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  1. 10.Task environment and its four primary sectors. Level 2

Task Environment is closer to organization and includes sectors that have a direct working relationship with the organization:

Customers-those people or organizations in the environment who acquire goods and services from the organization.

Competitors- other organizations in the same industry that provide goods and services to the same set of customers.

Suppliers-people or organizations that provide raw materials the organization uses to produce its output.

Labor Market-people in the environment who can be hired to work for the organization.

  1. Internal environment: corporate culture. Level 2

The internal environment within which managers work includes the following elements:

  • Employees

  • Management

  • Corporate culture and so on

The concept of culture helps managers understand the hidden, complex, aspects of organizational life. Culture is a pattern of shared values and assumptions about how things are done within the organization. This pattern Corporate culture – set of key values, beliefs, understandings, and norms shared by members of an organization.

  1. The different levels of culture.

Corporate culture is like an iceberg in the ocean. Only the smallest part of it is visible but the greatest part is invisible from the sight.

1. Visible level of corporate culture includes such things as manner of dress, patterns of behavior, physical symbols, and organizational ceremonies, office design – these are things that anyone can see, hear, and observe.

Symbols. They effectively summarize organization’s intrinsic behavior. Symbols are awards or incentives that symbolize preferred behavior; “employee of the month” is one such example of a symbol.

Organizational Ceremonies. New hire trainings, annual corporate conferences, awards, and so on.

2. Invisible level of corporate culture includes unwritten rules, values, and beliefs, which are not observable. These are deeper values that members of the organization hold at a conscious level. They can be interpreted from stories, heroes, and slogans and they use to motivate employess.

  1. Four types of corporate cultures. Level

Adaptability culture – a culture used by companies that operate in a quickly changing industry. Adaptability culture requires fast response and high-risk decision-making. Employees have autonomy to make decisions and act freely to meet customers’ needs.

Involvement culture – a culture that focuses on meeting the needs of employess in order to increase productivity. The organization may be characterized by caring and family-like atmosphere. Managers emphasize such values as cooperation, consideration of both employees and customers, and avoiding status differences.

Achievement culture – a culture that focuses on the achievement of results than on satisfaction of employees’’ needs. This culture is suitable to organization that are concerned with serving specific customers in the external environment but without the strong need for flexibility and rapid change. This is resulted-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work and hard to achieve results.

Consistency culture – a culture that focuses on rationality, discipline, and order of doing things while operating in a stable environment.

Adaptability and involvement cultures are very flexible, but achievement and consistency cultures are rigid, with many rules and regulations. Each of this cultures can be successful.

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