Table of Contents
1. Introduction p. 2
2. Part A: The internal and external environment p. 2
2.1. The external environment p. 2
2.2. The internal environment p. 3
3. Part B: Managerial ethics p. 4
4. Part C: Corporate social responsibility p. 6
5. Conclusion p. 7
Reference List p.9
1. Introduction
The purpose of this assignment is to portray and evaluate the main management failures that led to the collapse of ABC Learning Centres Ltd (ABC) under the management of Eddy Groves. Therefore it is to be looked at the following areas: internal and external environment, managerial ethics and corporate social responsibility. Further more it
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The external environmental conditions Eddy Groves had to deal with can be described as comparatively comfortable as a simple and stable environment is the least uncertain one, where managers` influences on organisational outcomes is greatest (Robbins et al. 2008, p. 91).
2.2. The internal environment
An organisation`s major internal environmental factor is the organisation`s culture (Davey 2010, p. 34). An organisation`s culture is made up of the shared values, principles, traditions and ways of doing things that influence the way the members in an organisation act (Robbins et al. 2008, p. 94). Researchers found seven dimensions (Innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness and stability) that together constitute the organisations culture and in many companies one of those dimensions are more prevalent than others and shape the organisations culture (Robbins et al. 2008, p. 94).The original source of an organisation´s culture usually reflects the vision of its founders and shows their focus (Robbins et al. 2008, p. 97).
In view of ABC there can be found a strong focus on outcome and profit orientation and a high level of aggressiveness on the one hand and a poor people orientation and attention to detail on the other hand.
The main focus Groves had was on growth and profit at all costs. To
Organizational culture is the “values and beliefs that people have about an organization and provides expectations to people about the appropriate way to behave” (Kinicki, 2013, slide 3). Corporates can change Changing organizational culture can be a process using one or more of the eleven strategies, (1) formal statements, (2) slogans & sayings, (3) stories, legend, & myths, (4) leader reactions crises, (5) role modeling, training, & coaching, (6) physical design, (7) rewards, titles, promotions, & bonuses, (8) organizational goals & performance criteria, (9) measurable & controllable activities, (10) organizational structure, and (11) organizational systems & procedures (Kinicki & Williams, 2013, p. 236-137). Like stated before organizations
“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature
* People Shape the Culture. Personalities and experiences of employees create the culture of an organization. For example, if most of the people in an organization are very outgoing, the culture is likely to be open and sociable. If many artifacts depicting the company’s history and values are in evidence throughout the company, people value their history and culture. If doors are open, and few closed door meetings are held, the culture is unguarded. If negativity about supervision and the company is widespread and complained about by employees, a culture of negativity, that is difficult to overcome, will take hold.
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
Before this chapter I thought organization’s culture was only internal and outside factors only affect the brand and sales of the company. But I have now learned a lot more about the
A strong culture is important to today’s organizations in a fast pace environment affected by a diverse internal workforce (Baker, 2002 p. 4). Schein (as cited in Baker, 2002) defined organizational culture as an arrangement of shared beliefs that the group learned through problem solving, and adapting to internal and external environments (p.4). Culture is not only a means of bettering internal coordination, but is important in facilitating environmental adaptation (Baker, 2002 p. 4).
Internally, organizational culture, a set of important assumptions that members of an organization share in common, should be established to provide meaning, direction, and a basis for action (Pearce & Robinson, 2004). The organization would benefit if leaders promote and identify key themes and dominant values within the organization to reinforce competitive advantage they seek to maintain and build (Pearce & Robinson, 2004).
Organization culture is the matter that holds a company intact. This is what makes each
Organization culture is the matter that holds a company intact. This is what makes each
A strong organizational culture provides both the company and its employees with direction and stability. The culture within an organization can be powerful enough to effect employee attitude and behavior as well as performance and turnover ratio. According to many scientific studies, there are seven primary characteristics used to define the culture of an organization: innovation and risk taking, outcome orientation, people orientation, team orientation, aggressiveness and stability.
The purpose of this paper is to analyze the culture, the internal, and the external factors in an organization. Our job is to examine the entirety of the organization. That would include the structural and environmental elements that effect the operation of the business. We will also take an in depth look at the perspectives of employees, managers, owners, and clientele.
Study in organizational culture began in the early 1980s. Organizational culture is “work group culture” and involves organization’s personality. Organizational culture includes shared philosophies, ideologies, beliefs, feelings, assumptions, expectations, attitudes, norms and values (Fred Lunenburg, Allan Ornstein, 2012, p. 55). Most organizational cultures include observed behavioral regularities, norms, dominant values, philosophy, rules, and feelings. Organizational cultures includes certain input such as the energy imported by organizations from the environment in the form of information, people, and materials (Fred Lunenburg, Allan Ornstein, 2012, p. 55). This input energy must guide organizational behavior toward shared goals and process. Organizations produce an output because of the input into the
Edgar Schein outlines those characteristics in better understanding and assessing the culture and climate of an organization. A lot energy and emphasis is focused on the identification and application of an organization’s guiding principles. Schein suggests that our guiding values and principles are important, but it is in the organizations structure, culture, action that describes the true character of an organization. He spends time focusing on artifacts, indicators of an organizations true culture, values and beliefs. When someone better understands an organization, they know that observation is a key to find out their true make up. This will also lead to finding about some of the reinforcing and extinguishing characteristics of the organization.
Perhaps the greatest challenge to managing information systems today is globalization. The lack of international borders to business has created many new opportunities but also many new challenges for managers. Untapped technology markets exist in many developing
Organizational culture has been defined as the “normative glue” that holds an organization together (Tichy, 1982). Forehand and von Gilmer (1964) suggest that culture is the set of characteristics that describe an organization and distinguish it from others. Schein (1990), in a more comprehensive fashion, defines culture as values and behaviors that are believed to