CHAPTER 3

The International Environment: Presentation prepared by Culture, Diversity, and Ethics Susan Bandias Charles Darwin University

Learning Objectives

Identify the components of the internal environment and discuss their impact on organisations.

Discuss the primary charateristics and determinants of an organisations culture and how the culture can be managed.
Identify the main dimensions, cause and impacts of workforce diversity and discuss the strategies and approaches to diversity management. Describe managerial ethics and CSR and discuss how they can be managed in organisations.
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The Organisation and Its Environment

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The Organisations Internal Environment

An organisations internal environment consists of conditions and forces within the organisation. Its major components include its

owners board of directors and governance structure employees and organised labour organisations culture
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Organisational Culture
The set of values that helps an organisations stakeholders understand what it stands for, how it does things and what it considers important. Links to organisational identity, reputation and aspirations. Supports organisational objectives => shape overall effectiveness and long-term success. Plays a major role in shaping the behaviour of managers .
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Primary Characteristics of Culture

1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation

5. Team orientation
6. Aggressiveness

7. Stability
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Determinants of Culture

1. The beliefs and values of the organisations founder(s)

2. The societal norms of the organisations host country

3. Problems of external adaptation 4. Problems of internal integration

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Managing Organisational Culture

Understand the determinants of culture. Decide if the culture needs to be maintained or changed.

If the culture is to be maintained reinforce it with symbols, ceremonies, reward and modelling.
If it is to be changed be clear about how. External change agents may help.
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Managing Diversity

When members of a group or organisation differ from one another along one or more important dimensions such as age, race, sex or ethnicity. First level dimensions: visible and impossible or difficult to change. Secondary dimensions: less visible and more variable, more control.
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Dimensions of Workforce Diversity

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The Cause and Impacts of Increasing Diversity

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Opportunities and Challenges of a Diverse Workforce

A force for social change A force for organisational change A source of competitive advantage:
Resource acquisition Creativity Systems flexibility Cost Marketing Problem-solving

A source of conflict
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Experiences of Diversity in Different Countries

Vietnam

Australia
New Zealand

The Pacific Rim

Japan

South Africa
India
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Individual Strategies for Managing Diversity

Understand the nature and meaning of diversity Empathise with others: Ethnocentrism Overcome prejudice: Stereotypes Communicate openly

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Managing Diversity in Organisations

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Organisational Approaches to Diversity Management

Traditional approaches: exclusion + assimilation Legislative approaches Anti-discrimination: equality Affirmative action approach: equity

Non-legislative approaches
Productive diversity: multual benefit

Valuing diversity: multual adaptation

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Organisational Strategies for Managing Diversity

Culture Organisational policies Organisational practices Communication Training

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Towards the Multicultural Organisation

Pluralism Full structural integration Full integration of informal network Absence of prejudice and discrimination

No gap in organisational identification based on identity differences

Low levels of intergroup conflict
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Individual Ethics in Organisations

An individuals personal beliefs regarding what is right and wrong, good or bad

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Managerial Ethics in Organisations

Principles and standards that guide individual managers in their work behaviour
How the organisation treats its employees Recruiting and firing Wages and working conditions Privacy How employees treat the organisation Conflicts of interest Secrecy Honesty and expense accounts How the organisation treats other economic agents Customers Competitors Shareholders Suppliers Dealers Unions

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Managing Ethical Behaviour

Code of conduct (must): A statement of obligations imposed by an organisation on its employees in addition to specific duties imposed by legislation.

Code of ethics (should, ought): A formal written statement of the values and ethical standards that guide a companys actions.

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Corporate Social Responsibility

The desired behaviour of organisations in regard to economic, environmental and social performance
Arguments for CSR
Business creates problems and should help solve them Business are citizens in society Business has resources to solve problems Business is a partner in society along with government and general population

Arguements against CSR

Business aims to generate porfit for owners Involvement in social programs gives business too much power There is potential for conflicts of interest Business lacks expertise to manage social programs

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Managing social responsibility

Social obstruction: ignore and transgress legal and ethical responsibilities. Social obligation: fulfill all legal and ethical requirements, and nothing more (legal/ethical compliance) Social response: fulfill legal and ethical requirements, with extra contributions to community (philanthropic giving) Social contribution: fulfill legal and ethical requirements, with proactive assistance to community.

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Take-home messages

Review the key points of lecture 3 Read chapters 3 and 5 of the textbook (chapter 4 is optional) Work on sections 2 and 3 of the team project Present these two sections next week

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