Ch 2 Org Culture

8/12/2019 Ch 2 Org Culture

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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.

Copyright 2005 Pearson Education Canada Inc. 1

Chapter 2

Constraints on Managers:

Organizational Culture and theEnvironment


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LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter.

The Manager: How Much Control?

Explain how managers differ from nonmanagerial employees.

Contrast the actions of the manager according to the

omnipotent and symbolic views.

Explain the parameters of managerial discretion.


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LEARNING OUTLINE (contd)Follow this Learning Outline as you read and study this chapter.

The Organizations Culture

Describe the seven dimensions of organizational culture.

Discuss the impact of strong culture on organizations andmanagers.

Explain the source of an organizations culture and how that

culture continues.

Describe how culture is transmitted to employees.

Current Organizational Culture Issues Facing Managers

Describe the characteristics of an ethical culture, an innovative

culture, and a customer-responsive culture.


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LEARNING OUTLINE (contd)Follow this Learning Outline as you read and study this chapter.

The Environment

Describe the components of the specific and general

environments.Discuss the two dimensions of environmental

uncertainty.

Identify the most common organizational stakeholders.

Explain the four steps in managing external stakeholder

relationships.


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The Manager: How Much

Control? Omnipotent View

Managers are directly responsible for an organizationssuccess or failure

The quality of the organization is determined by thequality of its managers

Managers are held most accountablefor an organizations performance,

yet it is difficult to attributegood or poor performancedirectly to their influenceon the organization


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The Manager: How Much

Control? (contd) Symbolic View

Much of an organizations success or failure is due toexternal forces outside of managers control

The ability of managers to affect outcomes is influencedand constrained by external factors:

The economy, customers, governmental policies, competitors,industry conditions,technology, and the actions of

previous managers

Managers symbolize control andinfluence through their action


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Exhibit 2.1 Parameters of

Managerial Discretion

Organizational Environment Organizational CultureManagerialDiscretion


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The Organizations Culture

What Is Organizational Culture?

A system of shared meanings and common beliefs held by

organizational members that determine, to a large degree,

how they act toward each other

The way we do things around here

Values, symbols, rituals, myths, and practices

Implications:

Cultureis a perception

Cultureis shared

Cultureis a descriptive term


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Exhibit 2.2 Dimensions of Organizational

Culture

OrganizationalCulture

Outcome

Orientation

Attention toDetail

People

Orientation

Team

OrientationAggressiveness

Stability

Innovation andRisk-taking

Degree to whichemployees are aggressive

and competitive ratherthan cooperative

Degree to whichwork is organized

around teams ratherthan individuals

Degree to which

organizationaldecisions and actionsemphasize maintaining

the status quo

Degree to which

management decisionstake into account theeffects on people in

the organization

Degree to whichemployees are

encouraged to beinnovative and

to take risks

Degree to whichmanagers focus on resultsor outcomes rather thanon how these outcomes

are achieved

Degree to whichemployees are expected

to exhibit precision,analysis, and attention

to detail


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Exhibit 2.3 Contrasting

Organizational Cultures

Organization A

Managers must fully document all

decisions

Creative decisions, change, and risks

are not encouraged.

Extensive rules and regulations exist

for all employees.

Productivity is valued over employee

morale.

Employees are encouraged to stay

within their own department.

Individual effort is encouraged.

Organization B

Management encourages and rewards risk-

taking and change.

Employees are encouraged to run with

ideas, and failures are treated as learning

experiences.

Employees have few rules and regulations

to follow.

Productivity is balanced with treating its

people right.

Team members are encouraged to interact

with people at all levels and functions.

Many rewards are team based.


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Benefits of a Strong Culture

Creates a stronger employee commitment to the

organization

Aids in the recruitment and socialization of newemployees

Fosters higher organizational

performance by instilling and

promoting employee initiative


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Subcultures

Organizations have dominant cultures and

subcultures

Subcultures are likely to be defined bydepartment designations and geographical

separation

Subcultures include the core values of thedominant culture, plus additional values

unique to members of the subculture


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Organizational Culture

Sources of Organizational Culture

Past practices of the organization

The organizations founder

Continuation of the Organizational Culture

Recruitment of employees who fit

Behaviour of top managementSocialization of new employees to help them

adapt to the culture


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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 16

How Employees Learn Culture

Stories

Narratives of significant events or actions of people thatconvey the spirit of the organization

Rituals Repetitive sequences of activities that express and

reinforce the values of the organization

Material Symbols

Physical assets distinguishing the organization Language

Acronyms and jargon of terms, phrases, and wordmeanings specific to an organization


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How Culture Affects Managers

Cultural Constraints on Managers

Whatever managerial actions the organization recognizes asproper or improper on its behalf

Whatever organizational activities the organization values andencourages

The overall strength or weakness of the organizational culture

Simple rule for getting ahead in an organization:Find out what the organization rewards and do those

things


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Exhibit 2.5 Managerial Decisions

Affected by Culture


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Current Organizational Culture

Issues Facing Managers Creating an Ethical

Culture

High in risk tolerance

Low to moderate

aggressiveness

Focus on means as well

as outcomes

Creating an InnovativeCulture

Challenge and

involvement Freedom

Trust and openness

Idea time

Playfulness/humour Conflict resolution

Debates

Risk-taking


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Tips for Managers:

Creating a More Ethical Culture Be a visible role model.

Communicate ethical expectations.

Provide ethics training.

Visibly reward ethical acts and punish

unethical ones.

Provideprotective mechanismsso employeescan discuss ethical dilemmas and report

unethical behaviour without fear.


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Current Organizational Culture Issues

(contd) Creating a Customer-Responsive Culture

Hire the right type of employees

Have few rigid rules, procedures, andregulations

Use widespread empowerment of employees

Encourage good listening skillsProvide role clarity to employees

Have conscientious, caring employees


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Defining the External

Environment External Environment

The forces and institutions outside the organization that

potentially can affect the organizations 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 mayaffect the organization


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Exhibit 2.6The External

Environment

Public

Pressure

Groups

Suppliers

Competitors Customers

THE

ORGANIZATION


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The General Environment

Economic conditions

Include interest rates, inflation rates, changes in disposableincome, stock market fluctuations, and the general business cycle,among other things

Political/legal conditions Include the general political stability of countries in which an

organization does business and the specific attitudes that electedofficials have toward business

Federal and provincial governments can influence whatorganizations can and cannot do. Some examples of legislation

include: Canadian Human Rights Act Canadas Employment Equity Act

Competition Act

Marketing boards


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The General Environment (contd)

Socio-cultural conditions

Include the changing expectations of society

Demographic conditions

Include physical characteristics of a population (gender,

age, level of education, geographic location, income and

family composition)

Technological conditions

Include the changes that are occurring in technology

Global conditions

Include global competitors and global consumer markets


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How the Environment Affects

Managers Environmental Uncertainty

The extent to which managers have knowledge of

and are able to predict change. Theirorganizations external environment is affected

by:

Complexity of the environment:the number of

components in an organizations external environment

Degree of change in environmental components:how

dynamic or stable the external environment is


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Exhibit 2.7 Environmental

Uncertainty Matrix


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Stakeholder Relationships

Stakeholders

Any constituencies in the organizations external

environment that are affected by theorganizations decisions and actions

Why Manage Stakeholder Relationships?

Can lead to improved organizational performance

Its the right thing to do given the

interdependence of the organization and its

external stakeholders


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Managing Stakeholder

Relationships

Identify the organizations external

stakeholders Determine the particular interests and concernsof the external stakeholders

Decide how critical each external stakeholder

is to the organization Determine how to manage each individual

external stakeholder relationship


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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc 30

Exhibit 2.8 Organizational

Stakeholders

Media

GovernmentsSuppliers

Trade and IndustryAssociations

Communities

CompetitorsShareholders

Social and PoliticalAction Groups

Unions

CustomersEmployees

Organization

Documents

Ch 2 Org Culture