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The more obvious and secure an organization's relationships are with ___, the more influence managers have over organizational controls

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The more obvious and secure an organization's relationships are with *external stakeholders*, the more influence managers have over organizational controls

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Stakeholders See exhibit 2-3

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any constituencies in the organization's external environment that are affected by the organization's decisions and actions

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What are common organizational stakeholders?

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1. employees 2. unions 3. shareholders 4. communities 5. suppliers 6. media 7. governments 8. trade and industry associates 9. competitors 10. social and political actions groups 11. customers

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Note that these stakeholders include both ___ and ___ groups because both groups can affect what an organization does and how it operates

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Note that these stakeholders include both *internal* and *external* groups because both groups can affect what an organization does and how it operates

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Stakeholders relations management is important for what (2) reasons

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a) It can lead to improved predictability of environmental changes, more successful innovation, greater degrees of trust among stakeholders, and greater organizational flexibility to reduce the impact of change. b) It is the "right" thing to do, because organizations are dependent on external stakeholders as sources of inputs and outlets for outputs and the interest of these stakeholders should be considered when making and implementing decisions.

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what is organizational culture?

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the shared values, principles, traditions, and ways of doing things that influence the way organizational members act.

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Culture is (3)

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1. perceived 2. descriptive 3. shared

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Culture is perceived. It is ...

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Culture is perceived. It is not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization

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Culture is descriptive. It is ...

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Culture is descriptive. It is concerned with how members perceive or describe the culture, not with whether they like it

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Culture is shared.

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Culture is shared. Even though individuals may have different backgrounds or work at different organization levels, they tend to describe the organization's culture in similar terms

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Organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. *This definition implies:*

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a) Individuals perceive organizational culture based on what they see, hear, or experience within the organization. b) Organizational culture is a descriptive term. It describes, rather than evaluates. c) Organizational culture is shared by individuals within the organization.

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What are the (7) proposed dimensions of an organization's cu;ture

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1) Innovation and risk taking 2) Attention to detail 3) Outcome orientation 4) People orientation 5) Team orientation 6) Aggressiveness 7) Stability

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These seven dimensions (3)

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1. range from low (not typical of the culture) to high (especially typical of the culture) 2. provide a composite picture of the organization's culture 3. May emphasis one cultural dimension more than the others, essentially shaping the organization's personality and they way organizational members work

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Innovation and risk taking

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the degree to which employees are encouraged to be innovative and take risks

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Attention to detail

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the degree to which employees are expected to exhibit precision, analysis, and attention to detail

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Outcome orientation

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the degree to which managers focus on results or outcomes rather than on the techniques and processes used to achieve those outcomes

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People orientation

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the degree to which management decisions take into consideration the effect on people within the organization

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Team orientation

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the degree to which work activities are organized around teams rather than individuals

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Aggressiveness

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the degree to which employees are aggressive and competitive rather than cooperative

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Stability

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the degree to which organizational activities emphasize maintaining the status quo in contrast to growth

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Where does culture come from? (4)

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1. The original source of an organization's culture is usually a reflection of the vision or mission of the organization's founders 2. Founders project an image of what the organization should be what its values are 3. Founders "impose"their vision on employees 4. Organizational members create a shared history or "who we are"

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How do employees learn the culture?

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culture is transmitted principally through stories, material symbols, and language

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Organizational stories

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*Organizational stories* are one way that employees learn the culture. These stories typically involve a narrative of significant events or people.

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Rituals

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*Rituals* are repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, and which people are important or expendable.

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Material symbols and artifacts

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The use of *material symbols and artifacts* is another way in which employees learn the culture, learn the degree of equality desired by top management, discover which employees are most important, and learn the kinds of behavior that are expected and appropriate.

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Language

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*Language* is often used to identify members of a culture. Learning this language indicates members' willingness to accept and preserve the culture. This special lingo acts as a common denominator to unite members of a particular culture.

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An organization's culture is important because it establishes constraints on

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An organization's culture is important because it establishes constraints on *what employees and managers can do*

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Strong cultures are found in organizations where

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Strong cultures are found in organizations where *values are intensely held and widely shared*

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Strong cultures can create ___, ___, and ___ without the need for written document

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Strong cultures can create *predicatability*, *orderliness*, and *consistsency* without the need for written document

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How does culture affect managers? (4)

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1) Constraints from organizational culture are rarely explicit. 2) The link between corporate values and managerial behavior is fairly straightforward. 3) The culture conveys to managers what is appropriate behavior. 4) An organization's culture, particularly a strong one, constrains a manager's decision-making options in all managerial functions (see Exhibit 2-5).

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How does culture affect managers? (2)

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1. effect on what employees do and how they behave 1. effect on what managers do as they plan, organize, lead, and control

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Strong cultures

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cultures in which the key values are deeply held and widely shared. The more employees accept the organization's key values and the greater their commitment to those values, the stronger culture is.

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How does culture affect what employees do?

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the stronger a culture becomes, the more it affects what employees do and the way managers plan, organize, lead, and control.

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Most organizations have moderate to strong cultures; that is, there is a relatively high agreement on (3)

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Most organizations have moderate to strong cultures; that is, there is a relatively high agreement on (1)*what's important* (2) *what defines "good" employee behavior* (3) *what it takes to get ahead* and so forth

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Strong cultures can (2)

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Strong cultures can (1) *substitute for formal rules and regulations* and (2) *create predictability, orderliness, and consistency*

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"ready-fire-aim" culture

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In such a culture, managers take action and then analyze what has been done

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"ready-aim-fire" culture

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in such an organization, managers will study and analyze proposed projects endlessly before committing to them

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If an organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings. managers are unlikely to

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If an organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings. managers are unlikely to *pursue programs that are innovative, risky, long term or expansionary*

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In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an ___ leadership style than a ___ one.

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In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an *authoritarian* leadership style than a *democratic* one.

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the culture establishes ___ and ___ for managers

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the culture establishes *appropriate* and *expected behavior* for managers

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A manager's decisions are influenced by the ___ in which he or she operates.

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A manager's decisions are influenced by the *culture* in which he or she operates.

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An organization's culture, especially a strong one, ___s and ___s the way managers ___ (4).

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An organization's culture, especially a strong one, *influences* and *constrains* the way managers *plan, organize, lead, and control.*

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Cultural influences managerial *planning* in what (3) ways

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*Cultural influences managerial planning in:* 1. the degree of right that plans should contain 2. whether plans should be developed by individuals or teams 3. the amount/degree of environmental scanning in which management will engage

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With *organizing* activities, culture influences (3)

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*With managerial organizing activities, culture influences:* 1. how much autonomy should be designed into employees' jobs 2. whether tasks should be done by individuals or in teams 3. the degree to which department managers interact with each other

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When it comes to *leading*, ___ culture helps determine

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*When it comes to leading, organization culture helps determine:* 1. the degree to which managers try to increase employee job satisfaction 2. appropriate leadership styles 3. whether all disagreements—even constructive ones—should be eliminated.

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Finally, the culture influences managers' *controlling* activities:

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*Finally, the culture influences managers' controlling activities:* 1. whether they impose external controls or to allow employees to control their own actions 2. which criteria should be emphasized in employee performance evaluations 3. the repercussions occur from exceeding one's budget.

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1 Explain what the external environment is and why it's important.

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The external environment refers to factors, forces, situations, and events outside the organization that affects its performance. It includes economic, demographic, political/legal, sociocultural, technological, and global components. The external environment is important because it poses constraints and challenges to managers.

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2 Discuss how the external environment affects managers.

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There are three ways that the external environment affects managers: its impact on jobs and employment, the amount of environmental uncertainty, and the nature of stakeholder relationships.

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3 Define what organizational culture is and explain why it's important.

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Organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. It's important because of the impact it has on decisions, behaviors, and actions of organizational employees.

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4 Describe how organizational culture affects managers.

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Organizational culture affects managers in two ways: through its effect on what employees do and how they behave, and through its effect on what managers do as they plan, organize, lead, and control.

Chapter 2 – the management environment (O) – Flashcards

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