Ch.2 BUSN
Page 1: Learning Objectives
Skill OutcomesAfter reading this chapter you should be able to:
2.1 Contrast the actions of managers according to the omnipotent and symbolic views.
2.2 Discuss the characteristics and importance of organizational culture.
Know how to adjust to a new job or a work team.
Know how to read and assess an organization's culture.
2.3 Describe current issues in organizational culture.
2.4 Describe the features of the external environment.
Page 2: The Manager: Omnipotent or Symbolic?
Omnipotent vs. Symbolic View of Management
Omnipotent View: Managers are directly responsible for an organization's success or failure. They are credited for performance and blamed for shortcomings.
Symbolic View: Much of an organization's performance is influenced by external factors outside the manager's control.
Page 3: The Omnipotent View
Managerial Impact on Performance
Managers are seen as key players who can change the course of an organization.
Performance Correlation: High performance results in rewards while poor performance leads to managerial turnover.
Example: Twitter’s management changes due to slowing growth illustrate the belief in managerial accountability.
Page 4: The Omnipotent View Continued
High Turnover in Sports Coaching
University and professional sports coaches exemplify the omnipotent view, as their effectiveness is judged solely on team performance.
Poor performance leads to replacement, illustrating the belief in direct responsibility.
Page 5: The Symbolic View
External Influences on Management
Example of businesses affected by external construction affecting customer flow demonstrates the limitations of managerial control.
Core Concept: Managers' influence is constrained by economic factors, competition, and market conditions.
Managers symbolize control but do not directly dictate results.
Page 6: Reality Suggests a Synthesis
Managerial Constraints and Flexibility
Internal Constraints: Influenced by an organization’s culture.
External Constraints: Stemming from the external environment.
Although constrained, managers have the capability to influence organizational performance through adaptable cultures.
Page 7: The Organization's Culture
Defining Organizational Culture
Culture is how individuals in an organization interact and behave.
Example: George Buckley’s leadership at 3M reflects the tension between efficiency and innovation post-McNerney.
Page 8: What Is Organizational Culture?
Case Study: W.L. Gore & Associates
Gore’s culture is guided by principles of fairness, freedom, commitment, and consultation.
The organization’s culture enables it to be recognized as one of the best workplaces consistently.
Page 9: Characteristics of Culture
Organizational Culture Definition
Culture comprises a system of shared meaning among members.
Shared Values and Beliefs: Influence decision making and conflict resolution within the organization.
Evaluation of the organizational fit is essential when considering job offers.
Page 10: Dimensions of Organizational Culture
Seven Dimensions of Culture
These dimensions range from low to high significance in defining culture:
Innovation and Risk Taking
Stability
Attention to Detail
Outcome Orientation
People Orientation
Aggressiveness
Team Orientation
Page 11: Contrasting Organizational Cultures: Organization A
Characteristics
A manufacturing firm's rigid adherence to documentation, rules, and risk aversion portrays a weak culture, limiting creativity and employee morale.
Page 12: Contrasting Organizational Cultures: Organization B
Characteristics
A different manufacturing firm encourages risk-taking and innovative proposals, rewarding both success and learning from failures, promoting a strong culture.
Page 13: Strong Cultures
Impact of Strong Culture
Strong cultures significantly influence employee behavior, as seen in 3M's innovative culture encouraging R&D autonomy.
Strong cultures correlate with loyalty, performance, and rapid problem-solving.
Page 14: Strong vs. Weak Cultures
Comparison and Analysis
Strong cultures:
Core values shared widely.
Employees strongly identify with the culture.
Weak cultures:
Limited core values.
Minimal employee connection.
Page 15: Importance of a Strong Culture
Influence on Management
Strong culture enhances loyalty and performance, while weak culture hampers organizational effectiveness and innovation.
Page 16: Subcultures
Definition and Influence
Organizations possess dominant cultures and multiple subcultures reflecting different departments or units.
Impact: Managers help shape subcultures, reinforcing core values aligned with the overall organization.
Page 17: Origin of Organizational Culture
Cultivation of Culture
Cultures stem from founders' vision and evolve based on shared practices and socialization in the organization.
Page 18: Top Management's Role
Affirming Culture
Senior management's actions and decisions deeply influence organizational culture and can reinforce desired behaviors or provoke undesired outcomes.
Page 19: Socialization Process
Integration of New Employees
Socialization helps new employees learn organizational customs, benefiting workplace harmony and performance.
Page 20: Learning Organizational Culture Through Stories
Importance of Narratives
Organizational stories anchor present experiences with past events, legitimizing current practices and illustrating key values to employees.
Page 21: Significance of Rituals
Corporate Rituals
Rituals reinforce culture by emphasizing core values and motivating employees.
Example: Mary Kay’s awards ceremony exemplifies public acknowledgment of achievements.
Page 22: Material Artifacts and Symbols
Defining Environment Through Symbols
Physical symbols (layout, dress, perks) convey organizational culture and expected behaviors.
Page 23: Language as a Cultural Identifier
Significance of Language
Specialized language fosters acceptance of culture and enhances employee identification.
Page 24: Impact of Culture on Management Decisions
Managerial Constraints
Culture implicitly defines acceptable managerial behavior, shaping decision-making processes within the organization.
Page 25: Implications for Managers
Managerial Direction
Cultural values significantly guide manager interactions, influencing innovation, diversity, and authority styles.
Page 26: Adjusting to a New Job or Work Team
Adjustment to New Work Environments
Adaptation is crucial for success in new positions, needing confidence and knowledge of the organizational climate.
Page 27: Successful Transitions
Key Elements
Effective adjustment involves understanding workplace history, valuing peers, and assessing cultural fit for satisfaction and lower stress.
Page 28: Socialization Methods
Types of Socialization
Formal vs. Informal: Structured programs vs. direct job experiences.
Individual vs. Collective: Individual experiences rather than group processing.
Page 29: Socialization Timelines
Fixed vs. Variable: Fixed schedules provide structure; variable offers flexibility.
Page 30: Investment in New Employees
Investiture vs. Divestiture: Investing in employees' identities or stripping certain traits for cultural alignment.
Page 31: Utilizing Insiders for Adjustment
Intra-organizational Relationships
Organizational insiders provide deeper insights than formal programs, facilitating smoother adjustments.
Page 32: Organizational Culture Reading Skills
Identifying Fit in Organizations
Understanding culture enhances job satisfaction and performance.
Steps include background research, observing surroundings, and interacting with current employees.
Page 33: Observational Techniques in Culture Assessment
Environmental Assessment
Characterizing the workplace through symbols and observing employee interactions provide insights into the culture.
Page 34: Evaluating Organizational HR Policies
Policy Insights
Understanding written HR regulations provides clarity on acceptable behaviors and expectations.
Page 35: Employee Inquiry on Culture
Interviewing Techniques
Asking about managerial backgrounds and defining role successes can reveal cultural dynamics within the organization.
Page 36: Current Issues in Organizational Culture
Cultural Dynamics
Innovative companies like 3M showcase how culture aligns with business strategy for success.
Page 37: Creating an Innovative Culture
Essentials for Innovation
Organizations must nurture creativity through supportive environments and consistent leadership to motivate effective outcomes.
Page 38: Impact of Culture on Innovation
Cultural Drivers
Management support is crucial for innovation, with cultural characteristics promoting creativity.
Page 39: Components of an Innovative Culture
Key Attributes:
Involvement, freedom, trust, idea time, playfulness, conflict resolution, open debates, and risk-taking.
Page 40: Creating an Ethical Culture
Ethical Standards Influence
Strong cultures promote ethical behavior, fostering an environment supportive of high integrity.
Page 41: Example: Patagonia's Ethical Culture
Corporate Practices
Patagonia exemplifies ethical commitment with flexible policies and strong values aligning with ethical business practices.
Page 42: Customer-Responsive Culture
Service Orientation
Creating a responsive culture hinges on hiring attitudes, employee empowerment, and effective listening.
Page 43: Characteristics of Customer-Centric Organizations
Fundamental Characteristics
Outgoing employees, minimal rules, empowerment, good listening, and proactive service.
Page 44: Diversity in Organizational Culture
Promoting Workforce Diversity
Diverse cultural support enhances creativity and morale, requiring adjustments to cultural practices reflecting varied views.
Page 45: Emphasizing Sustainability
Integrating Sustainability
Organization-wide sustainability efforts focus on achieving goals while minimizing environmental impacts, fostering a culture of responsibility.
Page 46: Understanding External Environment
External Factors
Digital technology shifts necessitate adaptive changes in organizations to maintain competitiveness in evolving environments.
Page 47: Economic Environment Insights
Factors at Play
Organizations face numerous economic challenges, including commodity costs that impact decisions and strategic planning.
Page 48: Global Economic Context
Reaction to Economic Turmoil
Economic disturbances impact global markets, affecting business operations across industries during periods of uncertainty.
Page 49: Societal Concerns of Economic Inequality
Recognition of Disparities
Social attitudes towards economic disparities influence organizational narratives and have implications for management practices.
Page 50: Demographic Changes as Influencers
Importance of Demographics
Societal demographics shape future business strategies across industries, including customer service and product delivery directives.
Page 51: Age Cohorts and Their Influence
Societal Perspectives
Different age demographics bring about shifts in market demands and influence the intergenerational workplace dynamics.
Page 52: Implications of Aging Population
Challenges for Organizations
Population aging leads to labor shortages and necessitates innovative strategies for engaging senior workers.
Page 53: Addressing Demographics and Workforce Needs
Balancing Workforce Requirements
Organizations will need to adapt to demographic shifts as population characteristics continue to evolve significantly.
Page 54: Acknowledging External Constraints
Managerial Challenges
External changes create profound impacts on job creation, employee management, and flexible workplace arrangements.
Page 55: Balancing Work Demands and Skills
Herculean Task for Managers
Managers need to navigate job creation while maintaining adaptability to fluctuating workforce demands and environmental constraints.
Page 56: Environmental Uncertainty Factors
Types of Uncertainty
Understanding varying degrees of environmental uncertainty helps managers anticipate changes and plan strategically.
Page 57: Degree of Change and Complexity
Understanding Changes
Dynamic environments pose greater risks requiring sophisticated managerial knowledge and adaptability.
Page 58: Measures of Environmental Complexity
Factors Compounding Complexity
Complexity varies with the organizational environment; exposure and knowledge acquisition help mitigate unpredictability.
Page 59: Stakeholder Relationships' Impact
Importance of Stakeholder Management
Effective relationships with stakeholders enhance organizational adaptability, innovation, and trust.
Page 60: Overview of Organizational Stakeholders
Categories of Stakeholders
Stakeholder groups play crucial roles in shaping organizational responses and practices.
Page 61: Managing Stakeholder Relationships
Influence on Organizational Success
Consideration of stakeholder interests fosters performance and corporate responsibility, emphasizing ethical management.
Page 62: Environmental Scanning Skills
Practice Tips for Managers
Cultivating environmental scanning skills entails understanding relevant information, monitoring trends, and balancing actionable insights.
Page 63: Effective Environmental Scanning Procedures
Enhanced Management Through Scanning
Structured scanning helps ensure relevance and utility in decision-making, warranting regular reviews.
Page 64: Team Exercise Entry
Learning Organizational Culture
Discussing and comparing prior experiences facilitates a comprehensive understanding of varying organizational cultures.
Page 65: Movie Industry Challenges
Contextual Environmental Shifts
Entertainment firms face dynamic push and pull within consumer preferences, requiring strategic adaptations to maintain relevance.
Page 66: Competitive Pressures in Movie Theatres
Adapting to Consumer Preferences
Movie theaters must elevate experiences and differentiate from home-viewing options to revitalize attendance.
Learning Objectives
Skill Outcomes
After reading this chapter, you should be able to:
2.1 Contrast the actions of managers according to the omnipotent and symbolic views.
2.2 Discuss the characteristics and importance of organizational culture.
Know how to adjust to a new job or a work team.
Know how to read and assess an organization's culture.
2.3 Describe current issues in organizational culture.
2.4 Describe the features of the external environment.
The Manager: Omnipotent or Symbolic?
Omnipotent vs. Symbolic View of Management
Omnipotent View: Managers are directly responsible for an organization's success or failure.
Symbolic View: Much of an organization's performance is influenced by external factors outside the manager's control.
Managerial Impact on Performance
Managers are key players who can change an organization’s trajectory. High performance results in rewards; poor performance leads to turnover (e.g., Twitter).
High Turnover in Sports Coaching
Sports coaches' effectiveness is typically judged solely on team performance, illustrating the omnipotent view.
The Symbolic View
Managers' influence is limited by economic factors, competition, and market conditions.
Reality Suggests a Synthesis
Managers face internal constraints from organizational culture and external constraints from the environment but can still influence performance through adaptable culture.
What Is Organizational Culture?
Culture is defined by how individuals interact and behave within an organization (e.g., George Buckley at 3M).
Characteristics of Culture
Organizational culture comprises shared meaning, values, beliefs which influence decision-making and conflict resolution.
Dimensions of Organizational Culture
Includes Innovation and Risk Taking, Stability, Attention to Detail, Outcome Orientation, People Orientation, Aggressiveness, Team Orientation.
Contrasting Organizational Cultures
Organization A: Rigid documentation and rules; weak culture.
Organization B: Encourages risk-taking and innovation; strong culture.
Importance of a Strong Culture
Strong cultures are correlated with loyalty, performance, and rapid problem-solving.
Subcultures Definition and Influence
Organizations often have dominant cultures and multiple subcultures shaped by managerial influence.
Top Management's Role
Senior management decisions influence organizational culture.
Socialization Process
Aids in integrating new employees into organizational customs.
Creating an Innovative Culture
Organizations must nurture creativity through environmental support and leadership to drive outcomes.
Implications for Managers
Cultural values guide manager interactions and influence innovation.
Addressing Demographics and Workforce Needs
Organizations need to adapt to evolving demographics to meet workforce requirements.
External Environment
Acknowledging external constraints is essential for effective management.
Summary of Important Terminologies:
Omnipotent View: Managers are responsible for success/failure.
Symbolic View: Performance influenced by external factors.
Organizational Culture: Interactions and behaviors within the organization.
Subcultures: Different cultural identities within the organization.
Socialization Process: Integration of new employees into the culture.