Unit 4 Organization Culture & Environmenttce2010.weebly.com/uploads/8/4/4/5/8445046/unit_4... · • Omnipotent view of Management The view that Managers are directly responsible

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3–1

Organizational Organizational Culture and Culture and EnvironmentEnvironment

ChapterChapter

33

ManagementStephen P. Robbins Mary Coulter

tenth edition


Learning OutcomesLearning OutcomesFollow this Learning Outline as you read and Follow this Learning Outline as you read and study this chapter.study this chapter.

3.1 The Manager: Omnipotent Or Symbolic?3.1 The Manager: Omnipotent Or Symbolic?•• Contrast the actions of managers according to the omnipotent Contrast the actions of managers according to the omnipotent

and symbolic views.and symbolic views.

•• Identify the two constraints on managerial discretion.Identify the two constraints on managerial discretion.

3.2 Organizational Culture3.2 Organizational Culture•• Identify the seven dimensions of organizational culture.Identify the seven dimensions of organizational culture.

•• Discuss the impact of a strong culture on organizations and Discuss the impact of a strong culture on organizations and managers.managers.

•• Explain how a culture is formed and maintained.Explain how a culture is formed and maintained.

•• Describe how culture affects managers.Describe how culture affects managers.


Learning OutcomesLearning Outcomes3.3 Current Organizational Culture Issues.

•• Describe the characteristics of an ethical culture, an innovative Describe the characteristics of an ethical culture, an innovative culture, and a customerculture, and a customer--responsive culture.responsive culture.

•• Explain why workplace spirituality seems to be an important Explain why workplace spirituality seems to be an important concern.concern.

•• Describe the characteristics of a spiritual organization.Describe the characteristics of a spiritual organization.

3.4 The Environment.•• List the components of the specific and general environments.List the components of the specific and general environments.•• Explain the two dimensions of environmental uncertainty.Explain the two dimensions of environmental uncertainty.•• Identify the most common organizational stakeholders.Identify the most common organizational stakeholders.•• List the four steps in managing external stakeholder List the four steps in managing external stakeholder

relationships.relationships.


•• Omnipotent view of ManagementOmnipotent view of ManagementThe view that Managers are directly responsible for The view that Managers are directly responsible for

an organization’s success or failurean organization’s success or failure

•• Symbolic view of ManagementSymbolic view of ManagementThe view that much of an organization’s success or The view that much of an organization’s success or

failure is due to external forces outside manager’s failure is due to external forces outside manager’s controlcontrol

•• Managerial Discretion = Managerial Discretion = Organizational Environment + Organizational CultureOrganizational Environment + Organizational Culture


The Organization’s CultureThe Organization’s Culture•• Organizational CultureOrganizational CultureThe Shared Values, principles, traditions, and ways of The Shared Values, principles, traditions, and ways of

doing things that influence the way organizational doing things that influence the way organizational member act.member act.

“The way we do things around here.”“The way we do things around here.” Values, symbols, rituals, myths, and practicesValues, symbols, rituals, myths, and practices

Implications:Implications: Culture is a perception.Culture is a perception. Culture is shared.Culture is shared. Culture is descriptive.Culture is descriptive.


Exhibit 3Exhibit 3––22 Dimensions of Organizational CultureDimensions of Organizational Culture

ArtifactsArtifacts –– The things that come together to define a culture and reveal what the culture is about to those who pay attention to them,

they include product, services and even behavior patterns of the member of an organization

Values Values ––Espoused: Reasons given by an organization for the way things are doneEnacted: Reflected in the way individuals actually behave

AssumptionsAssumptions -- The Beliefs that are taken for granted by the The Beliefs that are taken for granted by the member of an organizationmember of an organization

Basic Elements of Culture


Strong Versus Weak CulturesStrong Versus Weak Cultures•• Strong CulturesStrong CulturesAre cultures in which key values are deeply and Are cultures in which key values are deeply and

widely held.widely held.Have a strong influence on organizational members.Have a strong influence on organizational members.

•• Factors Influencing the Strength of CultureFactors Influencing the Strength of CultureSize of the organizationSize of the organizationAge of the organizationAge of the organizationRate of employee turnoverRate of employee turnoverStrength of the original cultureStrength of the original cultureClarity of cultural values and beliefsClarity of cultural values and beliefs


Benefits of a Strong CultureBenefits of a Strong Culture•• Creates a stronger employee commitment to the Creates a stronger employee commitment to the

organization.organization.

•• Aids in the recruitment and socialization of new Aids in the recruitment and socialization of new employees.employees.

•• Fosters higher organizational Fosters higher organizational performance by instilling and performance by instilling and promoting employee initiative.promoting employee initiative.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall3–10

Exhibit 3Exhibit 3––44 Strong Versus Weak Organizational Strong Versus Weak Organizational CulturesCultures

Socialization – The process that helps employees adopt to the organization culture

Adaptive vs. Adaptive vs. UnadaptiveUnadaptive CulturesCultures

11

Adaptive:Adaptive:•• Managers care Managers care

about customers, about customers, stockholders, stockholders, and employees. and employees.

•• They value They value people and people and processes that processes that can bring about can bring about useful change.useful change.

Unadaptive: Managers care

mainly about themselves, their immediate work group, or some product or technology.

They value stability and risk-reduction.


How Employees Learn CultureHow Employees Learn Culture•• StoriesStoriesNarratives of significant events or actions of people Narratives of significant events or actions of people

that convey the spirit of the organizationthat convey the spirit of the organization

•• RitualsRitualsRepetitive sequences of activities that express and Repetitive sequences of activities that express and

reinforce the values of the organizationreinforce the values of the organization

•• Material SymbolsMaterial SymbolsPhysical assets distinguishing the organizationPhysical assets distinguishing the organization

•• LanguageLanguageAcronyms and jargon of terms, phrases, and word Acronyms and jargon of terms, phrases, and word

meanings specific to an organizationmeanings specific to an organization


How Culture Affects ManagersHow Culture Affects Managers•• Cultural Constraints on ManagersCultural Constraints on ManagersWhatever managerial actions the organization Whatever managerial actions the organization

recognizes as proper or improper on its behalfrecognizes as proper or improper on its behalf

Whatever organizational activities the organization Whatever organizational activities the organization values and encouragesvalues and encourages

The overall strength or weakness of the The overall strength or weakness of the organizational cultureorganizational culture

Simple rule for getting ahead in an organization:Simple rule for getting ahead in an organization:Find out what the organization rewards and act accordingly.Find out what the organization rewards and act accordingly.


Exhibit 3Exhibit 3––66 Managerial Decisions Affected by CultureManagerial Decisions Affected by Culture

• Planning• The degree of risk that plans should contain• Whether plans should be developed by individuals or teams• The degree of environmental scanning in which management

will engage• Organizing

• How much autonomy should be designed into employees’ jobs• Whether tasks should be done by individuals or in teams• The degree to which department managers interact with each

other


Exhibit 3Exhibit 3––66 Managerial Decisions Affected by Culture Managerial Decisions Affected by Culture (cont’d)(cont’d)

• Leading• The degree to which managers are concerned with increasing

employee job satisfaction• What leadership styles are appropriate• Whether all disagreements—even constructive ones—should

be eliminated • Controlling

• Whether to impose external controls or to allow employees to control their own actions

• What criteria should be emphasized in employee performance evaluations

• What repercussions will occur from exceeding one’s budget


Organization Culture IssuesOrganization Culture Issues•• Creating an Ethical Creating an Ethical

CultureCultureHigh in risk toleranceHigh in risk toleranceLow to moderate Low to moderate

aggressivenessaggressivenessFocus on means as Focus on means as

well as outcomeswell as outcomes

•• Creating an Innovative Creating an Innovative CultureCultureChallenge and Challenge and

involvementinvolvementFreedomFreedomTrust and opennessTrust and openness Idea timeIdea timePlayfulness/humorPlayfulness/humorConflict resolutionConflict resolutionDebatesDebatesRiskRisk--takingtaking


Defining the External Defining the External EnvironmentEnvironment•• External EnvironmentExternal EnvironmentThose factors and forces outside the organization that Those factors and forces outside the organization that

affect the organization’s performance. affect the organization’s performance.

•• Components of the External EnvironmentComponents of the External EnvironmentSpecific environment:Specific environment: external forces that have a external forces that have a

direct and immediate impact on the organization.direct and immediate impact on the organization.

General environment:General environment: broad economic, sociobroad economic, socio--cultural, political/legal, demographic, technological, cultural, political/legal, demographic, technological, and global conditions that and global conditions that maymay affect the organization.affect the organization.

General EnvironmentGeneral Environment

The layer of the The layer of the external external environment that environment that affects the affects the organization organization performance performance indirectlyindirectly

\\

General General EnvironmentEnvironment

External EnvironmentExternal Environment

TechnologicalTechnological

The layer of the external The layer of the external environment that directly environment that directly influences the influences the organization’s operations organization’s operations and performance.and performance.

General General EnvironmentEnvironment

External External EnvironmentEnvironment

TechnologicalTechnological

CustomersCustomers

SuppliersSuppliers

ManagementManagementLabo

r Mar

ket

Labo

r Mar

ket

EmployeesEmployees CultureCulture

Organization’s Organization’s Internal Internal

EnvironmentEnvironment


Exhibit 3Exhibit 3––99 The External EnvironmentThe External Environment


How the Environment Affects How the Environment Affects ManagersManagers•• Environmental UncertaintyEnvironmental UncertaintyThe degree of change and complexity in an The degree of change and complexity in an

organization’s environmentorganization’s environment

Organization’s external environment is affected by:Organization’s external environment is affected by: Complexity of the environment:Complexity of the environment: the number of components the number of components

in an organization’s external environment.in an organization’s external environment.

Degree of change in environmental components:Degree of change in environmental components: how how dynamic or stable the external environment is.dynamic or stable the external environment is.


•• Dynamic EnvironmentDynamic EnvironmentWhen the components in an organization’s When the components in an organization’s

environment change frequently, it is called dynamic environment change frequently, it is called dynamic environmentenvironment

•• Stable EnvironmentStable EnvironmentWhen the components in an organization’s When the components in an organization’s

environment change minimally, it is called stable environment change minimally, it is called stable environmentenvironment

•• StakeholdersStakeholdersAny Constituencies in an organization’s environment Any Constituencies in an organization’s environment

that affected by the organization’s decision and that affected by the organization’s decision and actions.actions.


Exhibit 3Exhibit 3––1212 Organizational StakeholdersOrganizational Stakeholders


Terms to KnowTerms to Know•• omnipotent view of omnipotent view of

managementmanagement•• symbolic view of symbolic view of

managementmanagement•• organizational cultureorganizational culture•• strong culturesstrong cultures•• socializationsocialization

•• workplace spiritualityworkplace spirituality•• external environmentexternal environment•• specific environmentspecific environment•• general environmentgeneral environment•• environmental environmental

uncertaintyuncertainty•• environmental environmental

complexitycomplexity•• stakeholdersstakeholders

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Unit 4 Organization Culture & Environmenttce2010.weebly.com/uploads/8/4/4/5/8445046/unit_4... · • Omnipotent view of Management The view that Managers are directly responsible