Management Session 3 chapter 2 Moghimi

WEEK 3:

MANAGEMENT CONTEXT

Lecturer: Bahman Moghimi
Doctor of Business Administration
M.Sc. Of “Industrial Marketing & e-Commerce”

Session Three
University of Georgia

Source:
Cole,K. Management : Theory and practice-4th ed. - pages: 32 - 52
Robbins,St.,Coulter,M. Management-11th ed. – pages: - 65

DEFINITIONS

 Omnipotent view of management: The
dominant view in management theory and
society in general is that managers are directly
responsible for an organization’s success or
failure.
 symbolic view of management: In contrast,
others have argued that much of an
organization’s success or failure is due to
external forces outside managers’ control

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B.Moghimi@yahoo.co.uk

CONSTRAINTS ON MANAGERIAL DISCRETION

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External environment
 Refers to factors and forces outside the organization that
affect its performance

7 B.Moghimi@yahoo.co.uk

Environmental Uncertainty Matrix

 Environmental uncertainty: refers to the degree of change and complexity in
an organization’s environment.
 Environmental complexity: refers to the number of components in an
organization’s environment and the extent of the knowledge that the
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organization has about those components B.Moghimi@yahoo.co.uk

Organizational Stakeholders


What is Culture?

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WHAT IS ORGANIZATIONAL CULTURE?

 has been described as the shared values,
principles, traditions, and ways of doing things
that influence the way organizational members
act. In most organizations, these shared values
and practices have evolved over time and
determine, to a large extent, how “things are
done around here.”

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Dimensions of Organizational Culture

14 Strong cultures—those in which the key values are deeply held and widely shared—have
a greater influence on employees than do weaker cultures B.Moghimi@yahoo.co.uk

Contrasting Organizational Cultures

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Strong Versus Weak Cultures

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Establishing and Maintaining Culture
 Why is having a strong culture important? For one thing, in organizations with strong
cultures, employees are more loyal than are employees in organizations with weak
cultures. Research also suggests that strong cultures are associated with high
organizational performance. And it’s easy to understand why. After all, if values are
clear and widely accepted, employees know what they’re supposed to do and what’s
expected of them, so they can act quickly to take care of problems. However, the
drawback is that a strong culture also might prevent employees from trying new
approaches especially when conditions are changing rapidly.


Establishing and Maintaining Culture

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HOW EMPLOYEES LEARN CULTURE
 STORIES. Organizational “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. Corporate rituals are 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. Others include the size of offices, the
elegance of furnishings, executive “perks” (extra benefits provided to
managers such as health club memberships, use of company-owned
facilities, and so forth), employee fitness centers or on-site dining
facilities, and reserved parking spaces for certain employees
 LANGUAGE. The way to identify and unite members of a culture
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HOW CULTURE AFFECTS MANAGERS
Planning
• The degree of risk that plans should contain
• Whether plans should be developed by individuals or teams
• The degree of environmental scanning in which management will engage
Organizing
• How much autonomy should be designed into employees’ jobs
• Whether tasks should be done by individuals or in teams
• The degree to which department managers interact with each other
Leading
• The degree to which managers are concerned with increasing employee job satisfaction
• What leadership styles are appropriate
• Whether all disagreements—even constructive ones—should be eliminated
Controlling
• Whether to impose external controls or to allow employees to control their own actions
• What criteria should be emphasized in employee performance evaluations
• What repercussions will occur from exceeding one’s budget

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EXAMPLE… UNWRITTEN MANAGERIAL CULTURES

 Look busy even if you’re not.

 If you take risks and fail around here, you’ll pay dearly for it.

 Before you make a decision, run it by your boss so that he or she is never
surprised.

 We make our product only as good as the competition forces us to.

 What made us successful in the past will make us successful in the future.

 If you want to get to the top here, you have to be a team player.

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CREATING AN INNOVATIVE CULTURE
 Challenge and involvement – Are employees involved in, motivated by, and
committed to long-term goals and success of the organization?
 Freedom – Can employees independently define their work, exercise discretion,
and take initiative in their day-to-day activities?
 Trust and openness – Are employees supportive and respectful to each other?
 Idea time – Do individuals have time to elaborate on new ideas before taking
action?
 Playfulness/humor – Is the workplace spontaneous and fun?
 Conflict resolution – Do individuals make decisions and resolve issues based on
the good of the organization versus personal interest?
 Debates – Are employees allowed to express opinions and put forth ideas for
consideration and review?
 Risk-taking – Do managers tolerate uncertainty and ambiguity, and are employees
rewarded for taking risks?45

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Creating a Customer-Responsive Culture


WORKPLACE SPIRITUALITY

 It’s a culture in which organizational values promote
a sense of purpose through meaningful work taking
place in the context of community.
 Organizations with a spiritual culture recognize that
people have a mind and a spirit, seek to find meaning
and purpose in their work, and desire to connect with
other human beings and be part of a community.
 Such desires aren’t limited to workplaces, as a recent
study showed that college students also are searching for
meaning and purpose in life
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SPIRITUAL ORGANIZATIONS CULTURAL CHARACTERISTICS

1. Strong sense of purpose. Spiritual organizations
build their cultures around a meaningful purpose.
While profits are important, they’re not the primary
values of the organization

2. Focus on individual development. Spiritual
organizations recognize the worth and value of
individuals. They aren’t just providing jobs; they
seek to create cultures in which employees can
continually grow and learn

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3. Trust and openness. Spiritual organizations are characterized by
mutual trust, honesty, and openness. Managers aren’t afraid to
admit mistakes. And they tend to be extremely upfront with
employees, customers, and suppliers

4. Employee empowerment. Managers trust employees to make
thoughtful and conscientious decisions. For instance, at Southwest
Airlines, employees—including flight attendants, baggage handlers,
gate agents, and customer service representatives—are encouraged
to take whatever action they deem necessary to meet customer
needs or help fellow workers, even if it means going against
company policies

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5. Toleration of employee expression. The final
characteristic that differentiates spiritually based
organizations is that they don’t stifle employee
emotions. They allow people to be themselves—
to express their moods and feelings without guilt
or fear of reprimand.

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TEAM EXERCISE
 Although all organizations face environmental constraints,
the components in their external environments differ. Get
into a small group with three to four other class members and
choose one organization from two different industries.
 Describe the external components for each organization.
How are your descriptions different for the two
organizations? How are they similar? Now, using the same
two organizations,
 see if you can identify the important stakeholders for these
organizations. As a group, be prepared to share your
information with the class and to explain your choices.

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Mind-map for Organizational Cultural Competence

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Management Session 3 chapter 2 Moghimi

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