question

Internal Environment

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Comprises the forces inside an organization that affect how managers set expectations, how employees perform their roles, and how the company interacts with stakeholders and responds to external environments (sometimes Stakeholders and Constituents can internally effect)

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What are internal environments emphasized by?

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management-focused capitalism

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External Environment

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Specific and general factors outside an organization that can change how it operates

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What are external environments emphasized by?

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customer-focused capitalism

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What do Forces and Surroundings and do?

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that impact and change the organization and it's products and services / goals)

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Stakeholders/Constituents

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anyone or group that has a vested interest in the success and failure of an organization

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Example of Internal Stakeholders

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Employees, Managers, Owners

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Example of External Stakeholders

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(Constituents): Customers Competitors Supply Chain Governments Public

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Who has power to change things in a company from least amount to most amount

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General External Environment, Specific External Environment, and Internal Environment

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What can the General External Environment change?

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All organizations: Technology, Political/Legal Economy, Resources, Sociocultural

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What can the Specific External Environment change?

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Industry specific: Customers, Talent, suppliers, Competitors, Advocacy, Regulations

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What can the Internal Environment change?

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Organization specific: slogans, stories, symbols, rituals, ceremonies, heroes

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Industry (SPECIFIC)

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"is a collection of organizations that make the same product or provide the same service" Examples: Coca-Cola and Pespi-Cola are in the "Soft Drink Industry); Maytag/Whirlpool "Home Appliance" focused part of the external environment that directly affects an organization's operations and performance

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Specific/Industry/Competitive Environment

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are forces that act on all organizations within that industry

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Society/General/Macro Environment

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are forces that act on all organizations in all industries. External forces that affect all organizations participating in an economy, where managers have little or no power to effect change

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What are the 3 characteristics of culture?

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learned, shared, transmitted

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Learned: culture

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not instinct (from other members and experiences and events over time

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Shared

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not done alone, but with others (Organization is 2 or more people)

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Transmitted: characteristic of culture

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through experiences, events, revelations over a period of time

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Organization Culture (INTERNAL)

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values, beliefs, behaviors (VBBs) Collection of beliefs, shared by individuals and groups, to help their organization to respond to environmental forces and changes.

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What does experiencing culture at a conscious level mean?

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can be seen or heard openly, Visible (Behaviors). Visible, INITIAL (on the outside)

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What does experiencing culture at an unconscious level mean?

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things that employees think or feel, Less Apparent (Values, Beliefs). Less apparent, LATER (takes time, revealed over time through these EXPERIENCES.

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Organizational culture manifests in what physical first impression things To reinforce VBBs (Visible, Heard, Felt - Sensory)?

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Slogan, story, Symbol, ritual, ceremony, hero

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Slogan

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repetitive phrase intended to support an organizational culture, mission, vision, or values. Example: Walmart: Save Money, Liver Better/ Target: Expect More, Pay Less

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Story

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narrative, usually fictionalized or enhanced over time, based on actual organizational experiences. Example: Nordstrom: The customer is always right

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Symbol

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event, situation, object, person, or other artifact that provides greater meaning to the organization. Example: Apple. Logo Nike Swoosh

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Ritual

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formalized activity intended to communicate and teach the organization's culture. Example: MU Commencement

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Ceremony

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event that provides one or more stakeholders with a sense of purpose and meaning connected to the organization. Example Venture Stores-Commitment to ethical conduct

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Heros

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real or imagined person who represents an ideal performer specific to the organizational culture. Example Walmart - Sam Walton

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What ways to customers need to be responded to by? (SPECIFIC)

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Reactive Engagement, Proactive Engagement, Interactive Engagement

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Reactive Engagement

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modify products and services based on customer feedback

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Proactive Engagement

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create alternative product/service to enhance customer's experience

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Interactive Engagement

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collaborate with customers to develop products/services better suited to their needs

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Talent (SPECIFIC)

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Potential Workforce

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Potential Workforce

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People who have the skills, knowledge, creativity, and relationships necessary to optimize an organization's performance

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Crowdsourcing

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companies employ the efforts of its customers and the public to innovate and further its mission. (EX news stations ask citizens to submit photos)

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Advocacy group (SPECIFIC)

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Non-government org. (NGO) Set of people dedicated to instituting change based on their concerns or interests

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Boycott

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attempt by an individual or group to change the actions of an organization by convincing other customers not to purchase the products or services (internet, social media)

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Suppliers and distributors (SPECIFIC)

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Entities that provide an organization with the external resources that it needs to operate, including money, materials, people, and information

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Regulations (SPECIFIC)

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Rules set by external governing bodies that dictate standards and procedures for industries, businesses, and professionals

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Government Activism

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role played by government in "encouraging" business to behave in ways that are in the public interest through tax credits and other incentives

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Competitors (SPECIFIC)

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Organizations that sell comparable products and services

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Competitive Analysis

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attempt to understand the features and benefits of competitor's products and services "best practices"

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Politics/laws (GENERAL)

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Relate to most, if not all, businesses, and not just to those in a particular industry. Citizens United

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Millennials

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born 1984 to 2004, don't want to sacrifice themselves for a job, like philanthropy

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Resources (GENERAL)

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food, energy, water Demand influenced by the world population

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Technology (GENERAL)

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Speed of technology innovation requires managers to assess and adapt continuously to its impact

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Sociocultural Forces (GENERAL)

answer

social values Behaviors and beliefs associated with demographic groups that comprise an organization's available talent and customers

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Demographics

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sociological characteristics that define an organization's talent and customers (e.g., age, gender, ethnicity)

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Economy (GENERAL)

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Orchestrated system of talent, resources, and money intended to create and distribute products and services "Stock market indexes.

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GDP (Gross Domestic Product)

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value of what a country produces on an annual basis (p. 104) Represents the size of the economy as a number (nominal) or per person (capita) Figure 4.10

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Change Management

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Achieving goals by altering behaviors or processes in response to environmental forces

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Resistance to change stems from

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Threat to personal interests Uncertainty about meaning of change Mistrust of those initiating change Doubts about ability to cope with changes Clashing perspectives among different people about the change

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Goals change example (Resistance)

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New products, new services

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Threat to personal interest (Resistance)

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Lose power or status (Ex. Self-checkout replaces human cashier)

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Uncertainty or Mistrust (Resistance)

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If not explained thoroughly, mistrust is created. Reasons must be clear.

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Doubts (Resistance)

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new" skills mean learning curve (do poorly before gaining expertise)

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Clashing (Resistance)

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disagree about the impact of the change

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Who created the force field analysis?

answer

Kurt Lewin

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force field analysis

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Assess the need for change and identify the potential obstacles that may have to be overcome to achieve change disadvantages of "new" approach * change occurs when managers decrease restraining forces (reasons against change) rather than increasing ("forcing") driving forces.

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Restraining Forces

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barriers to change that impede progress to the goal (p. 108)

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Driving Forces

answer

provide motivation for achieving a goal advantages of "new" approach

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Stages of Change

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Unfreezing, Changing, Refreezing

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Unfreezing

answer

process of informing employees of the change and why it is needed

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Change Agents

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specialists who facilitate change by identifying problems and presenting them to management

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Changing

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a strategy for employees to help reinforce the need for change

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Refreezing

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people embrace the change and are rewarded for their commitment and participation in making the change happen

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Eight steps for implementing change

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Putting the pressure on Forming a guiding coalition Creating a vision Using widespread communication Overcoming obstacles Celebrating short term wins Assessing the transformation process Instilling change in the corporate culture

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Putting the pressure on

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Management must communicate a sense of urgency to their employees to implement speedier change.

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Forming a guiding coalition

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People are more likely to buy in to an idea when they are involved in its implementation.

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Creating a vision

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One of the first tasks of the coalition group is to create a vision of what the organization is trying to achieve.

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Using widespread communication

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Communication is key when delivering a strategy for change

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Overcoming obstacles

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Although creating a vision and optimizing the communication channels available to promote the vision are important, both effort will be futile if other employees resist the change or present obstacles that block progress.

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Celebrating short term wins

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large scale change often takes years before the end results is achieved.

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assessing the transformation process

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change is a continuous process, where modifications must be evaluated and reassessed constantly to make any necessary adjustments.

question

installing change in the corporate culture

answer

managers know change is successful when it becomes part of the corporate culture.

Chapter 4: Organizations and Change Management – Flashcards

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