Chapter 2

ConstraintsonManagers:
OrganizationalCultureandthe
Environment

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

TheManager:HowMuchControl?
Explainhowmanagersdifferfromnonmanagerialemployees.
Contrasttheactionsofthemanageraccordingtothe
omnipotentandsymbolicviews.
Explaintheparametersofmanagerialdiscretion.

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

LEARNING OUTLINE (contd)

Follow this Learning Outline as you read and study this chapter.

TheOrganizationsCulture
Describethesevendimensionsoforganizationalculture.
Discusstheimpactofstrongcultureonorganizationsand
managers.
Explainthesourceofanorganizationscultureandhowthat
culturecontinues.
Describehowcultureistransmittedtoemployees.

CurrentOrganizationalCultureIssuesFacingManagers
Describethecharacteristicsofanethicalculture,aninnovative
culture,andacustomerresponsiveculture.
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

LEARNING OUTLINE (contd)

Follow this Learning Outline as you read and study this chapter.

TheEnvironment
Describethecomponentsofthespecificandgeneral
environments.
Discussthetwodimensionsofenvironmental
uncertainty.
Identifythemostcommonorganizationalstakeholders.
Explainthefourstepsinmanagingexternalstakeholder
relationships.

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

The Manager: How Much

Control?
OmnipotentView
Managersaredirectlyresponsibleforanorganizations
successorfailure
Thequalityoftheorganizationisdeterminedbythe
qualityofitsmanagers
Managersareheldmostaccountable
foranorganizationsperformance,
yetitisdifficulttoattribute
goodorpoorperformance
directlytotheirinfluence
ontheorganization
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

The Manager: How Much

Control? (contd)
SymbolicView
Muchofanorganizationssuccessorfailureisdueto
externalforcesoutsideofmanagerscontrol
Theabilityofmanagerstoaffectoutcomesisinfluenced
andconstrainedbyexternalfactors:
Theeconomy,customers,governmentalpolicies,competitors,
industryconditions,
technology,andtheactionsof
previousmanagers

Managerssymbolizecontroland
influencethroughtheiraction
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

Exhibit 2.1 Parameters of

Managerial Discretion

Organizational
OrganizationalEnvironment
Environment

Managerial
Managerial
Discretion
Discretion

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

Organizational
OrganizationalCulture
Culture

The Organizations Culture

WhatIsOrganizationalCulture?
Asystemofsharedmeaningsandcommonbeliefsheldby
organizationalmembersthatdetermine,toalargedegree,
howtheyacttowardeachother
Thewaywedothingsaroundhere
Values,symbols,rituals,myths,andpractices

Implications:
Cultureisaperception
Cultureisshared
Cultureisadescriptiveterm
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

Exhibit 2.2 Dimensions of Organizational

Culture
Degree to which
employees are expected
to exhibit precision,
analysis, and attention
to detail

Degree to which
employees are
encouraged to be
innovative and
to take risks

Attention to
Detail
Innovation and
Risk-taking

Outcome
Orientation

Organizational
Culture

Stability

Degree to which
organizational
decisions and actions
emphasize maintaining
the status quo

Degree to which
managers focus on results
or outcomes rather than
on how these outcomes
are achieved

Aggressiveness

Degree to which
employees are aggressive
and competitive rather
than cooperative

People
Orientation

Team
Orientation

Degree to which
management decisions
take into account the
effects on people in
the organization

Degree to which
work is organized
around teams rather
than individuals

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

Exhibit 2.3 Contrasting

Organizational Cultures
Organization A

Organization B

Managers must fully document all

decisions
Creative decisions, change, and risks
are not encouraged.

Management encourages and rewards risktaking and change.

Employees are encouraged to run with
ideas, and failures are treated as learning
experiences.

Extensive rules and regulations exist

for all employees.

Employees have few rules and regulations

to follow.

Productivity is valued over employee

morale.

Productivity is balanced with treating its

people right.

Employees are encouraged to stay

within their own department.

Team members are encouraged to interact

with people at all levels and functions.

Individual effort is encouraged.

Many rewards are team based.

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

10

Strong Vs. Weak Cultures

StrongCultures
Keyvaluesaredeeplyheldandwidelyheld
Havestronginfluenceonorganizationalmembers
FactorsInfluencingtheStrengthofCulture
Sizeoftheorganization
Ageoftheorganization
Rateofemployeeturnover
Strengthoftheoriginalculture
Clarityofculturalvaluesandbeliefs
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

11

Benefits of a Strong Culture

Createsastrongeremployeecommitmenttothe
organization
Aidsintherecruitmentandsocializationofnew
employees
Fostershigherorganizational
performancebyinstillingand
promotingemployeeinitiative

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

12

Subcultures
Organizationshavedominantculturesand
subcultures
Subculturesarelikelytobedefinedby
departmentdesignationsandgeographical
separation
Subculturesincludethecorevaluesofthe
dominantculture,plusadditionalvalues
uniquetomembersofthesubculture
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

13

Organizational Culture
SourcesofOrganizationalCulture
Pastpracticesoftheorganization
Theorganizationsfounder

ContinuationoftheOrganizationalCulture
Recruitmentofemployeeswhofit
Behaviouroftopmanagement
Socializationofnewemployeestohelpthem
adapttotheculture
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

14

Exhibit 2.4 How an Organizations

Culture Is Established
Top Management
Philosophy of
Organization's
Founders

Selection
Criteria

Organization's
Culture

Socialization

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

15

How Employees Learn Culture

Stories
Narrativesofsignificanteventsoractionsofpeoplethat
conveythespiritoftheorganization

Rituals
Repetitivesequencesofactivitiesthatexpressand
reinforcethevaluesoftheorganization

MaterialSymbols
Physicalassetsdistinguishingtheorganization

Language
Acronymsandjargonofterms,phrases,andword
meaningsspecifictoanorganization
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

16

How Culture Affects Managers

CulturalConstraintsonManagers
Whatevermanagerialactionstheorganizationrecognizesas
properorimproperonitsbehalf
Whateverorganizationalactivitiestheorganizationvaluesand
encourages
Theoverallstrengthorweaknessoftheorganizationalculture

Simpleruleforgettingaheadinanorganization:
Findoutwhattheorganizationrewardsanddothose
things
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

17

Exhibit 2.5 Managerial Decisions

Affected by Culture

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

18

Current Organizational Culture

Issues Facing Managers
CreatinganEthical
Culture
Highinrisktolerance
Lowtomoderate
aggressiveness
Focusonmeansaswell
asoutcomes

CreatinganInnovative
Culture
Challengeand
involvement
Freedom
Trustandopenness
Ideatime
Playfulness/humour
Conflictresolution
Debates
Risktaking

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

19

Tips for Managers:

Creating a More Ethical Culture

Beavisiblerolemodel.
Communicateethicalexpectations.
Provideethicstraining.
Visiblyrewardethicalactsandpunish
unethicalones.
Provideprotectivemechanismssoemployees
candiscussethicaldilemmasandreport
unethicalbehaviourwithoutfear.
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

20

Current Organizational Culture Issues

(contd)
CreatingaCustomerResponsiveCulture
Hiretherighttypeofemployees
Havefewrigidrules,procedures,and
regulations
Usewidespreadempowermentofemployees
Encouragegoodlisteningskills
Provideroleclaritytoemployees
Haveconscientious,caringemployees
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

21

Defining the External

Environment
ExternalEnvironment
Theforcesandinstitutionsoutsidetheorganizationthat
potentiallycanaffecttheorganizationsperformance

ComponentsoftheExternalEnvironment
Specificenvironment:externalforcesthathaveadirect
andimmediateimpactontheorganization
Generalenvironment:broadeconomic,sociocultural,
political/legal,demographic,technological,andglobal
conditionsthatmayaffecttheorganization
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

22

Public
Public
Pressure
Pressure
Groups
Groups

Suppliers
Suppliers

Exhibit 2.6
The External
Environment

THE
THE
ORGANIZATION
ORGANIZATION

Competitors
Competitors

Customers
Customers

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

23

The General Environment

Economicconditions
Includeinterestrates,inflationrates,changesindisposable
income,stockmarketfluctuations,andthegeneralbusinesscycle,
amongotherthings
Political/legalconditions
Includethegeneralpoliticalstabilityofcountriesinwhichan
organizationdoesbusinessandthespecificattitudesthatelected
officialshavetowardbusiness
Federalandprovincialgovernmentscaninfluencewhat
organizationscanandcannotdo.Someexamplesoflegislation
include:

CanadianHumanRightsAct
CanadasEmploymentEquityAct
CompetitionAct
Marketingboards

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

24

The General Environment (contd)

Socioculturalconditions
Includethechangingexpectationsofsociety

Demographicconditions
Includephysicalcharacteristicsofapopulation(gender,
age,levelofeducation,geographiclocation,incomeand
familycomposition)

Technologicalconditions
Includethechangesthatareoccurringintechnology

Globalconditions
Includeglobalcompetitorsandglobalconsumermarkets
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

25

How the Environment Affects

Managers
EnvironmentalUncertainty
Theextenttowhichmanagershaveknowledgeof
andareabletopredictchange.Their
organizationsexternalenvironmentisaffected
by:
Complexityoftheenvironment:thenumberof
componentsinanorganizationsexternalenvironment
Degreeofchangeinenvironmentalcomponents:how
dynamicorstabletheexternalenvironmentis
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

26

Exhibit 2.7 Environmental

Uncertainty Matrix

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

27

Stakeholder Relationships
Stakeholders
Anyconstituenciesintheorganizationsexternal
environmentthatareaffectedbythe
organizationsdecisionsandactions

WhyManageStakeholderRelationships?
Canleadtoimprovedorganizationalperformance
Itstherightthingtodogiventhe
interdependenceoftheorganizationandits
externalstakeholders
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

28

Managing Stakeholder
Relationships
Identifytheorganizationsexternal
stakeholders
Determinetheparticularinterestsandconcerns
oftheexternalstakeholders
Decidehowcriticaleachexternalstakeholder
istotheorganization
Determinehowtomanageeachindividual
externalstakeholderrelationship
Chapter 2, Stephen P. Robbins, Mary Coulter, and
Nancy Langton, Management, Eighth Canadian

29

Exhibit 2.8 Organizational

Stakeholders
Employees

Customers

Unions

Social and Political

Action Groups

Shareholders

Competitors

Organization

Trade and Industry

Associations

Communities

Suppliers

Governments
Media

Chapter 2, Stephen P. Robbins, Mary Coulter, and

Nancy Langton, Management, Eighth Canadian

30