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Copyright © 2014 Pearson Education, Ltd

MANAGING THE

ENVIRONMENTAND THE

ORGANIZATION’S

CULTURE

3 -1

3

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LEARNING OBJECTIVES

1. Contrast the actions of anagers according to the onipotentand sy!o"ic #ie$s.

2. Describe the constraints and cha""enges facing anagers in

today%s e&terna" en#ironent.

Develop your skill at scanning the en#ironent so you can

anticipate and interpret changes ta'ing p"ace.3. Discuss the characteristics and iportance of organi(ationa"

cu"ture.

)no$ ho$ to read and assess an organi(ation%s cu"ture.

4. Describe current issues in organi(ationa" cu"ture.

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READING AN ORGANIZATION’S CULTURE:FIND ONE WHERE YOU'LL BE HAPPY

“A key to success in

management and in your

career is knowing how to“read” an organization’s

culture so you can fnd one

in which you’ll be happy.”

3 - 3


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SCANNING THE ENVIRONMENT

Do background work. Check out the company’sWeb site.

What impression do you get from it? Are corporate valueslisted? Mission Statement?

bser!e the physical surroundings and corporatesymbols.

Notice visible symbols of organizational culture, such as,logos, signs, posters, pictures, photos, style of dress, etc.

"ow would you characterize the people who work

there # Are they formal? Casual? Serious? ovial? !pen?

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THE MANAGER: OMNIPOTENT OR SYMBOLIC?

Omnipotent view of mn!ement: The vie !h"! #"$"%e& "&e (i&e)!*+&e,-$i.*e /-& "$ -&%"$i0"!i-$’ 1))e

-& /"i*1&e2

S"m#o$i% view of mn!ement: Thevie !h"! #1)h -/ "$ -&%"$i0"!i-$’1))e -& /"i*1&e i (1e !- e!e&$"*

/-&)e -1!i(e #"$"%e&’ )-$!&-*2

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MANAGERIAL CONSTRAINTS

I$ &e"*i!+4 #"$"%e& "&e $ei!he& "**5,-e&/1* $-& he*,*e2 B1! !hei& (e)ii-$"$( ")!i-$ "&e )-$!&"i$e(2

A +-1 )"$ ee i$ Ehi.i! 3564 e!e&$"*)-$!&"i$! )-#e /&-# !he -&%"$i0"!i-$’e$vi&-$#e$! "$( i$!e&$"* )-$!&"i$!)-#e /&-# !he -&%"$i0"!i-$’ )1*!1&e2


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E7HIBIT 356CONSTRAINTS ON MANAGERIAL DISCRETION

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THE E&TERNAL ENVIRONMENT:CONSTRAINTS AN' CHALLENGES

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THE E7TERNAL ENVIRONMENT

The E!e&$"* E$vi&-$#e$!: Th-e /")!-& "$( /-&)e-1!i(e !he -&%"$i0"!i-$ !h"! "8e)! i!’ ,e&/-"$)e2 Thee!e&$"* e$vi&-$#e$! i$)*1(e eve&"* (i8e&e$!)-#,-$e$!2

E)-$-#i) 9 E$)-#,"e /")!-& 1)h " i$!e&e!&"!e4 i$"!i-$4 )h"$%e i$ (i,-".*e i$)-#e4 !-);#"&;e! 1)!1"!i-$4 "$( .1i$e )+)*e !"%e2

De#-%&",hi) 9 C-$)e&$e( i!h !&e$( i$ ,-,1*"!i-$)h"&")!e&i!i) 1)h " "%e4 &")e4 %e$(e&4 e(1)"!i-$

*eve*4 %e-%&",hi) *-)"!i-$4 i$)-#e "$( /"#i*+)-#,-i!i-$2

P-*i!i)"*

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THE E7TERNAL ENVIRONMENT=CONT2>

Te)h$-*-%i)"* 9 C-$)e&$e( i!h )ie$!i?)-& i$(1!&i"* i$$-v"!i-$2

The S-)i-)1*!1&"* 9 C-$)e&$e( i!h

-)ie!"* "$( )1*!1&"* /")!-& 1)h "v"*1e4 "!!i!1(e4 !&e$(4 !&"(i!i-$ "$(*i/e!+*e4 .e*ie/4 !"!e4 "$( ,"!!e&$ -/.eh"vi-&2

G*-."* 9 E$)-#,"e i1e "-)i"!e(i!h %*-."*i0"!i-$ "$( " -&*( e)-$-#+2


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THE E7TERNAL ENVIRONMENT=CONT2>

3 - 11

he deographic coponent is concerned $ith

trends in popu"ation characteristics such as age,

race, gender, education "e#e", geographic

"ocation, incoe, and fai"y coposition.

he po"itica"/"ega" coponent "oo's at federa",

state, and "oca" "a$s, as $e"" as g"o!a" "a$s and

"a$s of other countries. t a"so inc"udes a

country%s po"itica" conditions and sta!i"ity.


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E7HIBIT 35@COMPONENTS OF THE E7TERNAL ENVIRONMENT


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FACTORS IMPACTING GLOBALBUSINESSES

Li;e #"$+ %*-."* .1i$ee4 Ne!* i /")i$%i$)&e"e( )-##-(i!+ =&" #"!e&i"*> )-!2

Ne!*4 !he #";e& -/ ,&-(1)! /&-# C&1$)h )h-)-*"!e."& !- Ne)"/ )-8ee !- P1&i$" ,e! /--(4 ,e$(

#-&e !h"$ 3 .i**i-$ " +e"& -$ &" #"!e&i"*2 C-##-(i!+ )-! "&e 1! -$e -/ !he #"$+ v-*"!i*e

e)-$-#i) /")!-& /")i$% -&%"$i0"!i-$2 M"$"%e&$ee( !- .e ""&e -/ !he e)-$-#i) )-$!e! - !he+)"$ #";e !he .e! (e)ii-$ /-& !hei& -&%"$i0"!i-$2


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THE GLOBAL ECONOMY AND THEECONOMIC CONTE7T

The *i$%e&i$% %*-."* e)-$-#i) )h"**e$%e 9 -$)e(e)&i.e( " !he G&e"! Re)ei-$ .+ -#e "$"*+! 9.e%"$ i!h !he !1-i* i$ !he U$i!e( S!"!e h-1i$%#"&;e!2

A )&e(i! #"&;e! )-**",e(4 .1i$ee e&ei#,")!e(2

C&e(i! " $- *-$%e& &e"(i*+ "v"i*".*e !- /1$(.1i$ee2

E)-$-#i) (i)1*!ie ,&e"( ")&- !he %*-.e2

The /&"%i*e e)-$-#i) &e)-ve&+ )-$!i$1e !- .e ".1i$e )-$!&"i$!2


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ECONOMIC INEUALITY AND THEECONOMIC CONTE7T

A e)-$-#i) %&-!h h" *"$%1ihe( "$(,1!!e&e(4 "$( " ,e-,*e’ .e*ie/ !h"!"$+-$e )-1*( ,&-,e& (e)*i$e(4 -)i"*

(i)-$!e$! -ve& %&-i$% i$)-#e %",h" i$)&e"e(2

B1i$e *e"(e& #1! &e"*i0e !h"!-)ie!"* "!!i!1(e i$ !he e)-$-#i)

)-$!e! h"ve !he ,-!e$!i"* !- )&e"!e)-$!&"i$!2

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The De#-%&",hi)E$vi&-$#e$!

3 16Copyright © 2016 Pearson Education, Ltd. 3-16

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THE DEMOGRAPHIC ENVIRONMENT=CONT2>

The i0e "$( )h"&")!e&i!i) -/ " )-1$!&+’ ,-,1*"!i-$ )"$ h"ve" i%$i?)"$! e8e)! -$ h"! i!’ ".*e !- ")hieve i$ ,-*i!i)4e)-$-#i)4 "$( )1*!1&e2

B".+ B--#e& 9 B-&$ .e!ee$ 6JK "$( 6KJ4 -$e -/ !he*"&%e! "$( #-! i$1e$!i"* (e#-%&",hi) %&-1, i$ hi!-&+2

Ge$ Y -& =Mi**e$$i"*> 9 Chi*(&e$ -/ B".+ B--#e&4 .-&$.e!ee$ 6 "$( 6J4 #";i$% "$ i#,")! -$ !e)h$-*-%+ "$(!he -&;,*")e2

P-!5Mi**e$$i"* 9 The +-1$%e! %&-1, i(e$!i?e( "%e %&-1,."i)"**+ !ee$ "$( #i((*e5)h--*e&2 The+ h"ve "*- .ee$

)"**e( !he iGe$e&"!i-$ .e)"1e "(v"$)e i$ !e)h$-*-%+ h"ve)1!-#i0e( eve&+!hi$% !- !he i$(ivi(1"*2

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ASSESSING ENVIRONMENTAL(NCERTAINTY

E$vi&-$#e$!"* 1$)e&!"i$!+ &e/e& !- !he (e%&ee -/)h"$%e "$( )-#,*ei!+ i$ "$ -&%"$i0"!i-$’e$vi&-$#e$!2 The ?&! (i#e$i-$ -/ 1$)e&!"i$!+ i )h"$%e2

62 O&%"$i0"!i-$ "&e !".*e4 #i$i#"* )h"$%e

@2 O&%"$i0"!i-$ "&e (+$"#i)4 /&e1e$! )h"$%e

O&%"$i0"!i-$"* C-#,*ei!+ &e/e& !- !he $1#.e&-/ )-#,-$e$! i$ "$ -&%"$i0"!i-$’ e$vi&-$#e$!

"$( !he e!e$! -/ !he -&%"$i0"!i-$’ ;$-*e(%e".-1! !h-e )-#,-$e$!2


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E7HIBIT 353ENVIRONMENTAL UNCERTAINTY MATRI7


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MANAGING STAEHOLDERRELATIONSHIPS

The $"!1&e -/ !";eh-*(e& &e*"!i-$hi, i "$-!he&"+ i$ hi)h !he e$vi&-$#e$! i$1e$)e#"$"%e&2 The #-&e -.vi-1 "$( e)1&e !hee&e*"!i-$hi,4 !he #-&e i$1e$)e #"$"%e& i**

h"ve -ve& -&%"$i0"!i-$"* -1!)-#e2 S!";eh-*(e& 9 A$+ )-$!i!1e$)ie i$ "$

-&%"$i0"!i-$’ (e)ii-$ "$( ")!i-$2

Ehi.i! 3 5 J i(e$!i?e -#e -/ !he -&%"$i0"!i-$’

#-! )-##-$ !";eh-*(e& hi)h i$)*1(e .-!hi$!e&$"* "$( e!e&$"* )-$!i!1e$! %&-1,2


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E7HIBIT 35JORGANIZATIONAL STAEHOLDERS


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THE BENEFITS OF GOODSTAEHOLDER RELATIONSHIPS

I#,&-ve( ,&e(i)!".i*i!+ -/e$vi&-$#e$!"* )h"$%e

I$)&e"e( 1))e/1* i$$-v"!i-$

I$)&e"e( !&1! "#-$% !";eh-*(e&

G&e"!e& -&%"$i0"!i-$"* ei.i*i!+ !-

&e(1)e !he i#,")! -/ )h"$%e


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ORGANIZATIONAL CULTURE:CONSTRAINTS AND CHALLENGES

Q1! " e")h i$(ivi(1"* h" " 1$i1e,e&-$"*i!+ !&"i! "$( )h"&")!e&i!i)i$1e$)e !he "+ e ")! "$( i$!e&")! i!h-!he&2 A$ -&%"$i0"!i-$4 !--4 h" "

,e&-$"*i!+4 hi)h i &e/e&&e( !- "-&%"$i0"!i-$"* )1*!1&e2

A$ -&%"$i0"!i-$’ )1*!1&e )"$ #";e e#,*-+ee/ee* i$)*1(e(4 e#,-e&e(4 "$( 1,,-&!e( -& i!

)"$ #";e !he# /ee* !he -,,-i!e2


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ORGANIZATIONAL CULTURE

O&%"$i0"!i-$"* C1*!1&e The h"&e( v"*1e4 ,&i$)i,*e4!&"(i!i-$4 "$( "+ -/ (-i$% !hi$% !h"! i$1e$)e !he "+-&%"$i0"!i-$"* #e#.e& ")! "$( !h"! (i!i$%1ih !he -&%"$i0"!i-$/&-# -!he& -&%"$i0"!i-$2

C1*!1&"* V"*1e "$( ,&")!i)e ev-*ve -ve& !i#e2

O&%"$i0"!i-$"* C1*!1&e i: Pe&)e,!i-$ ."e( -$ e#,*-+ee e,e&ie$)e i!hi$ !he

-&%"$i0"!i-$2

De)&i,!ive h- #e#.e& (e)&i.e i!2

Sh"&e( e#,*-+ee h"&e ,e&)e,!i-$ "$( e,e&ie$)e2

Ree"&)h 1%%e! eve$ (i#e$i-$ -/ )1*!1&e !h"! ee# !-)",!1&e !he ee$)e -/ "$ -&%"$i0"!i-$’ )1*!1&e2 Thee(i#e$i-$ "&e h-$ i$ Ehi.i! 35 "$( &"$%e /&-# *- !- hi%h2


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E7HIBIT 39DIMENSIONS OF ORGANIZATIONAL CULTURE

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CONTRASTING ORGANIZATIONAL CULTURE

I$ #"$+ -&%"$i0"!i-$4 -$e )1*!1&"* (i#e$i-$ i-/!e$ e#,h"i0e( #-&e !h"$ -!he& "$(ee$!i"**+ h",e !he -&%"$i0"!i-$’,e&-$"*i!+ "$( !he "+ !he -&%"$i0"!i-$ -&;2

F-& e"#,*e4 S-$+ C-&,-&"!i-$ /-)1e -$,&-(1)! i$$-v"!i-$ "$( &i;5!";i$%2 The)-#,"$+ *ive "$( .&e"!h i$$-v"!i-$4 "$(e#,*-+ee’ .eh"vi-& 1,,-&! !h"! %-"*2=P&-(1)! O&ie$!"!i-$>2

C-$ve&e*+4 S-1!he! Ai&*i$e /-)1e -$ i!’e#,*-+ee "$( h" #"(e !he# " )e$!&"* /-)1-/ i!’ )1*!1&e2 =Pe-,*e O&ie$!"!i-$>2


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E7HIBIT 35KCONTRASTING ORGANIZATIONAL CULTURE

Ri;5!";i$% "$( )h"$%e(i)-1&"%e(

C&e"!ivi!+ (i)-1&"%e(

C*-e #"$"%e&i"*

1,e&vii-$ W-&; ")!ivi!ie (ei%$e(

"&-1$( !he i$(ivi(1"*e#,*-+ee

Ri;5!";i$% "$( )h"$%e&e"&(e(

C&e"!ivi!+ "$( i$$-v"!i-$&e"&(e(

M"$"%e#e$! !&1!e#,*-+ee

W-&; (ei%$e( "&-1$(!e"#


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CONTRASTING CULTURAL VALUES=CONT2>

Ehi.i! 35K i**1!&"!e h- !he(i#e$i-$ -/ )1*!1&e )"$ )&e"!ei%$i?)"$!*+ (i8e&e$! )1*!1&e2

B-!h O&%"$i0"!i-$ A "$( O&%"$i0"!i-$ B"&e #"$1/")!1&i$% ?4 .1! e")h)-#,"$+ e#,h"i0e " (i8e&e$!(i#e$i-$ !h"! h"ve h",e(-&%"$i0"!i-$"* )1*!1&e2


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E7HIBIT 35STRONG VERSUS WEA CULTURES


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STRONG CULTURES A** -&%"$i0"!i-$ h"ve )1*!1&e4 .1! $-! "**

)1*!1&e e1"**+ i$1e$)e e#,*-+ee’ .eh"vi-&"$( ")!i-$2

S!&-$% C1*!1&eO&%"$i0"!i-$"* )1*!1&e i$hi)h !he ;e+ v"*1e "&e i$!e$e*+ he*( "$(

i(e*+ h"&e(2

The #-&e e#,*-+ee "))e,! !he -&%"$i0"!i-$';e+ v"*1e "$( %&e"!e& !hei& )-##i!#e$! !-!h-e v"*1e4 !he !&-$%e& !he )1*!1&e2

The !&-$%e& !he )1*!1&e .e)-#e4 !he #-&e i!"8e)! !he "+ #"$"%e& ,*"$4 -&%"$i0e4 *e"(4"$( )-$!&-*2

S!&-$% C1*!1&e "&e "-)i"!e( i!h hi%h

-&%"$i0"!i-$"* ,e&/-"$)e2

.


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S!&-$%C1*!1&e

A,,*e’ !&-$% )1*!1&e -/,&-(1)! i$$-v"!i-$ "$()1!-#e&5e&vi)e &ee)! !he)-&e v"*1e -/ i!’ vii-$"&+)-/-1$(e&4 S!eve Q-.2 Q-.i$!i**e( !hee )-&e v"*1e i$"** e#,*-+ee4 /&-# !-,ee)1!ive !- "*e"-)i"!e4 1)h " !heGe$i1 B"& e#,*-+ee h-$he&e !&"i$i$% " )1!-#e& "!

!he A,,*e S!-&e i$M"$h"!!"$2


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WHERE CULTURE COMES FROMAND HOW IT CONTINUES

Ehi.i! 35 i**1!&"!e h- "$-&%"$i0"!i-$’ )1*!1&e i e!".*ihe( "$(#"i$!"i$e(2

O&%"$i0"!i-$"* C1*!1&e 11"**+ &ee)!!he vii-$ -/ !he /-1$(e&2

The #"** i0e -/ #-! $e -&%"$i0"!i-$#";e i! e"ie& !- e!".*ih

-&%"$i0"!i-$"* )1*!1&e2 O$)e )1*!1&e i e!".*ihe(4

-&%"$i0"!i-$"* ,&")!i)e he*, !- #"i$!"i$

i!23 - 32Copyright © 2016 Pearson Education, Ltd. 3-32

E7HIBIT 3

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E7HIBIT 35

ESTABLISHING AND MAINTAININGCULTURE


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HOW EMPLOYEES LEARNCULTURE

E#,*-+ee *e"&$ "$ -&%"$i0"!i-$’)1*!1&e i$ " $1#.e& -/ "+2 The #-!)-##-$ "&e !-&ie4 &i!1"*4 #"!e&i"*+#.-*4 "$( *"$%1"%e2

S!-&ie -&%"$i0"!i-$"* !-&ie ".1!i%$i?)"$! eve$! i$ !he *i/e -/ !he)-#,"$+ he*, ;ee, )1*!1&e "*ive2

Ri!1"* &e,e!i!ive e1e$)e -/")!ivi!ie !h"! e,&e "$( &ei$/-&)ei#,-&!"$! -&%"$i0"!i-$"* v"*1e "$(%-"*2


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HOW EMPLOYEES LEARN CULTURE=CONT2>

M"!e&i"* A&!i/")! "$( S+#.-* )-$ve+ !-e#,*-+ee h"! i i#,-&!"$! "$( !he ;i$(-/ e,e)!e( .eh"vi-&4 e2 Ri;5!";i$%4 e!)2

L"$%1"%e #"$+ -&%"$i0"!i-$ -& 1$i! -/"$ -&%"$i0"!i-$ 1e *"$%1"%e !- i(e$!i/+ "$(1$i!e #e#.e& -/ " )1*!1&e2 Ne e#,*-+ee"&e /&e1e$!*+ -ve&he*#e( i!h ")&-$+#"$( "&%-$ !h"! 1i);*+ .e)-#e " ,"&! -/!hei& *"$%1"%e2

3 - 3*Copyright © 2016 Pearson Education, Ltd. 3-35

E7HIBIT 3

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E7HIBIT 35 TYPES OF MANAGERIAL DECISIONS

AFFECTED BY CULTURE


C)etin! n

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C)etin! nInnovtive

C*$t*)e


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E7HIBIT 356CREATING A CUSTOMER5RESPONSIVE CULTURE


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CREATING A CUSTOMER5RESPONSIVECULTURE =CONT2>

Ree"&)h h- !h"! )1!-#e&"!i/")!i-$ i (i&e)!*+ &e*"!e( !-)1!-#e& ,e$(i$% "$(

)-$1#,!i-$2 S"!i?e( )1!-#e& i** .e &e,e"!

)1!-#e& /-& .1i$ee2


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SPIRITUALLY AND ORGANIZATIONALCULTURE

W-&;,*")e S,i&i!1"**+ A )1*!1&e he&e-&%"$i0"!i-$"* v"*1e ,&-#-!e " e$e -/,1&,-e !h&-1%h #e"$i$%/1* -&; !h"! !";e,*")e i$ !he )-$!e! -/ )-##1$i!+2

O&%"$i0"!i-$ i!h " ,i&i!1"* )1*!1&e &e)-%$i0e!h"! ,e-,*e:

H"ve " #i$( "$( ,i&i!2

See; !- ?$( #e"$i$% "$( ,1&,-e i$ !hei&-&;2

Dei&e !- )-$$e)! i!h -!he& "$( .e " ,"&! -/" )-##1$i!+2


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FIVE CULTURAL CHARACTERISTICSOF SPIRITUAL ORGANIZATIONS

Ree"&)h i$(i)"!e !h"! S,i&i!1"* O&%"$i0"!i-$ h"ve?ve )h"&")!e&i!i):

+, St)on! -en-e of p*)po-e4 )1*!1&e .1i*! "&-1$(#e"$i$%/1* ,1&,-e2

., /o%*- on in0ivi0*$ 0eve$opment4 &e)-%$i0e -&!h"$( v"*1e -/ i$(ivi(1"*2

1, T)*-t n0 openne--4 )h"&")!e&i0e( .+ #1!1"* !&1!4h-$e!+4 "$( -,e$$e2

2, Emp$o"ee empowe)ment4 #"$"%e& !&1!

e#,*-+ee !- #";e %--( (e)ii-$2

3, To$e)n%e of emp$o"ee e4p)e--ion4 e#,*-+ee /&ee!- e,&e e#-!i-$2


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REVIEW OF LEARNING OBQECTIVE 326

Contrast te actions o! "ana#ers accor$in# to

te o"nipotent an$ sy"bolic vie%s.

1. nipotent ie$ 5anagers are direct"y responsi!"e for

the organi(ation%s success or fai"ure.

2. y!o"ic ie$ 5uch of the organi(ation%s success or

fai"ure is due to e&terna" forces outside of the anager%s

contro".

3. he t$o constraints on anagers7 discretion are

organi(ationa" cu"ture 8interna"9 and the en#ironent8e&terna"9.


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REVIEW OF LEARNING OBQECTIVE32@

Describe te constraints an$ callen#es !acin#

"ana#ers in to$ay&s e'ternal environ"ent.

1. he e&terna" en#ironent inc"udes those factors and forces

outside the organi(ation that affect its perforance.

2. he ain coponents of the e&terna" en#ironent are,econoic, deographic, po"itica"/"ega", ociocu"tura",

techno"ogica", and g"o!a".

3. 5anagers face constraints and cha""enges fro these

coponents !ecause they ha#e an ipact on :o!s,

en#ironenta" uncertainty, and sta'eho"der re"ationships.


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Discuss te caracteristics an$ i"portance o!

or#ani(ational culture.

1. he se#en diensions of cu"ture are; attention to detai", outcoe

orientation, peop"e orientation, tea orientation, aggressi#eness,

sta!i"ity, inno#ation and ris' ta'ing.

2. he stronger the cu"ture, the greater the ipact on the $ay

anagers p"an, organi(e, "ead, and contro".

3. he origina" source of the organi(ationa" cu"ture ref"ects the

founder%s #ision.

4. Cu"ture is transitted through stories, ritua"s, ateria" sy!o"s,and "anguage.


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Describe current issues in or#ani(ational culture.

1. he characteristics of an inno#ati#e cu"ture are cha""enge and

in#o"#eent, freedo, trust and openness, idea tie,

p"ayfu"ness/huor, conf"ict reso"ution, de!ates, and ris' ta'ing.

2. < custoer responsi#e cu"ture has fi#e characteristics; outgoing

and friend"y ep"oyees= :o!s $ith fe$ rigid ru"es, procedures, andregu"ations= epo$erent= c"ear ro"es and e&pectations= and

ep"oyees $ho are conscientious in their desire to p"ease the

custoer.

3. piritua" organi(ations ha#e fi#e characteristics; strong sense of

purpose, focus on indi#idua" de#e"opent, trust and openness,ep"oyent, and to"eration of ep"oyee e&pression.

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ITM C3 2015

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