8th edition8th edition

Steven P. RobbinsMary Coulter

Steven P. RobbinsMary Coulter

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The Manager: Omnipotent or Symbolic?

• Omnipotent (all-powerful) View of ManagementManagers are directly responsible for an

organization’s success or failure.

The quality of the organization is determined by the quality of its managers.

Managers are held most accountable (considered

responsible) for an organization’s performance yet it is difficult to attribute (to connect) good or poor performance directly to their influence on the organization.

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The Manager: Omnipotent or Symbolic?

• Symbolic (representative) View of ManagementMuch 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 (limited) by external factors. The economy, customers, governmental policies,

competitors, industry conditions, technology, and the actions of previous managers

Managers symbolize (represent) control and influence through their action.

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The Manager: Omnipotent or Symbolic?

• Actions of managers according to the omnipotent and symbolic views:Omnipotent view: Actions include anticipating change;

exploiting opportunities; correcting poor performance; leading organizations toward their goals.

Symbolic view: Actions include developing plans; making decisions; engaging in activities for the benefit of stockholders, customers, employees and the public.

Managerial discretion (freedom to act independently):Managers are neither powerless nor all-powerful. Although

they operate within constraints imposed by the organization’s culture (internal constraints) and the environment (external constraints), they can still influence the organization’s performance.

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Exhibit 3.1Exhibit 3.1

Parameters of Managerial Discretion

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The Organization’s Culture (character)

• 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 (usual behavior), myths (beliefs), and

practices. Implications (meanings):

Culture is a perception (based on what is seen, heard or experienced)

Culture is shared (described by all in similar terms)

Culture is descriptive (it describes rather than evaluates)

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Dimensions of Organizational Culture• Seven dimensions (principles, components) capture the

essential meanings of an organization’s culture. One or more of these dimensions may be emphasized in various degrees of importance, which gives the organization its distinctive personality (character).

Attention to DetailOutcome OrientationPeople OrientationTeam OrientationAggressiveness (being fearless and enterprising)Stability (being free from change)

Status quo = maintaining the existing situation

Innovation and Risk Taking

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Exhibit 3.2Exhibit 3.2

Dimensions of Organizational Culture

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Strong versus Weak Cultures

• Strong Cultures Are cultures in which key values are deeply held (strongly committed to)

and widely shared (accepted and applied by everyone). They Have a greater influence on employees than do weak cultures Employees are more committed than those in organizations with

weak cultures Strong cultures promote high performance.

• Factors Influencing the Strength of Culture Size of the organization Age of the organization Rate of employee turnover (that have to be replaced)

Strength of the original culture Clarity (easy to understand) of cultural values and beliefs

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Organizational Culture• Sources of Organizational Culture

The organization’s founders (those who started the business)

Their vision or mission and the image they project of what the organization should be.

Past practices of the organization The way things have been done before

The behavior of top management E.g. Their focus on aggressiveness or treating employees as

family.

• How the Organizational Culture ContinuesRecruitment of like-minded employees who “fit”Socialization of new employees to help them adapt to the

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Exhibit 3.4Exhibit 3.4

How an Organization’s Culture Is Established and Maintained

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How Employees Learn Culture

• Stories Telling stories of significant events or actions and people that show the

spirit of the organization, presented in print or videos.

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

of the organization. E.g. Morning physical exercises or singing as it is done in Japan.

• Material Symbols Physical assets distinguishing the organization. E.g. Type of

automobiles, of furniture, the size of offices, dress code.

• Language Acronyms (word forms), characteristic language, use of terms, phrases,

and word meanings specific to an organization.

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How Culture Affects Managers

• Cultural Constraints that affect ManagersManagerial actions that the organizational culture

recognizes as proper or improper (right or wrong)

Organizational activities that the culture values and encourages

The 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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Exhibit 3.5aExhibit 3.5a

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 (independence) should be designed into employees’ jobs

• Whether tasks should be done by individuals or in teams

• The extent of interaction (acting together) between department managers

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Exhibit 3.5bExhibit 3.5b

Managerial Decisions Affected by Culture

• Leading

• The degree to which managers are concerned with increasing employee job satisfaction

• What styles of leadership 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 (basis for comparison) should be used when evaluating employee performance

• What consequences will occur from exceeding one’s budget

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Exhibit 3.6Exhibit 3.6

Suggestions for Managers: Creating a More Ethical Culture

• Be a visible role model.

• Communicate ethical expectations (tell what is right and

wrong).

• Provide ethics training.

• Visibly reward ethical (honorable) acts and punish unethical ones.

• Provide protective mechanisms so employees can discuss ethical dilemmas (problems) and report unethical behavior without fear.

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Organization Culture Issues

• Creating an Ethical CultureHigh in risk toleranceLow to moderate

aggressivenessFocus on means as

well as outcomes

• Creating an Innovative CultureChallenge and

involvementFreedomTrust and openness Idea timePlayfulness/humorConflict resolutionDebatesRisk-taking

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Organization Culture Issues (cont’d)• 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 regulationsUsing widespread (general) empowerment of employeesHaving good listening skills in relating to customers’

messagesProviding role clarity to employees to reduce ambiguity (lack

of clarity) and conflict and increase job satisfaction (clearly define responsibilities so as to eliminate confusion)

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 (deep feelings and

emotional states) that nourishes (provides) and is nourished by meaningful work that takes place in the context of community.

Employees are looking for ways to cope with stress and pressures in their lives.

•Characteristics of a Spiritual Organization Strong sense of purpose (important role)

Focus on individual development

Trust and openness Employee empowerment (authorizing decision making)

Toleration (acceptance) of employees’ expression (allowing people to express feelings and be themselves)

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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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Defining the External Environment

• External EnvironmentThe forces and institutions outside the organization

that potentially can affect the organization’s performance.

• Components of the External EnvironmentSpecific environment: external forces that have a

direct and immediate impact on the organization (e.g. customers, suppliers, competitors).

General environment: broad economic, socio-cultural (e.g. religion, lifestyles, technology), political/legal, demographic (e.g. gender, age, education, income), technological, and global conditions that may affect the organization.

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Exhibit 3.8Exhibit 3.8

The External 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 in their organization’s external environment is affected by:

Dimensions in Environmental Uncertainty

Complexity of the environment: the number of components in an organization’s external environment.

Degree of change in environmental components: how dynamic or stable the external environment is.

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Exhibit 3.10Exhibit 3.10

Environmental Uncertainty Matrix

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Stakeholder Relationships

• Stakeholders

Any constituencies in the organization’s external environment that are affected by the organization’s decisions and actions

• Why Manage Stakeholder Relationships?

It can lead to improved organizational performance.

It’s the “right” thing to do given the interdependence of the organization and its external stakeholders.

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Exhibit 3.11Exhibit 3.11

Organizational Stakeholders

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Managing Stakeholder Relationships

1. Identify the organization’s external stakeholders (which

groups might be affected by decisions?).

2. Determine the particular interests and concerns of the external stakeholders (e.g. product quality, financial issues).

3. Decide how critical each external stakeholder is to the organization (some are more critical than others).

4. Determine how to manage each individual external stakeholder relationship (depending on how critical the

stakeholder and how uncertain the environment are).

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C H A P T E R R E V I E W 1/3

The Manager: Omnipotent or Symbolic (slide 4)

• Contrast the actions of managers according to the omnipotent and symbolic views.

• Explain the parameters of managerial discretion.

The Organization’s Culture (slides 8, 9, 10, 12)

• Describe the seven dimensions of organizational culture.

• Discuss the impact of a strong culture on organizations and managers.

• Explain the source of an organization’s culture and how that culture continues.

• Describe how culture is transmitted to employees.

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C H A P T E R R E V I E W 2/3

Current Organizational Issues Facing Managers (slides 17, 18, 19)

• Describe the characteristics of an ethical culture, an innovative culture, and a customer-responsive culture.

• Discuss why workplace spirituality seems to be an important concern.

• Describe the characteristics of a spiritual organization.

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C H A P T E R R E V I E W 3/3

•The Environment (slides 21, 23, 26, 27)

• Describe the components of the specific and general environments.

• Discuss the two dimensions of environmental uncertainty.

• Identify the most common organizational stakeholders.

• Explain the four steps in managing external stakeholder relationships.