Internal Environment, Culture & Diversity Flashcards
What are the major components of the Internal environment?
Owners
Board of directors and governance structure
Employees and organised labour
Organisation’s culture
What is the Organisation’s Internal Environment?
The conditions and forces within the organisation
What is culture?
The set of values that helps an organisation’s stakeholders understand what it stands for, how it does things and what it considers important
Why is culture important?
Organisational identity
Reputation
Aspirations
Shape overall effectiveness and long-term success
What are the determinants of Culture?
Beliefs and values of the organisation’s founder/s
Societal norms of the organisation’s host country
Problems of external adaptation
Problems of internal integration
How to manage Organisational Culture?
First understand the determinants of culture
Decide if the culture needs to be maintained or changed
If the culture is to be maintained reinforce it with symbols, ceremonies, reward and modelling
If it is to be changed be clear about how
How can Cultural Change be Accomplished?
Conduct a cultural analysis to identify cultural elements needing change
Make it clear to employees that the organisation’s survival is legitimately threatened if change is not forthcoming
Initiate a reorganisation
Introduce new stories and rituals to convey the new vision
Change the selection and socialisation processes and the evaluation and reward systems to support the new values
Appoint new leadership with a new vision
What is the definition is diversity?
Members of a group or organisation differ from one another along one or more important dimensions such as age, race, sex or ethnicity
What are primary dimensions of diversity?
Differences that are impossible or extremely hard to change
What are secondary dimensions of diversity?
More fluid. Individuals have more control. Can change more easily.
What are two examples of primary dimensions of diversity?
age, ethnicity, gender, race, sexual orientation, physical and mental abilities
What are two examples of secondary dimensions of diversity?
communication style, first language, education, family status, religion, income, work experience
What is equity in terms of diversity?
Equity is based on the assumption that all persons have the right to fair treatment
What are the Impacts of Increasing Diversity?
social change
What are the Causes of Increasing Diversity?
Changing demographics in the labour market
Changes in the legislative framework
Globalisation of markets
Recognition of value in a diverse workforce
