Chapter 2: The Environment and Corporate Culture Understanding Management, 12th Edition Authors: Richard L. Daft and Dorothy Marcic
Introduction to Chapter 2 This chapter explores the external and internal environments that impact organizations, focusing on various environments, their relationship with the organization, and corporate culture.
2.1 The Environment and Corporate Culture Comprehensive overview of how external and internal factors form a corporate culture that influences organizational practices and outcomes.
2-1a Task Environment The immediate environment in which an organization operates including customers, suppliers, and competitors, and how these entities directly affect organizational operations.
2-1b General Environment Covers broader forces that affect all organizations including economic, technological, sociocultural, demographic, political, and legal factors.
2-2 The Organization–Environment Relationship Describes how organizations and environments affect each other and the importance of adaptability and strategic alignment.
2-2a Environmental Uncertainty Discussion on the lack of information managers have about environmental factors and the implications for strategic planning.
2-2b Adapting to the Environment Strategies organizations use to adapt to their environments, such as adjusting organizational structure, changing offerings, and innovating processes.
2-3 The Internal Environment: Corporate Culture Overview of how internal corporate culture is the personality of the organization, affecting all aspects of its operations and reflecting underlying values, beliefs, and norms.
2-3a What Is Culture? Defines culture as the collection of values, beliefs, behaviors, customs, and attitudes that characterize a community of people.
2-3b Toxic Cultures Discusses the characteristics of toxic cultures where negative behaviors prevail, leading to poor employee morale and reduced productivity.
2-4 Interpreting/Shaping Culture Explains how managers can interpret and shape organizational culture through actions, policies, and strategic decisions to align with long-term goals.
2-5 Types of Culture Details the four types of organizational cultures: Adaptability, Achievement, Involvement, and Consistency, and their impact on organizational effectiveness.