Organization and Corporate Culture Lecture Flashcards

A complete set of vocabulary flashcards covering organizational culture, external and task environment dimensions, PESTEL factors, and strategic responses to environmental uncertainty.

Organisational culture

The pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organisation's history; and which tends to be manifested in its material arrangements and in the behaviours of its members.

Bounded rationality

The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions.

External organizational environment

Includes all elements existing outside the boundary of the organization that have the potential to affect the organization, such as competitors, resources, technology, and economic conditions.

General environment

The dimension of the external environment that mostly affects organizations indirectly, including social, economic, legal-political, international, natural, and technological factors.

Task environment

The sectors closer to the organization that conduct day-to-day transactions and directly influence its basic operations and performance, including competitors, suppliers, customers, and the labour market.

Organizational ecosystem

A system formed by the interaction among a community of organizations within the environment, including all sectors of the task and general environments providing necessary resource and information transactions.

Internal environment

Includes all elements within the organization's boundaries, such as employees, management, and corporate culture.

PESTEL environment

An acronym for dimensions outside the direct sphere of influence: Political, Economic, Social, Technological, Ecological, and Legal.

International dimension

Includes events originating in non-EU countries and represents opportunities for expansion as geographic boundaries become permeable.

Politics

Collective decision-making on societally relevant practices.

Paternalistic campaigns

Government efforts to influence behavior through warnings or advice, such as 'don’t smoke'.

Information brokering

When government brings different factors together, such as the regulation of GMOs in the EU.

Technology waves

Long-term, clustered innovations categorized into five distinct periods, with the fifth wave ($1970s$-present) focusing on information, communication, and AI.

Radical innovation

A breakthrough innovation that creates a significant shift, such as the first cellphone.

Incremental innovation

Modest innovations that build upon existing technology, such as the latest iPhone types.

Sociocultural dimension

Represents demographic characteristics such as age and education level, as well as the norms, customs, and values of the general population.

Economic dimension

The general economic health of the country or region, including factors like consumer purchasing power, unemployment rates, and interest rates.

Real markets

Markets where physical goods and services are cleared, such as an auction.

Monetary markets

Markets where the supply and demand of money is managed, such as by a central bank.

Common law

Law that is case-based and founded on past regulations.

Civil law

Law that is codified and based on already established rules.

Regulatory stringency

The level of ambition and sanctions in law, as well as the effectiveness of enforcement.

Natural dimension

Includes all elements that occur naturally on Earth, such as air, water, and climate; it has no voice of its own and acts as both an enabler and a constraint on business.

Climate adaptation

The process of adjusting to the physical effects of climate change.

Supply chain

A network of multiple businesses and individuals that are connected through the flow of products or services.

Just-in-time

A strategy that improves return on investment and efficiency by minimizing the money invested in idle inventory.

Labour market

The people in the environment who can be hired to work for the organization.

Environmental uncertainty

The extent to which an organization’s context is hard to understand and predict because managers lack sufficient information.

Environmental complexity

The number of components and interrelations constituting an organizational context.

Environmental dynamics

The degree of unpredictable change and rate of fluctuation in an organization's context.

Strategic issues

Events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives.

Boundary-spanning roles

Roles that link to and coordinate the organization with key elements in the external environment to detect information and represent the organization's interests.

Social media analytics

Gathering and analyzing data from platforms such as Instagram, Facebook, and LinkedIn to address problems or evaluate popularity.

Merger

The combination of two or more organizations to become one.

Joint venture

A strategic alliance or programme by two or more organizations that creates a legal business entity, typically for complex or expensive projects.