OrganizationalCultureandEnvironmentChapter

3ManagementStephenP.Robbins MaryCoultertenthedition1Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningOutcomes

FollowthisLearningOutlineasyoureadandstudythischapter.3.1TheManager:OmnipotentOrSymbolic?Contrasttheactionsofmanagersaccordingtotheomnipotentandsymbolicviews.Identifythetwoconstraintsonmanagerialdiscretion.3.2OrganizationalCultureIdentifythesevendimensionsoforganizationalculture.Discusstheimpactofastrongcultureonorganizationsandmanagers.Explainhowacultureisformedandmaintained.Describehowcultureaffectsmanagers.2Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallLearningOutcomes3.3CurrentOrganizationalCultureIssues.Describethecharacteristicsofanethicalculture,aninnovativeculture,andacustomer-responsiveculture.Explainwhyworkplacespiritualityseemstobeanimportantconcern.Describethecharacteristicsofaspiritualorganization.3.4TheEnvironment.Listthecomponentsofthespecificandgeneralenvironments.Explainthetwodimensionsofenvironmentaluncertainty.Identifythemostcommonorganizationalstakeholders.Listthefourstepsinmanagingexternalstakeholderrelationships.3Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheManager:OmnipotentorSymbolic?OmnipotentViewofManagementManagersaredirectlyresponsibleforanorganization’ssuccessorfailure.Thequalityoftheorganizationisdeterminedbythequalityofitsmanagers.Managersareheldaccountable

foranorganization’sperformance,

yetitisdifficulttoattribute

goodorpoorperformance

directlytotheirinfluence

ontheorganization.4Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheManager:OmnipotentorSymbolic?SymbolicViewofManagementMuchofanorganization’ssuccessorfailureisduetoexternalforcesoutsideofmanagers’control.Theabilityofmanagerstoaffectoutcomesisinfluencedandconstrainedbyexternalfactors.Theeconomy,customers,governmentalpolicies,competitors,industryconditions,

technology,andtheactionsof

previousmanagersManagerssymbolizecontroland

influencethroughtheiraction.5Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–1 ParametersofManagerialDiscretion6Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallTheOrganization’sCultureOrganizationalCultureAsystemofsharedmeaningsandcommonbeliefsheldbyorganizationalmembersthatdetermines,inalargedegree,howtheyacttowardseachother.“Thewaywedothingsaroundhere.”Values,symbols,rituals,myths,andpracticesImplications:Cultureisaperception.Cultureisshared.Cultureisdescriptive.7Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–2 DimensionsofOrganizationalCulture8Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallStrongVersusWeakCulturesStrongCulturesAreculturesinwhichkeyvaluesaredeeplyandwidelyheld.Haveastronginfluenceonorganizationalmembers.FactorsInfluencingtheStrengthofCultureSizeoftheorganizationAgeoftheorganizationRateofemployeeturnoverStrengthoftheoriginalcultureClarityofculturalvaluesandbeliefs9Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–3 ContrastingOrganizationalCulturesDimensionOrganizationAOrganizationBAttentiontoDetailHighLowOutcomeOrientationLowHighPeopleOrientationLowHighTeamOrientationLowHighAggressivenessLowHighStabilityHighLowInnovationandRiskTakingLowHigh10Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallBenefitsofaStrongCultureCreatesastrongeremployeecommitmenttotheorganization.Aidsintherecruitmentandsocializationofnewemployees.Fostershigherorganizational

performancebyinstillingand

promotingemployeeinitiative.11Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallOrganizationalCultureSourcesofOrganizationalCultureTheorganization’sfounderVisionandmissionPastpracticesoftheorganizationThewaythingshavebeendoneThebehavioroftopmanagementContinuationoftheOrganizationalCultureRecruitmentoflike-mindedemployeeswho“fit”Socializationofnewemployeestohelpthemadapttotheculture12Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–5 HowanOrganization’sCultureIsEstablishedandMaintained13Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–4 StrongVersusWeakOrganizational

Cultures14Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallHowEmployeesLearnCultureStoriesNarrativesofsignificanteventsoractionsofpeoplethatconveythespiritoftheorganizationRitualsRepetitivesequencesofactivitiesthatexpressandreinforcethevaluesoftheorganizationMaterialSymbolsPhysicalassetsdistinguishingtheorganizationLanguageAcronymsandjargonofterms,phrases,andwordmeaningsspecifictoanorganization15Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallHowCultureAffectsManagersCulturalConstraintsonManagersWhatevermanagerialactionstheorganizationrecognizesasproperorimproperonitsbehalfWhateverorganizationalactivitiestheorganizationvaluesandencouragesTheoverallstrengthorweaknessoftheorganizationalculture

Simpleruleforgettingaheadinanorganization:Findoutwhattheorganizationrewardsandactaccordingly.16Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–6 ManagerialDecisionsAffectedbyCulturePlanningThedegreeofriskthatplansshouldcontainWhetherplansshouldbedevelopedbyindividualsorteamsThedegreeofenvironmentalscanninginwhichmanagementwillengageOrganizingHowmuchautonomyshouldbedesignedintoemployees’jobsWhethertasksshouldbedonebyindividualsorinteamsThedegreetowhichdepartmentmanagersinteractwitheachother17Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–6 ManagerialDecisionsAffectedbyCulture

(cont’d)Leading

ThedegreetowhichmanagersareconcernedwithincreasingemployeejobsatisfactionWhatleadershipstylesareappropriateWhetheralldisagreements—evenconstructiveones—shouldbeeliminated Controlling

WhethertoimposeexternalcontrolsortoallowemployeestocontroltheirownactionsWhatcriteriashouldbeemphasizedinemployeeperformanceevaluationsWhatrepercussionswilloccurfromexceedingone’sbudget18Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallOrganizationCultureIssuesCreatinganEthicalCultureHighinrisktoleranceLowtomoderateaggressivenessFocusonmeansaswellasoutcomesCreatinganInnovativeCultureChallengeandinvolvementFreedomTrustandopennessIdeatimePlayfulness/humorConflictresolutionDebatesRisk-taking19Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–7 CreatingaMoreEthicalCultureBeavisiblerole

model.Communicateethicalexpectations.Provideethicstraining.Visiblyrewardethicalactsandpunishunethicalones.Provideprotectivemechanisms

soemployeescandiscussethicaldilemmasandreportunethicalbehaviorwithoutfear.20Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallOrganizationCultureIssues(cont’d)CreatingaCustomer-ResponsiveCultureHiringtherighttypeofemployees(thosewithastronginterestinservingcustomers)Havingfewrigidrules,procedures,andregulationsUsingwidespreadempowermentofemployeesHavinggoodlisteningskillsinrelatingtocustomers’messagesProvidingroleclaritytoemployeestoreduceambiguityandconflictandincreasejobsatisfactionHavingconscientious,caringemployeeswillingtotakeinitiative21Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–8 CreatingaCustomer-ResponsiveCulture22Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallSpiritualityandOrganizationalCultureWorkplaceSpiritualityTherecognitionthatpeoplehaveaninnerlifethatnourishesandisnourishedbymeaningfulworkthattakesplaceinthecontextofcommunity.CharacteristicsofaSpiritualOrganizationStrongsenseofpurposeFocusonindividualdevelopmentTrustandopennessEmployeeempowermentTolerationofemployees’expression23Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallBenefitsofSpiritualityImprovedemployeeproductivityReductionofemployeeturnoverStrongerorganizationalperformanceIncreasedcreativityIncreasedemployeesatisfactionIncreasedteamperformanceIncreasedorganizationalperformance24Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallDefiningtheExternalEnvironmentExternalEnvironmentThosefactorsandforcesoutsidetheorganizationthataffecttheorganization’sperformance.ComponentsoftheExternalEnvironmentSpecificenvironment:externalforcesthathaveadirectandimmediateimpactontheorganization.Generalenvironment:broadeconomic,socio-cultural,political/legal,demographic,technological,andglobalconditionsthatmayaffecttheorganization.25Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–9 TheExternalEnvironment26Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–10 ImportantLegislationOccupationalSafetyandHealthActof1970ConsumerProductSafetyActof1972EqualEmploymentOpportunityActof1972WorkerAdjustmentandRetrainingNotificationActof1988AmericanswithDisabilitiesActof1990CivilRightsActof1991FamilyandMedicalLeaveActof1993ChildSafetyProtectionActof1994U.S.EconomicEspionageActof1996ElectronicSignaturesinGlobalandNationalCommerceActof2000Sarbanes-OxleyActof2002FairandAccurateCreditTransactionsActof2003 27Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallHowtheEnvironmentAffectsManagersEnvironmentalUncertaintyTheextenttowhichmanagershaveknowledgeofandareabletopredictchangetheirorganization’sexternalenvironmentisaffectedby:Complexityoftheenvironment:thenumberofcomponentsinanorganization’sexternalenvironment.Degreeofchangeinenvironmentalcomponents:howdynamicorstabletheexternalenvironmentis.28Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallExhibit3–11 EnvironmentalUncertaintyMatrix29Copyright?2010PearsonEducation,Inc.PublishingasPrenticeHallStakeholderRelationshipsStakeholdersAnyconstituenciesintheorganization’senvironmentthatareaffectedbytheorganization’sdecisionsandactionsWhyManageStakeholderRelationships?Itcanleadtoimprovedorganizationalperformance.It’sthe“right”thingtodo,giventheinterdependenceoftheorganizationanditsexternalstakeholders.30Copyright?2010PearsonEducat