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Management meeting and exceeding customer expectation 8th ch05

The Manager’s
Environment

Chapter 5

MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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learning objectives
1. Discuss why organizations are open systems
2. Identify the elements in an organization’s
internal environment


3. Describe the directly interactive forces in an
organization’s external environment

4. Describe the indirectly interactive forces in an
organization’s external environment

5. Discuss the means available to managers for
boundary spanning

6. Explain how managers can influence their
Chapter 5

external environments

7. Describe the obligations that organizations have
to their stakeholders

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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The Organization as a System
Environmental
Environmental
Scanning
Scanning

The process of collecting
information about the external
environment

 Identifies and analyzes trends
 Allows managers to determine the best
response to an environmental change

Chapter 5


 Identifies signals of change

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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The Organization as a System
Economic

External Environment

Natural
Technological Indirectly interactive forces

Owners
Customers

Inputs

Chapter 5

People
Information
Facilities
Infrastructure
Equipment
Machinery
Materials
Supplies
Finances

Directly interactive forces
Suppliers / Partners

Processing
Transformation
through
applications of
workforce
expertise and
technology

Internal Environment
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

Legal / Political
Sociocultural
Competitors
Labor Force

Outputs
Products
Services
Profits or
Losses
Customer
Satisfaction
Ethical
Behavior
Socially
Responsible
Behavior

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Internal Environment
AACompany’s
Company’s Mission
Mission

 Primary reason for existence
 The “touchstone”
 Should include whom it serves,
how, and why

 Easily recalled
 Provides direction and motivation
for the organization
Chapter 5

 Gets the emotional bonding and
commitment needed
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Core Competencies
Core
Core
Competencies
Competencies

Chapter 5

Intellectual
Intellectual
Capital
Capital

What an organization knows
and does best

Collective experiences
Wisdom
Knowledge
Expertise

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Organizational Culture
Shared
Shared
Values
Values
Beliefs
Beliefs

Chapter 5

Experiences
Experiences

Philosophies
Philosophies
Customs
Customs

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

Norms
Norms of
of
Behavior
Behavior

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Leadership

22

Chapter 5








Influencing others
Encouraging and enabling followers
“Walking the talk”
Setting an example
Creating a generative shared vision
Providing the catalyst for perpetual
learning

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

8


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Organizational Structure
Boundaryless
Boundaryless
Organization
Organization

Chapter 5

Learning
Learning
Organization
Organization

Not defined or limited by
horizontal, vertical, or external
boundaries imposed by a
predetermined structure

• Able to adapt to change
• Skilled at creating, acquiring,
and transferring knowledge
• Modifies its behavior to reflect
new knowledge and insights

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Resources
Information
Information
Facilities
Facilities and
and Infrastructure
Infrastructure
Machinery
Machinery and
and Equipment
Equipment

Chapter 5

Materials
Materials and
and Supplies
Supplies
Finances
Finances
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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33

Directly Interactive Forces

Owners
Owners

Customers
Customers

Suppliers
Suppliers
and
and Partners
Partners

Chapter 5

Competitors
Competitors

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

External
External
Labor
LaborPool
Pool

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Trends in Supplier Practices
Increased
Increased use
use of
of outsourcing
outsourcing
Close
Close alliances
alliances with
with outside
outside suppliers
suppliers
“Deep”
“Deep” alliances
alliances with
with fewer
fewer suppliers
suppliers

Chapter 5

Foreign
Foreign sources
sources for
for needed
needed supplies
supplies

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Competitive Bases
Price
Price
Quality
Quality
Convenience
Convenience

Selection
Selection
Product
Product
Features
Features

Performance
Performance

Chapter 5

Customer
Customer
Services
Services

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Indirectly Interactive Forces

Economic
Economic

Legal
Legal//
Political
Political

Sociocultural
Sociocultural

Chapter 5

Technological
Technological

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

Natural
Natural

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Economic Forces

44

Taxes
Taxes
Wages
Wages

Inflation
Inflation
Prices
Prices

Personal
Personal
Spending
Spending

Chapter 5

Interest
Interest
Rates
Rates

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

Business
Business
Spending
Spending

State
Stateof
of
Economy
Economy

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Legal / Political Forces
Legislative
Legislative Statutes
Statutes
Court
Court Decision
Decision Precedents
Precedents
Regulations
Regulations and
and Rulings
Rulings

Chapter 5

Agreements
Agreements among
among Governments/Companies
Governments/Companies

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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44

Sociocultural Forces

Chapter 5

Sociocultural
Sociocultural
Forces
Forces

The influences and contributions
from diverse groups outside an
organization

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Technological Forces
Processes
Processes
Materials
Materials
Knowledge
Knowledge

Chapter 5

Other
Other Discoveries
Discoveries

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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44

Natural Forces
Climate
Climate
Weather
Weather
Geography
Geography

Chapter 5

Geology
Geology

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Sensing and Adapting to
Environments
Boundary
Boundary
Spanning
Spanning

The surveillance of outside
areas and factors that can
influence plans, forecasts,
decisions, and organizations

Chapter 5

Sometimes called environmental
scanning

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Influencing Environments

Influencing
Influencing Legislation
Legislation

Chapter 5

Using
Using the
the power
power of
of the
the media
media

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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Chapter 5

77

Meeting Responsibilities to
Stakeholders
Owners
Owners

A
A fair
fair return
return on
on investment
investment

Employees
Employees

A
A safe
safe and
and psychologically
psychologically rewarding
rewarding
environment
environment

Customers
Customers

Sources
Sources for
for goods
goods and
and services
services

Suppliers
Suppliers

Honest
Honest and
and open
open communication
communication
Payment
Payment for
for services
services

Society
Society

Compliance
Compliance with
with laws
laws that
that protect
protect the
the
environment
environment and
and ethical
ethical behavior
behavior

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved

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