Professional Documents
Culture Documents
Griffin 8e PPT ch02
Griffin 8e PPT ch02
Griffin 8e PPT ch02
Mercy Corps thus works to foster “sustainable community development that integrates
agriculture, health, housing and infrastructure, economic development, education, and
environment and local management,” as well as launching “initiatives that promote
citizen participation, accountability, conflict management, and the rule of law.”
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Learning Outcomes
After studying this chapter you should be able to:
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The Organization’s Environments
• External Environment
– General environment is a set of broad dimensions
and forces in an organization’s surroundings that
determine its overall context.
– Task environment is composed of specific groups
and organizations that affect the firm.
• Internal Environment
– Conditions and forces within an organization.
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The Organization and Its Environments
Technological
dimension
Competitors
Owners
Regulators Employees Customers
Physical environment
Board of directors
Political- Culture
legal Economic
dimension Strategic dimension
Suppliers
partners
Internal environment
Task environment External
General environment environment
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The External Environment
• The General Environment
– Economic dimension
– The economic dimension of an organization’s general environment is the
overall health and vitality of the economic system in which the
organization operates. Such as economic growth, inflation, interest rates,
and unemployment.
– Technological dimension
– The technological dimension of the general environment is made up of
the methods available for converting resources into products or services.
The results include decreased warehouse needs, higher-quality, lower
labor costs, and major time savings.
– Political-legal dimension
– The political–legal dimension of the general environment consists of
government regulation of business and the relationship between business
and government and political stability.
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The External Environment (cont’d)
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Dimensions of the Task Environment
• Competitors An organization’s competitors are other organizations
that compete with it for resources. The most obvious resources that
competitors vie for are customer dollars. Under Armour, Adidas, and Nike
are competitors.
• Customer Whoever pays money to acquire an organization’s products
or services. Most customers are individuals but customers can be schools,
hospitals, government agencies, wholesalers, retailers, and manufacturers.
• Supplier Suppliers are organizations that provide resources for other
organizations. Besides material resources, businesses also rely on suppliers
for information (such as economic statistics), labor (in the form of
employment agencies), and capital (from lenders such as banks).
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• Regulators Regulators are elements of the task environment that have the
potential to control, legislate, or otherwise influence an organization’s policies
and practices.
There are two important kinds of regulators.
• Regulatory agencies are created by the government to protect the public from
certain business practices or to protect organizations from one another.
• Environmental Protection Agency (EPA), the Securities and Exchange Commission of
Pakistan (SECP), the Food and Drug Administration (FDA), and the Competition
Commission of Pakistan.
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FIGURE 2.1 McDonald’s Task Environment
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The Internal Environment
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How Organizations and Environments Interact
Environments
Mergers,
Information Strategic Organization Direct
Takeovers,
Management Response Design and Influence
Acquisitions,
Alliances Flexibility
Organizations
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Individual Ethics In Organizations
• Ethics
– An individual’s personal beliefs regarding what behavior,
action, or decision is right or wrong or good or bad.
• Ethical Behavior
– Behavior that is acceptable in the eye of the beholder.
– Behavior that conforms to accepted social norms.
• Examples of Unethical Behavior
– is behavior that does not conform to generally accepted
social norms.
– “Borrowing” office supplies for personal use.
– Checking Facebook on company time.
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Determinants of Individual Ethics
Individual Ethics
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• Conflicts of interest
• Secrecy and
Managerial confidentiality
• Honesty
Ethics Employees Organization
• Hiring and firing
• Wages and working
conditions
Areas of concern for • Privacy and respect
managerial ethics:
• How the firm treats Subject to ethical ambiguities
the employee. • Advertising and promotions
• Ordering and purchasing
• How the employee • Bargaining and negotiation
• Financial disclosure
treats the firm. • Shipping and solicitation
• Other business relationships
• How the firm treats
other economic
agents. Economic Agents
• Customers
• How the firm handles • Competitors
its financial reporting • Stockholders
• Suppliers
• Dealers
• Unions
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Fostering Ethical Organization Behavior
Individual Issues:
Behavior, Conscience, Privacy
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Ethics in Organizations
• Managing Ethical Behavior
– Begins with top management that:
• Establishes a strong culture and defines what will and
will not be acceptable behavior.
• Provides ethical leadership by serving as ethical role
models.
– Includes
• Training on how to handle ethical dilemmas.
• Developing a code of ethics--written statements of the
values and ethical standards that guide the firms’
actions.
» Of course, no code, guideline, or training program can truly substitute
for the quality of an individual’s personal judgment about what is right
behavior and what is wrong behavior in a particular situation.
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Emerging Ethical Issues
Ethical Issues in
Organizations
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A Guide for
Ethical
Decision
Making
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Social Responsibility
Social Responsibility
of Organizations
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Social Responsibility in Organizations
• Social Responsibility
– The set of obligations (to behave responsibly) that an
organization has to protect and enhance the social
context in which it functions.
• Areas of Social Responsibility
– Stakeholders: customers, employees, and investors.
– The natural environment: environmentally sensitive
products, recycling, and public safety.
– The general social welfare: charitable contributions,
and support for social issues such as child labor and
human rights.
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FIGURE 2.2 Arguments for and against Social Responsibility
Social
Responsibility
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Approaches to Social Responsibility
Highest Degree of Social Responsibility
Proactive Stance
Accommodative Stance
Defensive Stance
Obstructionist Stance
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How Business and Government
Influence Each Other
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Managing Social Responsibility
Organization leadership
Legal compliance
and culture
Philanthropic giving
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Managing Social Responsibility:
Formal Organizational Dimensions
• Legal Compliance
– Extent to which the organization conforms to local,
state, federal, and international laws.
• Ethical Compliance
– Extent to which members of the organization follow
basic ethical/legal standards of behavior.
• Philanthropic Giving
– Awarding of funds or gifts to charities or other social
programs.
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Managing Social Responsibility:
Informal Organizational Dimensions
• Organizational Leadership and Culture
– Leadership practices and the culture of the
organization define the social responsibility stance an
organization and its members will adopt.
• Whistle Blowing
– The organizational response to the disclosure by an
employee of illegal or unethical conduct on the part of
others within the organization is indicative of the
organization’s stance on social responsibility.
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Trends in International Business
• Economic Recovery
– Europe and Asia have rebuilt their economic systems
devastated in WWII.
• Decreasing Isolation from Foreign Competition
– U.S. markets are open to overseas competitors.
• Increasing Globalization of World Markets
– Volume of international trade has increased more than
1,300% from 1960 to 2013.
– Larger percentages of U.S. firms’ profits are now
earned in international markets.
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International Business Activity
Exporting
Types of
International
Business
Activity
Importing
Licensing
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Levels of International Business Activity
• Exporting
– Making a product in the firm’s domestic market and
selling it in another country.
• Importing
– Bringing a good, service, or capital into a home
country from abroad.
• Licensing
– Allowing a foreign company to manufacture or market
the products and use a firm’s brand name, trademark,
technology, patent, copyright, or other assets in
exchange for a royalty based on sales.
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Levels of International Business… (cont’d)
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Table 2.1
Advantages and Disadvantages of Different Approaches
to Internationalization
Approach to
Internationalization Advantages Disadvantages
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The Context of International Management
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The Cultural Environment
• Language
– The Japanese word “hai” can mean either “yes” or “I
understand.”
– General Motors’ brand name “Nova” pronounced as
“no va” in Spanish means “doesn’t go.”
• The Meaning of Colors
– Green is popular in Muslim countries, yet it signifies
death in other countries.
– Pink is associated with feminine characteristics in the
U.S.; yellow is the most feminine color in other
countries.
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Controls on International Trade
• Key Concepts
– Tariffs are taxes collected on goods shipped across
national boundaries.
– Quotas are limits placed on the number or value of
goods that can be traded as exports or imports.
– Export restraint agreements / Export Quotas are
voluntary limits on the volume or value of goods
exported to, or imported
from, another country.
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The Structure of the Global Economy
• Economic Communities
– Sets of countries that engage in high levels
of trade with each other through the elimination
of trade barriers such as quotas and tariffs.
• European Union (EU)
• North American Free Trade Agreement (NAFTA)
• Latin American Integration Association
• Caribbean Common Market
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The Role of the GATT and the WTO
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The Organization’s Culture
• Organization Culture
– The collection of values, beliefs, behaviors, customs,
and attitudes that characterize a community of people.
• The Importance of Organization Culture
– Culture determines the overall “feel” of the
organization, although it may vary across different
segments of the organization.
– Culture is a powerful force that can shape the
organization’s overall effectiveness and long-term
success.
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Determinants of Organization Culture
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Managing Organization Culture
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Changing Organization Culture
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