• The Environment Of Organizations
The degree to which the Environment is supportive of the organization can have a significant impact on its operations and performance outcomes, and...Effective
Managers understand this and deal with it.
• Competitive Advantage
A distinctive competency that clearly set an organization apart from competitors and gives it an advantage over them in a competitive marketplace.
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The Environment of
Organizations
• The General Environment
The background conditions in the external environment that can substantially influence the operations of and organization.
• The Specific Environment
The actual organizations, groups, and persons with whom an organization must interact in order to survive and prosper .
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The General Environment
• Economic Conditions
General state of the economy in terms of inflation, income levels, gross domestic product, unemployment, and related indicators of economic health.
• Sociocultural Conditions
General state of the prevailing social values on such matters as human rights and environment, trends in education and related social institutions as well as demographic patterns.
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The General Environment
• Legal-Political Conditions
General state of the prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations.
• Technological Conditions
General state of the development and availability of technology in the environment, including scientific advancements.
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The General Environment
• Natural Environment Conditions
General state of nature and conditions of the natural or physical environment, including levels of environmentalism.
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The Specific Environment
Competitors
Unions
Suppliers
Educational
Inst
.
Stockholders
Business
Firm
Employees
Customers
Regulators
Banks
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• This means that there is a lack of complete information regarding what developments will occur in the external environment.
• The greater the uncertainty the more need there is for flexibility and adaptability in organizational designs and work practices .
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Customers Drive Organizations
What do they want?
Where do they want it?
When do they want it?
Technology
Products
People
Structures
Operations Objectives
• High quality products
• Low-cost production
• On-time delivery
External and Internal Customers
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Competitive
Advantage Through Quality
Indicates that a company meets the quality standards set by the
International Standards Organization in
Geneva, Switzerland. It is viewed as a necessity in international business.
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Competitive
Advantage Through Quality
Involves the process of making Quality principles part of the organization's strategic objectives, applying them to all aspects of operations, committing to Continuous
Improvement, and striving to meet customers' needs by doing things right the first time.
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Competitive
Advantage Through Quality
• M. Baldridge National Quality Award
A formal evaluation of an organization's success in achieving productivity with quality .
• Crosby's "Four Absolutes" Of
Management For Total Quality
Conformance to standards
Defect prevention not defect correction
Defect-free work
Quality saves money
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Competitive
Advantage Through Quality
• Deming's Path To Quality
Ideas based on the notion of Statistical
Quality Control, which is a mathematics and scientific method of quality control.
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• Establish Constancy of Purpose
• Constantly Improve Every System
• Eliminate Financial Goals and Quotas
• Drive Out Fear
• Institute Leadership
• Stop Awarding Business Solely on the
Basis of Price
• Break Down Barriers Between
Departments
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(cont)
• Institute Training on the Job
• Eliminate Annual Ratings
• Promote Education and Self-Improvement
• Abandon Slogans
• Cease Dependence on Mass Inspection
• Adopt the New Philosophy of Quality in its
Entirety
• Structure Management to Accomplish the
Transformation
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• Continuous Improvement
The attempt to maintain the quality advantage over time by always looking for new ways to incrementally improve upon current performance.
Quality Circles
Benchmarking
Customer Service
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• OM is a branch of management theory specifically concerned with the activities and decisions through which organizations transform resource inputs into product outputs.
• The transformation process is the actual set of operations or activities through which various resources are utilized to produce finished goods or services of value to customers or clients.
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• Product Design
Customer appeal
Robust - production proof
Design for Manufacturing
Design for Disassembly
• Technology Utilization
Lean Production
Flexible Manufacturing
Agile Manufacturing
Mass Customization.
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• Organization Design
Blending the best of technology with the full potential of people.
Cross-functional task forces
Job enrichment
Self-managing teams
Autonomous work groups
It is about Organizational Flexibility,
Adaptability, and Worker Empowerment .
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The Nature of Organizational
Culture
• Organizational Culture
Is the system of shared beliefs and values that develops within an organization and guides the behavior of its members.
There are two levels of culture in organizations:
“observable” - what you see…..
“core” - the underlying shared beliefs...
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The Nature of Organizational
Culture
• Core Values
Essential to strong culture organizations, and are often widely publicized in formal corporate statements.
• Core Culture
Consists of the values or underlying beliefs that influence behavior and actually give rise to the aspects observable culture.
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The Nature of Organizational
Culture
• Observable Culture
What one sees and hears when walking around an organization as a visitor, customer, or employee.
Elements of Observable Culture
• Stories - Oral histories and tales.
• Hero’s - Who they admire.
• Rites and Rituals - What they celebrate
• Symbols - How they express themselves.
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Leadership and Organizational
Culture
Criteria for Evaluating Core Values
• Relevance -
Do they support the key organizational objectives.
• Pervasiveness -
Are they known by organization members.
• Strength -
Are they accepted by the organization members.
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Leadership and Organizational
Culture
Someone who uses symbols well to establish and maintain a desired organizational culture.
They use Language Metaphors, tell Stories, celebrate Heros, and use Rites and Rituals to glorify the performance of the organization and it members.
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Directions in Organizational
Cultures
• Worker Empowerment
Managers are finding that the best way to seek the advantages of a strong culture is with an underlying commitment to employees.
Participation - Involvement -
Empowerment
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Directions in Organizational
Cultures
• Multiculturalism
Involves pluralism and respect for diversity in the workplace.
Pluralism: Members of both minority cultures and majority cultures are influential in setting key values and policies.
Structural Integration: Minority culture members are well-respected in jobs at all levels and in all functional responsibilities.
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Directions in Organizational
Cultures
Informal Network Integration:
Various forms of mentoring and support groups assist in the career development of minority culture members.
Absence of Prejudice and
Discrimination:
A variety of training and task force activities continually address the need to eliminate culture group bias.
Minimum of Intergroup Conflict:
Diversity does not lead to destructive conflicts between members of majoity cultures and minority cultures.
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Directions in Organizational
Cultures
• Organizational Subcultures
Not unlike society, organizations contain subcultures.
These are the cultures common to groups of people with similar values and beliefs based upon shared personal characteristics.
Occupation - Ethnic - Generational -
Gender
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Directions in Organizational
Cultures
• Ethical Cultures
A shared set of understanding about what is considered ethically correct behavior in an organization.
Organizations with strong and positive ethical climates set clear expectations for their members regarding what should be done when ethical dilemmas occur.
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