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1-The internal and external elements that affect an organization make up the organizational environment. The organization exists within a general environment that consists of technological, political, legal, economic, sociocultural, and international forces. These elements provide the broader context in which an organization exists. In addition, stakeholders are individuals and other organizations that have a give-and-take relationship that directly influences the organization. Stakeholders may be internal or external to the company but they are often affected by the organizations actions and reciprocally influence the organization in a variety of ways. The term task environment is usually associated with stakeholders that are external to the organization, but interact with the organization on a very regular basis, such as customers, suppliers, and competitors. The internal environment consists of the owners, management, and employees of the company. In addition to the actual people that make up the organization, the internal environment includes the corporate culture—the values and norms shared by members of the organization.
2-Organizational culture is an important element of the internal environment. An organization’s culture consists of the shared values, traditions, and practices that influence the behaviors of organizational members. It may not be easy to verbalize the exact dimensions of a particular organization’s culture but it typically can be observed through business practices, symbols, and stories. For example, the appearance of the offices, the way employees dress, and the size of the legal staff are all manifestations of an underlying culture.Stories of organizational heroes emphasize principles that should be followed by others. The stories may or may not even be true but they are repeated frequently among employees as a method of conveying cultural values. Consider the example of a story about customer service at a Nordstrom department store that has been shared for decades in the company and externally in books and the news media35. It is said that a customer once visited a Nordstrom store with the desire of returning a tire. Even though the department store chain sells shoes and clothes and had never sold tires, the clerk accepted the tire and gave the customer a refund. Excellent customer service is one of the cultural pillars of Nordstrom and this type of story helps to communicate this deeply embedded value.The culture of an organization has a powerful influence on the performance of the organization but it can be a significant challenge for managers since it is not tangible or easily changed. Culture consists of perceptions of organizational members and stakeholders that describe the way that things are “done around here.” Strong cultures have common perceptions that are obvious to a great majority of employees. It provides a framework upon which managers and employees may easily base their decisions36. On the other hand, weak cultures often include divergent perceptions between managers and employees. Managers may espouse a particular set of values but employees may observe actions that are not aligned with such values. In weak cultures, organizational members are often confused about the principles that should guide behavior which generally leads to incongruent actions and results37.Purchase the answer to view it
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