Topic

3

Prof. James J. BarkocyBus100

Organizational

Culture and the

Environment: Two

Constraints

3–2

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.

3–3

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.

Constraints on Managerial Discretion

Managerial

DiscretionOrganization’s EnvironmentOrganizational Culture

© Prentice Hall, 20023–4

Organizational Culture

• Organizational Culture

Shared set of beliefs, expectations,

values, norms, and work routines

that influence how members of an

organization relate to one another

and work together to achieve

organizational goals

The personality of the organization:

Attitudes toward risk, ethical behavior,

conflict, rules, dress

Attention to detail, team orientation,

ends vs. means

3–5

3–6

Employee

Turnover

Intensity of

Original Culture

Strong Cultures

Versus

Weak Cultures

Age of the

Organization

3–7

Factors Affecting Organizational Culture

3–8

Factors Affecting Organizational Culture

• Attraction-Selection-Attrition Framework

A model that explains the role that founders’ personal

characteristics play in determining organizational

culture.

Founders of firms tend to hire employees whose personalities

that are like their own (which may or may not benefit the

organization over the long-term).

Managers determine and shape organizational culture

through the kinds of values and norms they promote in

an organization

3–9

How Do

Employees

Learn About

the Culture of

an Organization?Language

Stories

Symbols

Rites

3–10

Managerial Decisions Affected by

Culture

Strong StrongPlan

Organize

Lead

Control

Weak Weak

The External (Global) Environment

Customers

Competitors

Suppliers &

Distributors

Public

Pressure

Groups &

Govt.

The

Organization

General

Environment

© Prentice Hall, 2002

Task

Environ.

3–11

3–12

Barriers to Entry and Competition

3–13

Selected U.S. Legislation Affecting Business

• Occupational Safety and Health Act of 1970

• Consumer Product Safety Act of 1972

• Equal Employment Opportunity Act of 1972

• Worker Adjustment and Retraining Notification Act of 1988

• Americans with Disabilities Act of 1990

• Civil Rights Act of 1991

• Family and Medical Leave Act of 1993

• Child Safety Protection Act of 1994

• U.S. Economic Espionage Act of 1996

• Electronic Signatures in Global and National Commerce Act of 2000

• Sarbanes-Oxley Act of 2002

• Fair and Accurate Credit Transactions Act of 2003

3–14

Organizational Stakeholders