Robbins Ch.

MANAGEMENT

CONSTRAINTS AND CHALLENGES FOR THE GLOBAL MANAGER

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Learning Outcome

Contrast the actions of managers according to the omnipotent and symbolic views. Describe the constraints and challenges facing managers in todays 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?

The omnipotent view
According to this view, managers are directly responsible for an organization success or failure. Example: the CEO of Cott corporation was fired because some of its largest customers were threatening to leave and the companys share prices had declined sharply.
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The manager: Omnipotent or Symbolic?

The omnipotent view
In this view, someone has to be held accountable when organization perform poorly regardless of the reasons, and that someone is the manager. Of course, when things go well, managers also get the credit even if they had little to do with achieving the positive outcomes. This view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who overcomes any obstacle in seeing that the organization achieves its goals.
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The manager: Omnipotent or Symbolic?

The symbolic view
This view argues that much of an organizations success or failure is due to external forces outside managers control It is unreasonable to expect managers to significantly affect an organizations performance. Instead, performance is influenced by factors over which managers have little control such as the economy, customers, governmental policies, competitors actions, industry conditions, and decisions made by previous managers.
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The manager: Omnipotent or Symbolic?

The symbolic view
In reality, managers are neither all-powerful nor helpless. But their decisions and actions are constrained.
Organizational Environment Managerial Discretion Organizational Culture

From the exhibit above, we can see that external constraints come from the organizations environment and internal constraints come from the organizations culture.
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The External Environment: Constraints and Challenges

External Environment
The forces and institutions outside the organization that potentially can affect the organizations performance.

Components of the External Environment

Specific environment: external forces that have a direct and immediate impact on the organization. General environment: broad economic, sociocultural, political/legal, demographic, technological, and global conditions that may affect the organization.
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The External Environment

Components of External Environment
Economic environment
Look at the changes that have taken place and the impact of those changes on the way organizations are managed.

Example: The economic crisis (Great recession), began with turmoil in home mortgage markets in the US when many homeowners found themselves unable to make their payments. The problems soon affected businesses as credit markets collapsed. All of a sudden, credit was no longer readily available to fund business activities. It didnt take long for these economic troubles to spread worldwide.
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The External Environment

Components of External Environment
Demographics environment
Demographic age cohorts are important to our study of management because large numbers of people at certain stages in the life cycle can constrain decisions and actions taken by businesses, governments, educational institutions, and other organizations.
It doesnt only look at current statistics, but also looks to the future. For example: Recent analysis of birth rates shows than more than 80% of babies being born worldwide are from Africa and Asia. Intereting facts: India has one of the worlds youngest populations with more males under the age of 5 than the entire population of France. And by 2050, its predicted that China will have more people age 65 and older than the rest of the world combined. Consider the impact of such population trends on organizations and managers in the future.
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The External Environment

Components of External Environment
Technological environment Sociocultural environment Political / Legal environment Global environment

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How the Environment Affects Managers

Environmental Uncertainty
The extent to which managers have knowledge of and are able to predict change their organizations external environment is affected by:
Complexity of the environment: the number of components in an organizations external environment. Degree of change in environmental components: how dynamic or stable the external environment is.

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Stakeholder Relationships
Stakeholders
Any constituencies in the organizations external environment that are affected by the organizations decisions and actions Another definition:
Someone who has a vested interest, financial, social or otherwise in action or organization. An individual or group with an interest in the success of the organization in delivering intended results and maintaining the viability of the organizations products and services. Stakeholders influence the programs, products and services.
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Stakeholder Relationships
Stakeholders
For example: An education stakeholder includes students, academics, employment and careers advisors, teaching and learning managers, employers of recent graduates, business deans, professional bodies, libraries, PTAs and other parent organizations.

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Stakeholder Relationships
Why Manage Stakeholder Relationships?
It can lead to improved organizational performance.
Its the right thing to do given the interdependence of the organization and its external stakeholders.
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Organizational Stakeholders
Some organizations most common stakeholders. Those stakeholders include internal and external groups, because both can affect what an organization does and how it operates. They are:
Employees Unions Shareholders Communities Suppliers Media Governments Trade and industry associations Competitors Social and political action groups Customers
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Managing Stakeholder Relationships

1. Identify the stakeholders. organizations external

2. Determine the particular interests and concerns of the external stakeholders. 3. Decide how critical each external stakeholder is to the organization. 4. Determine how to manage each individual external stakeholder relationship.
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The Organizations Culture

Organizational Culture
A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other. The way we do things around here.
Values, symbols, rituals, myths, and practices

Implications:
Culture is a perception. Culture is shared. Culture is descriptive.
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 Organizational Culture at W.L Gore & Associates

A company known for its innovative and high-quality fabrics used in outdoor wear and other products, also understands the importance of organizational culture. Since its founding in 1958, Gore has used employee teams in a flexible, nonhierarchical organizational arrangement to develop its innovative products.

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 Organizational Culture at W.L Gore & Associates

Associates (employees) at Gore are committed to four basic principles articulated by company founder Bill Gore:
1. 2. Fairness to one another and everyone you come in contact with; Freedom to encourage, help, and allow other associates to grow in knowledge, skill, and scope of responsibility; The ability to make your own commitments and keep them; and Consulting other associates before taking actions that could affect the companys reputation.
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3.
4.

An inside look at Google

Working at Google
Google is not a conventional company. They share attributes with the worlds most successful organizations a focus on innovation and smart business practices comes to mind but even as they continue to grow, they are committed to retaining a smallcompany feel

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Working at Google
Every employee has something important to say, and that every employee is integral to their success.
They provide individuallytailored compensation packages that can be comprised of competitive salary, bonus, and equity components, along with the opportunity to earn further financial bonuses and rewards.
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Working at Google
They nurture an invigorating, positive environment by hiring talented, local people who share their commitment to creating search perfection and want to have a great time doing it. See more life at Google.
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Strong versus Weak Cultures

Strong Cultures
Are cultures in which key values are deeply held and widely held. 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
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Strong Cultures Values widely shared

Weak Cultures

Values limited to a few people usually top management Culture conveys consistent Culture sends contradictory messages about whats messages about whats important important Most employees can tell stories Employees have little about company history or knowledge of company history heroes or heroes Employees strongly identify with culture Employees have little identification with culture

Strong connection between shared values and behaviors

Little connection between shared values and behaviors

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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.
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Organizational Culture
Sources of Organizational Culture
The organizations founder
Vision and mission

Past practices of the organization

The way things have been done

The behavior of top management

Continuation of the Organizational Culture

Recruitment of like-minded employees who fit. Socialization of new employees to help them adapt to the culture
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Dimensions of Organizational Culture

Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability Innovation and risk taking
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How Employees Learn Culture

Stories
Narratives of significant events or actions of people that convey the spirit of the organization

Rituals
Repetitive sequences of activities that express and reinforce the values of the organization

Material Symbols
Physical assets distinguishing the organization

Language
Acronyms and jargon of terms, phrases, and word meanings specific to an organization
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How Culture Affects Managers

Managerial decisions affected by culture:
Planning
The degree of risk that plans should contain. Whether plans should be developed by individuals or teams. The degree of environmental scanning in which management will engage.

Organizing
How much autonomy should be designed into employees job. Whether tasks should be done by individuals or in teams. The degree to which department managers interact with each other.
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How Culture Affects Managers

Managerial decisions affected by culture:
Leading
The degree to which managers are concerned with increasing employee job satisfaction. What leadership styles are appropriate. Whether all disagreements even constructive ones should be eliminated.

Controlling
Whether to impose external controls or to allow employees to control their own actions. What criteria should be emphasized in employee performance evaluations. What repercussions will occur from exceeding ones budget.
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How Culture Affects 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

Simple rule for getting ahead in an organization:
Find out what the organization rewards and do those things.
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Organization Culture Issues

Creating an Ethical Culture
High in risk tolerance Low to moderate aggressiveness Focus on means as well as outcomes

Creating an Innovative Culture

Challenge and involvement Freedom Trust and openness Idea time Playfulness/humor Conflict resolution Debates Risk-taking
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Organization Culture Issues (contd)

Creating a Customer-Responsive Culture
Hiring the right type of employees (ones with a strong interest in serving customers) Having few rigid rules, procedures, and regulations Using widespread empowerment of employees Having good listening skills in relating to customers messages Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction Having conscientious, caring employees willing to take initiative
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Spirituality and Organizational Culture

Workplace Spirituality
The recognition that people have an inner life that nourishes and is nourished by 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
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Benefits of Spirituality
Improved employee productivity Reduction of employee turnover Stronger organizational performance Increased creativity Increased employee satisfaction Increased team performance Increased organizational performance
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References
http://www.wfaa.com/news/technology/Stev e-Jobs-and-the-culture-of-Apple131192258.html

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