Chapter3–

EnvironmentandDiversityPresentedby:MayaSonji/maya.sonji@.auLecture2Studyquestionstochapter3:Whatistheexternalenvironmentoforganisations?Whatisacustomer-drivenorganisation?Whatisaquality-drivenorganisation?Whatistheinternalenvironmentandorganisationalculture?Howisdiversitymanagedinamulticulturalorganisation?EnvironmentandCompetitiveAdvantagea)Strategiccapabilities:Thosethataredifficulttoimitate,areofvaluetothecustomer,andarebetterthanthosepossessedbythemajorityofcompetitors.b)Dynamiccapabilities: -Physical(e.g.state-of-the-artequipmentoradvantageouslocation), -Organisational(e.g.outstandingsalesforce),and -Human(e.g.expertiseinaspecialisedfield,diversity).Acompetitiveadvantageallowsanorganisationtodealwithmarketandenvironmentalforcesbetterthanitscompetitors.TheEXTERNALEnvironment(everythingoutsideanorganisationwhichmayaffectit)

=TheTaskEnvironment(specificorganisationsorgroupsthataffecttheorganisation)+TheGeneralEnvironment(thesetofbroaddimensionsandforcesinanorganisation’ssurroundingsthatcreateitsoverallcontext)TheINTERNALEnvironment(everythinginsideanorganisationwhichmayaffectit)

=

TheObservableCulture(thevisibletraitsandbehavioursanyonecanseewhenwalkingaroundtheorganisation)+TheCoreCulture(theunderlyingbeliefssharedbymembersoftheorganisationthatinfluencetheirbehaviour)TheOrganisation’sEnvironmentTheExternalEnvironment-GeneralEconomicConditionsIncludesthegeneralstateoftheeconomyintermsofinflation,elevels,grossdomesticproductandunemploymentandrelatedindicatorsofeconomichealth.Socio-culturalConditionsIncludesthegeneralstateofprevailingsocialvaluesonmatterssuchashumanrights,trendsineducationandrelatedsocialinstitutions,anddemographicpatterns.PoliticalConditionsIncludeslawsandgovernmentregulationsandthegeneralstateoftheprevailingphilosophyandobjectivesofthepoliticalpartyorpartiesrunningthegovernment.TechnologicalConditionsIncludesthegeneralstateofthedevelopmentandavailabilityoftechnology,includingscientificadvancements.NaturalEnvironmentConditionsIncludesthegeneralstateofnatureandtheconditionsofthenaturalenvironment,includinglevelsofpublicconcernexpressedthroughenvironmentalism.TheExternalEnvironment–Task/SpecificCustomerIncludestheindividualsandorganisationsthatpurchasetheorganisation’sgoodsand/oruseitsservices.SuppliersIncludesthespecificprovidersofthehuman,informationandfinancialresourcesandrawmaterialsneededbytheorganisationtooperate.CompetitorsIncludesthespecificorganisationsthatofferthesameorsimilargoodsandservicestothesameconsumerorclientgroup.RegulatorsIncludesthespecificgovernmentagenciesandrepresentatives,atthelocal,stateandnationallevelsthatenforcelawsandregulationsaffectingtheorganisation’soperations.EnvironmentalUncertaintyLackofcompleteinformationregardingwhatdevelopmentswilloccurintheexternalenvironment>environmentaluncertainty=>managementattention=>needforflexibility&adaptabilityInternalEnvironmentandCultureTheinternalculturehasthepotentialtoshapeattitudes,reinforcecommonbeliefs,directbehaviourandestablishperformanceexpectationsandthemotivationtofulfilthem.OrganisationalcultureThesystemofsharedbeliefsandvaluesthatdevelopswithinanorganisationandguidesthebehaviourofitsmembers.LevelsoforganisationalcultureCoreValuesCoreValuesareunderlyingbeliefssharedbymembersoftheorganizationthatinfluencetheirbehaviorHowwellanorganization'sinternalcultureoperatestosupportitsmembersandperformanceobjectiveswilldependinpartonthestrengthsofitscorevalues.Thesevaluesshouldmeetsthetestofthreecriteria;1-Relevance:

corevaluesshouldsupportkeyperformanceobjectives.2-Pervasiveness:

Corevaluesshouldbeknownbyallmembersoftheorganizationorgroup.3-Strength:corevaluesshouldbeacceptedbyeveryoneinvolved.CustomerDrivenOrganisationsWhoarethecustomersandwhatdotheywant(value)?Thingstoremember;ValueChainTransformationProcessTheupside-downpyramidCustomersmainlywantthreethingsinthegoodsandservicestheybuy; 1-Highquality 2-Lowcost 3-On-timedeliveryCustomerRelationshipManagementCustomerrelationshipmanagement(CRM)Whenthebusinessstrategicallytriestobuildlastingrelationshipswith,andaddvaluefor,customers.SupplychainmanagementInvolvesstrategicmanagementofalloperationsrelatinganorganisationtothesuppliersofitsresources,includingpurchasing,manufacturing,transportationanddistribution.TheChangingnatureoforganisationsImportantorganisationaltransitionsinclude:pre-eminenceoftechnologydemiseofcommandandcontrolfocusonspeedembracenetworkingbeliefinempowermentemphasisonteamworkconcernforwork-lifebalance.Totalqualitymanagement(TQM)TotalQualityManagementTotalqualitymanagement(TQM)

ismanagingwithcommitmenttocontinuousimprovement,productqualityandcustomersatisfaction.The‘fourabsolutes’ofTQMare:ConformancetostandardsDefectpreventionDefect-freeworkQualitysavesmoney.ISOcertificationindicatesconformancewitharigoroussetofinternationalqualitystandards.

TotalQualityManagement-continuedThekeyprinciplesofTQMinclude:ContinuousimprovementofqualityReducedwasteLessvariationSupplierpartnershipTeamprocessCustomerfocusQualityatToyota

QualityandContinuousImprovementBenefitsofaqualitycircleinclude:AchievementofcreativepotentialWorkerempowermentCostsavingsfromimprovedqualityGreatercustomersatisfactionImprovedmoraleandcommitment.WithregardtoTQM,continuousimprovementinvolvesalwayssearchingfornewwaystoimproveoperationsqualityandperformance.QualitycircleAgroupofemployeeswhoperiodicallymeettodiscusswaysofimprovingworkquality.Quality,TechnologyandDesignLeanproductionFlexiblemanufacturingAgilemanufacturingandMasscustomizationTechnologyplaysamajorroleinthequalityaspectofoperations.Theseinclude;

Quality,TechnologyandDesignDesignformanufacturingDesignfordisassemblyDesignplaysamajorroleinthequalityaspectoftheproduct.Itisconsideredtodaytobea‘weapon’againstcompetitorsinthisglobaleconomy.Theseinclude;DiversityandmulticulturalorganisationsThetermdiversity

describesdifferencesinrace,gender,age,ethnicity,physicalability,cultureandsexualorientation,amongotherindividualdifferences.Akeyissueinthecultureofanyorganisationisinclusivity—thedegreetowhichtheorganisationisopentoanyonewhocanperformajob,regardlessofrace,sexualpreference,genderorotherdiversityattribute.DiversityandmulticulturalorganisationsMulticulturalismAmulticulturalorganisationisbasedonpluralismandoperateswithrespectfordiversity.Characteristics

ofatrulymulticulturalorganisation:Pluralism:Membersofbothminorityculturesandmajorityculturesareinfluential.Structuralintegration:Minority-culturemembersarewellrepresentedatalllevelsandfunctions.Informalnetworkintegration:mentoringandsupportgroupsassistanceofminoritygroupsAbsenceof