CHAP 7: CONSTRAINTS ON MANAGERS

Omnipotent view of management- quan điểm toàn năng về quản lý

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

symbolic view of management

much of an organization’s success or failure is due to external forces outside managers’ control. This perspective suggests that while managers play a role, external factors such as the economy, competition, and societal trends significantly influence outcomes.

Managerial Constraints

their decisions and actions are constrained by external like organization’s environment and internal like organization’s culture => factors, limiting their ability to act freely.

External Environment

-Economic component: interest rates, inflation,

changes in disposable income, stock market fluctuations, business cycle stages.

-Demographic: age, race, gender, education level, geographic location, income, and family

composition.
-political/legal: federal, state (liên bang, tiểu bang), and local laws, global laws/laws of other countries. includes country’s political conditions and

stability.
- sociocultural: values, attitudes, trends, traditions, lifestyles, beliefs, tastes, patterns of behavior (thị hiếu và mô hình hành vi)
- technological: scientific/ industrial innovations (cải tiến công nghiệp)
- global: globalization and a world economy.

Economic Environment

need to be aware of the economic context => can make the best decisions for their organizations.

Ex: Commodity (raw materials) costs are yếu tố kinh tế bất ổn facing organizations.

Great Recession- Đại suy thoái

-lingering (dai dẳng) global economic challenges
Ex: the turmoil (hỗn loạn) in the U.S. housing market

-credit markets collapsed (sụp đổ), no available to fund businesses

=> Economic difficulties + difficult to recovery so create constraint for business.

Demographic Environment

Age is important in demographic → workplace has different age all working together

The size and characteristics of a country’s population

can effect on what it’s able to achieve in politics, economics, and culture.

decision

a process of choosing among alternatives

decision-making process

Step 1: Identify a problem

Step 2: Identify the decision criteria

Step 3: Allocate weights to the criteria

Step 4: Develop alt

Step 5: Analyze alt

Step 6: Select an alt

Step 7: Implement the alt

Step 8: Evaluate decision effectiveness

problem

an obstacle that makes it difficult to achieve a desired goal or purpose

→ discrepancy between an existing and a desired condition

decision criteria

important or relevant information/ details for resolving problems

every decision-maker has criteria guiding his or her decisions even if they’re not explicitly stated

rational decision-making

make logical and consistent choices to maximize value (while minimizing/ avoiding risks) → Logic + objective

bounded rationality

escalation of commitment