Chapter 2 Constraints on Managers: Organizational Culture and the Environment PDF

Chapter 2 Constraints on Managers: Organizational Culture and the Environment Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2...

Chapter 2 Constraints on Managers: Organizational Culture and the Environment Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 1  LEARNING OUTLINE Follow 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. Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 2  LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter. The Organization’s Culture – Describe the seven dimensions of organizational culture. – Discuss the impact of strong culture on organizations and managers. – Explain the source of an organization’s 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. Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 3  LEARNING OUTLINE (cont’d) 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. Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 4  The Manager: How Much Control? Omnipotent View – Managers are directly responsible for an organization’s success or failure – The quality of the organization is determined by the quality of its managers – Managers are held most accountable for an organization’s performance, yet it is difficult to attribute good or poor performance directly to their influence on the organization Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 5  The Manager: How Much Control? (cont’d) Symbolic View – Much of an organization’s success or failure is due to external forces outside of managers’ control – The ability of managers to affect outcomes is influenced and constrained by external factors: The economy, customers, governmental policies, competitors, industry conditions, technology, and the actions of previous managers – Managers symbolize control and influence through their action Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 6  Exhibit 2.1 Parameters of Managerial Discretion Managerial Managerial Organizational OrganizationalEnvironment Environment Discretion Organizational OrganizationalCulture Culture Discretion Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 7  The Organization’s 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: Culture is a perception Culture is shared Culture is a descriptive term Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 8 Exhibit 2.2 Dimensions of Organizational Culture Degree to which employees are expected to exhibit precision, analysis, and attention to detail Degree to which Degree to which employees are managers focus on results encouraged to be or outcomes rather than innovative and on how these outcomes to take risks Attention to are achieved Detail Innovation and Outcome Risk-taking Orientation Organizational Culture People Stability Orientation Degree to which Degree to which management decisions organizational Team take into account the decisions and actions Aggressiveness effects on people in emphasize maintaining Orientation the organization the status quo Degree to which Degree to which work is organized employees are aggressive around teams rather and competitive rather than individuals than cooperative Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 9  Exhibit 2.3 Contrasting Organizational Cultures Organization A Organization B Managers must fully document all Management encourages and rewards risk- decisions taking and change. Creative decisions, change, and risks Employees are encouraged to “run with” are not encouraged. ideas, and failures are treated as “learning experiences.” Extensive rules and regulations exist Employees have few rules and regulations for all employees. to follow. Productivity is valued over employee Productivity is balanced with treating its morale. people right. Employees are encouraged to stay Team members are encouraged to interact within their own department. with people at all levels and functions. Individual effort is encouraged. Many rewards are team based. Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 10  Strong Vs. Weak Cultures Strong Cultures – Key values are deeply held and widely held – Have strong influence on organizational members Factors Influencing the Strength of Culture – Size of the organization – Age of the organization – Rate of employee turnover – Strength of the original culture – Clarity of cultural values and beliefs Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 11  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 Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 12  Subcultures Organizations have dominant cultures and subcultures Subcultures are likely to be defined by department designations and geographical separation Subcultures include the core values of the dominant culture, plus additional values unique to members of the subculture Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 13  Organizational Culture Sources of Organizational Culture – Past practices of the organization – The organization’s founder Continuation of the Organizational Culture – Recruitment of employees who “fit” – Behaviour of top management – Socialization of new employees to help them adapt to the culture Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 14 Exhibit 2.4 How an Organization’s Culture Is Established Top Management Philosophy of Selection Organization's Organization's Criteria Culture Founders Socialization Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 15  How Employees Learn Culture Stories – Narratives of significant events or actions of people that convey 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 word meanings specific to an organization Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 16  How Culture Affects 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 Simple rule for getting ahead in an organization: Find out what the organization rewards and do those things Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 17  Exhibit 2.5 Managerial Decisions Affected by Culture Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 18  Current Organizational Culture Issues Facing Managers Creating an Ethical Creating an Innovative Culture Culture – Challenge and involvement – High in risk tolerance – Freedom – Low to moderate – Trust and openness aggressiveness – Idea time – Focus on means as well – Playfulness/humour as outcomes – Conflict resolution – Debates – Risk-taking Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 19  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. Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behaviour without fear. Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 20 Current Organizational Culture Issues (cont’d) Creating a Customer-Responsive Culture – Hire the right type of employees – Have few rigid rules, procedures, and regulations – Use widespread empowerment of employees – Encourage good listening skills – Provide role clarity to employees – Have conscientious, caring employees Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 21  Defining the External Environment External Environment – The forces and institutions outside the organization that potentially can affect the organization’s 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 Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 22  Exhibit 2.6 Public Public Pressure Suppliers The External Environment Pressure Suppliers Groups Groups THE THE ORGANIZATION ORGANIZATION Competitors Competitors Customers Customers Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 23  The General Environment Economic conditions – Include interest rates, inflation rates, changes in disposable income, 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 elected officials have toward business – Federal and provincial governments can influence what organizations can and cannot do. Some examples of legislation include: Canadian Human Rights Act Canada’s Employment Equity Act Competition Act Marketing boards Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 24  The General Environment (cont’d) 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 Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 25  How the Environment Affects Managers Environmental Uncertainty – The extent to which managers have knowledge of and are able to predict change. Their organization’s external environment is affected by: Complexity of the environment: the number of components in an organization’s external environment Degree of change in environmental components: how dynamic or stable the external environment is Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 26  Exhibit 2.7 Environmental Uncertainty Matrix Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 27  Stakeholder Relationships Stakeholders – Any constituencies in the organization’s external environment that are affected by the organization’s decisions and actions Why Manage Stakeholder Relationships? – Can lead to improved organizational performance – It’s the “right” thing to do given the interdependence of the organization and its external stakeholders Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 28  Managing Stakeholder Relationships Identify the organization’s external stakeholders Determine the particular interests and concerns of the external stakeholders Decide how critical each external stakeholder is to the organization Determine how to manage each individual external stakeholder relationship Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 29  Exhibit 2.8 Organizational Stakeholders Employees Customers Social and Political Unions Action Groups Shareholders Competitors Organization Trade and Industry Communities Associations Suppliers Governments Media Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 30