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Environment, Diversity, and Competitive Advantage

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What is a customer-driven organization? How is information technology ... a 'Hologram' *Commitment vs. Compliance *Visioning Process --Sharing Personal Visions ... – PowerPoint PPT presentation

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Title: Environment, Diversity, and Competitive Advantage


1
Chapter 2
  • Environment, Diversity, and Competitive Advantage
  • Spring 2006
  • Dr. Burton

2
Chapter 2 Environment, Diversity and Competitive
Advantage
  • Planning Ahead
  • What is the environment of organization?
  • What are the challenges of managing diversity?
  • What is a customer-driven organization?
  • How is information technology changing the
    workplace?
  • Why is organizational learning important?

3
External Environments of Organizations
  • What is Competitive Advantage?
  • Utilization of a core competency that clearly
    sets an organization apart from its competitors
    and gives it an advantage over them in the
    marketplace

4
External Environments of Organizations
  • What is Competitive Advantage?
  • Companies may achieve it in many ways including
  • products
  • pricing
  • customer service
  • cost efficiency
  • quality

5
External Environments of Organizations
  • The General Environment - all of the background
    conditions of the organization including
  • Economic
  • Social-cultural
  • Legal-political
  • Technological
  • Natural environment

6
External Environments of Organizations
  • The Specific Environment - actual organizations,
    groups, persons with whom an organization must
    interact in order to survive and prosper
  • stakeholders
  • customers
  • suppliers
  • competitors
  • regulators

7
How is diversity managed in a multicultural
organization
  • Characteristics of multicultural organizations
  • Pluralism
  • Structural integration
  • Information network integration
  • Absence of prejudice and discrimination
  • Minimum intergroup conflict

8
How is diversity managed in a multicultural
organization?
  • Organizational subcultures
  • Cultures based on shared work responsibilities
    and/or personal characteristics
  • Common subcultures include
  • Occupational
  • Functional
  • Ethnic
  • Racial
  • Generational
  • Gender

9
How is diversity managed in a multicultural
organization?
  • Diversity can be a source of competitive
    advantage.
  • Diversity leadership approaches
  • Affirmative action
  • Valuing diversity
  • Managing diversity

10
How is diversity managed in a multicultural
organization?
  • Personal challenge of managing diversity
  • Accepting the goal of diversity maturity
  • Organizational challenge of managing diversity
  • Changing organizational culture
  • Changing organizational mission practices

11
Customer-Driven Organizations
  • Customers and Operations Management
  • Operations
  • activities and decisions through which
    organizations transform resource inputs into
    product outputs
  • product output can be goods or services

12
Customer-Driven Organizations
  • Customer and Quality Operations
  • International Standards Organizations (ISO),
    Geneva Switzerland
  • ISO 9000 certification
  • provides customers with assurance that a set of
    solid quality standards and processes are in
    place
  • increasingly necessary to compete internationally

13
Customer-Driven Organizations
  • Total Quality Management
  • Malcolm Baldridge National Quality Award
  • established in the U.S.
  • benchmark of excellence in quality achievements
  • criteria include
  • quality values are incorporated into day-to-day
    management
  • workers are trained in quality techniques
  • products are as good as or better than its
    competitor

14
Customer-Driven Organizations
  • Quality and Continuous Improvement
  • Continuous Improvement
  • Always looking for new ways to improve upon
    current performance

15
Information Technology Utilization
  • Information Needs of Organizations
  • Information
  • data made useful for decision making
  • intelligence
  • public

16
Information Technology Utilization
  • Information Systems and Networks
  • technology to collect, organize, and distribute
    data in such a way that they become meaningful as
    information

17
Information Technology Utilization
  • Information Systems and Networks
  • Management Information Systems (MIS)
  • specifically designed to use IT to meet the
    information needs of managers in daily
    decision-making

18
Information Technology Utilization
  • Chief Information Officer (CIO)
  • oversees all aspects of computer, information
    and telecommunications systems
  • central role in strategic decision-making

19
Information Technology Utilization
  • Intranets
  • networks of computers that use special software
    to allow persons working in various locations of
    the same organization to share databases and
    communicate electronically
  • Enterprisewide networks
  • move information quickly and accurately from one
    point to another within an organization

20
Information Technology Utilization
  • Extranets
  • networks that use the public Internet to allow
    communication between the organization and
    elements in its external environment
  • electronic data interchange (EDI) allows
    companies to communicate electronically with one
    another

21
Information Technology Utilization
  • What is a Learning Organization?
  • a company that is able to continuously change and
    improve based on the lessons of experience
  • able to change due to the people, values and
    systems

22
Information Technology Utilization
  • Organizational Learning
  • mental models
  • personal mastery
  • systems thinking
  • shared vision
  • team learning

23
Information Technology Utilization
  • Knowledge Management
  • processes through which organizations develop,
    organize and share knowledge to achieve
    competitive advantage
  • Chief Knowledge Officer (CKO)
  • energizes learning processes
  • manages organizations intellectual assets

24
The five learning disciplines
  • Mental Models
  • Building Shared Vision
  • Team Learning
  • Personal Mastery
  • Systems Thinking

25
The Fifth Discipline
  • It is vital that the five disciplines develop as
    an ensemble
  • The 5th discipline is systems thinking.
  • Systems thinking integrates the disciplines.
  • Metanoia--A shift of the mind
  • seeing interrelationships rather than linear
    cause-effect chains, and
  • seeing processes of change rather than snapshots.

26
Systems Diagram Seeing circles of influence
Desired Water Level
Faucet Position
Influences
Influences
Influences
Perceived Gap
Water Flow
Influences
Influences
Current Water Level
27
Reading a Reinforcing Circle Diagram
Sales
Positive Word of Mouth
Satisfied Customers
28
Give me a lever long enough… and single-handed I
can move the world.
Archimedes
29
The Five Learning Disciplines
  • Systems Thinking
  • Personal Mastery
  • Mental Models
  • Building Shared Vision
  • Team Learning

30
Three Levels of the five learning disciplines
The state of being of those with high levels of
mastery in the discipline.
Guiding ideas and insights.
Essences
Principles
What you do.
Practices
31
Three-stage Continuum
  • Stage One New cognitive, linguistic capacities.
  • Stage two New Action Rules
  • Stage Three New values and Assumptions

32
The Five Learning Disciplines Three Levels
  • Practices What you do
  • Principles Guiding ideas and insights
  • Essences The state of being of those with high
    levels of mastery in the discipline.

33
Mental Models
Essences
Love of truth Openness
Espoused Theory vs. Theory-in-use Ladder of
Inference Balance Inquiry and Advocacy
Principles
Distinguishing Data from abstractions based on
data Testing assumptions Left-Hand
Practices
34
Building Shared Vision
Essences
Common- ality of Purpose Partnership
Shared Vision as a Hologram Commitment
vs. Compliance
Principles
Visioning Process --Sharing Personal
Visions --Listening to Others --Allowing Freedom
of Choice Acknowledging Current Reality
Practices
35
Team Learning
Essences
Collective Intelligence Alignment
Dia Logos Integrate dialogue and
discussion Defensive routines
Principles
Suspending assumptions Acting as
colleagues Surfacing own defensive
nests Practicing
Practices
36
Personal Mastery
Essences
Being Generativeness Connectedness
Vision Creative Tension vs. Emotional
Tension Subconscious
Principles
Clarifying Personal Vision Holding Creative
Tension --focusing in the result --seeing current
reality Making Choices
Practices
37
Systems Thinking
Essences
Holism Interconnectedness
Structure influences Behavior Policy
resistance Leverage
Principles
Practices
System Archetypes Simulation
38
Systems Thinking Skills
  • Recognizing jumps from observations to
    generalizations
  • Articulating mental models of past and present
    realities (mind-mapping)
  • Balancing inquiry and advocacy
  • Seeing differences in what is said and what is
    done
  • Recognizing the unintended consequences of
    certain actions (causal loops)

Source Porter OGrady Wilson
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