powerpoint presentation to accompany chapter 4 of management canadian edition schermerhorn wright...

PowerPoint Presentation to Accompany Chapter 4 of

Management Canadian Edition

Schermerhorn Wright

Prepared by: Michael K. McCuddy

Adapted by: Lynda Anstett & Lorie Guest

Published by: John Wiley & Sons Canada, Ltd.

Management - Chapter 4 2

Planning Ahead — Chapter 4 Study Questions

What is the external environment of organizations?

What is a customer-driven organization?What is a quality-driven organization?What is organizational culture?How is diversity managed in a multicultural

organization?

Management - Chapter 4 3

Study Question 1: What is the external environment of organizations?

Competitive advantage is a core

competency that clearly sets an organization

apart from competitors and gives it an

advantage over them in the marketplace.

Management - Chapter 4 4

Study Question 1: What is the external environment of organizations?

Companies may achieve competitive advantage in many ways, including:

• Products

• Pricing

• Customer service

• Cost efficiency

• Quality

Management - Chapter 4 5

Study Question 1: What is the external environment of organizations?

The general environment — all of the background conditions in the external environment of the organization including:– Economic – Socio-cultural – Legal-political – Technological – Natural environment

Management - Chapter 4 6

Study Question 1: What is the external environment of organizations?

The specific (task) environment — actual organizations, groups, and persons with whom an organization interacts and conducts business.

Includes important stakeholders such as:– Customers

– Suppliers

– Competitors

– Regulators

– Investors/owners

Management - Chapter 4 7

Figure 4.1 Stakeholder analysis of value creation for key constituencies of a business firm: an open-systems approach.

Management - Chapter 4 8

Study Question 1: What is the external environment of organizations?

Environmental uncertainty is a lack of complete

information regarding what exists and what

developments may occur in the external

environment.

Two dimensions of environmental uncertainty:

– Complexity

– Rate of change

Management - Chapter 4 9

Figure 4.2 Dimensions of uncertainty in organizational environments.

Management - Chapter 4 10

Study Question 2: What is a customer-driven organization?

External customers purchase the

organization’s goods or utilize its services.

Internal customers are the persons and

groups within an organization who depend

on the results of others' work to do their

own jobs.

Management - Chapter 4 11

Figure 4.3 The importance of external and internal customers.

Management - Chapter 4 12

Study Question 2: What is a customer-driven organization?

Customers want:– High quality.– Low price.– On-time delivery.

Key customer service lessons:– Protect reputation for quality products.– Treat customers right.

Management - Chapter 4 13

Study Question 2: What is a customer-driven organization?

Customer relationship management establishes

and maintains high standards of customer service

in order to strategically build lasting relationships

with and add value to customers.

Supply chain management is the strategic

management of all operations relating to an

organization’s resource suppliers.

Management - Chapter 4 14

Study Question 3: What is a quality-driven organization?

Quality organizations understand and respond to customer

expectations of quality products and services

Total quality management (TQM)

– Quality principles are an integral part of organization’s strategic

objectives.

• Applying them to all aspects of operations.

• Committing to continuous improvement.

• Striving to meet customers’ needs by doing things right the first time.

Management - Chapter 4 15

Study Question 3: What is a quality-driven organization?

Crosby’s “four absolutes” of management for total quality control:– Quality means conformance to standards.– Quality comes from defect prevention, not

defect correction.– Quality as a performance standard must mean

defect-free work.– Quality saves money.

Management - Chapter 4 16

Study Question 3: What is a quality-driven organization?

Quality and continuous improvement– W. Edwards Deming emphasized:

• Constant innovation.

• Use of Statistical methods.

• Training in the fundamentals of quality assurance.

– Continuous improvement • Seeking ways to improve on current performance.

– Quality circles• A small group of workers who meet regularly to discuss ways

of improving quality.

Management - Chapter 4 17

Study Question 3: What is a quality-driven organization?

Quality, technology, and design:– Lean production

• Uses new technologies to streamline systems.

– Flexible manufacturing• Processes can be changed quickly to produce

different products or modifications of existing ones.

– Agile manufacturing/mass customization• Permits quick production of individualized

products.

Management - Chapter 4 18

Study Question 3: What is a quality-driven organization?

Quality and product design:

– A good design has eye appeal and is easy to

manufacture with productivity.

– Design for manufacturing emphasizes lower

production costs and high-quality results.

– Design for disassembly involves taking into

account how components will be recycled.

Management - Chapter 4 19

Study Question 4: What is organizational culture?

Organizational culture is the system of

shared beliefs and values that develops

within an organization and guides the

behavior of its members.

Management - Chapter 4 20

Study Question 4: What is organizational culture?

How to read an organization’s culture (SCORES)

S - How tight or loose is the structure?

C - Are decisions change oriented or driven by the status quo?

O - What outcomes or results are most highly valued?

R - What is the climate for risk-taking, innovation?

E - How widespread is empowerment, worker involvement?

S - What is the competitive style, internal and external?

Management - Chapter 4 21

Figure 4.4 Levels of organizational culture—observable culture and core culture.

Management - Chapter 4 22

Study Question 4: What is organizational culture?

Strong cultures: – Commit members to do things that are in the best

interests of the organization.– Discourage dysfunctional work behavior.– Encourage functional work behavior.

The best organizations have strong cultures that:– Are performance-oriented.– Emphasize teamwork.– Allow for risk taking.– Encourage innovation.– Value the well being of people.

Management - Chapter 4 23

Study Question 4: What is organizational culture?

What is observable culture?– What one sees and hears when walking around an

organization.

Elements of observable culture:– Stories

– Heroes

– Rites and rituals

– Symbols

Management - Chapter 4 24

Study Question 4: What is organizational culture?

What is the core culture?– Underlying assumptions and beliefs that

influence behavior and contribute to the observable culture.

Core culture and values:– Strong cultures have a small but enduring set of

core values. – Commitment to core values is a key to long-

term success.

Management - Chapter 4 25

Study Question 4: What is organizational culture?

Important cultural values include:– Performance excellence

– Innovation

– Social responsibility

– Integrity

– Worker involvement

– Customer service

– Teamwork

Management - Chapter 4 26

Study Question 4: What is organizational culture?

Value-based management:– Describes managers who actively help to

develop, communicate, and enact shared values.

– Criteria for evaluating core values:• Relevance

• Integrity

• Pervasiveness

• Strength

Management - Chapter 4 27

Study Question 4: What is organizational culture?

Symbolic leadership– Symbolic leaders use symbols well to establish and

maintain a desired organizational culture.

– Symbolic leaders behave in ways that espouse organization’s values.

– Symbolic leaders:• Use language metaphors.

• Highlight and dramatize core values and observable culture.

• Use rites and rituals to glorify performance.

Management - Chapter 4 28

Study Question 5: How is diversity managed in a multicultural organization?

Diversity:

– Describes differences among people at work.

– How diversity is handled in the workplace

reflects the organization’s culture.

• Respect and inclusion.

• Disrespect and exclusion.

– A potential source of competitive advantage.

Management - Chapter 4 29

Study Question 5: How is diversity managed in a multicultural organization?

Characteristics of multicultural organizations:– Pluralism

– Structural integration

– Informal network integration

– Absence of prejudice and discrimination

– Minimum intergroup conflict

Management - Chapter 4 30

Study Question 5: How is diversity managed in a multicultural organization?

Organizational subcultures– Cultures based on shared work responsibilities and/or

personal characteristics. Common subcultures include:

– Occupational– Functional– Ethnic or national– Racial– Generational– Gender

Management - Chapter 4 31

Study Question 5: How is diversity managed in a multicultural organization?

Challenges faced by minorities and women:

– Glass ceiling

– Misunderstanding and lack of sensitivity

– Sexual harassment

– Pay discrimination

– Job discrimination

Minorities may adapt by exhibiting biculturalism.

Management - Chapter 4 32

Figure 4.5 Glass ceilings as barriers to women and minority cultures in traditional organizations.

Management - Chapter 4 33

Study Question 5: How is diversity managed in a multicultural organization?

Diversity leadership approaches:

– Advancing action commits the organization to hiring

and advancing minorities and women.

– Valuing diversity commits the organization to

education and training programs.

– Managing diversity commits to changing the

organizational culture.

Management - Chapter 4 34

Figure 4.6 Leadership approaches to diversity—from affirmative action to managing diversity.

Source: Developed from R. Roosevelt Thomas, Jr., Beyond Race and Gender (New York: AMACOM, 1991), p. 28.

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Copyright © 2007 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.