MAN 320F 1st EditionExam # 2 Chapters 3, 11, 13 B&S 7-8Chapter 3 Organizational Environment and CulturesChanging Environments:- External: forces and events that occur outside a companyo 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 stabilityo 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 organizationo 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 qualifiedworkforce 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 denyingleadership 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- ⅘ or 80% Rule:- If 100 white and 100 black applicants apply for an entry-level job and 60 white