Convenience

Chapter 2:
The Environments of Organizations and Managers
5 7
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
www.MyEbookNiche.eCrater.com

---

because the cultures of the two firms were so different.
48
To change culture, managers
must have a clear idea of what they want to create. When United and Continental
Airlines merged, top managers stressed that they wanted the new firm to personify
Continental’s employee-friendly culture and avoid the old United culture that was
fraught with hostility and mistrust between management and labor.
49
SUMMARY OF LEARNING OUTCOMES AND KEY POINTS
1.
Discuss the nature of an organization’s environ-
ments, and identify and describe the components
of its general, task, and internal environments.
• Managers need to have a thorough under-
standing of the environment in which they
operate and compete. The general environment
consists of the economy, technology, and the
political–legal climate. The task environment
consists of competitors, customers, suppliers,
strategic partners, and regulators.
• The internal environment consists of the
organization’s owners, board of directors,
employees, physical environment, and culture.
Owners are those who have claims on the
property rights of the organization. The board of
directors, elected by stockholders, is responsible
for overseeing a firm’s top managers. Individual
employees are other important parts of the
internal environment. The physical environ-
ment, yet another part of the internal environ-
ment, varies greatly across organizations.
2.
Describe the ethical and social environment
of management, including individual ethics, the
concept of social responsibility, and how
organizations can manage social responsibility.
• The ethical and social environment of
management is also quite important. Under-
standing the differences between ethical and
unethical behavior, as well as appreciating the
special nature of managerial ethics, can help
guide effective decision making. Understanding
the meaning of and arguments for and against
social responsibility can help a manager
effectively address both the formal and informal
dimensions of social responsibility.
3.
Discuss the international environment of man-
agement, including trends in international
business, levels of international business activities,
and the context of international business.
• The international environment of management
can be a crucial one. Current trends have
resulted in the increasing globalization of mar-
kets, industries, and businesses. Organizations
seeking to become more international can rely
on importing, exporting, licensing (including
franchising), strategic alliances, and direct
investment to do so. National culture, controls
on international trade, economic communities,
and the WTO combine to determine the
context of international business.
4.
Describe the importance and determinants of an
organization’s culture, as well as how organiza-
tional culture can be managed.
• Organizational culture is the set of values, beliefs,
behaviors, customs, and attitudes that helps the
organization’s members understand what it
stands for, how it does things, and what it
considers important. Organizational culture is an
important environmental concern for managers.
Managers must understand that culture is a key
determinant of how well their organization will
perform. Culture can be assessed and managed
in a number of different ways.
DISCUSSION QUESTIONS