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    Chapter 3

    ORGANIZATIONAL

    CULTURE ANDENVIRONMENT:

    THE CONSTRAINTS© Prentice Hall, 2002 3-3-11

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    Learning Objectives

    !" s#!"$% $earn t!:

     & Di''erentiate t#e s()b!$ic 'r!) t#e !)ni*!tentvie+ !' )anage)ent

     & De'ine !rgani,ati!na$ c"$t"re

     & I%enti'( t#e seven %i)ensi!ns t#at )a-e "* an!rgani,ati!n.s c"$t"re an% #!+ t#ese %i)ensi!ns

    re'$ect t#e !rgani,ati!n.s *ers!na$it(

     & E/*$ain #!+ c"$t"res can be str!ng !r +ea-  & Describe t#e vari!"s +a(s t#at e)*$!(ees $earn

    c"$t"re

    © Prentice Hall, 2002 3-3-22

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    Learning Objectives 0c!nt12

    !" s#!"$% $earn t!:

     & E/*$ain #!+ c"$t"re c!nstrains )anagers & Describe t#e vari!"s c!)*!nents in an

    !rgani,ati!n.s s*eci'ic an% genera$ envir!n)ents

     & C!ntrast certain an% "ncertain envir!n)ents & I%enti'( t#e vari!"s sta-e#!$%ers +it# +#!)

    )anagers #ave t! %ea$

     & C$ari'( #!+ )anagers )anage re$ati!ns#i*s +it#e/terna$ sta-e#!$%ers

    © Prentice Hall, 2002 3-3-33

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    T#e Manager: O)ni*!tent Or S()b!$ic3

    O)ni*!tent Vie+ !' Manage)ent & 

    )anagers are %irect$( res*!nsib$e '!r an !rgani,ati!n.ss"ccess

    4 i' t#e !rgani,ati!n *er'!r)s *!!r$(5 )anagers +i$$ be#e$% acc!"ntab$e

    S()b!$ic Vie+ !' Manage)ent & t#e act"a$ *art t#at )anagers *$a( in !rgani,ati!na$

    s"ccess !r 'ai$"re is )ini)a$

     & )anagers )"st create )eaning !"t !' ran%!)ness5c!n'"si!n5 an% a)big"it(

    Rea$it( S"ggests a S(nt#esis & )anagers are neit#er #e$*$ess n!r a$$ *!+er'"$

    © Prentice Hall, 2002 3-3-44

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    6ara)eters !' Manageria$ Discreti!n

    Manageria$

    Discreti!nOrgani,ati!n.s Envir!n)entOrgani,ati!na$ C"$t"re

    © Prentice Hall, 2002 3-3-55

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    T#e Organi,ati!n.s C"$t"re

    7#at is Organi,ati!na$ C"$t"re3

     & A s(ste) !' s#are% )eaning an% be$ie's #e$% b(!rgani,ati!na$ )e)bers t#at %eter)ines5 in $arge %egree5#!+ t#e( act

    4 a c!))!n *erce*ti!n

    4 in%ivi%"a$s %escribe !rgani,ati!na$ c"$t"re in si)i$arter)s

    4 a %escri*tive ter)

     & c!)*!site *ict"re !' !rgani,ati!na$ c"$t"re )a( be

    %erive% 'r!) seven %i)ensi!ns4 !rgani,ati!n.s *ers!na$it( !'ten s#a*e% b( !ne !'

    t#ese %i)ensi!ns

    © Prentice Hall, 2002 3-3-66

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    E8HI9IT 1;: DIMENTIONS O< ORGANIZATIONAL CULTURE

    © Prentice Hall, 2002 3-3-77

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    T#e Organi,ati!n.s C"$t"re 0c!nt12

    Str!ng Vers"s 7ea- C"$t"res

     & in str!ng c"$t"res5 t#e -e( va$"es are %ee*$( #e$% an%+i%e$( s#are%

     & str!ng c"$t"res #ave greater in'$"ence !n e)*$!(ees t#an

    %! +ea- c"$t"res

     & e)*$!(ees )!re c!))itte% t! !rgani,ati!ns +it# str!ng

    c"$t"res

     & str!ng c"$t"res are ass!ciate% +it# #ig# !rgani,ati!na$

     *er'!r)ance & )!st !rgani,ati!ns #ave )!%erate t! str!ng c"$t"res

    © Prentice Hall, 2002 3-3-88

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    T#e Organi,ati!n.s C"$t"re 0c!nt12

    T#e S!"rce !' C"$t"re & 

    "s"a$$( re'$ects t#e visi!n !r )issi!n !' t#e '!"n%er 4 '!"n%ers *r!ject i)age !' +#at t#e !rgani,ati!ns#!"$% be

    H!+ E)*$!(ees Learn C"$t"re

     &  Stories = a narrative !' signi'icant events !r *e!*$e &  Rituals = re*etitive se>"ences !' activities

     &  Material symbols & essentia$ in creating an

    !rgani,ati!n.s *ers!na$it(1 &  Language = i%enti'ies )e)bers !' a c"$t"re

    4 !rgani,ati!ns %eve$!* "ni>"e ter)in!$!g( !r jarg!n

    © Prentice Hall, 2002 3-3-99

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    T#e Organi,ati!n.s C"$t"re 0c!nt12

    H!+ C"$t"re A''ects Managers

     & estab$is#es a**r!*riate )anageria$ be#avi!r 

     & c!nstrains %ecisi!n )a-ing in a$$ )anage)ent '"ncti!ns

    4 Planning  = %egree !' ris- t#at *$ans s#!"$% c!ntain

     & #!+ )"c# envir!n)enta$ scanning is necessar(

    4 Organizing  = %egree !' a"t!n!)( given t! e)*$!(ees & %egree !' inter%e*art)enta$ interacti!n

    4 Leading  = %egree !' c!ncern '!r j!b satis'acti!n

     & +#at $ea%ers#i* st($es are a**r!*riate4 Controlling  = re$iance !n e/terna$ !r interna$ c!ntr!$s

     & +#at *er'!r)ance criteria t! "se

    © Prentice Hall, 2002 3-3-1010

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    T#e E/terna$ Envir!n)ent

    Customers

    Competitors

    uppliers

    Pu!lic

    Pressure

    "roups

    #he

    $r%ani&ation

    "eneral

    'n(ironment

    peci)ic

    'n(ironment© Prentice Hall, 2002 3-3-1111

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    T#e Envir!n)ent

    De'ining t#e E/terna$ Envir!n)ent & E/terna$ envir!n)ent = '!rces an% instit"ti!ns !"tsi%e t#e

    !rgani,ati!n t#at )a( a''ect !rgani,ati!na$ *er'!r)ance

    4 Specific environment  = inc$"%es t#!se c!nstit"enciest#at #ave a %irect an% i))e%iate i)*act !n )anagers.%ecisi!ns an% acti!ns

     & %irect$( re$evant t! g!a$ ac#ieve)ent

     & is "ni>"e t! eac# !rgani,ati!n5 inc$"%ing:

    ? customers = abs!rb !rgani,ati!n.s !"t*"t

    ? suppliers = *r!vi%e )ateria$ an% e>"i*)ent? competitors = in'$"ence !' Internet

    ? pressure groups = s*ecia$=interest gr!"*s

    © Prentice Hall, 2002 3-3-1212

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    T#e Envir!n)ent 0c!nt12 & E/terna$ envir!n)ent 0c!nt12

    4 General environment  = inc$"%es t#e br!a% c!n%iti!nst#at )a( a''ect !rgani,ati!ns

     &  Economic conditions = interest rates5 c#anges in%is*!sab$e inc!)e5 an% stage !' t#e b"siness c(c$e

     &  Legal conditions = 'e%era$5 state5 an% $!ca$reg"$ati!n

    ? s"bstantia$ e/*ense entai$e% t! )eet reg"$ati!ns

    ? $i)it c#!ices avai$ab$e t! !rgani,ati!ns

     &  Political conditions = genera$ stabi$it( !' c!"ntr(? attit"%es !' g!vern)enta$ !''icia$s t!+ar% b"siness

    © Prentice Hall, 2002 3-3-1313

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    E8HI9IT 1@: SELECTED U1S1 LEGISLATION A

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    T#e Envir!n)ent 0c!nt12 & E/terna$ envir!n)ent 0c!nt12

    4 Genera$ envir!n)ent 0c!nt12

     &  Sociocultural conditions = e/*ectati!ns !' s!ciet(

    ? va$"es5 c"st!)s5 an% tastes

     &  Demograpic conditions = tren%s in t#e *#(sica$

    c#aracteristics !' a *!*"$ati!n

    ? e1g15 bab( b!!)ersB in'$"entia$ beca"se !' t#eir

    n")bers

    ? e1g15 %igita$B !r netB generati!n = i))ersi!nan% acce*tance !' c!)*"ters

    © Prentice Hall, 2002 3-3-1515

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    T#e Envir!n)ent 0c!nt12 & E/terna$ envir!n)ent 0c!nt12

    4 Genera$ envir!n)ent 0c!nt12

     & !ecnological conditions = )!st ra*i%$( c#anging

    as*ect !' t#e genera$ envir!n)ent

    ? c#anging t#e +a(s t#at !rgani,ati!ns are

    str"ct"re%

    ? in'!r)ati!n is t#e basis !' i)*!rtant

    c!)*etitive a%vantages

     & Global conditions = increasing n")ber !' g$!ba$c!)*etit!rs an% c!ns")er )ar-ets

    ? )aj!r 'act!r a''ecting !rgani,ati!ns

    © Prentice Hall, 2002 3-3-1616

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     T#e Envir!n)ent 0c!nt12

    H!+ t#e Envir!n)ent A''ects Managers

     & Assessing envir!n)enta$ "ncertaint( = %eter)ine% b(:4 %egree !' "n*re%ictab$e c#ange

     & dynamic = 're>"ent c#ange

     & stable = )ini)a$ c#ange

    4 environmental comple"ity

     & t#e n")ber !' c!)*!nents in t#e envir!n)ent

     & a)!"nt !' in'!r)ati!n avai$ab$e !r re>"ire% ab!"t

    t#!se c!)*!nents

    4 )anagers atte)*t t! )ini)i,e "ncertaint(

    © Prentice Hall, 2002 3-3-1717

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     E8HI9IT 1: ENVIRONMENTAL UNCERTAINT MATRI8 

    © Prentice Hall, 2002 3-3-1818

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    T#e Envir!n)ent 0c!nt12

    Sta-e#!$%er Re$ati!ns#i* Manage)ent

     & 7#! are sta-e#!$%ers34  an( c!nstit"encies t#at are a''ecte% b( t#e

    !rgani,ati!n.s %ecisi!ns an% acti!ns

     & inc$"%e interna$ an% e/terna$ gr!"*s & can in'$"ence t#e !rgani,ati!n

    © Prentice Hall, 2002 3-3-1919

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    T#e Envir!n)ent 0c!nt12

    Sta-e#!$%er Re$ati!ns#i* Manage)ent 0c!nt12

     & 7#( is sta-e#!$%er re$ati!ns#i* )anage)enti)*!rtant3

    4 t#e )!re sec"re t#e re$ati!ns#i*5 t#e )!re

    in'$"ence )anagers +i$$ #ave !ver!rgani,ati!na$ !"tc!)es

    4 it.s t#e rig#tB t#ing t! %!

    © Prentice Hall, 2002 3-3-2020

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    E8HI9IT 1: ORGANIZATIONAL STAEHOLDERS

    © Prentice Hall, 2002 3-3-2121

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    T#e Envir!n)ent 0c!nt12

    Sta-e#!$%er Re$ati!ns#i* Manage)ent 0c!nt12 & H!+ can t#ese re$ati!ns#i*s be )anage%3

    4 '!"r ste*s

     & i%enti'( t#e sta-e#!$%ers

     & %eter)ine rea$ an% *!tentia$ c!ncerns !' eac#

    sta-e#!$%er gr!"* & %eter)ine +#et#er sta-e#!$%er is critica$

     & %eter)ine s*eci'ic a**r!ac# t! )anage t#ere$ati!ns#i*

    4 a**r!ac# t! a sta-e#!$%er gr!"* base% !n t#ei)*!rtance !' t#e gr!"* an% t#e %egree !'envir!n)enta$ "ncertaint(

    © Prentice Hall, 2002 3-3-2222

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    E8HI9IT 1F: MANAGING STAEHOLDER RELATIONSHI6S

    © Prentice Hall, 2002 3-3-2323