Chapter 3
Organizational Culture
Internal Environment
Specific Environment
General Environment
Boundary Spanning
Stakeholders
Chapter 3
Organizational culture
What is organizational culture?
A system of shared beliefs within the organization.
1. Risk tasking
2. Attention to detail
3. Outcome orientation
4. People orientation
-Creating a family atmosphere
5. Team orientation
6. Aggressiveness
7. Stability
Organizations should strive for strong cultures (Emphasis on the
key values of the organization)
How do employees learn about culture?
-Stories
-Rituals that reinforce behavior
-Materialistic symbols
-Language and jargon
Top management provides the framework for culture
The environments are the institutions that influence the organization.
- General environment
-Specific environment
-Internal environment
INTERNAL ENVIRONMENT
1. Mission- Primary Reason for being in Business
2. Vision
3. Core Values
4. Core Competencies
-Company’s expertise
5. Organizational Culture
6. Organizational Climate
7. Leadership
8. Organizational Structure
7. Resources
A. Information
B. Facilities-
C. Equipment
D. Materials and Supplies
F. Finances and Cash
Flow
Specific ENVIRONMENT
1. Owners
2. Customers
3. Suppliers
4. Competitors
5. Labor Pool
General Environment
1. Economic
2. Legal/Political/Taxes/Govt
3. Sociocultural
Race, Religion, Gender, etc.
4. Technological
Technology always changes.
5. Natural Forces
Boundary spanning-
The surveillance of the environment. You are looking for information that will help you
become better.
Sources are:
-Competitors
-Customers
-Government Stats
-Trade Journals
-Newspapers
-etc.
Obligations to Stakeholders
-Owners
Fair return on investment
Honest Accounting
-Employees
Fair wages
Leadership
Nurturing
Safe work environments
Promotions
-Customers
Quality products at a fair price
-Suppliers
Prompt payment
-Society
Pay Taxes
Keep a clean work place
No pollution
Charities
Chapter 3
Organizational Culture
Internal Environment
Specific Environment
General Environment
Boundary Spanning
Stakeholders