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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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 2
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 3
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 4
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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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? 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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 6
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 7
Exhibit 2.1 Parameters of
Managerial Discretion
Organizational Environment Organizational CultureManagerialDiscretion
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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 8
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 9
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 10
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 12
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 13
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.
Copyright 2005 Pearson Education Canada Inc. 14
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 17
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 18
Exhibit 2.5 Managerial Decisions
Affected by 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. 19
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 20
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 21
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 22
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 23
Exhibit 2.6The External
Environment
Public
Pressure
Groups
Suppliers
Competitors Customers
THE
ORGANIZATION
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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 24
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 25
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 26
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 27
Exhibit 2.7 Environmental
Uncertainty Matrix
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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 28
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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Chapter 2, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Management, Eighth Canadian Edition.Copyright 2005 Pearson Education Canada Inc. 29
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