Chapter 4 Environment, Org Culture & Diversity · "Socio-cultural "Legal-political ... " Total quality management ... Chapter 4_Environment, Org Culture & Diversity.pptx

2014-‐04-‐04

1

BOH4M Unit 1: Management Fundamentals Ms. Schirk

CHAPTER 4: ENVIRONMENT,

ORGANIZATIONAL CULTURE, AND

DIVERSITY

Management - Chapter 2 2

PLANNING AHEAD — CHAPTER 3 STUDY QUESTIONS

Ø What is the external environment of organizations?

Ø What is a customer-driven organization? Ø What is a quality-driven organization? Ø What is organizational culture? Ø How is diversity managed in a multicultural

organization?

STUDY QUESTION 1: WHAT IS THE EXTERNAL ENVIRONMENT

OF ORGANIZATIONS?

2014-‐04-‐04

2

§ Competitive advantage: a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace. § Ability to do something better than one’s

competitors.

STUDY Q.1: WHAT IS THE EXTERNAL ENVIRONMENT OF ORGANIZATIONS?

§ The general environment: all of the background conditions in the external environment of the organization.

§  Includes factors that are: § Economic § Socio-cultural § Legal-political § Technological § Natural environment


§ The specific (task) environment: actual organizations, groups, and persons with whom an organization interacts and conducts business.

§  Includes important stakeholders such as: § Customers § Suppliers § Competitors § Regulators § Investors/owners


2014-‐04-‐04

3

§ Figure 4.1— Open systems approach to stakeholder analysis of value creation for key constituencies of a business firm


§ Environmental uncertainty is a lack of complete information regarding what exists and what developments may occur in the external environment.

§ Two dimensions of environmental uncertainty: § Complexity § Rate of change


§ Figure 4.2 – Dimensions of uncertainty in organizational environments


2014-‐04-‐04

4

STUDY QUESTION 2: WHAT IS A CUSTOMER DRIVEN ORGANIZATION?

§ External customers purchase the organization’s goods or utilize its services.

§  Internal customers are the persons and groups within an organization who depend on the results of others' work to do their own jobs.

STUDY Q.2: WHAT IS A CUSTOMER-DRIVEN ORGANIZATION?

§ Figure 4.3 The importance of external and internal customers


2014-‐04-‐04

5

§ Customers want: § High quality. § Low price. § On-time delivery.

§ Key customer service lessons: § Protect reputation for quality products. § Treat customers right.


§ Customer relationship management establishes and maintains high standards of customer service in order to strategically build lasting relationships with and add value to customers.

§ Supply chain management is the strategic management of all operations relating to an organization’s resource suppliers.


STUDY QUESTION 3: WHAT IS A QUALITY DRIVEN ORGANIZATION?

2014-‐04-‐04

6

§ Quality organizations understand and respond to customer expectations of quality products and services

§  Total quality management (TQM): § Quality principles are an integral part of

organization’s strategic objectives. § Applying them to all aspects of operations. § Committing to continuous improvement. § Striving to meet customers’ needs by doing

things right the first time.

STUDY Q.3: WHAT IS A QUALITY-DRIVEN ORGANIZATION?

§ Crosby’s “four absolutes” of management for total quality control: § Quality means conformance to standards. § Quality comes from defect prevention, not defect

correction. § Quality as a performance standard must mean

defect-free work. § Quality saves money.


§ Quality and continuous improvement § W. Edwards Deming emphasized: § Constant innovation. § Use of statistical methods. § Training in the fundamentals of quality

assurance.


2014-‐04-‐04

7

§ Quality and continuous improvement (continued): § Continuous improvement: § Seeking ways to improve on current

performance. § Quality circles: § A small group of workers who meet regularly to

discuss ways of improving quality.


§ Quality, technology, and design: § Lean production: § Uses new technologies to streamline systems.

§ Flexible manufacturing: § Processes can be changed quickly to produce

different products or modifications of existing ones.

§ Agile manufacturing/mass customization: § Permits quick production of individualized

products.


§ Quality and product design: § A good design has eye appeal and is easy to

manufacture with productivity. § Design for manufacturing emphasizes lower

production costs and high-quality results. § Design for disassembly involves taking into

account how components will be recycled.


2014-‐04-‐04

8

STUDY QUESTION 4: WHAT IS ORGANIZATIONAL CULTURE?

§ Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members.

STUDY Q.4: WHAT IS ORGANIZATIONAL CULTURE?

§ How to read an organization’s culture (SCORES) S - How tight or loose is the structure? C - Are decisions change oriented or driven by the

status quo? O - What outcomes or results are most highly

valued? R - What is the climate for risk-taking, innovation? E - How widespread is empowerment, worker

involvement? S - What is the competitive style, internal and

external?


2014-‐04-‐04

9

¡ Figure 4.4 Levels of organizational culture—observable culture and core culture.


§ Strong cultures: § Commit members to do things that are in the best

interests of the organization. § Discourage dysfunctional work behavior. § Encourage functional work behavior.

§ The best organizations have strong cultures that: § Are performance-oriented. § Emphasize teamwork. § Allow for risk taking. § Encourage innovation. § Value the well being of people.


¡ What is observable culture? § What one sees and hears when walking around an

organization. § Elements of observable culture: § Stories: retold oral histories and tales about

significant events in the organization’s development

§ Heroes: people whose accomplishments and deeds are publically praised


2014-‐04-‐04

10

¡ Elements of observable culture (continued): § Rites and rituals: ceremonies and meetings that

celebrate important occasions and accomplishments

§ Symbols: use of special language and non-verbal expressions to communicate key themes


¡ What is the core culture? § Underlying assumptions and beliefs that influence

behavior and contribute to the observable culture. ¡ Core culture and values:

§ Strong cultures have a small but enduring set of core values.

§ Commitment to core values is a key to long-term success.


§  Important cultural values include: § Performance excellence § Innovation § Social responsibility § Integrity § Worker involvement § Customer service § Teamwork


2014-‐04-‐04

11

§ Value-based management: § Describes managers who actively help to develop,

communicate, and enact shared values. § Criteria for evaluating core values: § Relevance: supported by key performance

objectives § Integrity: provide clear, consistent ethical

anchors § Pervasiveness: feel engaging to all members § Strength: accepted by all those involved


§ Symbolic leadership § Symbolic leaders use symbols to establish and

maintain a desired organizational culture. § Symbolic leaders behave in ways that espouse

organization’s values. § Symbolic leaders: § Use language metaphors. § Highlight and dramatize core values and

observable culture. § Use rites and rituals to glorify performance.


STUDY QUESTION 5: HOW IS DIVERSITY MANAGED IN A MULTICULTURAL

ORGANIZATION?

2014-‐04-‐04

12

§ Diversity: § Describes differences among people at work. § How diversity is handled in the workplace reflects

the organization’s culture. § Respect and inclusion. § Disrespect and exclusion.

§ A potential source of competitive advantage.

STUDY Q.5: HOW IS DIVERSITY MANAGED IN A MULTICULTURAL ORGANIZATION?

§ Characteristics of multicultural organizations: § Pluralism § Structural integration § Informal network integration § Absence of prejudice and discrimination § Minimum intergroup conflict


§ Organizational subcultures § Cultures based on shared work responsibilities

and/or personal characteristics. § Common subcultures include: § Occupational § Functional § Ethnic or national § Racial § Generational § Gender


2014-‐04-‐04

13

§ Figure 4.5 Glass ceilings as barriers to women and minority cultures in traditional organizations.


§ Diversity leadership approaches: § Advancing action commits the organization to hiring

and advancing minorities and women. § Valuing diversity commits the organization to

education and training programs. § Managing diversity commits to changing the

organizational culture.


§  Figure 4.6 Leadership approaches to diversity—from affirmative action to managing diversity.


Documents

Chapter 4 Environment, Org Culture & Diversity · "Socio-cultural "Legal-political ... " Total quality management ... Chapter 4_Environment, Org Culture & Diversity.pptx