PRINMAN Prepared by: Go, Valerie Malinao, Karlo Maralit, Pauline Umbao, Kimberly AOG

1. Chapter 3: The Environment and the Corporate Culture PRINMAN Prepared by: Go, Valerie Malinao, Karlo Maralit, Pauline Umbao, Kimberly AOG External Environment & Culture

2. The External Environment • General • Task • Internal Source: Daft, R. L. 2008. Management. USA: Thomson Corporation

3. General Environment • the layer of the external environment that affects organization indirectly • includes dimensions like: • International • Technological • Socio-cultural • Economic • Legal-political

4. International Dimension • represents events originating in foreign countries as well as opportunities for U.S. companies in other countries • Today, every company has to compete on a global basis. High-quality, low-priced automobiles from Japan and Korea have permanently changed the American automobile industry. General Environment

5. Technological Dimension • includes scientific and technological advancements in the industry and society at large • Today, computer networks, Internet access, videoconferencing capabilities, cell phones, laptops, etc. are practically taken for granted as the minimum tools for doing business. General Environment

6. Socio – Cultural Dimension • representing the demographic characteristics, norms, customs, and values of the population within which the organization operates • Today’s demographic profiles are the foundation of tomorrow’s workforce and consumers. General Environment

7. Economic Dimension • representing the overall economic health of the country or region in which the organization operates • Consumer purchasing power, the unemployment rate, and interest rates are part of organization’s economic environment. General Environment

8. Legal – Political Dimension • includes federal, state, and local government regulations and political activities designed to influence company behavior General Environment

9. Task Environment • includes the sectors that conduct daily transactions with the organization and directly influence its basic operations and performance

10. Task Environment • direct relationship with the organization, among them: • Customers • Competitors • Suppliers • Labor Market

11. Customers • people and organizations in the environment who acquire goods or services from the organization • Customers are important because they determine the organization’s success. Task Environment

12. Competitors • other organizations in the same industry or business that provide goods or services to the same set of customers Task Environment

13. Suppliers • people and organizations who provide the raw materials the organization uses to provide its output Task Environment

14. Labor Market • the people available for hire by the organization • Every organization needs a supply of trained, qualified personnel. Task Environment

15. Internal Environment • includes the elements within the organization’s boundaries

16. Corporate Culture • Culture – set of key values, beliefs, understandings, and norms that members of an organization share • Culture Leadership • - Culture Leader

17. Types of Cultures • Adaptability culture– a culture characterized by values that support the company’s ability to interpret and translate signals from the environment into new behavior responses.

18. Types of Cultures • Achievement culture – a results-oriented culture that values competitiveness, personal initiative, and achievement.

19. Types of Cultures • Involvement culture – a culture that places high values on meeting the needs of employees and values cooperation and equality. • Consistency culture – a culture that values and rewards a methodical, rational, orderly way of doing things.

20. Symbol – an object, act, or event that conveys meaning to others. • Story – a narrative based on true events that is repeated frequently and shared among organizational employees.

21. Hero – a figure who exemplifies the deeds, character, and attributes of a strong corporate culture. • Slogan – a phrase or sentence that succinctly expresses a key corporate value.

22. Ceremony – a planned activity that makes up a special event and is conducted for the benefit of an audience.

23. Culture Leadership • a one way managers shape cultural norms and values to build a high-performance culture Corporate Culture

24. Cultural Leader • a manager who uses signals and symbols to influence corporate culture Corporate Culture

25. The END