Constraints on

Managers

7
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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.

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 The Manager:
Omnipotent or Symbolic?
• Omnipotent View of Management
- Managers are directly responsible for an organization’s success
- If the organization performs poorly, managers will be held
accountable
- The quality of the organization is determined by the quality of
its managers

• Symbolic View of Management

- Much of an organization’s success or failure is due to external
forces outside of managers’ control
- The ability of managers to affect outcomes is influenced and
constrained by external factors
- Managers symbolize control and influence through their action

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 The Manager:
Omnipotent or Symbolic?

• In reality, managers are neither helpless nor

all powerful
- Managers face internal and external constraints
- Despite these constraints they can still influence an
organizations performance

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 External Environment

General
Environment

Supplier Custom
s ers
The
Organiza
tion
Public
Pressur Competi
e tors
Groups
Specific
Environment

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 The Environment
• External Environment
− The forces and institutions outside the organization that potentially can
affect the organization’s performance.

• Components of the External Environment - Specific environment & General

environment

• Specific environment
• includes those constituencies that have a direct and immediate impact
on managers’ decisions and actions
• directly relevant to goal achievement
• is unique to each organization, including:
customers - absorb organization’s output
suppliers - provide material and equipment
competitors - influence of Internet
pressure groups - special-interest groups

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 The Environment
• General environment: broad economic, socio-cultural, political/legal,
demographic, technological, and global conditions that may affect the
organization.
• Economic conditions - The economic component encompasses factors
such as interest rates, inflation, changes in disposable income, stock
market fluctuations, and business cycle stages.
• Legal conditions - federal, state, and local regulation
>> substantial expense entailed to meet regulations
>> limit choices available to organizations
• Political conditions - general stability of country
>> attitudes of governmental officials toward business
• Sociocultural conditions - expectations of society
>> values, attitudes, trends, traditions, lifestyles, beliefs, tastes,
and patterns of behavior.

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 The Environment
General environment (contd.)
• Demographic conditions - trends in population characteristics such as
age, race, gender, education level, geographic location, income, and family
composition.
e.g., “baby boomers” influential because of their numbers
e.g., “digital” or “net” generation - immersion and acceptance
of computers

• Technological conditions - most rapidly changing aspect of the general

environment. It is concerned with scientific or industrial innovations.
>> changing the ways that organizations are structured
>> information is the basis of important competitive advantages

• Global conditions - increasing number of global competitors and

consumer markets. encompasses those issues associated with
globalization and a world economy
>> major factor affecting organizations

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 Environmental Uncertainty and
Complexity
•Assessing environmental uncertainty - determined by:
• degree of unpredictable change
−dynamic - frequent change
−stable - minimal change
• environmental complexity
−the number of components in the environment
−amount of information available or required about
those components

•Managers attempt to minimize uncertainty

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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.

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ENVIRONMENTAL UNCERTAINTY
MATRIX

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Managing Stakeholder Relationships

• Stakeholders - any constituencies in the

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

• Include internal and external groups can

influence the organization.

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Exhibit 2-4 Organizational
Stakeholders

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Managing Stakeholder Relationships

Why is stakeholder relationship management important?

• the more secure the relationship, the more influence
managers will have over organizational outcomes
• it’s the “right” thing to do

How can these relationships be managed?

• four steps
− identify the stakeholders
− determine real and potential concerns of each
stakeholder group
− determine whether stakeholder is critical
− determine specific approach to manage the
relationship
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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.
• “The way we do things around here.”
− Values, symbols, rituals, myths, and
practices

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 What Is Organizational Culture?
• Implications:
- Culture is a perception – employees perceive culture on the
basis of what they see, hear & experience
- Culture is shared – employees from different background and
levels of organization tend to describe organization’s culture in
similar terms
- Culture is descriptive – it is concerned with how employees
perceive the organization. It describes rather than evaluates

• Seven dimensions of organizational culture

− composite picture of organizational culture may be derived from
seven dimensions
− organization’s personality often shaped by one of these
dimensions

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Dimensions of Organizational
Culture

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 Strong Versus Weak Cultures

Strong Cultures
- Are cultures in which key values are deeply held and widely shared.
- Have a strong influence on organizational members.

Factors Influencing the Strength of Culture

- Size of the organization
- Age of the organization
- Rate of employee turnover
- Strength of the original culture
- Clarity of cultural values and beliefs

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.

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 Exhibit 2-7
Strong Versus Weak Cultures

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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
• Material Artifacts and Symbols - Physical assets
distinguishing the organization convey the kinds of behavior
that are expected, e.g. risk taking, participation, authority,
etc.
• Language - Acronyms and jargon of terms, phrases, and
word meanings specific to an organization. Acts as a
common denominator that bonds members.

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 Creating an Innovative Culture

• What does an innovative culture look like?

– Challenge and involvement
– Freedom
– Trust and openness
– Idea time
– Playfulness/humor
– Conflict resolution
– Debates
– Risk-taking
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 Creating an Innovative Culture
(Contd.)
▪ Trust and openness - Are employees supportive and
respectful of each other?
▪ Idea time - Do individuals have time to elaborate on new
ideas before taking action?
▪ Playfulness/humor - Is the workplace spontaneous
and fun?
▪ Conflict resolution - Do individuals make decisions and
resolve issues based on the good of the organization
versus personal interest?
▪ Debates - Are employees allowed to express opinions and
put forth ideas for consideration and review?
▪ Risk taking - Do managers tolerate uncertainty and
ambiguity, and are employees rewarded for taking risks?
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 Exhibit 2-10
Creating a Customer-Responsive Culture
• 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

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 Exhibit 2-10
Creating a Customer-Responsive Culture
Characteristics of Suggestions for managers
Customer- responsive
Culture
Type of employee Hire people with personalities and attitudes consistent with
customer service: friendly, attentive, enthusiastic, patient, good
listening skills
Type of job environment Design jobs so employees have as much control as possible to
satisfy customers, without rigid rules and procedures

Empowerment Give service-contact employees the discretion to make day-to-day

decisions on job-related activities

Role clarity Reduce uncertainty about what service contact employees can and
cannot do by continual training on product knowledge, listening,
and other behavioral skills
Consistent desire to satisfy Clarify organization’s commitment to doing whatever it takes,
and delight customers even if it’s outside an employee’s normal job requirements

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