Management, Eleventh Edition, Global Edition by Stephen P.

Robbins & Mary Coulter ©2012 Pearson Education 2-1

 Chapter 2: Constraints and
Challenges for the Global Manager

• Contrast the actions of managers according to the

omnipotent and symbolic views
• Describe the constraints and challenges facing managers in
today’s external environment
• Discuss the characteristics and importance of organizational
culture
• Describe current issues in organizational culture

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 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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Porter’s Five Forces
Five critical external factors that affect strategies being
developed by organizations in any industry
• Threat of new entrants:
• threat that new competitors pose to existing business in industry
• Threat of substitute products or services:
• different product or service but performs the same purpose in the
mind of the consumer
• Competitive rivalry within industry:
• intensity of competition is main force to determine profitability
• Bargaining power of buyers:
• amount of pressure customers can put on a seller
• Bargaining power of suppliers:
• limits ability of the seller to make a profit- can pressure buyers by
raising prices, lowering quality
Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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Competitor Analysis
• A robust competitive analysis will allow you to
focus on those companies that will compete
for customers in your target market.
• A company’s analysis looks at a competitor and
inquires about:
• General Background information
• Financial inquiries
• Products that they sell
• Customers that they serve
• Advertising and Sales distribution channels
• Personnel and their plans for hiring

Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education
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 SWOT: A Situational Analysis
Summary
• Method that examines internal
strengths and weaknesses of an
organization and external
opportunities/threats

• SWOT
• Strengths- particular skills and
resources to pursue goals effectively
• Weaknesses- where it is lacking
resources and prevented from pursing
goals
• Opportunities- conditions favorable to
organization
• Threats- conditions that prevent
organization from achieving its goals

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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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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Terms to Know

• omnipotent view of • workplace spirituality

management • external environment
• symbolic view of • specific environment
management • general environment
• organizational culture • environmental
• strong cultures uncertainty
• socialization • environmental
complexity
• stakeholders

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