Chapter 2: The Environment & Corporate Culture Flashcards
The external environment can
Potential affect the performance of organisation
The external environment refers to
Institutions
Forces
Outside organisation
The two major layers of the external environment are
Task
General
The general environment represents
Outer layer of the external environment
The general environment is
Widely dispersed
Affects organisation indirectly
The five dimensions of the general environment are
PEST-IN Legal-political Economic Sociocultural Technological International Natural
International dimension is the
Events
Opportunities
In foreign countries
Technological dimension is the
Scientific and technological advancements in
Industry
Society at large
Sociocultural dimension include
Demographic characteristics Norms Custom Values of population In which org. Operates
The economic dimension is the
Overall economic health of
Region
Country
In which organisation functions
Legal-political dimension includes
Local laws
Political stability
changes in governmental policy
Legislation and regulations
Natural dimension refers to
Elements that occur naturally on earth Plants Animals Natural resources Climate
The task environment is
Closer to the organisation
The task environment includes
Sectors that conduct day to day transactions
Directly influence basic operations and performance
The task environment is made up of
Customers
Competitors
Suppliers
Labour market
Customers are
People and organisations who
Acquire goods or services from organisation
Competitors are
Other organisations in the same industry/type of business
That provide good or service
To same set of customers
Suppliers are
People and organisations that provide raw materials
That organisation uses to produce its output
The labour market comprises of
People available for hire by the org
Environmental factors are dynamic and
They cause great uncertainty
Management copes with uncertainty by
Adapting to chafes
Influence
The organisation adapts by
Forecasting
Planning
Predicting
Anticipating changes
Companies influence to
Make it more compatible with ta needs
How does the environment impact planning?
Goals and strategies adopted
Take into consideration
Task and general environment
How does environment affect organising?
Labour market
E.g recruitment freeze, manpower constraints
Review their human resource deployment
How does the environment affect leading?
Consider sociocultural norms of geographical locations
Population that form labor force
Management and communication styles must consider expectations of local community
How does the environment affect controlling?
International events can affect company’s operations
The internal environment consists of
Corporate culture
Production technology
Organisation structure
Physical facilities
The major aspect of organisations internal environment is
Corporate culture
The internal culture must
Fit needs of external environment
Company strategy
Culture is
Set of: Key values Beliefs Understandings Norms
Shared by members of an organisation
Culture is developed through
Values
Policies
Practices
Culture reflects the
drive and imagination of founder
Culture can be
Visible and invisible
Visible artifacts of culture are
Manner of dress Office layout Symbols Slogans Ceremonies
Can see, hear, ob service
Invisible elements of culture are
Expressed values and beliefs They are interpreted from Stories Language Symbols
Things that are part of color gate culture are
Symbols Stories Heroes Slogans Ceremonies
Symbols are
Objects
Acts
Events
Conveying meaning
Stories are
Narratives based on true events
Repeated and shared
A hero is a
Figure who exemplifies
Deeds, character and attributes of organisation
Slogan is a
Phrase or sentence
Expressing a key organisation value
Ceremonies is a
Planned activity that is a special event
Conducted for the benefit of an audience
