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Chapter 2

1. Contrast the actions of managers


according to the omnipotent and
symbolic views.
2. Describe the constraints and
challenges facing managers in today`s
external environment.
3. Discuss the characteristics and
importance of organizational culture.
4. Describe current issues in
organizational culture.

HOW MUCH DIFFERENCE DOES A MANAGER MAKE


IN - HOW AN ORGANIZATION PERFORMS?

OMNIPOTENT VIEW OF MANAGEMENT


SYMBOLIC VIEW OF MANAGEMENT

The dominant view in management theory and


society in general is that-managers are directly
responsible for an organization`s success or
failure. This perspective is known as the
omnipotent view of management.
Good managers anticipate change, exploit
opportunities, correct poor performance and
lead their organizations.

In the omnipotent view, someone has to be


held
accountable
when
organizations
perform poorly regardless of the reasons,
and that someone is the manager.
This view of managers as omnipotent is
consistent with the stereotypical picture of
the take-charge business executive who
overcomes any obstacle to ensure that the
organizations achieves its goals.

This view says that much of an organization`s


success of failure is due to external forces
outside managers` control.
According to this view it is unreasonable to
expect managers to significantly affect an
organization`s 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.

This view is symbolic as it`s based on the


belief that managers symbolize control and
influence
by
developing
plans,
making
decisions, and engaging in other managerial
activities to make sense out of random,
confusing and ambiguous situations.
The actual part that managers play in
organizational success or failure is limited
according to this view.

In reality managers are neither all-powerful


nor helpless. But their decisions and actions
are constrained.
Organizational
Environment

MANAGERIAL
DISCRETION

Organizational
Culture

External Environment: Those Factors and


Forces outside the organization that affect its
performance.
EXHIBIT 2-2: Components of External
Environment
The Economic Environment
1. Global economic recession and the
economic context
2. Economic inequality and the economic
context

The Demographic Environment

JOBS AND EMPLOYMENT


ASSESSING ENVIRONMENTAL UNCERTAINTY
EXHIBIT 2-3: Environmental Uncertainty
Matrix
Environmental Complexity
MANAGING STAKEHOLDER RELATIONSHIPS

ORGANIZATIONAL CULTURE: The shared


values, principles, traditions, and ways of
doing things that influence the way
organizational members act and that
distinguish the organization from other
organizations.
Culture is a PERCEPTION. Organizational
culture is DESCRIPTIVE.
SHARED ASPECT OF CULTURE.

EXHIBIT 2-5: Dimensions of Organizational


Culture
EXHIBIT 2-7: Strong Versus Weak Cultures
EXHIBIT 2-8: Establishing and Maintaining
Culture

STORIES

MATERIAL
ARTIFACTS AND
SYMBOLS
Learning
Culture

RITUALS

LANGUAGE

WORK CULTURES AMONG DIFFERENT


NATIONALITIES
READY-AIM-FIRE
READY-FIRE-AIM
EXHIBIT 2-9: TYPES OF MANAGERIAL
DECISIONS AFFECTED BY CULTURE

1. CREATING AN INNOVATIVE CULTURE


Any successful organization needs a culture
that supports innovation.
A common belief- the most important driver
of innovation for companies was a supportive
corporate culture.
Challenge and involvement

Playfulness/Humor

Freedom

Conflict Resolution

Trust and Openness

Debates

Idea Time

Risk-Taking

2. CREATING A CUSTOMER RESPONSIVE


CULTURE

EXHIBIT: 2-10: Creating a Customerresponsive Culture


Types of Employee

Empowerment

Types of Job
Environment

Role Clarity

3. SPIRITUALITY AND ORGANIZATIONAL CULTURE


Workplace Spirituality: A culture where
organizational values promote a sense of
purpose through meaningful work that takes
place in the context of community.
Spiritual organizations tend to have 5 cultural
characteristics:
Strong Sense of Purpose
Focus on Individual Development
Trust and Openness
Employment Empowerment
Tolerance of Employee Expression

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