Environment & Diversity

Planning Ahead

What is the environment of the organization? What is a customer-driven organization? What is the quality commitment in operations? Why is organizational culture important? What are current directions in organizational

cultures?

External Environments of OrganizationsWhat is Competitive Advantage?

Utilization of a core competency that clearly sets an organization apart from its competitors and gives it an advantage over them in the marketplace

Companies may achieve it in many ways including

products pricing customer service cost efficiency quality

External Environments of OrganizationsThe General Environment - all of the

background conditions of the organization including: Economic Social-cultural Legal-political Technological Natural environment

External Environments of OrganizationsThe Specific (Task) Environment - actual

organizations, groups, persons with whom an organization must interact in order to survive and prosper stakeholders

customers suppliers competitors regulators

Typical Stakeholders

Stockholders

Employees

LabourUnions

Customers

Suppliers

Politicalparties Courts

Public InterestGroups

Banks

EducationalInstitutions

Competitors

Business

Government

External Environments of OrganizationsEnvironmental Uncertainty

lack of complete information regarding what developments will occur in the external environment

two dimensions• complexity• rate of change

Customer-Driven Organizations

Why Do Customers Count? Important source of competitive advantage

Customer-Driven Organizations

External and Internal Customers External

purchase the goods or services produced Internal

individuals who depend on the results of others' work to do their own jobs

Internal Customer/Client Service Points

Customer-Driven Organizations

Who Are the Customers?

Resource Inputs

Suppliers Job Job Job Job

Product outputs

Customers

Transformation Processes & Workflows

External Customer/Client Service Points

Customer-Driven Organizations

Customers and Operations Management Operations

activities and decisions through which organizations transform resource inputs into product outputs

• product output can be goods or services

Transformation process actual set of operations used to produce finished

goods or services

Commitment to Quality Operations

Total Quality Management quality principles as an integral part of

organization's strategic objectives applying them to all aspects of operations committing to continuous improvement striving to meet customers’ needs correctly the first

time

Commitment to Quality Operations

Quality and Continuous Improvement Continuous

Improvement Always looking for

new ways to improve upon current performance

Commitment to Quality Operations

Quality Circles group of workers who meet regularly to discuss

ways of improving quality of products or services

assume responsibility for quality can result in cost savings from improved quality

and increased customer satisfaction

Commitment to Quality Operations

Cycle time elapsed time between

receipt of an order and delivery of the finished product

objective is to reduce the amount of time and costs

Commitment to Quality Operations

Quality and Operations Management Lean production

uses new technologies to streamline systems Flexible manufacturing

processes can be changed quickly to produce different products

Agile manufacturing/Mass customization allow individualized products quickly

Commitment to Quality Operations

Quality and Operations Management Design for

Manufacturing products designed by

taking into account how components will be recycled

The Nature of Organizational Culture

Organizational Culture is a system of shared beliefs and values that develop within an organization and guide the behavior of its members

Thinking and Inquiry

Two business women, former classmates in university, are discussing their careers over lunch. You overhear one saying to another, “I work for a large corporation, while you own a small retail business. In my company there is a strong corporate culture and everyone feels the influence. In fact, we are always expected to act in ways that support the culture and serve as role models for others to do so as well. This includes commitment to diversity and multiculturalism. Because of the small size of your business, things like corporate culture, diversity, and multiculturalism are not so important.”

Do you agree or disagree with this statement? Why?

The Nature of Organizational Culture

What Strong Cultures Can Do Strong cultures are

clear, well defined widely shared among members

• encourage positive work behaviors• performance oriented• emphasize teamwork

The Nature of Organizational Culture

Levels of Organizational Culture Observable culture

Stories• Told and retold among members

Heroes• Singling out workers for special attention; role models

Rites and rituals• Ceremonies and meetings

Symbols• Special use of language or non-verbal expressions

The Nature of Organizational Culture

Leadership and Organizational Culture Criteria of core values

relevance pervasiveness strength

Tribal Leadership – TED Talks

The Nature of Organizational Culture

Symbolic Managers someone who uses symbols well to establish

and maintain desired organizational culture use language metaphors tell key stories and encourage others to tell them tell about organizational heroes use symbolic rites and rituals

Directions in Organizational Culture

Culture and Empowerment best organizational cultures value

talents and creative potential of all members allow human resources to to utilized to fullest

potential allow people involved to feel good about work

Directions in Organizational Culture

Characteristics of Multi-cultural Organizations pluralism structural integration informal network integration absence of prejudice and discrimination minimum intergroup conflict

Exercise - Lenovo

Directions in Organizational Culture

Organizational Subcultures cultures based on shared work responsibilities

and personal characteristics occupational functional ethnic and racial generational gender

Group Exercise – What Do You Value in Work

Directions in Organizational Culture

Ethical Cultures top management has important role managers at every level set ethical tone in their

immediate area greatly expand impact of organizational culture

on performance

Summative Assignment #1

Using the Internet, prepare responses to the following questions:1. What is the “glass ceiling”?2. How does the “glass ceiling” act to disadvantage certain groups of

people?3. Read the article found at

http://www.canadianbusiness.com/article/42679--women-made-little-progress-in-corporate-ladder-over-last-22-years-report

What does the article suggest in terms of disadvantaged groups? Are you surprised by these findings?

If you were given the responsibility to hire your next manager, list the personal qualifications you would look for in the ideal candidate