UNEC__1741118318.pptx.pptvjbhbjvjvkvhvhc

UNEC__1741118318.pptx.pptvjbhbjvjvkvhvhc

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  External and Internal OrganizationalEnvironments and Corporate Culture by Afag Zeynalova
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  To succeed andthrive, organizations must adapt to the forces in their external environments. This presentation explores how companies organize to meet external market threats and opportunities, and how organizational structures and cultures align with environmental demands. We'll examine contemporary external forces pressuring organizations, different organizational structures and their effectiveness, and how corporate cultures can create competitive advantage. Throughout this journey, we'll see how exceptional companies like Amazon exemplify evolving business models that combine strategic innovation, technological prowess, and organizational agility.
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  Learning Outcomes External Environment Definethe external environment of organizations and identify contemporary forces pressuring organizations. Organizational Structures Identify different types of organizational structures, their strengths and weaknesses, and how they align with external environments. Corporate Culture Understand how organizational cultures fit with external environments and the importance of alignment for competitive advantage.
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  The Organization's ExternalEnvironment Sociocultural Forces Generations' values, beliefs, attitudes, customs, traditions, habits, and lifestyles that influence organizational practices. 1 Technological Forces Speed, price, service, and quality dimensions that provide competitive advantage through information technologies. 2 Economic Forces Exchange rates, wages, employment statistics, inflation, and other factors affecting organizational costs and revenues. 3 Political Forces Government policies, regulations, and political events that create uncertainty and opportunities for businesses. 4 Natural Events Disasters and environmental problems that affect business operations and strategic planning. 5
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  Contemporary External Forces 1Digital Technologies and AI Extensions of AI help automate a firm's value chain, speeding up operations and service to customers. A current survey showed that 59% of organizations are collecting information to develop AI strategies, while others are already piloting or adopting AI solutions to compete faster and at lower costs. 2 Blockchain Technologies Blockchain creates unchangeable records of transactions shared among disparate users. These technological innovations affect almost every business process from procurement to legal management, increasing speed, security, and accuracy of transactions. 3 Sharing-Economy Business Models Companies like Airbnb and Uber use information technologies to disrupt traditional industries by removing middle layers in transactions, increasing efficiencies and customer satisfaction while cutting costs.
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  Environmental Complexity andUncertainty 1 Simple-Stable Low uncertainty with few elements that change slowly 2 Complex-Stable Moderate uncertainty with many elements that change slowly 3 Simple-Unstable Moderate uncertainty with few elements that change frequently 4 Complex-Unstable High uncertainty with many elements that change frequently Organizations must align their structures with their environmental complexity and uncertainty. For example, beer distributors and food processors fit well in simple-stable environments, while computer and aerospace companies operate effectively in complex-unstable environments.
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  Sociocultural and PoliticalForces Sociocultural Trends The millennial workforce seeks engaging work and is health conscious. They're technologically adept and will be the largest living adult generation by 2019. Organizations must provide wellness programs, interesting work experiences, and learning opportunities to attract this talent. Workplace diversity continues to increase, and companies with diverse leadership show better financial performance. Yet women still comprise only about 10% of top executive positions in U.S. companies. Political Forces Recent events jarring the global economy include Brexit, nationalistic policies, Middle East conflicts, disruption of free trade agreements, healthcare reform, and immigration debates. These create uncertainty for businesses while simultaneously creating opportunities for some industries and instability in others. Organizations must continually monitor political developments to anticipate regulatory changes and economic impacts.
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  Organizational Structures: Mechanistic vs.Organic 2 Primary Types Organizational structures fall into mechanistic or organic categories 1970s Evolution Era Shift from mechanistic to organic designs began in late 1970s 4 Key Dimensions Centralization, formalization, complexity, and integration Mechanistic organizations feature top-down hierarchies of control, centralized authority, specialized tasks, and rigid departmentalization. They work best in stable, simple environments. Organic organizations have flatter structures with participatory communication, fluid task allocation, and wider spans of control - suited for unstable, complex environments.
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  Functional and DivisionalStructures Functional Structure Organized by departments and expertise areas (R&D, production, accounting, HR). Advantages include high specialization, simple reporting systems, and economies of scale. Disadvantages include departmental isolation, slow decision-making, and resource competition. Divisional Structure Multiple functional departments grouped under division heads. Advantages include focused business segments, clear responsibilities, quicker customer service, and decentralized decision-making. Disadvantages include division isolation and potential system incompatibilities.
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  Matrix and GeographicStructures Matrix structures combine vertical with horizontal structures, creating dual reporting relationships. Employees report to both a functional boss and a project team boss. This provides flexibility and better integration, but can create confusion and conflict. Geographic structures organize by customer locations as companies expand nationally and globally. Each geographic unit understands local customer needs and cultural differences, but headquarters must ensure effective coordination across somewhat autonomous divisions.
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  Networked and VirtualStructures Networked Teams Informal, flexible teams that naturally form after initial assignment. Members find others who can help solve problems or identify opportunities. Communication focuses on relationships and tasks rather than formal reporting lines. Virtual Organization Emerged in the 1990s to provide more flexibility, solution-based tasks on demand, fewer geographical constraints, and access to dispersed expertise. Depends heavily on information communication technologies. Company Examples Uber, Airbnb, Amazon, Reebok, Nike, Puma, and Dell use virtual structures with outsourced tasks, positions, and projects to reduce costs and increase flexibility.
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  Internal Organization andExternal Environment 1 Vision & Strategy Set by leadership to respond to external environment 2 Structure & Systems Designed to implement strategy effectively 3 Skills & Staff Human capabilities to execute operations 4 Shared Values (Culture) Foundational principles guiding behavior Organizations operate as open systems that take in resources (inputs) from the environment, transform them through internal processes (throughput), and return outputs to the environment. Leadership must scan the environment to identify uncertainties and resources, then align internal dimensions accordingly.
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  Corporate Culture Strategic Direction Cultureguides strategic choices and implementation approaches. Internal Unity Culture brings members together to work cohesively toward common goals. External Adaptation Culture helps organizations respond to external threats and opportunities. As Peter Drucker famously stated, "Culture eats strategy for breakfast." Organizational culture serves two crucial purposes: helping an organization adapt to its external environment and creating internal unity. Culture is both the personality and glue that binds an organization together.
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  Competing Values Framework AdhocracyClan Hierarchy Market The Competing Values Framework identifies four cultural types based on external/internal focus and flexibility/stability orientation: Adhocracy Culture: External focus with flexibility orientation - emphasizes innovation, risk-taking, and entrepreneurship (Google, Facebook). Clan Culture: Internal focus with flexibility orientation - emphasizes relationships, team building, and human development (Tom's of Maine). Hierarchy Culture: Internal focus with stability orientation - emphasizes efficiency, process control, and precision (USPS, military). Market Culture: External focus with stability orientation - emphasizes results, competition, and goal achievement (Oracle).
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  Organizing for Changein the 21st Century 1 System Modularity Organizations need "loosely coupled" structures rather than rigid hierarchies to adapt to high-impact environments. 2 Contextual Awareness Organizations must understand their geographical context and the health of individuals, families, neighborhoods, and communities they affect. 3 Social Cohesion Social capital serves as a resilience resource during crises and transformations. 4 Proactive Transformation Organizations must change proactively through foresight, innovation, and experimentation rather than being forced to change by external circumstances.
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  The Social Enterprise:The Future of Organizations 65% CEO Priority Percentage of CEOs who rate "inclusive growth" as a top-three strategic concern 3X Shift in Focus CEOs prioritize inclusive growth over shareholder value by this factor 4 Risk Factors Major environmental trends: inequality, political tensions, environmental dangers, cyber vulnerabilities Organizations are increasingly being evaluated on their impact on society at large—transforming from business enterprises into social enterprises. A social enterprise combines revenue growth and profit-making with supporting its environment and stakeholder network. These organizations actively manage the trends shaping today's world, serve as good citizens both internally and externally, and promote high collaboration at every level. Companies like Amazon, Google, and SpaceX exemplify this pioneering resilience through innovation and experimentation.