlexibilityStabilityStrategic FocusNeeds of the Environment20Cultural LeadershipArticulates a vision that employees can believe in Defines and communicates central values that employees believe inValues are tied to a clear and compelling mission, or core purposeHeeds the day-to-day activities that reinforce the cultural vision – work procedures and reward systems match and reinforce the values21High-Performance CultureCreating and maintaining a high-performance culture in today’s turbulent environment and changing workplace is not easy.Managers widely communicate their cultural values through their words and particularly their actionsValue statements that are not reinforced by management behavior are meaningless or even harmful for employees and the organizationCultural leaders uphold their commitment to values during difficult times or crises. 22