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Chapter 07 Constraints On Managers

The document discusses several constraints that managers face in organizations. It contrasts the omnipotent and symbolic views of management and describes how managers have discretion but are also influenced by external factors outside their control. It then describes the dimensions of organizational culture and how culture is established and influences managerial decisions. Finally, it discusses the external environment that managers must navigate, including stakeholders and environmental uncertainty.

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Kashif Ullah Khan
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357 views28 pages

Chapter 07 Constraints On Managers

The document discusses several constraints that managers face in organizations. It contrasts the omnipotent and symbolic views of management and describes how managers have discretion but are also influenced by external factors outside their control. It then describes the dimensions of organizational culture and how culture is established and influences managerial decisions. Finally, it discusses the external environment that managers must navigate, including stakeholders and environmental uncertainty.

Uploaded by

Kashif Ullah Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Constraints on Managers

Chapter

7
Learning Outcome
•The Manager: Omnipotent or Symbolic
• Contrast the action of manager according to the omnipotent and symbolic
views.
• Explain the parameters of managerial discretion.
•The Organization’s Culture
• Describe the seven dimensions of organizational culture.
• Discuss the impact of a strong culture on organizations and managers.
• Explain the source of an organization’s culture.
• Describe how culture is transmitted to employees.
• Describe how culture affects managers.
(cont’d)

•The Environment
• Describe the components of the specific and general environments.
• Discuss the two dimensions of environmental uncertainty.
• Identify the most common organizational stakeholders.
• Explain the four steps in managing external stakeholder relationships.
The Manager: Omnipotent or Symbolic?

• Omnipotent View of Management


• Managers are directly responsible for an organization’s success or failure.
• The quality of the organization is determined by the quality of its managers.
• Managers are held accountable for an organization’s performance, yet it is difficult
to attribute good or poor performance directly to their influence on the organization.
• In the omnipotent view, someone must be held accountable when organizations
perform poorly regardless of the reasons, and that “someone” is the manager.
The Manager: Omnipotent or Symbolic?

• Symbolic View of Management


• Much of an organization’s success or failure is due to external forces outside of
managers’ control.
• The ability of managers to affect outcomes is influenced and constrained by external
factors.
• The economy, customers, governmental policies, competitors, industry conditions,
technology, and the actions of previous managers
• Managers symbolize control and influence through their action.
Exhibit 7–1 Parameters of Managerial Discretion
Defining the External Environment

• External Environment
• Those factors and forces outside the organization that affect the organization’s
performance.
• Components of the External Environment
• Specific environment: External forces that have a direct and immediate impact
on the organization.
• General environment: Broad economic, socio-cultural, political/legal,
demographic, technological, and global conditions that may affect the
organization.
The External Environment
How the Environment Affects Managers

JOBS AND EMPLOYMENT:


• As any or all external environmental conditions (economic, demographic,
technological, globalization, etc.) change, one of the most powerful constraints
managers face is the impact of such changes on jobs and employment—both in poor
conditions and in good conditions.
• Challenges for managers who must balance work demands and having enough of the
right types of people with the right skills to do the organization’s work
• Environmental Uncertainty
• The extent to which managers have knowledge of and can predict change their
organization’s external environment, is affected by
• The first dimension of uncertainty is the degree of change. If the components in an
organization’s environment change frequently, it’s a dynamic environment. If
change is minimal, it’s a stable one
• A stable environment might be one with no new competitors, few technological
breakthroughs by current competitors, little activity by pressure groups to influence
the organization, and so forth
• Complexity of the environment: the number of components in an
organization’s external environment and the extent of the knowledge that the
organization has about those components.
• An organization with fewer competitors, customers, suppliers, government agencies, and so
forth faces a less complex and uncertain environment
Environmental Uncertainty Matrix
Stakeholder Relationships
• Stakeholders
• Any constituencies in the organization’s environment that are affected by the
organization’s decisions and actions
• Why Manage Stakeholder Relationships?
• It can lead to desirable organizational outcomes such as improved predictability of
environmental changes, more successful innovations, greater degree of trust among
stakeholders, and greater organizational flexibility to reduce the impact of change.
• It can lead to improved organizational performance.
• It’s the “right” thing to do given the interdependence of the organization and its
external stakeholders.
Managing Stakeholder Relationships

1. Identify the organization’s external stakeholders.


2. Determine the particular interests and concerns of the external
stakeholders.
3. Decide how critical each external stakeholder is to the organization.
4. Determine how to manage each individual external stakeholder
relationship.
Exhibit 2–12 Organizational Stakeholders
The Organization’s Culture

• Organizational Culture
• Organization’s personality
• Described as the shared values, principles, traditions, and ways of doing things that
influence the way organizational members act and that distinguish the organization
from other organizations
• A system of shared meanings and common beliefs held by organizational members
that determines, in a large degree, how they act towards each other.
• “The way we do things around here.”
• Values, symbols, rituals, myths, and practices
• Implications:
Culture is a perception: It's not something that can be physically touched or
seen, but employees perceive it on the basis of what they experience within the
organization
Culture is descriptive: It’s concerned with how members perceive the culture
and describe it, not with whether they like it.
Culture is shared: Finally, even though individuals may have different
backgrounds or work at different organizational levels, they tend to describe the
organization’s culture in similar terms.
Exhibit 7–5 Dimensions of Organizational Culture
Strong versus Weak Cultures

• Strong Cultures
• Are cultures in which key values are deeply held and widely shared.
• Have a strong influence on organizational members.
• Factors Influencing the Strength of Culture
• Size of the organization
• Age of the organization
• Rate of employee turnover
• Strength of the original culture
• Clarity of cultural values and beliefs
Exhibit 3–4 Strong versus Weak Organizational Cultures
Why is having a strong culture important?
Benefits of a Strong Culture

• Creates a stronger employee commitment to the organization.


• Aids in the recruitment and socialization of new employees.
• Fosters higher organizational performance by instilling and promoting
employee initiative.
Organizational Culture

• Sources of Organizational Culture


• The organization’s founder
• Vision and mission
• Past practices of the organization
• The way things have been done
• The behavior of top management
• Continuation of the Organizational Culture
• Recruitment of like-minded employees who “fit”
• Socialization of new employees to help them adapt to the culture
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 that
convey the spirit of the organization

• Rituals
• Repetitive sequences of activities that express and reinforce the values and goals of the organization

• Material Symbols
• Physical assets distinguishing the organization, 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
Exhibit 7–5 How an Organization’s Culture Is Established and Maintained
Exhibit 7–6 Managerial Decisions Affected by
Culture
• 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
(Cont’d)

• 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
Current issues in organizational culture

• Creating a Customer-Responsive Culture


• Hiring the right type of employees (ones with a strong interest in serving
customers)
• Having few rigid rules, procedures, and regulations
• Using widespread empowerment of employees
• Having good listening skills in relating to customers’ messages
• Providing role clarity to employees to reduce ambiguity and conflict and increase
job satisfaction
• Having conscientious, caring employees willing to take initiative
Creating an Innovative Culture
• Challenge and involvement—Are employees involved in, motivated by, and committed to
the 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 of 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?

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