Buat Ul

Organizational
Environments
and Cultures
CHAPTER TWO
Prepared by
Deborah Baker
Texas Christian University
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved
Management
3rd Edition
Chuck Williams
1
CHAPTER TWO
What Would You Do?

You are the CEO of McDonalds
Sales are declining,

stores are closing
Competitors are stronger
Food quality is dropping,

food preferences have
changed
Service is rude and inaccurate
How can you deal with these

external and internal problems
and turn them into opportunities?
2
CHAPTER TWO
External Environments
After reading the next four
sections, you should be able to:
1.
discuss how changing environments affect

organizations.
2.
describe the four components of the general

environment.
3.
explain the five components of the specific

environment.
describe the process that companies use to make
sense of their changing environments.(adaptasi)
4.
3
CHAPTER TWO
Changing Environments
Characteristics of
Changing External Environments
Environmental
Environmental Change
Change
Environmental
Environmental Complexity
Complexity
Resource
sumber daya)
ResourceScarcity
Scarcity(kelngkaan
(kelngkaan sumber daya)
Uncertainty
Uncertainty
1
4
CHAPTER TWO
Environmental Change
Environmental Change is the rate at which a

companys environments change
stable environments
dynamic environments
Punctuated equilibrium theory

companies cycle through stable and dynamic
environments
1.1
5
CHAPTER TWO
Punctuated Equilibrium: U.S. Airlines
1.1
6
CHAPTER TWO
Environmental Complexity
Environmental Complexity: the number of external

factors in the environment that affect
organizations
Simple environments
have few environmental factors
Complex environments
have many environmental factors
1.2
7
CHAPTER TWO
Resource Scarcity
Resource scarcity is the degree to which

an organizations external environment
has an abundance or scarcity of critical
organizational resources
1.3
8
CHAPTER TWO
Uncertainty
Uncertainty is how well managers can understand
or predict the external changes and trends
affecting their businesses
1.4
9
CHAPTER TWO
General Environment
Organization
Specific Environment
General Environment
2
10
CHAPTER TWO
Components of the General Environment
Economy
Technological
Sociocultural
Political / Legal
2
11
CHAPTER TWO
Economy
Growing vs. shrinking economies
Future economic activity is difficult to predict
Business confidence indices
show how confident managers are about future
business growth
2.1
12
CHAPTER TWO
Technological Component
Input
Input
Raw
Raw
Materials
Materials
Technology-Technology-Knowledge
Knowledge
Tools
Tools
Techniques
Techniques
Information
Information
Output
Output
Products
Products
Services
Services
2.2
13
CHAPTER TWO
Sociocultural Component
Sociocultural Components
Demographic changes
Changes in behavior, attitudes, and beliefs
2.3
14
CHAPTER TWO
Demographics Example
2.3
15
CHAPTER TWO
Political / Legal Component
Legislation
Regulations
Court decisions
Managers must be
educated about the laws,
regulations, and potential
lawsuits that could affect
business
http://www.eeoc.gov/laws/cra91.html
http://www.eeoc.gov/laws/cra91.html
2.3
16
CHAPTER TWO
Specific Environment
Customer
Competitor
Supplier
Industry regulation
Advocacy group
3
17
CHAPTER TWO
Customer Component
Monitoring customer
wants and needs
is critical for
business success
Reactive customer monitoring
responding to problems, trends, and events
Proactive customer monitoring
anticipating problems, trends, and events
3.1
18
CHAPTER TWO
Competitor Component
Competitive
Competitive Analysis
Analysis
Deciding
Deciding who
who your
your competitors
competitors are
are
Anticipating
Anticipating competitors
competitorsmoves
moves
Determining
Determining competitors
competitors
strengths
strengths and
and weaknesses
weaknesses
3.2
19
CHAPTER TWO
Competitive Analysis
The Ten Commandments for
Ethical Decision Making
Thou Shalt
3.2
http://www.scip.org
http://www.scip.org
http://www.scip.org/library/8(3)eea.pdf
http://www.scip.org/library/8(3)eea.pdf
Not lie when representing yourself

Observe the companys legal guidelines
Not tape-record a conversation
Not bribe
Not plant eavesdropping devices
Not deliberately mislead anyone in an interview
Not obtain nor give price information to a competitor
Not swap misinformation
Not steal a trade secret
Not press someone for information if it may jeopardize that
persons job or reputation
Adapted from Fuld & Company
20
CHAPTER TWO
Supplier Component
Buyer
Buyer
Dependence
Dependence
Suppliers
Suppliers
Opportunistic
Opportunistic Behavior
Behavior
Supplier
Supplier
Dependence
Dependence
Relationship
Relationship Behavior
Behavior
3.3
21
CHAPTER TWO
Industry Regulation Component
Consists of regulations and rules that govern the

business practices and procedures of specific
industries, businesses, and professions
3.4
22
CHAPTER TWO
Federal Regulation Agencies

Consumer
ConsumerProduct
Product
Safety
SafetyCommission
Commission
3.4
http://www.cpsc.gov
http://www.cpsc.gov
Environmental
EnvironmentalProtection
ProtectionAgency
Agency
Equal
EqualEmployment
Employment
Opportunity
OpportunityCommission
Commission
Federal
FederalCommunications
Communications
Commission
Commission
http://www.eeoc.gov
http://www.eeoc.gov
Federal
FederalReserve
ReserveSystem
System
http://www.federalreserve.gov
http://www.federalreserve.gov
Federal
FederalTrade
TradeCommission
Commission
http://www.ftc.gov
http://www.ftc.gov
Food
Foodand
andDrug
DrugAdministration
Administration
http://www.fda.gov
http://www.fda.gov
National
NationalLabor
LaborRelations
RelationsBoard
Board
http://www.
http://www.nlrb.gov
nlrb.gov
Occupational
OccupationalSafety
Safetyand
and
Health
HealthAdministration
Administration
Securities
Securitiesand
andExchange
Exchange
Commission
Commission
http://www.epa.gov
http://www.epa.gov
http://www.fcc.gov
http://www.fcc.gov
http://www.osha.gov
http://www.osha.gov
http://www.sec.gov
http://www.sec.gov
23
CHAPTER TWO
Advocacy Groups
Groups of concerned citizens who band together to

try to influence the business practices of specific
industries, businesses, and professions
Techniques to try to influence companies
public communications
media advocacy
product boycotts
3.5
24
CHAPTER TWO
Making Sense of Changing Environments

Environmental
Environmental
Scanning
Scanning
Evaluating
Evaluating
External
External
Environments
Environments
Interpreting
Interpreting
Environmental
Environmental Factors
Factors
Acting
Acting on
on
Threats
Threats and
and Opportunities
Opportunities
4
25
CHAPTER TWO
Environmental Scanning
Environmental scanning: searching the

environment for events or issues that might affect
an organization
Scanning the environment:

keeps companies current on industry factors
reduces uncertainty
alters organizational strategies
contributes to organizational performance
4.1
26
CHAPTER TWO
Interpreting Environmental Factors
Managers determine what environmental events and

issues mean to the organization
Opportunities
Threats
4.2
27
CHAPTER TWO
Acting on Threats and Opportunities
Managers have to decide how to respond to these

environmental factors
Cognitive maps
simplified models of external environments

depicts how managers believe environmental
factors relate to possible organizational actions
4.3
28
CHAPTER TWO
Cognitive Maps
4.3
29
CHAPTER TWO
Internal Environments
After reading this section,
you should be able to:
5.
explain how organizational cultures are created and

how they can help companies be successful.
30
CHAPTER TWO
Internal Environments
Internal environment consists of the

trends and events within an organization
that affect the management, employees,
and organizational culture
important because it affects what people
think, feel, and do at work
organizational culture is the set of key
values, beliefs, and attitudes shared by
organizational members
31
CHAPTER TWO
Creation and Maintenance of

Organizational Cultures
Company
Company Founder
Founder
Organizational
Organizational Stories
Stories
Organizational
Organizational Heroes
Heroes
5.1
32
CHAPTER TWO
Successful Organizational Cultures

Adaptability
Adaptability
Consistency
Consistency
Involvement
Involvement
Clear
ClearVision
Vision
Sales
Sales
Growth
Growth
Return
Return on
on
Assets
Assets
5.2
Profits
Profits
Employee
Employee
Satisfaction
Satisfaction
Quality
Quality
Adapted from Exhibit 2.7

D.R. Denison & A.K. Mishra, Organization Science 6(1995): 204-223
33
CHAPTER TWO
Blast from the Past
Corporate history helps employees and

managers understand the people, and events,
and changes that shaped a company
Preserves culture and values
Gets people involved in the culture of a

company
5.2
34
CHAPTER TWO
Levels of Organizational Culture
Symbolic
Symbolic artifacts
artifacts 1.
1. Surface
Surface
Behaviors
Level
Behaviors
Level
What
What people
people say
say
How
How decisions
decisions
are
are made
made
SEEN
SEEN
2.
2. Expressed
Expressed Values
Values
and
and Beliefs
Beliefs
Beliefs
3.
Beliefs and
and
3. Unconsciously
Unconsciously
assumptions
Held
assumptions
Held Assumptions
Assumptions
Rarely
and
Rarely discussed
discussed
and Beliefs
Beliefs
5.3
HEARD
HEARD
BELIEVED
BELIEVED
Adapted from Exhibit 2.8
35
CHAPTER TWO
Been There Done That

The beliefs and values of Starbucks Coffee
success has to be shared

people are the most
significant component
a culture of meaning and loyalty
grassroots decision making
36
CHAPTER TWO
Changing Organizational Cultures

Behavioral addition
is the process of having managers and
employees perform a new behavior
Behavioral substitution
is having managers and employees perform a
new behavior in place of another behavior
Change visible artifacts

such as the office design and layout, company
dress codes, etc.
5.3
37
CHAPTER TWO

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Organizational

What Would You Do?

Sales are declining,

Competitors are stronger

Food quality is dropping,

Service is rude and inaccurate

How can you deal with these

discuss how changing environments affect

describe the four components of the general

explain the five components of the specific

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Environmental Change is the rate at which a

Punctuated equilibrium theory

Punctuated Equilibrium: U.S. Airlines

Environmental Complexity: the number of external

Resource scarcity is the degree to which

Components of the General Environment

Political / Legal Component

Reactive customer monitoring

responding to problems, trends, and events

Proactive customer monitoring

anticipating problems, trends, and events

Not lie when representing yourself

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Adapted from Fuld & Company

Industry Regulation Component

Consists of regulations and rules that govern the

Federal Regulation Agencies

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Groups of concerned citizens who band together to

Techniques to try to influence companies

Making Sense of Changing Environments

Environmental scanning: searching the

Scanning the environment:

Interpreting Environmental Factors

Managers determine what environmental events and

Acting on Threats and Opportunities

Managers have to decide how to respond to these

simplified models of external environments

explain how organizational cultures are created and

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Internal environment consists of the

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Creation and Maintenance of

Successful Organizational Cultures

Adapted from Exhibit 2.7

Blast from the Past

Corporate history helps employees and

Preserves culture and values

Gets people involved in the culture of a

Levels of Organizational Culture

Adapted from Exhibit 2.8

Been There Done That

success has to be shared

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved

Changing Organizational Cultures

Change visible artifacts

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