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Chapter 3- Organizational environment: consisting of both general and task environments, includes all elements existing outside the boundary of the organization that have the potential to affect the organizationo Boundary-spanning roles link and coordinate the organization with key elements in the external environmento Interorganizational partnerships reduce boundaries and increase collaboration with other organizationso Merger occurs when two or more organizations combine to become oneo Joint venture is a strategic alliance or program by two or more organizations- General environment: indirectly influences all organizations within an industryo International dimension of the external environment represents events originating in foreign countries as well as opportunities for US companies in othercountrieso Technological dimension of the general environment includes scientific and technological advances in societyo Sociocultural dimension includes demographic characteristics, norms, customs, and values of a population within which the organization operateso Economic dimension represents the general economic health of the country or region in which the organization operateso Legal-political dimension includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior Pressure groups: work within the legal-political framework to influence companies to behave in socially responsible wayso Natural dimension includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate- Task environment: includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performanceo Customers are part of the task environment and include people and organization that acquire goods or services from the organizationo Competitors are organizations within the same industry or type of business that compete for the same set of customerso Suppliers provide the raw materials the organizations uses to produce its outputo Labor market represents the people available for hire by the organization- Internal environment: includes elements within the organization’s boundaries such as employees, management, and corporate cultureo Organizational culture is the set of key values, beliefs, understandings, and normsshared by members of an organization Adaptability culture: values that support the company’s ability to interpret and translate signals from the environment into new behavior responses Achievement culture: results-oriented culture that values competitiveness, personal initiative, and achievement Involvement culture: places high value on meeting the needs of employees and values cooperation and equality  Consistency culture: values and rewards a methodical, rational, orderly way of doing thingso Symbol is an object, act, or event that conveys meaning to otherso Story is a narrative based on true events and is repeated frequently and shared among organizational employeeso Hero is a figure who exemplifies the deeds, character, and attributes of a strong cultureo Slogan succinctly expresses a key corporate value Ex. Disney’s “The happiest place on earth”o Managers hold ceremonies, planned activities at special events, to reinforce company values- For the organization to be effective, corporate culture should be aligned with organizational strategy and the needs of the external environment- Managers emphasize both values and business results to create a high-performance cultureo Cultural leadership define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions- Characteristics of organizational cultureo Culture often originates from the organization’s foundero Many organizations socialize newcomers to accept core values before “full” membership Ex. Herman Miller (treat people well, you’ll succeed)o Culture is reinforced by: Communicating the organization’s values on a regular basis Using “heroes,” “stories,” “symbols,” “slogans,” and “ceremonies” to illustrate core valueso Culture can affect employees and customers through the subconscious “priming” process Ex. Wholefoods - Employees can be:o Less likely to demand higher salarieso Less likely to leave, or engage in counterproductive work behavior- Customers may be:o Less likely to compare priceso More likely to accept company beliefs (“best quality in town”)Chapter 12- Human resource management: the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goalso Activities undertaken to attract, develop, and maintain an effective workforce within an organizationo Find the right people  manage talent  maintain effective workforce- Human capital: the economic value of the combined knowledge, experience, skills, and capabilities of employees- HR managers have to apply a variety of federal laws that prohibit discrimination, establish safety standards, or require organizations to provide certain benefits- Discrimination: the hiring or promoting of applicants based on criteria that are not job relevant- Affirmative action: employers take positive steps to guarantee equal employment opportunities for people within protected groups- Americans with Disabilities Act (1990)o Prohibits discrimination against qualified individuals based on physical or mental disabilitieso Requires “reasonable accommodations” to allow disabled employees to perform their job duties- Equal Pay Act (1963)o Prohibits pay discrimination based on sex, for equal work, on jobs requiring equalskill, effort, and responsibility- Age Discrimination in Employment Act (1991)o Prohibits discrimination against persons over the age of 40 in hiring, retention, compensation, and other conditions of employment- Title VII, 1964 Civil Rights Acto Applies to “protected classes” (groups based on race, religion, color, sex and national origin)o Prohibits discrimination in hiring, discharge, compensation, and other conditions of employmento Equal Employment Opportunity Commissiono Prohibits harassment (a “hostile work environment”)- COBRA: requires continued health insurance coverage after termination- Discrimination in hiringo Plaintiff must establish a


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SC MGMT 371 - Chapter 3

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