Convenience

Chapter 1:
Understanding the Manager’s Job
3 3
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C H A P T E R
2
The Environments of
Organizations and Managers
Learning Outcomes
After studying this chapter, you should be able to:
1
Discuss the nature of an organization’s environments and identify the components of its general, task,
and internal environments.
2
Describe the ethical and social environment of management, including individual ethics, the concept of
social responsibility, and how organizations can manage social responsibility.
3
Discuss the international environment of management, including trends in international business, levels
of international business activities, and the context of international business.
4
Describe the importance and determinants of an organization’s culture, as well as how organizational
culture can be managed.
Management in Action
Social Entrepreneurship at Its Finest
“We function much as venture capitalists do in the private sector. You could
say we’re social VCs.”
—Neal Keny-Guyer, CEO of Mercy Corps
In the aftermath of the devastating earthquake that struck the island nation of
Haiti in January 2010, Oregon-based Mercy Corps arrived with a team of
emergency-response experts from around the world. Focusing on immediate
humanitarian needs, the team delivered food to overwhelmed hospitals and set
up services to provide clean water. Mercy Corps also initiated a work-for-cash
program that paid survivors to aid in clearing debris and restoring buildings,
thus providing them with a little dignity along with the means to purchase
supplies for their families and jumpstart the local economy. In addition, the
organization set up trauma centers for children, using counseling methods that it
had helped to develop in the wake of the 9/11 terrorist attacks in New York City
eight years earlier. Similarly, following the devastating earthquake and tsunami
that struck Japan in March 2011, Mercy Corps delivered emergency supplies and
set up such programs as Comfort for Kids to help children deal with the
emotional effects of a large-scale disaster.
Obviously, Mercy Corps isn’t a newcomer to the enterprise of providing
humanitarian aid. Founded in 1979 as the Save the Refugees Fund, a task force
to help victims of famine and genocide in Cambodia, it expanded in 1982,
becoming Mercy Corps International to reflect its broader mission. Since its
Sergii Tsololo/Photos.com
3 4
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.
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founding, the nonprofit organization has provided $2 2 billion in humanitarian aid
and development assistance to people in 114 countries and annually reaches
nearly 19 million people in 36 nations.
Mercy Corps’ approach to on-the-ground assistance also involves more than
immediate-response and emergency-relief services, as noted in its mission statement:
Mercy Corps has learned that communities recovering from war or social
upheaval must be the agents of their own transformation for change to
endure. It’s only when communities set their own agendas, raise their
own resources, and implement programs themselves that the first
successes result in the renewed hope, confidence, and skills to continue
their development independently.
Mercy Corps thus works to foster “sustainable community development that
integrates agriculture, health, housing and infrastructure, economic development,
education, and environment and local management,” as well as launching
“initiatives that promote citizen participation, accountability, conflict management,
and the rule of law.” In India, for example, Mercy Corps has taught small-scale tea
farmers sustainable ways to grow organic teas and get fair prices for them. On
plantations owned by big tea companies, it’s helped not only to improve living
and economic conditions in worker villages but also to form self-governing
Community Initiative Groups to manage ongoing community needs in education,
infrastructure, and employment. In southern Sudan, which has been torn by
Africa’s longest civil war, Mercy Corps has built networks of local organizations to
provide such essential services as adult literacy, orphan care, and HIV/AIDS
counseling; other programs have helped to build roads and community centers
and to electrify villages.
LAN/C
orbis
Mercy Corps is a global humanitarian not-for-profit organization that provides assistance in the
wake of war, social upheaval, or natural disaster.