mgt 210 chapter 2 Spring 2022-2023 (3)
Sagesse University
Faculty of Economics & Business Administration
Undergraduate Program MGT 210 – Management Principles
Spring Semester 2022-2023
Dr. Ziad F. Haddad
Chapter Two: The Management Environment
The Manager: Omnipotent or Symbolic
Omnipotent View of Management
Managers are directly responsible for an organization’s success or failure.
Organization's quality is determined by its managers' quality.
Accountability: While managers are held accountable, attributing performance directly to their actions is complex.
Symbolic View of Management
Success or failure is largely due to external forces beyond managers' control.
Influences include economy, customers, governmental policies, competitors, industry conditions, technology, and prior management actions.
Managers symbolize control and influence through actions.
The Business Environment
Types of Business Environments:
External Environment:
General Environment: Encompasses all external factors affecting an organization (economic, legal, political, socio-cultural, international, technical).
Task Environment: Comprises specific groups affecting the firm (competitors, customers, suppliers, regulators, strategic partners).
Internal Environment:
Involves conditions within the organization (departments, employees).
Organizational Culture
Dimensions of Organizational Culture:
Seven dimensions determine the culture within an organization.
Culture is shaped by various sources and continually evolves.
Transmission of Culture: Culture is communicated to employees through various means.
Stakeholder Relationships
Identifying Stakeholders:
Recognize external stakeholders and their diverse interests.
Assess how critical each stakeholder is to the organization.
Manage relationships strategically to enhance organizational performance.
The External Environment: Components
General Environment:
Comprises broad dimensions shaping the context (economic, technological, sociocultural, political-legal, international).
Task Environment:
Influenced by specific groups (competitors, customers, suppliers, regulators, strategic partners).
The Internal Environment: Components
Key Components:
Owners: Legal property rights to the business.
Board of Directors: Oversee management to serve stockholders’ interests.
Employees: Vital for the organization's continuity.
Physical Environment: The actual working conditions.
Environmental Change, Complexity, and Uncertainty
Change and Complexity:
Environmental change happens through varying degrees of change and complexity (simple to complex environments).
Uncertainty influences organizational decisions and strategic planning.
Cultural Impact on Organizations
Organizational culture shapes internal dynamics and influences overall performance.
Strong cultures impact employee behavior and enhance commitment.
Creating a Positive Organizational Culture
Key Elements:
Foster an ethical culture focused on risk tolerance and outcomes.
Encourage innovation through involvement, trust, and freedom.
Build a customer-responsive culture by empowering employees and reducing procedural barriers.