Management, Its Environment and Culture: Ang Eng Sieng
Management, Its Environment and Culture: Ang Eng Sieng
CHAPTER 3
MANAGEMENT, ITS
ENVIRONMENT AND CULTURE
Ang Eng Sieng
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Management, Its Environment and Culture
Learning Outcomes
Completing this chapter will allow the reader to :
•Conduct an environment scanning process
•Understand the impact from the different environments on the organization
•Understand how changes in certain environments can influence business decisions
•Be able to plan to adapt to these changes
•Analyze the different types of organizational culture
•Evaluate the factors that influence the organization ‘s culture
•Adapt to the culture for business objectives and change
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Environmental Scanning
• Environmental Scanning consists of three major categories : -
• external environment
• task environment
• internal environment
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Dimensions in the external environment
Organization
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Scanning the External Environment
• Economic factors
• Legal- Political factors
• Technological factors
• Social factors
• Integrity factors
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Scanning the Task Environment
• Customers
• Suppliers
• Competitors
• Business Partners
• Regulators
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Scanning the Internal Environment
• Owners
• Employees
• Board of Directors
• Physical Assets or Resources
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Cameron and Quinn (2011), Competing
Values Framework
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Types of Organizational Culture
• The Hierarchy (Control) Culture
• The Market (Compete) Culture
• The Clan (Collaborate) Culture
• The Adhocracy (Create) Culture
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The Hierarchy (Control) Culture
This type of structured culture allows business leaders to: -
• maintain strong stability and predictability in managing day-to-day
operations.
• govern by level of authority, formal rules and policies.
• focus on internal rules and procedures.
• (Example: Samsung, a South Korean multinational)
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The Market (Compete) Culture
This type of structured culture allows business leaders to: -
• react based on market conditions, monetary changes, and economic factors.
• ensure profitability, customer base, market share and sales targets.
• orient itself to the external environment.
• (Example - Apple Inc., an American company)
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The Clan (Collaborate) Culture
A family-oriented organization that focuses on:-
• family traits, for a family-oriented environment.
• employee involvement and engagement.
• work patterns which are team-based.
• (Example – Panasonic, a Japanese consumer electronics company)
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The Adhocracy (Create) Culture
This type of culture is one that embraces:- entrepreneurial spirit.
• risk-taking to promote innovation.
• fast and flexible adaptation in work processes.
• the will to thrive in an uncertain market and an ever - changing
environment.
• (Examples - consultancy agencies, filmmaking and software companies)
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