Environment and Diversity

1101IBA Management Concepts - Week 3 2014

Presented by Dr Daniel Ringuet

 Where are we?
Management and its Functions of Management
Contexts Management Applications
1. The Contemporary
Workplace 6. Planning 12. Change
Management

2. History of 7. Decision Making

Management
9. Controlling 13. Review

3. Environment &
Diversity 10. Organising

4. International
11. Leading
Dimensions of Mgt

5. Ethical behaviour &

Social Responsibility
 Learning Objectives

❖Describe the external environments of organisations

❖Explain the internal environment of an organisation

and organisational culture

❖Discuss how diversity is managed in a multicultural

organisation
For highly paid managers, what if…..

 There is a sudden downturn in the economic conditions?

 The government changes some vital legislation that impacts on the
organisation?

 The question is:

 How much influence does a manager have or potentially have on an
organisation’s performance?

 http://www.youtube.com/watch?v=DyHQdMny8CY

 What kind of influence does this manager have?

 Managing Organisations

 Internal Environment
 organisational culture made up of ‘shared meanings’, ie stories,
rituals, symbols and language

 External Environment
 general and specific environment

Internal environment
General
Culture Managerial
discretion Specific
External
environment
 Environment – specific and general

 Specific
 factors that directly impact achievement of the organisation’s goals -
suppliers, customers, competitors, government agencies and public
pressure groups.

 General
 broad factors (not within the control of the organisation) such as
political conditions, economic factors, sociocultural influences,
technological factors, legal and global issues that indirectly impact the
organisation.
The specific environment
 Griffith University: Specific
 Customers
 students, on campus
 students, off campus
 businesses (consultation, short courses)

 Suppliers
 educational services, ie lecturers and tutors
 bookstore, paper, utilities

 Competitors
 TAFE, other universities

 Pressure groups/govt agencies

 green lobby group; local council; bicycle lobby group
 Griffith University - general
P Political
Strong $A dollar makes it more
expensive for overseas students to
E Economic come to Australia to study – drop in
enrolments possible.. uncapping

S Socio-cultural Ageing population

Universities using tools of popular

T Technological internet culture to advance more

flexible models for learning.

Natural
NE Environment
Environmental uncertainty
Internal environment and culture

❖Organisational culture : The system of shared beliefs and

values that develops within an organisation and guides
the behaviour of its members (Edgar Schein).

❖The internal culture has the potential to shape attitudes,

reinforce common beliefs, direct behaviour and establish
performance expectations and the motivation to fulfil
them.
 Sources of organisational culture

 The organisation’s founder

 vision and mission
 Past practices of the organisation
 the way things have been done
 Behaviour of top management?
Levels of organisational culture
 Internal environment and culture

• Observable culture
– The elements of daily organisational life through which new
members learn the organisation’s culture and all members
share and reinforce its special aspects over time.
• Examples of observable culture include:
– Stories
– Heroes
– Rites and rituals
– Symbols.
 How employees learn culture

 Stories
 Significant events or people

 Rituals
 Repetitive activities that reinforce the organisation’s
values.

 Material Symbols
 Symbols that say something about the organisation, ie.
office space, dress, cars.
 Leadership and organisational culture

• A symbolic leader uses symbols to establish and

maintain a desired organisational culture. They talk
the ‘language’ of the organisation, highlight the
observable culture, and tell key stories repeatedly.
• Group culture depends on values that should meet
the following criteria:
– Relevance
– Pervasiveness
– Strength.
Diversity and multicultural organisations

• The term diversity describes differences in race,

gender, age, ethnicity, physical ability, culture and
sexual orientation, among other individual
differences.
• Inclusivity
– The degree to which the organisation is open to anyone who
can do the job, regardless of their diversity attributes. The
‘best’ organisational cultures in this sense are inclusive,
because they value the talents, ideas and creative potential of
all members.
 A Virgin Mobile person

 http://www.youtube.com/watch?v=OEBzi3TiPsE
 http://www.youtube.com/watch?v=5qa16cVbAm0&feature=related
 There is no simple answer. We employ all kinds of people. Indeed, we aim
to reflect the diverse nature of society and we value people’s contribution
irrespective of their age, sex, disability, sexual orientation, race, religion,
marital status, ethnic origin or shoe size.

 It’s the attitude they bring to work that’s important, not what they look
like. Things like ...

 Confidence, Self expression, Business maturity, Can do

 Diversity and multicultural organisations

• Multiculturalism
– A multicultural organisation is based on pluralism and operates with respect for
diversity.

• Characteristics of a truly multicultural organisation (Taylor Cox):

– Pluralism: Members of both minority cultures and majority cultures are influential.

– Structural integration: Minority-culture members are well represented at all levels

and functions.

– Informal network integration.

– Absence of prejudice and discrimination.

– Minimum intergroup conflict.

 Organisational subcultures

• Subcultures

– Cultures common to groups of people with similar values and

beliefs based on shared work responsibilities and personal
characteristics.

• Subcultures can be:

– Occupational (e.g., lawyers, accountants)

– Functional (e.g. ‘marketing people’, ‘finance people’)

– Ethnic or national

– Generational
Challenges faced by minority groups
and women
 Challenges faced by minority groups
and women

• Minority-group workers can be the targets of:

– A lack of sensitivity
– Sexual harassment
– Cultural jokes
– Discrimination
• In Australia, various national and state laws cover
equal employment opportunity and anti-
discrimination in the workplace.
 Theory of the week:
Managing diversity

• Leadership approaches to diversity:

– Affirmative action commits organisation to hiring and
advancing minority groups and women.
– Valuing diversity commits the organisation to education and
training programs to help people understand and respect
differences.
– Managing diversity is the most comprehensive, approach,
committing the organisation to changing the culture, in order
to build an inclusive work environment that allows everyone
to reach their full potential.
Multicultural organisations
 Conclusion

 Managers are neither all-powerful or helpless as external and internal

constraints exist.

 Effective management involves understanding, monitoring, adapting and

responding to trends and issues with external stakeholders and other
factors in the external environment.

 Effective managers understand and are able to influence and manage

organisational culture.

 Diversity is managed in multicultural organisations by committing the

organisation to changing the culture, in order to build an inclusive work
environment that allows everyone to reach their full potential
 Homework

 Prepare for tutorial by reading the “Sick Leave Costing

Employers” case study on Page 334 of your Textbook.
 Complete the tutorial preparation sheet and bring it to
the tutorial.
 Read Chapter 4 of the text