Session:15 External and Internal Organizational Environments and Corporate Culture
Key Terms
Organizational Behavior | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/organizational-behavior
- Adhocracy culture
- Creates an environment of innovating, visioning the future, accepting of managing change, and risk taking, rule-breaking, experimentation, entrepreneurship, and uncertainty.
- Clan culture
- Focuses on relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching.
- Competing Values Framework
- Developed by Kim Cameron and Robert Quinn this model is used for diagnosing an organization’s cultural effectiveness and examining its fit with its environment.
- Complex-Stable environments
- Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly.
- Complex-Unstable environments
- Environments that have a large number of external elements, and elements are dissimilar and where elements change frequently and unpredictably
- Corporate culture
- Defines how motivating employees’ beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in.
- Divisional structure
- An organizational structure characterized by functional departments grouped under a division head.
- Domain
- The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise’s purpose.
- Functional structure
- The earliest and most used organizational designs.
- Geographic structure
- An Organizational option aimed at moving from a mechanistic to more organic design to serve customers faster and with relevant products and services; as such, this structure is organized by locations of customers that a company serves.
- Government and political environment forces
- The global economy and changing political actions increase uncertainty for businesses, while creating opportunities for some industries and instability in others.
- Hierarchy culture
- Emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, careful decision making.
- Horizontal organizational structures
- A “flatter” organizational structure often found in matrix organizations where individuals relish the breath and development that their team offers.
- Internal dimensions of organizations
- How an organization’s culture affects and influences its strategy.
- Market culture
- Focuses on delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, competing and getting things done.
- Matrix structure
- An organizational structure close in approach to organic systems that attempt to respond to environmental uncertainty, complexity, and instability.
- McKinsey 7-S model
- A popular depiction of internal organizational dimensions.
- Mechanistic organizational structures
- Best suited for environments that range from stable and simple to low-moderate uncertainty and have a formal “pyramid’ structure.
- Natural disaster and human induced environmental problems
- Events such as high-impact hurricanes, extreme temperatures and the rise in CO2 emissions as well as ‘man-made’ environmental disasters such as water and food crises; biodiversity loss and ecosystem collapse; large-scale involuntary migration are a force that affects organizations.
- Networked-team structure
- A form of the horizontal organization.
- Organic organizational structures
- The opposite of a functional organizational form that works best in unstable, complex changing environments.
- Organizational structures
- A broad term that covers both mechanistic and organic organizational structures.
- Simple-Stable environments
- Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly.
- Simple-Unstable environments
- Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably.
- Socio-cultural environment forces
- Include different generations’ values, beliefs, attitudes and habits, customs and traditions, habits and lifestyles.
- Technological forces
- Environmental influence on organizations where speed, price, service, and quality of products and services are dimensions of organizations’ competitive advantage in this era.
- Virtual structure
- A recent organizational structure that has emerged in the 1990’s and early 2000’s as a response to requiring more flexibility, solution based tasks on demand, less geographical constraints, and accessibility to dispersed expertise.