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CHAPTER 3 MANAGEMENT, ITS ENVIRONMENT AND CULTURE

CHAPTER 3 MANAGEMENT, ITS ENVIRONMENT AND CULTURE. Ang Eng Sieng. Management, Its Environment and Culture. Learning Outcomes Completing this chapter will allow the reader to : Conduct an environment scanning process Understand the impact from the different environments on the organization

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CHAPTER 3 MANAGEMENT, ITS ENVIRONMENT AND CULTURE

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  1. CHAPTER 3MANAGEMENT, ITS ENVIRONMENT AND CULTURE Ang Eng Sieng

  2. Management, Its Environment and Culture Learning Outcomes Completing this chapter will allow the reader to : • Conduct an environment scanning process • Understand the impact from the different environments on the organization • Understand how changes in certain environments can influence business decisions • Gain the ability to plan and adapt to these changes • Analyze the different types of organizational culture • Evaluate the factors that influence the organizational culture • Adapt to the culture for business objectives and change

  3. Environmental Scanning • Environmental Scanning consists of three major categories : - • external environment • task environment • internal environment

  4. Dimensions in the external environment

  5. Scanning the External Environment • Economic factors • Legal- Political factors • Technological factors • Social factors • Integrity factors

  6. Scanning the Task Environment • Customers • Suppliers • Competitors • Business Partners • Regulators

  7. Scanning the Internal Environment • Owners • Employees • Board of Directors • Physical Assets or Resources

  8. Cameron and Quinn (2011), Competing Values Framework

  9. Types of Organizational Culture • The Hierarchy (Control) Culture • The Market (Compete) Culture • The Clan (Collaborate) Culture • The Adhocracy (Create) Culture

  10. The Hierarchy (Control) Culture This type of structured culture allows business leaders to: - • maintain strong stability and predictability in managing day-to-day operations. • govern by level of authority, formal rules and policies. • focus on internal rules and procedures. • (Example: Samsung, a South Korean multinational)

  11. The Market (Compete) Culture This type of structured culture allows business leaders to: - • react based on market conditions, monetary changes, and economic factors. • ensure profitability, customer base, market share and sales targets. • orient itself to the external environment. • (Example - Apple Inc., an American company)

  12. The Clan (Collaborate) Culture A family-oriented organization that focuses on:- • family traits, for a family-oriented environment. • employee involvement and engagement. • work patterns which are team-based. • (Example – Panasonic, a Japanese consumer electronics company)

  13. The Adhocracy (Create) Culture This type of culture is one that embraces:- entrepreneurial spirit. • risk-taking to promote innovation. • fast and flexible adaptation in work processes. • the will to thrive in an uncertain market and an ever - changing environment. • (Examples - consultancy agencies, filmmaking and software companies)

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