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Bottom Line: Organizational structure is like a house.

Organizational culture makes the house a


home. The external environment is the neighborhood.

Key Terms:

Organizational culture relates to shared beliefs, values, and norms within an organization.

Organizational stories are accounts of organizational events that convey a greater meaning.
They highlight organizational values. They are useful to indoctrinate new members in the
organization.

Ceremonies are public events that reinforce organizational values.

Organizational heroes are members of the organization held up as examples. They illustrate
values.

Rites ofpassage are rituals that mark a change in social status. Often these rites are part of a
formal ceremony.

Visible artifacts (see symbols).

Symbols are tangible signs of organizational values. Buildings, decor, and office furnishings tell
outsiders information about the company.

Individualism places a cultural emphasis on individual rights, self-interest, and autonomy over
the collective. In this type of culture, rights are emphasized, but community may be lost.

Collectivism places a cultural emphasis on the group or society over the rights and efforts of the
individual. In a collectivist soCiety, self-identity is primarily group identity, and the individual is
subordinate to the group.

Strong cultures are cultures where organizational values are strongly held. Strong cultures unify
and organize people. Strong cultures keep people in line, on task, and heading toward the same
goal.

Weak cultures are cultures where organizational values are weak or loosely held.

Little "c" correct cultures are cultures that properly fit the organizational structure and the
environment.

Big "C" correct culture deals with deeper questions about that which is fundamentally right or
wrong.

External environment relates to conditions outside the organization.

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Stable environment is one with a slow rate of change.

Dynamic environment is marked by a fast rate of change.

Punctuated equilibrium theory suggests that there are long periods of stability followed by short
bursts of change, or revolution.

Environmental complexity is the number and strength of environmental factors.

Simple environments contain few or weak environmental factors.

Complex environments contain many or strong environmental factors.

General environment refers to factors that all organizations face.

Technological trends consist of devices that create greater efficiency.

Political/legal trends relate to legislation and court rulings that bind business practices.

Economic trends relate to the business environment dealing with production, distribution and
exchange.

Socio-cultural trends are demographic changes or changes in tastes and choices of consumers.

Specific environment is unique to each particular business.

Competitors are other organizations or substitutes who produce similar goods or services.

Suppliers provide resources.

Industry regulations are laws that sRecifically


. affect one industry .

Advocacy groups are non-profit organizations and NGOs (non-government organizations) that
seek to influence a business or industry in some way.

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