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.