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Chapter 3- Management, Its Environment and Cultures

Chapter 3 discusses the management environment and culture, focusing on environmental scanning across external, task, and internal categories. It outlines the impact of various factors such as economic, legal, technological, and social on organizations, and describes four types of organizational culture: Hierarchy, Market, Clan, and Adhocracy. The chapter emphasizes the importance of adapting to environmental changes and aligning organizational culture with business objectives.

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13 views13 pages

Chapter 3- Management, Its Environment and Cultures

Chapter 3 discusses the management environment and culture, focusing on environmental scanning across external, task, and internal categories. It outlines the impact of various factors such as economic, legal, technological, and social on organizations, and describes four types of organizational culture: Hierarchy, Market, Clan, and Adhocracy. The chapter emphasizes the importance of adapting to environmental changes and aligning organizational culture with business objectives.

Uploaded by

pthuy1119
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 3

MANAGEMENT, ITS
ENVIRONMENT AND CULTURE
Ang Eng Sieng

1
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

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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)

Principles of Management | 10
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)

Principles of Management | 11
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)

Principles of Management | 12
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)

Principles of Management | 13

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