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Learning Objectives
Organizational Environment
External Environment
● Task environment
- Affects directly
- Influences operations and performances
Organizational Environments
Exhibit 3.1
International Dimension
● Portion of the external
environment that represents
events originating in foreign
countries as well as opportunities
for U.S. companies in other
countries.
Technological Dimension
Socio-Cultural Dimension
Dimensionof the general
environment
– Demographic characteristics
– Norms
– Customs
– Values
Economic Dimension
● Recent Trends
● Frequency of mergers and
acquisitions
● Small business sector vitality
Legal-Political Dimension
Task Environment
Boundary-spanning
Inter-organizational partnerships
Mergers and joint ventures
Exhibit 3.3
High
Adapt to
High
Environment
Rate of Uncertainty
Change in
Factors in
Environment
Low
Uncertainty
Low
Low High
Number of Factors in Organization Environment
Interorganizational Partnerships
Shift in paradigm to a partnership orientation
● Trust, value added to both sides
● Equity, fair dealing, everyone profits
● E-business links to share information and conduct digital
transactions
● Close coordination; virtual teams and people on site
● Involvement in partner’s product design and production
● Long-term contracts
● Business assistance goes beyond the contract
Culture
Culture
that can be
Visible
seen at the 1. Artifacts, such as dress, office
surface layout, symbols, slogans,
level ceremonies
Invisible
2. Expressed values, such as “The Deeper values
Penney Idea,” “The HP Way” and shared
understandings
3. Underlying assumptions and deep held by
beliefs, such as “people are lazy organization
and can’t be trusted” members
Visible Manifestations
Symbols
Stories
Heroes
Slogans
Ceremonies
Flexibility Stability
External
Achievement
Adaptability Culture
Strategic Focus
Culture
Involvement Consistency
Culture Culture
Internal
High-Performance Culture
A culture that
Is based on a solid organizational mission or
purpose
Embodies shared adaptive values that guide
decisions and business practices, and
Encourages individual employee ownership of
both bottom-line results and the organization’s
cultural backbone
Cultural Leadership