Internal environment
2 types of manager views
omnipotent and symbolic
what is an omnipotent manager view
where managers are directly responsible for a companies failure/ success
what is a symbolic manager view
where external factors are responsible for a companies failure/ succes -> outside of managers control
managers actions are constrained
internal constrains: comes from the organizations culture and external constrains: comes from organizational external factors
2 dimensions to environmental uncertainty
degree of change: unpredictable change and degree of complexity: extent to which the company knows about its competitors and the environment
environments can be both:
dynamic: components in the environment change frequently and structured: the components dont change frequently
how is the environment of an organization that does not have many competitors
the environment is less complex and uncertain
external environment (macro)
factors outside of the environment of a company which affects performance
external factors include
STEEP
specific environment
the part directly related to the achievements of a companies goals.
managers, competitors, government, organization
what can happen if an organization fails to monitor its competitors?
it can lead to market share loss and threaten long-term survival
SWOT analysis consist of.... and allow managers to:
strengths, weaknesses, opportunities, threats
allows managers to formulate appropriate strategies:
-exploit the strengths and opportunities
-protect the organization from external threats
-correct critical weaknesses
analysing the external environment is a critical step in:
the strategic management process; what managers do to develop strategies
strategic management process aims to and is important because
aims:
-show what competitors are doing
-how the government might affect the organization
-show how the supply is where they operare
important because:
-has a positive impact on performance
-helps managers decide how to act in face of change
-helps complex and diverse organizations work together
mission
purpose of the company
organizational goals:
what the company wants to reach
resources:
assets a company has
capabilities
skills and abilities for doing the work
core competencies
the organizations major value- creating capabilities that determine its competitive weapons
internal enivornment (micro)
provides important information about a companies specific resources and capabilities. S&W
Steps of the internal environment
1. identify organizations mission, vission and goals
2. swot analysis using the external en internal environment
3. formulate stratgies
4. implement strategies
5. evaluate results
reasons why HR is important
1. source of competitive advantage
2. important part of organizational strategies
3. how managers treat employees has great impact on performance
8 steps in 3 activities of HRM
activity 1. identify and select competent employees
step 1. human resource planning
step 2. recruitment
step 3. selection
activity 2. provide employees with up to date skills and knowledge
step 4. orientation
step 5. training
activoty 3. retain competent & high performing employees
step 6. performance management
step 7. compensation& benefits
step 8. career development
what does human resource planning do? and what are the 2 steps
ensuring the company has the right number and kinds of capable people in the right places and time
step 1. assess current HR
step 2. meet future HR needs
job analysis
assesment that defines the job and behaviours neccessary to perform them
job description
written statement that describes the job
job specifications
minium qualifications a person needs to posses to perfom a job successfuly
reruitment and decruitment
hiring and firing
valid selection characterized by:
relationship between selection device and relevent criteria
reliable selection indicates:
it measures the same thing consistently
why is a realistic job preview important?
it gives an applicant more realistic expectations about the job which in turn should increae employee job satisfaction and reduce turnover
types of training:
1. general
2. specific
performance evaluation is one of the most important tasks a manager undertakes:
it can help employees improve performance and boost or eorde employee morale
performance evaluation
practice of providing job feedback to an employee that may. be used to improve performance
type of pay:
1. skilled based pay -> set pay skills by skill level and not by job title
2. variable pay -> link a percentage of a position pay to performance and accomplished targets
career development trends:
1. life-long learning -> trainings
2. internships -> trial for organizations to determine which interns will be offered a job
why is orientation important
it results in an outsider insider transition that makes the new employee feel comfortable and fairly well adjusted and reduces employee turnover
business model
how a company is going to make money
3 main types of strategies
1. corporate: determines what business a company is in or wants to be in
- grow (opp vs strengths), when an organization wants to expand the number of markets served
-stability (threats vs strengths), when an organization continuous to do what it is currently doing -> doesnt grow and doesnt fall behind either.
-renewal (opp vs weakness), designed to address declining performance. 2 types -> retrenchment and turnaround
2. competitive: how an organization will compete in its business. how it sets itself apart
can stem from: quality, low cost, technology ( differentiation strategy)
3. functional: to support the competitive strategy
what does the confrontation matrix help companies with and when is it succesful:
decide what strategy best to pursue and it is successful when:
-options are measurable
-objectives dont contradict each other
-goals are achievable
what is a strategic business unit
the single independant business of an organization that formulates their own competitive strategy
businesses must not only develop a competitive strategy, they must also sustain it by using:
1. economic moat: protecting long-term profits and market share using various means
2. porters 5 forces model:
-threat of new entrants
-threat of subsitutes
-bargaining power of buyers
-bargaining power of suppliers
-current rivalry
what is a first mover, and what are the advantages and disadvantages:
an organization thats first to bring a product innovation to the market
advantages:
-industry leader
disadvantage:
-risk of competitors immitating innovation
6 dimensions that capture organizational culture
adaptability
people orientation
team orientation
outcome orientation
attention to detail
integrity
managerial decisions
planning organizing, leading controlling
workforce diversity
ways in which people are different from and similar to each other in an organization
2 types of diversity
surface level (race, color) vs deep level
workplace diversity is important because
organizations can better anticipate and respond to changing consumer needs
have a better understanding of the market
people management
attracting and retaining a talented workforce
glass ceiling
invisible barrier that separates women and minorities from top management positions