MAN 320F 1st Edition Exam 2 Chapters 3 11 13 B S 7 8 Chapter 3 Organizational Environment and Cultures Changing Environments External forces and events that occur outside a company o example catastrophic floods in Thailand killed 600 people and created a 45 billion in damage that shut down production facilities Environmental change rate at which a company s general and specific environmental changes Stable environment rate of change is slow Dynamic environments Fast changing Apple Samsung HTC frequently release updated models with innovative features and technologies Punctuated equilibrium theory o long periods of stability followed by a short period of dynamic change knows as revolutionary periods and then a return to stability o example US airline industry After deregulation companies had trouble adjusting and lost billions profits return and head steady until 1989 1989 1993 drop in profits due to sudden increase in fuel costs and salaries and dramatic changes in the customer base late 1980 s layoffs less planes ordered eliminating unrpofitable routes were changes made by the companies and this led to profit stabilization and even flourishment 9 11 dramatic change 2006 2007 oil price sky rockets 2013 stability and profitability largely return Environmental Complexity the number and intensity of external factors in the environment that affect organizations simple environments milk production has been the same process for the last 100 yrs simple environment complex PC business tablets ereaders smartphones have changed the PC environment Resource Scarcity abundance and shortage of critical organizational resources in an organization s external environment exmaple when the Chinese government announced that it would cut exports by 72 prices of products that used rare earth materials soared Uncertainty environmental change and complexity and resource scarcity affect uncertainty or a manager s ability to predict or understand the external change and trends affecting their business ORGANIZATIONAL CULTURE CREATION SUCCESS AND CHANGE Internal Environment o trends and events within an organization o key components organizational culture set of key values beliefs and attitudes Organizational stories make sense of organizational events and changes and to emphasize culturally consistent assumptions decisions and actions Sam Walton s thriftiness Walmart Organizational heroes people admired for their qualities and achievements Home Depot employees drove four hours back and forth to get a snow blower for a desperate customer SUCCESSFUL ORGANIZATIONAL CULTURES Adaptability ability to notice and respond to changes in the organization s organizations environment a culture becomes dysfunctional if it prevents change employees have more of a sense of ownership and responsibility in companies where employee involvement is high Company mission reason for existing must be clear and focused Novo Nordisk to cure diabetes Consistent Organizational Cultures company actively defines and teaches organizational values beliefs and attitudes yet consistent strong organizational cultures DOES NOT mean good company performance strongly held beliefs make change difficult and hard to adapt to dramatic changes in their external environments CHANGING ORGANIZATIONAL CULTURES Levels Surface level reflection of an org culture that can be observed such as artifacts and behaviors Values and beliefs what you hear people say and observe how decisions are made Unconscious held beliefs and assumptions the unwritten views and rules rarely discussed changing this is very hard so managers should focus on the first to because they can control them Using this levels to change corporate culture use behavioral addition and substitution to establish new patterns of behavior choose behaviors that are central and symbolic to the old culture for example AOL is redesigning entirely the offices selection process about gathering information about applicants to decide who should be offered the job hiring and selecting people with values and beliefs consistent with desired culture ensure applicants fit with the culture by using selection tests instruments and excercises Example Mennlo Innovations extreme interviewing interviewees are paired up and given tasks with the purpose of making their partners look their best changing corporate culture is very difficult so your best shot is using behavior substitution visual artifacts and selection together CHAPTER 11 MANAGING HRS Human Resources Management o process of finding developing and keeping the right people to form a qualified workforce one of the most important and difficult tasks of management human resource planning occurs in a very complicated legal environment companies can ask interviewees to log into facebook accounts employment decisions should be based on factors that are job related reasonably necessary a business necessity Bona Fide Occupational Qualifications Title VII of the Civil Rights Act it is only legal to hire someone on the basis of sex race religion when there is a reasonable necessity to the normal operation of that particular business Chicago man was denied job at Hooters because he was not a man The EEOC did not take Hooters argument as valid BFOQ Labor Laws regulate interaction between management and unions guarantee employees the right to form and join unions of their own choosing Safety Laws and Regulations OSHA Occupational and Safety Health Act requires that employers provide employees with a workplace that is free from recognized hazards that are causing death or harm ADVERSE IMPACT AND EMPLOYEE DISCRIMINATION EEOC has investigatory enforcement and informational responsibilitues Disparate Treatment intentional discrimination Example 3M targeting older employees for layoffs and denying leadership training Establishing motive key element of discrimination lawsuit means that employer intended to discriminate if no motive can be established than a claim of disparate treatment may actually be a case of adverse impact unintended discrimination hired promoted or trained at substantially different levels or 80 Rule If 100 white and 100 black applicants apply for an entry level job and 60 white applicants are hired and 20 black applicants are hired 60 20 adverse impact has occurred If a company can prove the validity of hiring test then they can continue to move forward SEXUAL HARASSMENT Quid Pro Sexual Harassment means this for that Person in position of power to