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Chapter 2

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41 views25 pages

Chapter 2

Uploaded by

XEON
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNDERSTANDING

MANAGEMENT CONTEXT

Constraints and Challenges


The External Environment
 Refers to factors and forces outside the
organization that affect the performance.
 Economic component—interest rates, inflation,
stock market fluctuations etc.
 Demographic – age, race, gender, income and
family composition.
 Political--- state, federal local as well as global
laws.
 Socio cultural--- values, attitudes, lifestyle, beliefs,
tastes and patterns of behavior.
 Technological--- scientific and industrial innovations
 Global – related with global issues and world
economy
How external environment affects
Managers

 Environment challenges managers


through—
1. Impact on job and employment

2. Environmental uncertainty

3. Stakeholders relationships
JOBS AND EMPLOYMENT
 Create challenges for mangers who must
balance work demands and having
enough of the right types of people with
he right skills to do organizations’ work.
 Not only the available jobs but also how
those jobs are created and managed.
 E.g. freelancers hired to work on an as
needed basis or by temporary workers
who work full-time but are not
permanent employees.
 As a manage, you’ll need to recognize
how these work arrangements affect the
way you plan, organize, lead and
control.
ASSESSING ENVIRONMENTAL
UNCERTAINITY

 Refers to the degree of change and


complexity in an organizations’
environment.
Degree of change

 Dynamic environment –components in


an organizations’ environment change
frequently.
 Stable environment---no new
competitors, few technological
breakthroughs by current competitors.
Etc.
If the change is

predictable, is
that considered
dynamic
Degree of Complexity
 Looks at the number of components in
an organization’s environment and the
knowledge that the organization has
about those components.

 Simple environment –fewer competitors,


customers, supplies, govt. agencies and so
forth faces, a less complex and uncertain
environment.
 Complex environment– with diversified
environmental components
MANAGEING STAKEHOLDERS RELATIONS

 STAKEHOLDERS---constituencies in the
organization’s environment that are
affected by an organization’s decisions
and actions. It includes;

 Internal stakeholders
 External stakeholders
Why managers should manage
stakeholder relationships

 It can lead to desirable organizational


outcomes.
 It depends on external groups as sources
of inputs[resources] and as outlets for
outputs[goods and services].
ORGANIZATIONAL CULTURE
 Refers to the shared values, principles,
traditions and ways of doing things that
influence the way organizational
members act.
 Definition of culture implies three things;

1. Culture is a perception

2. Culture is descriptive

3. Shared aspect of culture


7 Dimensions of Culture
Where culture comes from

 Vision of founder
 Actions of top management
 Socialization
How Employees Learn
Culture
 STORIES
 RITUALS
 MATERIAL ARTIFACTS AND SYMBOLS
 LANGUAGE
HOW CULTURE AFFECTS MANAGER

An organization’s culture especially a


strong one, influences and constrains the
way managers plan, organize, lead and
control.
Issues in Organizational
Culture

 Creating an innovative culture


 Creating a Customer-Responsive Culture
 Spirituality and Organizational Culture
Characteristics of
Innovative Culture
 Challenge and involvement
 Freedom
 Trust and openness
 Playfulness/humor
 Conflict resolution
 Debates
 Risk-taking
Characteristics of Spiritual Organizations

1. Strong sense of purpose


2. Focus on individual
development
3. Trust and openness
4. Employee empowerment
5. Toleration of employee
expression

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