The Environment and Corporate Culture Lecture

1. MAN1006: Introduction to Management Lecture 3 The Environment and Corporate Culture Lecturer: Oswy Gayle Wednesday 10, 2008 - Groups BBA1G-I University of Technology, Jamaica School of Business Administration

7. Management Perspectives Over Time 2010 1870 Exhibit 2.1, p.44 1930 Humanistic Perspective 1990 1890 Classical 1940 1950 2000 Systems Theory 2000 2010 The Technology-Driven Workplace 1990 2010 The Learning Organization 1970 Contingency Views 2000 1980 Total Quality Management 2000 1940 Management Science Perspective 1990

10. The Environment and Corporate Culture

12. Organizational Environments Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers

23. External Environment and Uncertainty Number of Factors in Organization Environment Adapt to Environment High Uncertainty Low Uncertainty High Low Low High Rate of Change in Factors in Environment

27. Organizational Environments - Internal Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers

29. Levels of Corporate Culture Visible 1. Artifacts, such as dress, office layout, symbols, slogans, ceremonies 2. Expressed values, such as “The Penney Idea,” “The HP Way” 3. Underlying assumptions and deep beliefs, such as “people are lazy and can’t be trusted” Invisible Culture that can be seen at the surface level Deeper values and shared understandings held by organization members

32. Corporate Culture Adaptability Adaptive Culture Unadaptive Culture Visible Behavior Expressed Values Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks. Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments. Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy). Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives. Source: John P. Kotter and Jmaes L. Heskett, Corporate Culture and Performance (New York, The Free Press, 1992), 51.

33. Four Types of Corporate Cultures Adaptability Culture Achievement Culture Consistency Culture Involvement Culture External Internal Flexibility Stability Strategic Focus Needs of the Environment