Managing the External Environment and the Organization's Culture Chapter 3

Omnipotent view

The view that managers are directly responsible for an organization success or failure.

Symbolic View

The view that much of an organization's success or failure is due to external forces outside managers control.

External environment

Those factors and forces outside the organization that affect its performance.

Economic component

Encompasses factors such as, interest rates, inflation, changes in disposable income, stock Market fluctuations, and business cycles stages.

Demographic component

Is concerned with trends in populations characteristics such as , age, gender, education level, geographic location, income, and family composition.

Political/legal component

Looks at Federal, State, and local laws as well as global laws and laws of other countries. It also includes political conditions and stability.

Sociocultural component

cultural factors such as, values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior.

Technological component

Concerned with scientific or Industrial Innovations.

Environmental Uncertainty

The degree of change and complexity in an organization's environment.

Environment Complexity

The number of companies in an organization's environment and the extent of the organization's knowledge about those components.

Stakeholders

Are any constituencies in the organization's environment affected by an organization's decisions and actions

Culture

Influences the way employees act and interact with others.

Organizational culture

The share values, principles, traditions, and ways of doings things that influence the way organizational members act and that distinguish the organization from other organizations.

Perception

its not something that can be physically touched or see, but employees perceive it on the basis of what they experience within the organization.

Descriptive

Concerned with low members perceive the culture and describe it, not with weather they like it.

Shared aspect of culture

Individuals may have different backgrounds or work at different organizational level, they tend to describe the organizations cultural in similar terms.

Strong culture

Organizational culture in which the key values are intensely held and widely shared. Employees are more loyal. High organization performance.

Weak culture

Values limited to a few people usually top management. employees have little knowledge of company history.

Socialization

The process that help employees adapt to the organization culture.

Corporate rituals

Are repetitive sequences of activities that express and reinforce the important values and goals of the organization.

Material Artifact and symbols

When you walk Into different business do you get a feel for what type of work environment it is- formal, fun, serious, and so forth.

Language

Many organizations and units within organizations use language as a way to identify and unite members of a culture.

Workplace Spiritaulity

Its a culture in which organizational values promote a sense of purpose through meaningful work taking place in the context of community.

Parochialism

Viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.

Ethnocentric attitude

The parochial belief that the best work approaches and practices are those of the home country.

Polycentric attitude

The view that the managers in the host country know the best work approaches and practices for running their business.

Geocentric attitude

A world- oriented view that focuses on using the best approaches and people from around the globe.

European Union (EU)

Is an economic and political partnership of 28 Democratic European countries.

North American Free Trade Agreement (NAFTA)

An agreement among the Mexican Canadian, and U.S. governments in which barriers to trade have been eliminated.