Adobe Systems BPH_AMBE – fall 2020 1 Organizational Culture External Environment Lecture 2 Adobe Systems BPH_AMBE – fall 2020 2 Agenda for today ̶Managerial discretion – constraints on management ̶Organizational culture ̶Definition ̶Sources ̶Impact ̶Current issues ̶External environment ̶Components ̶Environmental uncertainty ̶Methods of analysis ̶Stakeholder approach Adobe Systems BPH_AMBE – fall 2020 3 Managerial discretion ̶Managers are not „omnipotent“ ̶The ability of managers to affect outcomes is influenced and constrained by external factors => much of an organization’s success or failure is due to external forces outside of managers’ control. Adobe Systems A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other. „The way we do things around here.” BPH_AMBE – fall 2020 4 Organizational culture defined Adobe Systems BPH_AMBE – fall 2020 5 Dimensions of organizational culture Adobe Systems BPH_AMBE – fall 2020 6 Sources of organizational culture ̶Sources of Organizational Culture ̶Vision and mission (of the organization‘s founder) ̶Past best practices (of the organization) ̶The behavior of the top-management ̶Organizational culture‘s continuation and development ̶Recruitment of like-minded employees (who „fit“) ̶Socialization of new employees => adapting people to the culture -Stories -Rituals -Material symbols -Language - Adobe Systems BPH_AMBE – fall 2020 7 Impact of OC on management ̶Whatever managerial actions the organization recognizes as proper or improper on its behalf ̶Whatever organizational activities the organization values and encourages ̶The overall strength or weakness of the organizational culture Adobe Systems Strong Cultures Key values are deeply held and widely held. => strong influence on organizational members. Factors Influencing the Strength of OC Size of the organization Age of the organization Rate of employee turnover Strength of the original culture Clarity of cultural values and beliefs BPH_AMBE – fall 2020 8 Strong vs. Weak organizational cultures Benefits of a Strong Culture ̶Creates a stronger employee commitment to the organization. ̶Aids in the recruitment and socialization of new employees. ̶Fosters higher organizational performance by instilling and promoting employee initiative. ̶ ̶BUT: beware of the CULTURE VS. STRATEGY issues Adobe Systems BPH_AMBE – fall 2020 9 Strong vs. Weak organizational cultures Adobe Systems BPH_AMBE – fall 2020 10 Current issues related to OC ̶Creating a Customer-Responsive Culture ̶ ̶Creating an Innovative Culture ̶ ̶Creating an Ethical Culture ̶Hiring the right type of employees (ones with a strong interest in serving customers) ̶Having few rigid rules, procedures, and regulations ̶Using widespread empowerment of employees ̶Challenge and involvement ̶Conflict resolution ̶Debates ̶Risk-taking ̶Focus on means as well as outcomes ̶ Adobe Systems BPH_AMBE – fall 2020 11 External environment ̶Those factors and forces outside the organization that affect the organization’s performance. ̶Components of the External Environment ̶General environment: broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization. ̶Specific environment: external forces that have a direct and immediate impact on the organization. ̶ Adobe Systems BPH_AMBE – fall 2020 12 How the environment affects managers? Environmental uncertainty Environmental uncertainty matrix ̶ ̶The extent to which managers have knowledge of and are able to predict change their organization’s external environment is affected by: Complexity of the environment: the number of components in an organization’s external environment. Degree of change in environmental components: how dynamic or stable the external environment is. ̶ Adobe Systems BPH_AMBE – fall 2020 13 General environment Methods of environmental analysis Specific environment ̶SLEPT analysis ̶Social segment ̶Legal segment ̶Economic segment ̶Political segment ̶Technological segment ̶analysis techniques ̶scanning ̶monitoring ̶forecasting ̶assessing Adobe Systems BPH_AMBE – fall 2020 14 Stakeholder approach ̶Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions. ̶Managing stakeholder relationships => the interdependence of the organization and its external stakeholders => improved organizational performance; 1.Identify the organization’s external stakeholders. 2.Determine the particular interests and concerns of the external stakeholders. 3.Decide how critical each external stakeholder is to the organization. 4.Determine how to manage each individual external stakeholder relationship. Obsah obrázku text, snímek obrazovky, Písmo, Značka Popis byl vytvořen automaticky Adobe Systems BPH_AMBE – fall 2020 15 Organizational stakeholders Adobe Systems BPH_AMBE – fall 2020 16 Must know - keywords ̶organizational culture ̶strong cultures ̶socialization ̶artifacts of organizational culture ̶values ̶beliefs ̶external environment ̶specific environment ̶general environment ̶environmental uncertainty ̶environmental complexity ̶SLEPT analysis ̶5 force model of competition ̶stakeholders ̶