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OrganizationalCultureandEnvironment TheConstraints Chapter3 1 3 2 LEARNINGOUTLINEFollowthisLearningOutlineasyoureadandstudythischapter TheManager OmnipotentorSymbolicContrasttheactionofmanageraccordingtotheomnipotentandsymbolicviews Explaintheparametersofmanagerialdiscretion TheOrganization sCultureDescribethesevendimensionsoforganizationalculture Discusstheimpactofastrongcultureonorganizationsandmanagers Explainthesourceofanorganization sculture Describehowcultureistransmittedtoemployees Describehowcultureaffectsmanagers 2 3 3 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter CurrentOrganizationalCulturalIssuesFacingManagersDescribethecharacteristicsofanethicalculture aninnovativeculture andacustomer responsiveculture Discusswhyworkplacespiritualityseemstobeanimportantconcern Describethecharacteristicsofaspiritualorganization 3 3 4 LEARNINGOUTLINE cont d FollowthisLearningOutlineasyoureadandstudythischapter TheEnvironment cont d Describethecomponentsofthespecificandgeneralenvironments Discussthetwodimensionsofenvironmentaluncertainty Identifythemostcommonorganizationalstakeholders Explainthefourstepsinmanagingexternalstakeholderrelationships 4 3 5 TheManager OmnipotentorSymbolic OmnipotentViewofManagementManagersaredirectlyresponsibleforanorganization ssuccessorfailure Thequalityoftheorganizationisdeterminedbythequalityofitsmanagers 5 NationalBasketballAssociationplayoffs Background thefinalsecondsofGame2ofthe2009EasternConferenceFinalsbetweentheOrlandoMagicandClevelandCavaliersOrlandohadatwo pointleadwhileClevelandhadtheballtoinboundsforafinalplay Afteratimeoutinwhichbothcoachesoftherespectiveteamsdrewupplays theballwasdeliveredtotheMVPoftheleague Cleveland sLeBronJames whoproceededtomakealastsecond3 pointshotthatwonthegameforhisteam 6 Theviewpointofthecoach Duringthesubsequentpost gamepressconferencethecoachoftheMagictookresponsibilityfornotdrawingasuitableplaythatwouldhavestifledJames attempt Hereasonedthatalthoughthedefensiveschemedidpreventonepossibleshot itdidnotadequatelypreventthesuccessfulalternativeplay 7 3 8 TheManager OmnipotentorSymbolic SymbolicViewofManagementMuchofanorganization ssuccessorfailureisduetoexternalforcesoutsideofmanagers control Theabilityofmanagerstoaffectoutcomesisinfluencedandconstrainedbyexternalfactors Theeconomy customers governmentalpolicies competitors industryconditions technology andtheactionsofpreviousmanagersManagerssymbolizecontrolandinfluencethroughtheiraction 8 NationalBasketballAssociationplayoffs cont d Theviewpointofthetelevisioncolorcommentators theychosethesymbolicviewofmanagementandarguedthatattimesitisdifficulttodenyoneofthetopplayersintheleaguefromacquiringtheball andcounteringduringpossiblescenarios Furthermore iftheMagichadproceededtodouble teamJames anotherplayerfromClevelandinevitablywouldhavebeenopenandinabetterpositiontotaketheshot 9 ViewsofmanagementTheomnipotentview Thesymbolicview Realitysuggestsasynthesis managersareneitherhelplessnorallpowerful 10 IntheeventtheCavaliersgoontowintheseriesandadvancetotheNBAFinals theywillobtainmoreadvertising merchandising andticketsalesrevenue ThisisrevenuethattheMagicwillnotgain ThecoachoftheMagiccouldbereplaced severalplayerscouldbetraded andfrontofficemanagementcouldalsobeterminated Thecontractssignedbyreturningplayerscouldbelessandthebrandequityortotalvalueofthefranchisecouldbenegativelyaffectedformanyyearstocome NationalBasketballAssociationplayoffs cont d Thesignificanceofthesetwoargumentsgoesbeyondtheoutcomeofthatonegame 11 3 12 Exhibit3 1ParametersofManagerialDiscretion 12 3 13 TheOrganization sCulture OrganizationalCultureAsystemofsharedmeaningsandcommonbeliefsheldbyorganizationalmembersthatdetermines inalargedegree howtheyacttowardseachother Implications Cultureisaperception Cultureisshared Cultureisdescriptive Wal Martcontinuestoexecutewellanddeliversolidresultsinachallengingeconomicenvironment 13 TheorganizationalcultureofSouthwestAirlines HireforeAttitude TrainforSkillDoitbetter faster cheaper quality costcontrol DeliverpositivelyoutrageouscustomerservicetobothInternalandexternalcustomers putyouremployeefirst thantheywilltakecareofyourcustomers Walkamileinsomeoneelse sshoesCelebratesandletyourhairdownLearnfromyourmistakes mistakeisokaslongasyourlearnsomethingfromit Keepthecorporateculturealiveandwell 14 3 15 Exhibit3 2DimensionsofOrganizationalCulture 15 3 16 Exhibit3 3ContrastingOrganizationalCultures 16 OrganizationalCulture SourcesofOrganizationalCultureContinuationoftheOrganizationalCulture 3 17 Thebehavioroftopmanagement Recruitment 3 18 Exhibit3 5HowanOrganization sCultureIsEstablishedandMaintained Thebeginningofaculture KeepCultureAlive 18 3MWorldwide 3Misworldwidewell knownHi techfirm McKnight s anearly3M spresident businessphilosophyistocreate aculturethatencouragesemployeeinitiative innovationandprovidessecureemployment Inthepastfewyears becauseoftheeconomicsdownturn manyorganizationsinthisindustry e g HP IBM Cisco etc choselayoffasoneofthemajorwaysforcostreduction PerhapsbecauseofMcKnight sprinciple 3Mdidnotfollowthistrend 3Mgavethefollowingreason Goodmindsaredifficulttorecruitandretain Theywon tcomeback afterlayoff iftheywerenottreatedwell wepromiseinnovativeandreliableproductsandservicesfromacompanyyoucantrust 19 OrganizationalCultureStrength FactorsInfluencingtheStrengthofCultureSizeoftheorganizationAgeoftheorganizationRateofemployeeturnoverStrengthoftheoriginalcultureClarityofculturalvaluesandbeliefsStrongculturesexistwhen mostemployeesunderstand embracethedominantvalues valuesandassumptionsareinstitutionalizedthroughwell establishedartifacts cultureislonglasting oftentracedbacktofounder 20 CirqueduSoleil sRiskyCulture CirqueduSoleil sfounderspromotearisk takingandcreativecorporateculture Theyfrequentlytakegamblesonnewformsofcreativityandinitiatives 21 3 22 StrongversusWeakCultures StrongCulturesAreculturesinwhichkeyvaluesaredeeplyheldandwidelyheld Haveastronginfluenceonorganizationalmembers BenefitsofaStrongCultureCreatesastrongeremployeecommitmenttotheorganization Aidsintherecruitmentandsocializationofnewemployees Fostershigherorganizationalperformancebyinstillingandpromotingemployeeinitiative 22 3 23 Examplesofcompaniesbenefitingfromthepositiveeffectsoforganizationalculture 23 3 24 Exhibit3 4StrongversusWeakOrganizationalCultures 24 3 25 HowEmployeesLearnCulture StoriesRitualsRepetitivesequencesofactivitiesthatexpressandreinforcethevaluesoftheorganizationMaterialSymbolsLanguage 25 TheWal MartCheer GivemeaW GivemeanA GivemeanL Givemeasquiggly GivemeamM GivemeanA GivemeanR GivemeaT What sthatspell Wal Mart WhoseWal Martisit It smyWal Mart Who sNumberone Thecustomer Always 26 3 27 HowCultureAffectsManagers CulturalConstraintsonManagersWhatevermanagerialactionstheorganizationrecognizesasproperorimproperonitsbehalfWhateverorganizationalactivitiestheorganizationvaluesandencouragesTheoverallstrengthorweaknessoftheorganizationalcultureSimpleruleforgettingaheadinanorganization Findoutwhattheorganizationrewardsanddothosethings 27 Exhibit3 6ManagerialDecisionsAffectedbyCulture 28 3 29 OrganizationCultureIssues CreatinganEthicalCultureHighinrisktoleranceLowtomoderateaggressivenessFocusonmeansaswellasoutcomes Starbucks ethicalcultureMissionstatementisguidingprincipleandholdsitupasafilterfordecisionmaking Employeetrainingincludesreviewofmissionstatement customerservicetheoryandcorporateculture StarbucksNewPartnerTrainingPlanincludestrainingonethics ergonomics safety legalcompliance hands ontraining T Mobile sethicalcultureT Mobilesecuredahard earnedspotonthelistbycontinuingtoimplementethicalbusinesspracticesandinitiativesthatareinstrumentaltothecompany ssuccess whilebenefittingthecommunityandraisingthestandardfortheindustry 29 3 30 Exhibit3 7SuggestionsforManagers CreatingaMoreEthicalCulture Beavisiblerolemodel Communicateethicalexpectations Provideethicstraining Visiblyrewardethicalactsandpunishunethicalones Provideprotectivemechanismssoemployeescandiscussethicaldilemmasandreportunethicalbehaviorwithoutfear 30 CreatinganInnovativeCultureChallengeandinvolvementFreedomTrustandopennessIdeatimePlayfulness humorConflictresolutionDebatesRisk taking P G sInnovationCulturekeepingalaser sharpfocusonthecustomerestablishingadisciplined repeatable andscalableinnovationprocesscreatingorganizationalandfundingmechanismsthatsupportinnovationdemonstratingthekindofleadershipnecessaryforprofitabletop linegrowthaswellascostreduction 31 3 32 OrganizationCultureIssues cont d CreatingaCustomer ResponsiveCultureHiringtherighttypeofemployees oneswithastronginterestinservingcustomers Havingfewrigidrules procedures andregulationsUsingwidespreadempowermentofemployeesHavinggoodlisteningskillsinrelatingtocustomers messagesProvidingroleclaritytoemployeestoreduceambiguityandconflictandincreasejobsatisfactionHavingconscientious caringemployeeswillingtotakeinitiative 32 3 33 Exhibit3 8SuggestionsforManagers CreatingaMoreCustomer ResponsiveCulture Hireservice contactpeoplewiththepersonalityandattitudesconsistentwithcustomerservice friendliness enthusiasm attentiveness patience concernaboutothers andlisteningskills Traincustomerservicepeoplecontinuouslybyfocusingonimprovingproductknowledge activelistening showingpatience anddisplayingemotions Socializenewservice contactpeopletotheorganization sgoalsandvalues Designcustomer servicejobssothatemployeeshaveasmuchcontrolasnecessarytosatisfycustomers Empowerservice contactemployeeswiththediscretiontomakeday to daydecisionsonjob relatedactivities Astheleader conveyacustomer focusedvisionanddemonstratethroughdecisionsandactionsthecommitmenttocustomers 33 ThecultureofJohnson Johnson WhenpoisonedTylenol aJohnson Johnsonproduct wasfoundonstoreshelves employeesatJohnson JohnsonacrosstheUnitedStatesindependentlypulledthisproductfromthesestoresbeforemanagementhaveevenissuedstatementsconcerningthetampering 34 Case OrganizationalCultureofPriceWaterhouseCoopers PWC sprofessionalsarethedifferenceOurprofessionalsareattheheartofourbusinessstrategyandsuccess Weunderstandthatourbusinessisimpactedbyaperson spersonalandprofessionallife Werecruittoptalentwithafocusondiversityandinclusion withtraditionalandnontraditionalbackgroundssothatwecontinuetobuildPwCasagreatplacetowork Ourpeoplearearmedwiththetools includingenrichingprofessionalexperiences everydaycoaching timelyandproductivefeedback andhigh qualitylearninganddevelopmentopportunities todeliveragainstourcommitmenttoyoueachday Wearecommittedtobuildinglastingrelationshipswithyouanddeliveringvaluetoyourbusiness 35 Professionaldevelopment Weemphasizetheimportanceofreal timefeedbackatPwCsoourpeoplecontinuallyimprovetheirprofessionalskillsandenhancetheirpersonalbrand Wealsoofferawidevarietyoftraininganddevelopmentalopportunitiessoourpeoplestayrelevantinthemarketplaceandbuildtheircredentialsandexperiences Diversityandinclusion AtPwC webelievethatwecan tarriveatwinningsolutionsuntilweareabletoidentifyandaddresstheissuesthatstillexistinourcommunitiesandschoolsaroundrace genderandsexualorientation Althoughourdefinitionofdiversityexpandstoincludemanymoredimensions ourprogramsarefocusedontheareasofdiversitythatpresentthegreatestchallengesinoursociety Work Lifequalityandflexibility Weunderstandthatacultureofflexibilityisattheheartofwork lifequalityforourpeople Wealsorecognizethattoperformattheirbest peopleneedtorechargeandre energizethemselves andourgenerousvacationandtimeoffpolicysupportsourcommitment 36 Commitmenttoourcommunities PwCiscommittedtosupportingthecommunitiesinwhichweworkandlive Weembraceaphilosophyofcorporateresponsibilitythroughcharitablegivingandcommunityservice That swhyweprovideourpeoplewithnumerousopportunitiestogivebacktotheircommunitiesthroughouttheyear Supportforworkingparents AtPwC webelieveyoucanbebothagreatparentandahigh performingprofessional Ourprograms benefitsandresourcesaredesignedtohelpworkingmothersandfathersmeetthedualdemandsoffamilyandcareer Ourcultureacknowledgesthechallengesandprovidestheflexibilityandindividualizedcareeroptionstoprovideallofourpeoplewithauniquepeopleexperience ThePwCfamily Fromthemomentaprofessionalcomesonboard theyareconsideredapartofthePwCfamily Eveniftheychoosetoleavethefirmtoexploreotheropportunities westayconnectedthroughourever growingalumnicommunitynetwork WesupportourPwCalumniwithvirtualtoolsandresources aswellasnetworkingopportunitiestohelpthemstayconnectedtousandtheirformercolleagues 37 Question 1 What sthecharacterofPWC sculture 2 Whichwaysdoesthecultureaffectsmanagers 38 3 39 theExternalEnvironment ExternalEnvironmentThosefactorsandforcesoutsidetheorganizationthataffecttheorganization sperformance ComponentsoftheExternalEnvironment 39 3 40 Exhibit3 9TheExternalEnvironment 40 Starbucksgeneralenvironment Starbucks EconomicEnvironmentEconomicgrowthUnemploymentrateDisposableincome Legal PoliticalEnvironmentLawsandregulationsBusinessformsPoliticaltrends NaturalEnvironment green valuesRecyclinginfrastructure SocioculturalEnvironmentPopulationdemographicsEducationsystemHealth nutritionvalues TechnologicalEnvironmentITsystems infrastructureBroadbandinternetaccess 41 3 42 Exhibit3 10SelectedU S LegislationAffectingBusiness OccupationalSafetyandHealthActof1970ConsumerProductSafetyActof1972EqualEmploymentOpportunityActof1972WorkerAdjustmentandRetrainingNotificationActof1988AmericanswithDisabilitiesActof1990CivilRightsActof1991FamilyandMedicalLeaveActof1993ChildSafetyProtectionActof1994U S EconomicEspionageActof1996ElectronicSignaturesinGlobalandNationalCommerceActof2000Sarbanes OxleyActof2002FairandAccurateCreditTransactionsActof2003 42 3 43 HowtheEnvironmentAffectsManagers EnvironmentalUncertaintyTheextenttowhichmanagershaveknowledgeofandareabletopredictchangetheirorganization sexternalenvironmentisaffectedby Complexityoftheenvironment the
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