Chapter 2 - MGMT Context

Management, Eleventh Edition by Stephen P.
Robbins & Mary Coulter
2012 Pearson Education, Inc. publishing as Prentice Hall
2-1
Contrast the actions of managers according to the omnipotent and symbolic views Describe the constraints and challenges facing managers in todays external environment Discuss the characteristics and importance of organizational culture Describe current issues in organizational culture
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter
2-2
The Manager: Omnipotent or Symbolic?

Omnipotent View of Management - the view that managers are directly responsible for an organizations success or failure. Symbolic view of Management - the view that much of an organizations success or failure is due to external forces outside managers control.
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Exhibit 2-1: Constraints on Managerial Discretion
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The External Environment: Constraints and Challenges

External Environment - those factors and forces outside the organization that affect its performance. Components of the External Environment
Specific environment: External forces that have a direct and immediate impact on the organization General environment: Broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization
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Exhibit 2-2: Components of External Environment
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Environmental Uncertainty and Complexity

Environmental Uncertainty - the degree of change and complexity in an organizations environment. Environmental Complexity - the number of components in an organizations environment and the extent of the organizations knowledge about those components.
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Exhibit 2-3: Environmental Uncertainty Matrix
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Who Are Stakeholders?

Stakeholders - any constituencies in the organizations environment that are affected by an organizations decisions and actions.
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Exhibit 2-4: Organizational Stakeholders
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Managing Stakeholder Relationships

1. Identify the organizations external stakeholders. 2. Determine the particular interests and concerns of external stakeholders. 3. Decide how critical each external stakeholder is to the organization.
4. Determine how to manage each individual external stakeholder relationship.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter 2012 Pearson Education, Inc. publishing as Prentice Hall
2-11
What Is Organizational Culture?

Organizational Culture - The shared values, principles, traditions, and ways of doing things that influence the way organizational members act. Strong Cultures - Organizational cultures in which key values are intensely held and widely shared.
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Exhibit 2-5: Dimensions of Organizational Culture
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Where Does Culture Come From?

Organization founder
Vision and mission

Past practices Top management behavior Socialization - The process that helps employees adapt to the organizations culture.
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How Do Employees Learn Culture?

Stories - Narratives of significant events or people, e.g. organization founders, rule breaking, reaction to past mistakes etc. Rituals - Sequences of activities that express and reinforce the important values and goals of the organization
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How Employees Learn Culture (cont.)

Material Artifacts and Symbols - Convey the kinds of behavior that are expected, e.g. risk taking, participation, authority, etc. Language - Acts as a common denominator that bonds members
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Exhibit 2-6: Contrasting Organizational Cultures
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Exhibit 2-7: Strong vs. Weak Cultures
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Benefits of a Strong Culture

Creates a stronger employee commitment to the organization Aids in the recruitment and socialization of new employees
Fosters higher organizational performance by instilling and promoting employee initiative
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Exhibit 2-8: Establishing and Maintaining Culture
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How Does Culture Affect Managers?

Cultural Constraints on Managers
Whatever managerial actions the organization recognizes as proper or improper on its behalf
Whatever organizational activities the organization values and encourages The overall strength or weakness of the organizational culture
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Exhibit 2-9: Managerial Decisions Affected by Culture
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How Do You Create a Customer Responsive Culture?

Hire the right type of employees (those with a strong interest in serving customers) Have few rigid rules, procedures, and regulations
Use widespread empowerment of employees

Have good listening skills in relating to customers messages
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How Do You Create a Customer Responsive Culture?

Provide role clarity to employees in order to reduce ambiguity and conflict and to increase job satisfaction Have conscientious, caring employees willing to take initiative
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Exhibit 2-10: Creating a Customer Responsive Culture
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Spirituality and Culture

Workplace Spirituality - a culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community Characteristics of a Spiritual Organization
Strong sense of purpose Focus on individual development Trust and openness
Employee empowerment
Toleration of employees expression
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Terms to Know
omnipotent view of management symbolic view of management organizational culture strong cultures socialization workplace spirituality external environment specific environment general environment environmental uncertainty environmental complexity stakeholders
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Management, Eleventh Edition by Stephen P.

Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

The Manager: Omnipotent or Symbolic?

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-1: Constraints on Managerial Discretion

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

The External Environment: Constraints and Challenges

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-2: Components of External Environment

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Environmental Uncertainty and Complexity

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-3: Environmental Uncertainty Matrix

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Who Are Stakeholders?

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-4: Organizational Stakeholders

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Managing Stakeholder Relationships

4. Determine how to manage each individual external stakeholder relationship.

What Is Organizational Culture?

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-5: Dimensions of Organizational Culture

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Where Does Culture Come From?

Vision and mission

How Do Employees Learn Culture?

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

How Employees Learn Culture (cont.)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-6: Contrasting Organizational Cultures

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-7: Strong vs. Weak Cultures

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Benefits of a Strong Culture

Fosters higher organizational performance by instilling and promoting employee initiative

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall

Exhibit 2-8: Establishing and Maintaining Culture

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

2012 Pearson Education, Inc. publishing as Prentice Hall