Management, Eleventh Edition, Global Edition by Stephen P.

Robbins & Mary Coulter ©2012 Pearson Education 2-1

 The Manager:
Omnipotent or Symbolic?
• Omnipotent View of Management
- the view that managers are directly
responsible for an organization’s
success or failure.
• Symbolic view of Management -
the view that much of an
organization’s success or failure is
due to external forces outside
managers’ control.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-1: Constraints on Managerial
Discretion

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 The External Environment:
Constraints and Challenges
• External Environment - those factors and
forces outside the organization that affect
its 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

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-2: Components of External
Environment

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Environmental Uncertainty and
Complexity
• Environmental Uncertainty - the
degree of change and complexity in
an organization’s environment.
• Environmental Complexity - the
number of components in an
organization’s environment and the
extent of the organization’s
knowledge about those components.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-3: Environmental Uncertainty
Matrix

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Who Are Stakeholders?

• Stakeholders - any constituencies

in the organization’s environment
that are affected by an organization’s
decisions and actions.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 Exhibit 2-4: Organizational
Stakeholders

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Managing Stakeholder
Relationships
1. Identify the organization’s external
stakeholders.
2. Determine the particular interests and
concerns of external stakeholders.
3. Decide how critical each external
stakeholder is to the organization.
4. Determine how to manage each
individual external stakeholder
relationship.
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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What Is Organizational
Culture?
• Organizational Culture - The
shared values, principles, traditions,
and ways of doing things that
influence the way organizational
members act.
• Strong Cultures - Organizational
cultures in which key values are
intensely held and widely shared.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 Exhibit 2-5: Dimensions of
Organizational Culture

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Where Does Culture Come
From?
• Organization founder
• Vision and mission
• Past practices
• Top management
behavior
• Socialization - The
process that helps
employees adapt to
the organization’s
culture.

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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How Do Employees Learn
Culture?
• Stories - Narratives of significant
events or people, e.g. organization
founders, rule breaking, reaction to
past mistakes etc.
• Rituals - Sequences of activities
that express and reinforce the
important values and goals of the
organization

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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How Employees Learn Culture
(cont.)
• Material Artifacts and Symbols -
Convey the kinds of behavior that are
expected, e.g. risk taking,
participation, authority, etc.
• Language - Acts as a common
denominator that bonds members

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-6: Contrasting Organizational
Cultures

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-7: Strong vs. Weak Cultures

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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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

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 Exhibit 2-8: Establishing and
Maintaining Culture

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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How Does Culture Affect
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

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-9: Managerial Decisions
Affected by Culture

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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How Do You Create a Customer

Responsive Culture?
• Hire the right type of employees (those
with a strong interest in serving
customers)
• Have few rigid rules, procedures, and
regulations
• Use widespread empowerment of
employees
• Have good listening skills in relating to
customers’ messages
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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How Do You Create a Customer
Responsive Culture?
• Provide role clarity to employees in
order to reduce ambiguity and
conflict and to increase job
satisfaction
• Have conscientious, caring
employees willing to take initiative

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Exhibit 2-10: Creating a Customer
Responsive Culture

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Spirituality and Culture
• Workplace Spirituality - a culture where
organizational values promote a sense of
purpose through meaningful work that
takes place in the context of community
• Characteristics of a Spiritual Organization
– Strong sense of purpose
– Focus on individual development
– Trust and openness
– Employee empowerment
– Toleration of employees’ expression

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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