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CHAPTER_3_STUDY_NOTES - The Environment and Corporate...

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The Environment and Corporate Culture Chapter 3 The Environment and Corporate Culture Chapter Outline I. The External Environment A. General Environment B. Task Environment II. The Organization-Environment Relationship A. Environmental Uncertainty B. Adapting to the Environment III. The Internal Environment: Corporate Culture A. Symbols B. Stories C. Heroes D. Slogans E. Ceremonies IV. Environment and Culture A. Adaptive Cultures B. Types of Cultures V. Shaping Corporate Cultures for the New Workplace A. Managing the High-Performance Culture B. Cultural Leadership Annotated Learning Objectives After studying this chapter, students should be able to: 1. Describe the general and task environments and the dimensions of each. The organizational environment is all elements existing outside the boundary of the organization that have the potential to affect and influence the organization. This environment consists of two layers: the task environment and the general environment. The task environment is closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance such as competitors, suppliers, and customers. 59
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Chapter 3 The general environment is the outer layer that is widely dispersed and affects the organization indirectly. It includes social, demographic, and economic factors that influence all organizations about equally. 2. Explain the strategies managers use to help organizations adapt to an uncertain environment. The environment creates uncertainty for organization members. Uncertainty means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes. Two basic factors that influence uncertainty are the number of factors that affect the organization and the extent to which those factors change. Strategies to adapt to these changes in the environment include boundary-spanning roles, interorganizational partnerships, and mergers or joint ventures. Boundary-spanning roles are assumed by people and/or departments that link and coordinate the organization with key elements in the external environment. Interorganizational partnerships are a popular strategy for adapting to the environment by reducing boundaries and increasing collaboration with other organizations. A merger is the combining of two or more organizations into one. A joint venture involves a strategic alliance or program by two or more organizations. 3. Define corporate culture and give organizational examples. Culture can be defined as the set of key values, beliefs, understandings, and norms shared by members of an organization. Culture can be analyzed at three levels. At the surface are visible items, which include manner of dress, patterns of
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CHAPTER_3_STUDY_NOTES - The Environment and Corporate...

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