MGMT CH7 Constraints on Managers

Omnipotent View

managers are directly responsible for an organization's success or failure

Symbolic View

much of an organization's success or failure is due to external forces outside managers' control

External Constraints

come from the organization's environment

Internal Constraints

come from the organization's culture

Constraints on Managerial Discretion

Organizational Environment, Managerial Discretion, & Organizational Culture

Components of External Environment

political, legal, demographics, economic, sociocultural, technological, & global factors

Economic Inequality and the Economic Context

people believe that the gap between the rich and poor is problematic.

Gen Y

most are under 40.

Jobs and Employment

the impact of external factors on jobs and employment is one of the most powerful constraints mangers face

Environmental uncertainty

the degree of change and complexity in an organization's environment. Change: stable to dynamic. Complexity: simple to complex.

Stakeholders

any constituencies in the organization's environment that are affected by an organization's decisions and actions

Benefits of Good Stakeholder Relationships

• Improved predictability of environmental changes

• Increased successfui innovations

• Increased trust among stakeholders

• Greater organizational flexibility to reduce the impact of change

Organizational Culture

organizational personality

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

Strong cultures

organizational cultures in which the key values are intensely held and widely shared

Stories

typically contain a narrative of significant events or people, including such things as the organization's founders, rule breaking, reactions to past mistakes, and so forth.

Rituals

repetitive sequences of activities that express and reinforce the important values and goals of the organization.

Material Artifacts and Symbols

The layout of an organization's facilities, how employees dress, the types of automobiles provided to top executives, and the availability of corporate aircraft are examples of material symbols.

Language

unique terms to describe equipment, key personnel, suppliers, customers, processes, or products related to business.