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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
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